What is irs power of attorney
- By Manny Davis
- Published 04/17/2010
- Finances
- Unrated
What is irs power of attorney
Do you know anything about IRS power of attorney? Do you think this is something you are going to need in the near future? There are some details of IRS power of attorney that you may be aware of, as well as others that are not talked about nearly as much. Even if you never have to go through this process, it would be in your best interest to know a thing or two about IRS power of attorney.
When you grant somebody power of attorney you are giving them authorization to act on your behalf in tax matter. In order for this to be granted by the IRS, written authorization must be given and the person has to be qualified to practice before them.
The following are acts that a representative can usually perform:
1. Represent you before the IRS in any office throughout the country.
2. Record the interview.
3. Sign a closing agreement.
4. Receive a refund check – they cannot endorse a payment, though.
It should also be noted that a representative is not permitted to sign a personal tax return unless the following details are met:
1. The signature is permitted as outlined in the IRS tax code.
2. It is specifically noted in your IRS power of attorney.
Are you still confused about the details of IRS power of attorney and what it means to you, the taxpayer? In this case, you should turn to your tax professional for help. Generally speaking, if you need to grant somebody power of attorney you will know why you are doing this and how you are going to benefit. Obviously, you don’t want to grant IRS power of attorney to somebody unless you know what they are going to do for you and that they can be trusted.
You cannot just appoint anyone as power of attorney, the person must a qualified to represent people before the IRS. People that can be an IRS power of attorney are CPAs, Tax Attorneys, enrolled agents, student attorneys and unenrolled return preparers.
In order to authorize someone to act as an IRS power of attorney you will have to file IRS form 2848 with the IRS. By signing this form and designating a person as power of attorney it will allow that person to represent you before the IRS and receive your confidential tax documents and information. Once this form is completed it must be faxed, mailed, or filed electronically with the IRS. Processing may take a few weeks so if you need immediate representation, you must make sure your power of attorney takes a copy of the form with them to any meetings with the IRS before the form gets processed.
Now that you know more about IRS power of attorney and what a representative can do, you can decide in the future if this is something that can benefit you. Hopefully you never have to grant power of attorney to a representative, but if you do you now know what you are getting involved with.
When you grant somebody power of attorney you are giving them authorization to act on your behalf in tax matter. In order for this to be granted by the IRS, written authorization must be given and the person has to be qualified to practice before them.
The following are acts that a representative can usually perform:
1. Represent you before the IRS in any office throughout the country.
2. Record the interview.
3. Sign a closing agreement.
4. Receive a refund check – they cannot endorse a payment, though.
It should also be noted that a representative is not permitted to sign a personal tax return unless the following details are met:
1. The signature is permitted as outlined in the IRS tax code.
2. It is specifically noted in your IRS power of attorney.
Are you still confused about the details of IRS power of attorney and what it means to you, the taxpayer? In this case, you should turn to your tax professional for help. Generally speaking, if you need to grant somebody power of attorney you will know why you are doing this and how you are going to benefit. Obviously, you don’t want to grant IRS power of attorney to somebody unless you know what they are going to do for you and that they can be trusted.
You cannot just appoint anyone as power of attorney, the person must a qualified to represent people before the IRS. People that can be an IRS power of attorney are CPAs, Tax Attorneys, enrolled agents, student attorneys and unenrolled return preparers.
In order to authorize someone to act as an IRS power of attorney you will have to file IRS form 2848 with the IRS. By signing this form and designating a person as power of attorney it will allow that person to represent you before the IRS and receive your confidential tax documents and information. Once this form is completed it must be faxed, mailed, or filed electronically with the IRS. Processing may take a few weeks so if you need immediate representation, you must make sure your power of attorney takes a copy of the form with them to any meetings with the IRS before the form gets processed.
Now that you know more about IRS power of attorney and what a representative can do, you can decide in the future if this is something that can benefit you. Hopefully you never have to grant power of attorney to a representative, but if you do you now know what you are getting involved with.
Manny Davis
Need a tax power of attorney? Let us help. We can represent you before the IRS.
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