POA with non-specific wording

[lenboush]

I have a 99 year old client who daughter-in-law has been coming in with him for years at tax time. They have a POA doc that does NOT have specific wording allowing her to sign tax returns. He has dementia and she does not feel he can even sign an "X" on the docs.

My understanding is that the POA doc MUST have the specific wording allowing the POA to sign tax docs. When e don't have that, the only other option is for the clients to sign as well as possible even if it's only an "X" in front of two witnesses. Since she doesn't feel he can doe that, what other options are available?

Note that the POA doc DOES authorize all business transactions but does NOT mention taxes.

Any thoughts are appreciated! THANKS!

[New York Enrolled Agent]

See if Reg. 1.6012-1(a)(5) is of any help.

[TAX4US]

I wonder if the use of DOC U Sign would work?

[Rapid Robert]

Pub 947 should answer all your questions. It not only summarizes the rules under the Reg. section cited by NYEA, but also explains that a Form 2848 is required for the POA to be entered into the CAF system.

I wonder how may tax pros incorrectly believe that ability to sign a tax return for another is allowed simply because there is a POA of some kind authorizing a representative. Signing a return is beyond the normal powers of a representative and is only allowed under very limited circumstances.

From the Pub. key points underlined:


If you want to use a document other than Form 2848 to authorize the representation, it must contain the following information.

Your name and mailing address.
Your social security number (or your individual tax-payer identification number (ITIN)) and/or employer identification number.
Your employee plan number, if applicable.
The name and mailing address of your representa-tive(s).
The types of tax involved.
The federal tax form number.
The specific year(s) or period(s) involved.
For estate tax matters, the decedent's date of death.
A clear expression of your intention concerning the scope of authority granted to your representative(s).
Your signature and date.

You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. The statement should read:

1. I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority,
2. I am subject to regulations contained in Circular 230 (31 C.F.R., Subtitle A, Part 10) as amended, govern-ing practice before the Internal Revenue Service,
3. I am authorized to represent the taxpayer(s) identified in the power of attorney, and
4. I am a (naming the capacity in which representation is undertaken, as set forth in the list of eligible represen-tatives at Part II of Form 2848.)

Required information missing. The IRS will not ac-cept your non-IRS power of attorney if it does not contain all the information listed above. You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. If you cannot sign an ac-ceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure descri-bed next.