Income Tax Power of Attorney
Need Power of Attorney representation for an Federal income tax matter? This page will give you an idea of what necessary forms you must file, and an overview of IRS rules of how and when to use a Power of Attorney when filing your income taxes and dealing with Federal tax matters.
In order to qualify someone to represent you to the IRS for any Federal tax matter, the person you select must be authorized to practice before the IRS. Form 2848, Power of Attorney and Declaration of Representative, must be filed with the IRS office where you would like your representative to act. Your signature on this form allows your representative to receive your tax information.
Practice Before the IRS
Preparing a tax return or appearing as a witness for a taxpayer can be performed by anyone. 'Practice Before the IRS' relates specifically to communicating with the IRS regarding rights, privileges or liabilities of the taxpayer, representation of the taxpayer at hearings or meetings, and/or filing documents and correspondence on the taxpayer's behalf. Attorneys, CPAs, Enrolled Agents or Enrolled Actuaries can be selected by you to represent you as Power of Attorney. You may also select an unenrolled return preparer to represent you before customer service agents, revenue agents or examination officers with respect to an income tax return that he or she has prepared. Keep in mind that an unenrolled return preparer has very limited rights with respect to Power of Attorney. Certain other individuals like family, officers, partners, employees or fiduciaries also may qualify to represent you before the IRS.
Power of Attorney
A power of attorney is a written document that assigns power over a certain matter to the qualified representative which you select; in this case power over any matter regarding income tax matters. In the case of unlimited authorization, your power of attorney can perform any actions regarding your income tax that you, yourself, would be able to perform, including signature on your income tax forms provided you have authorized this is the signed power of attorney document.
Form 2848
Form 2848, Power of Attorney and Declaration of Representative, must be completed, signed and filed with the IRS office where you would like power of attorney. Form 2848 requires completion of taxpayer information, individual representatives and explanation of tax matters involved. EIN applications, corporate dissolutions, claims for refund and request for abatement, requests for technical advice, private letter ruling, or change of accounting method or period require additional information on Form 2848. Click this link for more specific information.
Sometimes a Power of Attorney is Not Required
There are certain situations when a power of attorney is not required when dealing with income tax and the IRS. Simply providing requested information to, or receiving tax information from the IRS on someone else's behalf does not require a power of attorney. As long as an individual does not need representation, Form 8821 can be filed as a disclosure authorization form.
Other Actions that Do Not Require a Power of Attorney
If you would like to allow an employee, income tax return preparer, friend, family member, or other third party to discuss your income tax return with the IRS, you only need to check the YES box under Third Party Designee on your return and enter the third party's information. If you paid a preparer to complete your return, and you would like all questions directed from the IRS to the paid preparer, enter 'Preparer' in the space for the designee's name. This process gives permission to the third party to exchange information with the IRS concerning your income tax return, call the IRS about the processing or status of refunds or payments, request and receive correspondence concerning your return, and make responses to certain IRS notices.
Fiduciary
If you are a fiduciary, or trustee, executor, administrator, receiver or guardian, this deems you to be the taxpayer. In this case, you are not required to fill out Form 2848 for filing of a power of attorney. As a fiduciary, however, you should fill out Form 56, Notice Concerning Fiduciary Relationship. A power of attorney must be filled out if you, as the fiduciary, wish to delegate certain acts on your own behalf.
Power of Attorney Responsibilities
The person you select as your power of attorney must follow any guidelines required by the IRS. If the IRS deems your power of attorney to be interfering or otherwise delaying the process of contact, appointments, requests or required items, the IRS will bypass your power attorney and contact you directly.
Click this link to read additional information regarding income tax power of attorney.