signing a tax return

[RWG1950]

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

[Rapid Robert]

"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."

[taxea]

"A" should file a F56 with the copy of the DPOA. This will allow her to sign tax returns.

[TAXNJ]

What is....

"A" should file a F56 with the copy of the DPOA. This will allow her to sign tax returns.

What is an F56?

[Skate1968]

form 56

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

https://www.irs.gov/pub/irs-pdf/f56.pdf

[taxea]

What is an F56?

It's the form that tells the IRS who is responsible for filing returns for incapacited or deceased

[Rapid Robert]

"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."

[Rapid Robert]

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.

[TAXNJ]

Agree

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

[taxea]

Doesn't the DPOA do that?