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IRS P/O/A for senior taxpayer

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    #1

    IRS P/O/A for senior taxpayer

    My taxpayer is of advanced age and now resides in a memory care facility.
    Although she still has brief periods of lucidity, she is slipping way & likely will not be able to sign her 8879 in the near future.
    Her son has handled her financial matters under a durable P/O/A created years ago but as I understand it,
    IRS doesn't recognize this doc without certain specific language contained in it.
    Is it just the form 2848 needed to create IRS P/O/A authority for the son? No other forms or attachments needed?
    Thanks for comments.
    Tags: None
    #2
    See "Processing a non-IRS power of attorney" in Pub 947.
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
    "That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard    ​

    Comment

      #3
      If son has Durable Power of Attorney, just make a copy for your records and he can sign 8879.

      If he wants to discuss her situation with IRS, then he will need to send DPA with 2848.

      Comment

        #4
        Originally posted by kathyc2 View Post
        just make a copy for your records and he can sign 8879.
        Sure, you can get away with that. Or, if you want to do it correctly, follow the IRS instructions referenced above, in particular Form 2848 Line 5a needs to be filled with the checkbox for "Sign a return" checked.
        "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
        "That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard        ​

        Comment

          #5
          Originally posted by Rapid Robert View Post
          Sure, you can get away with that. Or, if you want to do it correctly, follow the IRS instructions referenced above, in particular Form 2848 Line 5a needs to be filled with the checkbox for "Sign a return" checked.
          You are mistaken.

          DPOA is for virtually all matters authorizing named person to step in and sign anything as it they were the person. Very likely there is a specific paragraph in it authorizing signing tax return and authority to authorize someone else (preparer) via a 2848.

          2848 is a limited POA only used for IRS matters. It is only good for 3 future years.

          Comment

            #6
            Originally posted by kathyc2 View Post
            You are mistaken.
            I was quoting instructions from the Pub referenced in post #2, so you are actually saying that Pub 947 is wrong.

            Edit: I should also reference instructions for Form 2848 "Authority to sign your return".
            Last edited by Rapid Robert; Today, 11:31 AM.
            "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
            "That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard            ​

            Comment

              #7
              Seems to me RR is correct in that a DPOW will not have the same specific language required by IRS.
              Most of the DPOW's I have seen simply say the attorney in fact has the power to act on tax matters and sign for the grantor.
              In the 2848 instructions it seems IRS wants specific forms identified (i.e. 1040) and specific tax years named.

              Comment

                #8
                I think that Pub 947 has some contradictory and unclear guidance. But I think this (from page 8) supports Kathy's position:
                When Is a Power of Attorney Required?
                Submit a power of attorney when you want to authorize an individual to receive your confidential tax information and represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney.
                A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf.
                1. Represent you at a meeting with the IRS.
                2. Prepare and file a written response to an IRS inquiry.

                Also, we can hardly debate what language may or may not be in RWG's client's specific POA without reading the document. If you wanted to cover all the bases and the document specifically meets the criteria listed on page 8 column 2 then I don't see a problem having the DPOA holder submit a 2848. It may take time for it to be processed so I see it as a proactive step to put in place in case it's needed to interact with the IRS in the near future.

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