Change in Tax Power-of-Attorney Rules

First off, if you already have a power of attorney (Form 2848) filed with the IRS that designated your tax representative to discuss your tax matters with the IRS, this DOES NOT apply to you. 

However, as of March 1st of 2013, any new power-of-attorneys for tax matters require separate IRS Form 2848s for each individual.  Prior to that couples could complete one form for them both.  In other words, one for the joint return.  Now each individual will need to complete the form and have it sent into the IRS for the preparer of record to be able to discuss the return with the IRS. 

So if you’d like your preparer to be able to handle some of those difficult, long conversations with IRS when you have a tax problem, without you having to go into the office each time and wait while the preparer sits on hold, ask about signing Form 2848.  Let your preparer handle those long phone calls.  That’s what you pay for after all!

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2 thoughts on “Change in Tax Power-of-Attorney Rules

  1. No argument there. However, Form 2848, which is the IRS power of attorney, is strictly for tax matters. It also is something that should be “carefully thought out”, but can easily be revoked by filling a new form. In addition, the form indicates if the tax power of attorney covers only a specific tax year, or multiple tax years. It’s at the client’s discretion always. Generally it’s used so that the CPA, EA, or preparer receives copies of IRS notices sent to the client, and can discuss the tax return(s) with the IRS on the client’s behalf, without having the client present in the office.

  2. A power of attorney is a powerful legal instrument that allows agent to perform legal acts on behalf of another person that’s called principal, such as signing checks or selling a car. Since this document is so powerful and because it can be difficult to effectively revoke in some cases, it is important that its content be carefully thought out and that the document itself be drafted with care.

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