IRS Form 2678 – Employer/Payer Appointment of Agent

IRS Form 2678 – IRS Form 2678, officially titled Employer/Payer Appointment of Agent, allows employers or payers to request IRS approval for a third-party Section 3504 agent to handle filing employment tax returns, making deposits, and paying taxes on their behalf. It also revokes existing appointments. The latest version (Rev. December 2024, OMB No. 1545-0029) is the only accepted form; all prior versions are obsolete.

Download the current form and instructions:

Why Use Form 2678? (Common Use Cases)?

Employers and payers use this form primarily when a third party (such as a fiscal/employer agent, household employer agent, home care program administrator, or certain service providers) controls payments of wages and handles tax responsibilities.

It creates a Section 3504 agent under IRC § 3504 and Treas. Reg. § 31.3504-1. The agent:

  • Files aggregate returns (one Form 941, 940, etc., per period) using the agent’s EIN (not the employer’s).
  • Attaches Schedule R (Allocation Schedule) to allocate wages/taxes among employers.
  • Uses the agent’s EIN on W-2s furnished to employees (with special rules if Social Security wage base is exceeded across employers).

Common users:

  • Home care / fiscal employer agents for participants in state/federal home care programs (most frequent use).
  • Certain household employers.
  • Payers who pay wages for multiple employers.

Not the same as:

  • Form 8655 (Reporting Agent Authorization) → files separate returns using each client’s EIN.
  • CPEO (Certified Professional Employer Organization) → uses Form 8973.

Who Can Appoint an Agent for FUTA Tax (Form 940)?

Generally no — agents cannot handle FUTA.
Exception: Home care service recipients (individuals receiving services through a government-administered program) may appoint an agent for FUTA only if the agent is also appointed for FICA taxes and income tax withholding. The agent then files aggregate Form 940 with Schedule R. Businesses cannot claim this exception.

Step-by-Step: How to Fill Out Form 2678

For Appointment (new agent):

  1. Part 1 — Check “You want to appoint an agent…”
  2. Part 2 (Employer/Payer) — Enter EIN (line 1), legal name (line 2), trade name (line 3), full address (line 4).
  3. Line 5 — Check all applicable forms (940 series, 941 series, 943, 944, 945, CT-1, CT-2). Indicate “ALL” or “SOME” employees/payees/payments. If “SOME,” describe clearly.
  4. Check the home care/FUTA box only if applicable (and you are an individual home care recipient).
  5. Sign and date Part 2 (authorization for IRS disclosures included). Give to agent.
  6. Part 3 (Agent) — Enter agent’s EIN (line 6), name, trade name, address. Agent signs under penalties of perjury.

For Revocation:

  • Check revocation box in Part 1.
  • Complete Parts 2 and 3 with details.
  • Only one signature required (employer/payer preferred).

Where to Mail Form 2678 (Corrected Addresses)?

Mail based on the employer/payer’s principal place of business, office, or agency:

Kansas City, MO 64999

  • CT, DE, DC, FL, GA, IL, IN, KY, ME, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, VT, VA, WV, WI

Ogden, UT 84201

  • All other states (AL, AK, AZ, AR, CA, CO, HI, ID, IA, KS, LA, MN, MS, MO, MT, NE, NV, NM, ND, OK, OR, SD, TN, TX, UT, WA, WY)
  • No legal residence/principal place in any state

Ogden, UT 84201-0046 (special)

  • If filing Form 941 for an exempt organization or government entity

Processing typically takes about 30 days. The IRS sends an approval (or confirmation) letter; the appointment is effective only on the date shown in the letter.

Key Liabilities & Responsibilities

  • Joint and several liability — The employer/payer and the agent remain fully liable for all returns, deposits, and payments.
  • Agent may subcontract (e.g., to a CPA or reporting agent), but all parties remain liable if the subcontractor fails.
  • Employer/payer stays responsible even after appointment.

Revocation

Complete all parts (one signature sufficient). IRS confirmation letter issued; disclosure of confidential info to the former agent stops after the revocation date.

Common Mistakes to Avoid

  • Using old form versions (pre-Dec 2024) → rejected.
  • Incorrect mailing address → delays.
  • Checking FUTA/home care box when the employer is a business → rejected.
  • Failing to specify “ALL” vs. “SOME” employees accurately.
  • Not attaching Schedule R when required on aggregate returns.

Frequently Asked Questions (FAQs)

How long does approval take? → Approximately 30 days from IRS receipt.
Can I appoint an agent only for some forms? → Yes — check specific forms on line 5.
Is Form 2678 required for CPEOs? → No — CPEOs use Form 8973.
Do home care fiscal agents need this? → Yes, in most cases.

Always verify the latest form and instructions at IRS.gov/Form2678, as mailing addresses or rules can be updated.

This guide is based on the official IRS Form 2678 (Rev. December 2024) and Instructions for Form 2678 (12/2024). For personalized advice, consult a tax professional or the IRS.