IRS Postpones Shutdown of Disclosure Authorization and Electronic Account Resolution e-Services Apps


IRS E-Services



The Internal Revenue Service announced Friday, August 9, 2013, that it is


delaying the planned retirement of its Disclosure Authorization and Electronic Account Resolution online applications


for three weeks.



The planned retirement on August 11, 2013 has been delayed until September 2 while the IRS completes the transition to their new web portal.


The recent announcement of the plan to shut down the Disclosure Authorization and Electronic Account Resolution e-Services apps provoked uproar in the tax practitioner community, along with efforts by a number of accounting and tax preparer groups to convince the IRS to keep them open.



In an email to tax professionals, the IRS stated that the closure of the applications has been delayed, but only temporarily. “The planned retirement of Disclosure Authorization and Electronic Account Resolution on Aug. 11 has been delayed until Sept. 2 while IRS completes the transition to a new web portal. DA and EAR users have an additional three weeks to use both electronic products. Once the portal transition work is complete, DA and EAR will then be


retired


as


previously planned and will be unavailable for use.”


The IRS’s contract with its previous portal provider has reportedly lapsed and, in a cost-cutting move, it dispensed with some of the applications the old portal hosted while transitioning to what it expects to be a more secure portal. The IRS also claimed that the two applications that are being retired, Disclosure Authorization and Electronic Account Resolution, suffered from comparatively low usage, with users submitting less than 10 percent of all disclosure authorizations through the DA application and only 3 percent of all account-related issues through the EAR application.



Once the IRS removes the two applications, the IRS said that former Disclosure Authorization users will need to complete




Form 2848




, Power of Attorney and Declaration of Representative, or




Form 8821




, Tax Information Authorizations, and mail or fax it to the appropriate IRS location listed on the form’s instructions. The IRS has said to allow at least four days for the authorization to post to the IRS database before requesting a transcript through the Transcript Delivery System. Former users of the Electronic Account Resolution application should call the Practitioner Priority Service at (866) 860-4259 for help resolving account-related issues.