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    signing a tax return

    My customers are two elderly sisters that live and own a house together. Sister "A" recently suffered a stroke and now resides in a nursing home. Sister "B" has been conducting "A" 's financial business under a durable financial power of attorney - though no such document is on file with either IRA or STATE.

    "B" tells me that "A" can no longer sign her name but is aware, understands and can put an "X" on a line.

    What is needed to be able to file "A" 's 2017 returns ?

    Thanks for comments

    #2
    Originally posted by RWG1950 View Post
    "B" tells me that "A" can no longer sign her name but is aware, understands and can put an "X" on a line.
    Easy to find the answer in Pub 17.

    "Unable to sign. If the taxpayer is mentally
    competent but physically unable to sign the return
    or POA, a valid “signature” is defined under
    state law. It can be anything that clearly indicates
    the taxpayer's intent to sign. For example,
    the taxpayer's “X” with the signatures of two witnesses
    might be considered a valid signature
    under a state's law."
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

    Comment


      #3
      "A" should file a F56 with the copy of the DPOA. This will allow her to sign tax returns.
      Believe nothing you have not personally researched and verified.

      Comment


        #4
        What is....

        Originally posted by taxea View Post
        "A" should file a F56 with the copy of the DPOA. This will allow her to sign tax returns.
        What is an F56?
        Always cite your source for support to defend your opinion

        Comment


          #5
          form 56

          I'm thinking by "F56" he meant this irs form 56

          Comment


            #6
            Originally posted by TAXNJ View Post
            What is an F56?
            It's the form that tells the IRS who is responsible for filing returns for incapacited or deceased
            Believe nothing you have not personally researched and verified.

            Comment


              #7
              Originally posted by taxea View Post
              "A" should file a F56 with the copy of the DPOA. This will allow her to sign tax returns.
              "A" does not need to file anything in order to sign her own tax returns.

              Even advising "B" to file Form 56, if that is what was meant, is not very good advice, even if possible. Form 56 establishes a fiduciary relationship, which entails all the responsibilities as well as rights, such as actually paying taxes. To fill out Form 56, one has to provide the appropriate legal authority in Section A Line 1 of the form. What authority does "B" have? "You must be prepared to furnish evidence that substantiates your authority to act as a fiduciary."

              "Examples of fiduciaries include administrators, conservators, designees, executors, guardians, receivers, trustees of a trust, trustees in bankruptcy, personal representatives, persons in possession of property of a decedent’s estate, or debtors-in-possession of assets in any bankruptcy proceeding by order of the court."
              "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

              Comment


                #8
                There is a method using Form 2848 where, under very specific circumstances, a representative can be granted authority to sign a tax return on behalf of the taxpayer. Perhaps "A" should consider filing this form to create an IRS power of attorney. The form instructions contain the details.
                "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

                Comment


                  #9
                  Agree

                  Originally posted by Rapid Robert View Post
                  There is a method using Form 2848 where, under very specific circumstances, a representative can be granted authority to sign a tax return on behalf of the taxpayer. Perhaps "A" should consider filing this form to create an IRS power of attorney. The form instructions contain the details.
                  .....well said
                  Always cite your source for support to defend your opinion

                  Comment


                    #10
                    Doesn't the DPOA do that?
                    Believe nothing you have not personally researched and verified.

                    Comment

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