Tax Expert needed: Question, and am getting conflicting information.

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AlvaDeer Asked October 2019

Tax Expert needed: Question, and am getting conflicting information.

I am POA/Trustee of Trust for my brother. At present he is perfectly capable of signing his tax form after his preparer does them; that may change in the future.
I am getting conflicting info from what I read on IRS site and what his CPA tells me.
The CPA tells me that I will be able to sign his tax form for him without doing form 2848 (the IRS special POA form), which my brother signs to allow me to sign for him. The CPA says that my POA is so complete that I could "sell the fillings out of his teeth" so to speak.
But when I read the POA stuff on the IRS site it says they do not accept POA and you MUST do the form 2848.
Just trying to think ahead. Anyone know for certain or does this warrant a call to the IRS?

Elder Law Power of Attorney (POA) Taxes

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score 0 · Answer 1

I am in Canada and I know our rules are different. But in our case, my brother had to send a copy of the POA document to CRA (our Tax Dept) and then he filled out the CRA's form on Dad's behalf.

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score 1 · Answer 2

Form 2848 is gold standard. Lots of the time it depends on who/if reviews your filing and whether it’s durable. Depends on how POA is written and powers granted or restricted. And whether the reviewer is a stickler. E-filing is often not reviewed. If you can do 2848 while competent, it’s best.
by the way, as. Trustee of trust you are typically a person who has authority to sign the Trust tax return without POA. Trustee for certain activities trumps POA.

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score 1 · Answer 3

I have experienced this, no issues with the IRS.

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You signed as POA, DollyMe? Thank you very much. I guess that is worth the try, and have the signed form ready in case a letter comes back. With a Social Security of less than 900.00 a month and only his interest (we know what that it these days) as income he may not need to file. Just trying to herd duck into a line. It's what I do! Always appreciate your valuable advice here.

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score 0 · Answer 4

Maybe they changed their rules, but I had no trouble with the IRS and my mother's taxes which included the years she forgot to file. They never questioned my POA or signing as her POA.

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Thanks, Yoda. That leads me to think that the tax preparer is correct. I can sign it. I can sell the fillings out of his teeth. To be frank, it is unlikely he will even have to file, but I am of course thinking, (translate worrying) ahead of time.

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score 1 · Answer 5

Alva, hopefully VegasLady will chime in. But I also highly recommend Bogleheads.org for GREAT financial information on issues like this.

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I will head there, Barb. I have seen you recommend it before; I never went there. I will branch out a bit and head there in the next day or so. Your always good advice is appreciated.

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score 2 · Answer 6

From what I've read on this subject, you HAVE to use the IRS forms, regardless of what a CPA advises.    The government is the boss!     On a related subject, Medicare refused to acknowledge the attorney prepared DPOA or Living Will (don't remember which ) I submitted.

Government positions on these kinds of issues unfortunately aren't always subject to common sense or practices used by businesses.

I used to e-mail the IRS to get answers in writing in case someone later overturned a decision.

But I would just complete the form and get it over with.

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Agreed. If the IRS requires it, it is just as simple to get it in place then to screw around with it.

I am always wondering why a professional would counsel against just following the rules, even if you could fudge it. Why risk it.

Alva, I would call the IRS and verify if he even needs to file. My dad doesn't have to file any longer and he gets substantially more ss and some monthly income from a piece of property he has sold and is carrying the note. When in doubt go to the horses mouth. In writing via email is a great idea.

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Tax Expert needed: Question, and am getting conflicting information.

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