IRS Extends Time for Taxpayers to Authorize Third-Party Designees

IRS proposes to extend the period within which a signed and dated authorization to disclose returns or return information to third-party designees must be received by IRS for it to be effective. The proposed rules (REG-153338-09) would extend from 60 to 120 days the period within which a signed and dated authorization must be received by IRS or an agent of IRS. The service says many taxpayers want to share their information with financial service providers, and some of those institutions are having trouble getting written authorizations and submitting them to IRS within the 60 days allowed under existing rules. Therefore, the agency says it is trying to reduce the burden.