Very recently, we have been receiving countless emails asking about IRS code 960.
If you have the same tax code on your 2022 or 2023 IRS transcript, then we have this guide to help you explain almost everything you need to know about code 960, which indicates an appointed representative or Power of Attorney.
Without much delay, let us begin.
But before then, take note of this;
We do not work for the Internal Revenue Service nor do we have any association with them.
Also, we are not tax experts and do not pretend to be one.
All information in this guide is solely for educational purposes only.
We strongly believe the information we have gathered about the IRS code 960 will help many people understand the transaction code on their 2022 or 2023 tax transcript.
With that out of the way, let us continue.
Recommended guide: Internal Revenue Service TC 599.
If you want to understand the tax transcript better, please watch the video below:
Table of Contents
What Does IRS Code 960 Mean On Tax Transcript?
Here is the simplified meaning of the tax code on your 2023 tax transcript:
The IRS Tax Transaction Code 960 only means that Form 2848, Declaration of Representative, and Power of Attorney were processed by the Centralized Authorization File (CAF) unit.
Please take a closer look at the screenshot above, you will see that, there is Appointed Representative against the transaction code 960 on the transcript. That is the actual meaning of the TC code 960.
See also: Tax Transaction Code 971.
Meaning Of TC 960 According To The Internal Revenue Service Reference Guide
Based on the summary guide, here is the meaning of IRS code 960:
Add/Update Centralized Authorization File Indicator Reporting Agents File.
Check also: Meaning Of TC 766 On Tax Transcript.
What Is The Definition Of The Tax Code According To The IRS Master File Codes
Adds/updates Centralized Authorization File indicator to the module. Causes notice and/or refund to be sent to an authorized representative. Also can be generated when a TC 150 or 620 (BMF) with a significant CAF code posts and an unreversed TC 960 is not already posted. Also posts to the entity and sets the RAF-Filing and EFTPS Indicators.
That is the meaning of code 960 on your tax transcript.
In short, it means Appointed Representative.
The above explanation of the IRS tax transaction code 960 may not be so clear for many people to understand.
Because of that, we have made it simple for you to understand.
Read also: Tax Code 806 Explained.
How Is Code 960 Reversed On 2023 IRS Tax Transcript – Appointed Representative?
When tax transaction code 960 is reversed on your IRS transcript, you will receive code 961 in the subsequent report.
That is one of the surest ways to know if tax code 960 has been reversed on your transcript.
Alternatively, you can call the Internal Revenue Service representative and ask about the Centralized Authorization File Indicator status on your tax transcript.
For further clarifications, please contact the IRS on phone 800-829-1040 (Individuals) and 800-829-4933 (Businesses) from 7 am to 7 pm local time.
Related article: Meaning Of Tax Transaction Code 570.
What Happens If I Appointed A Representative And Received TC 960 On Tax Transcript?
In most cases, not much is expected from your side.
It is OK to declare a power of attorney or a representative.
However, IRS examiners or reviewers have to make due diligence with their work.
This includes but not limited to the following:
Examiners must check for the posting of a tax Transaction Code 960 to verify that the Power Of Attorney was accepted and processed by the Centralized Authorization File unit.
Also, examiners should allow several weeks for the processing of the TC 960 to post to IDRS.
Note: If the IRS examiner receives a faxed or true copy of Form 2848 that is somehow difficult to read due to the size or quality of the print.
The examiner must ask the taxpayer or representative to send a clear copy to the IRS CAF unit to make sure the original form is readable and able to be processed.
IRS Code 960 will be present on a transcript of the account if a POA is on file for the tax period requested.
Once again, a tax Transaction Code 960 indicates a Form 2848, Power of Attorney (POA), and Declaration of Representative, was indeed processed by the CAF unit.