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X12 transaction guide · Government and regulatory

EDI 157 Notice of Power of Attorney

The bi-directional X12 document used to notify entities of a power of attorney and its scope, or to revoke one.

Sent by
Taxpayer, representative or agency
Received by
Agency or representative
Standard
ANSI ASC X12

What is an EDI 157?

The EDI 157 Notice of Power of Attorney is the bi-directional ANSI X12 transaction set used to notify entities of the existence of a power of attorney and to provide information about its applicability. It may also be used to revoke a power of attorney.

Tax authorities and other agencies only discuss a taxpayer's affairs with authorized representatives. Notifying authorizations electronically lets accountants and attorneys act for clients as soon as the authorization is recorded, and lets agencies check authority before releasing information.

How the EDI 157 worksDiagram of the EDI 157 Notice of Power of Attorney. Taxpayer, representative or agency sends it to agency or representative. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required HL loop with HL (Hierarchical Level) and the required NM1 loop with NM1 (Individual or Organizational Name) and the required SPY loop with SPY (Scope of Power of Attorney). 1 optional loops are listed by their first segment.How the EDI 157 worksNotice of Power of Attorney: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 157SENDERTaxpayer,representative oragencyRECEIVERAgency orrepresentative997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code NPGS … GETransaction set 157ST … SEHEADINGBGNBeginning Segment+ 1 optional loop, starting with:N1DETAILRequired loop HL · repeats many timesHLHierarchical LevelRequired loop NM1 · repeats many timesNM1Individual or Organizational NameRequired loop SPY · repeats many timesSPYScope of Power of AttorneyBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 157. Your trading partner's implementation guide adds its own requirements.
How the EDI 157 worksDiagram of the EDI 157 Notice of Power of Attorney. Taxpayer, representative or agency sends it to agency or representative. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required HL loop with HL (Hierarchical Level) and the required NM1 loop with NM1 (Individual or Organizational Name) and the required SPY loop with SPY (Scope of Power of Attorney). 1 optional loops are listed by their first segment.How the EDI 157 worksNotice of Power of Attorney: who sends it,where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 157SENDERTaxpayer,representativeor agencyRECEIVERAgency orrepresentative997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code NP (GS … GE)Transaction set 157 (ST … SE)HEADINGBGNBeginning Segment+ 1 optional loop, starting with:N1DETAILRequired loop HL · repeats manytimesHLHierarchical LevelRequired loop NM1 · repeatsmany timesNM1Individual orOrganizational NameRequired loop SPY ·repeats many timesSPYScope of Power ofAttorneyBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 157. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 157, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 157 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Registering a representative's authority with an agency
  • Defining the taxes and periods covered
  • Revoking a power of attorney

Where it fits in the document flow

This document 157 Notice of Power of Attorney
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 157 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • HL
  • NM1
  • SPY
  • SE

Practical example

The 157 in practice

A company appoints an accounting firm to handle a sales tax audit. The firm sends the revenue department a 157 with the taxpayer, the representatives, the tax types and periods covered. The department records the authorization, and its auditors can deal directly with the firm.

Implementation

Implementation considerations for the 157

  • Define the scope of authority precisely.
  • Revoke authorizations when engagements end.
  • Verify the credentials of each representative.
  • Keep authorization records available for audit.

How ECOM helps

Automate the 157 with ECOM

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

More general questions about EDI are answered in the EDI FAQ.

Related transactions

Related government and regulatory documents

All 29 government and regulatory documents

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