What is a Third Party Designee & Locations

Third Party Designee


Third Party Designee, or “checkbox” authorization, can allow the IRS to discuss a taxpayers return information with a third party (ERO) by completing the Third Party Designee section of a tax return. The original intent is to allow the IRS and tax professionals to share information to expedite return processing, and reduce the amount of notices related to return processing. 

The Third Party Designee authority means the ERO can discuss ONLY the processing of the taxpayers return, limited to the specific tax form and period of the return. This authority will expire one year from the due date of the return regardless of any extension dates.
 
Privileges vary slightly by return, but generally, Third Party Designees may:

  • provide the IRS with information missing from the return.
  • call the IRS for information about return processing or the status of refunds and payments.
  • request transcripts or copies of notices related to the return.
  • respond to some notices related to matters, such as math errors and return-processing delays.

You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authorization, see Pub. 947.
This is not to be confused with other tax authorizations that grant more authority, such as Tax Information Authorization Form 8821 or Power of Attorney & Declaration of Representative Form 2848. These are used when the taxpayer faces more complex post-filing issues. 

Location within the 1040 return

 

Setting up Defaults to require the 3rd Party Designee data to be sent to the IRS.

 

Location for Paid Preparer Default 3rd Party Pin

 

Other Documents pertaining to 3rd Party Pin

Topic No. 312 Disclosure Authorizations > https://www.irs.gov/taxtopics/tc312

Power of Attorney and Other Authorizations > IRS Link

Other Third Party Authorization > https://www.irs.gov/businesses/small-businesses-self-employed/other-third-party-authorization