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MFJ Spouse Declared Incompetent

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    MFJ Spouse Declared Incompetent

    My elderly customers have been filing jointly for the 16 years they have been married. Each had been previously widowed.
    They had entered into a marital property agreement (pre-nup) before they were married. This is my 4th year of preparing their returns.
    The wife told me today that the husband is now in a veterans nursing home and is expected to remain there for the duration.
    She also told me that the husband had recently been declared mentally incompetent and that his daughter is going to be handling, or at
    least be involved in, his financial affairs under authority of a durable power of attorney for financial matters, that he had granted previously.
    It is my understanding that an IRS P/O/A must be on file to allow the daughter to sign the return for dad - but he can no longer provide such authorization.
    The wife was a little unsure about the procedures of or who made the declaration of incompetency - she just said he has been declared incompetent.
    If he is now a mentally incompetent person, who would sign the return.
    Thanks for comments.



    #2
    See section "Non-IRS powers of attorney." in Pub 947. There was also a recent IRS news release on this topic, I'll try to find it and post a link (but it was essentially the same information as the pub).
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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      #3
      "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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