This form is a durable power of attorney. The form provides that the agent of the principal is only authorized to use the principal's funds for the best interest of the principal. If the agent fails to comply with principal's instructions, the agent then may be liable for criminal charges or civil liability.
Power of Attorney Form for IRS: A Detailed Description The Power of Attorney (POA) Form for the Internal Revenue Service (IRS) is a documentation that authorizes an individual or entity to act on behalf of another person or organization for tax-related matters. It grants a designated representative the legal authority to handle IRS-related affairs, such as filing tax returns, responding to inquiries, and negotiating with the IRS. The power of attorney helps individuals and organizations ensure that their tax-related affairs are managed properly and efficiently by a trusted representative. Having a POA form in place allows the designated representative to navigate the complexities of IRS procedures and effectively resolve any tax issues that may arise. There are various types of Power of Attorney Form for IRS to cater to different circumstances. It is essential to select the appropriate form based on the specific requirements of the situation. Some commonly used types of POA forms for IRS include: 1. Form 2848 — Power of Attorney and Declaration of Representative: This comprehensive form authorizes a specific individual, including attorneys, certified public accountants (CPA's), or enrolled agents, to represent the taxpayer before the IRS. It grants the representative the authority to execute nearly all actions on behalf of the taxpayer, including the ability to sign tax returns, receive and inspect confidential tax information, and advocate for the taxpayer during audits or appeals. 2. Form 8821 — Tax Information Authorization: This specific form grants a designated representative the authority to access and receive confidential tax information from the IRS, but does not provide the power to act on behalf of the taxpayer regarding tax matters. It is commonly used when the taxpayer wants to grant access to their financial advisor, a family member, or another trusted third party. 3. Form 706 — United States Estate (and Generation-Skipping Transfer) Tax Return: This form is employed for estate tax purposes when someone passes away, and their estate is subject to estate taxes. A power of attorney may be granted to an individual or attorney to handle estate tax return filings and other related matters. 4. Form 4506-T — Request for Transcript of Tax Return: This form authorizes a representative to request tax return transcripts, account transcripts, wage and income transcripts, and other tax-related information on behalf of a taxpayer. It is frequently used by tax preparers when verifying a taxpayer's income history or facilitating the resolution of tax-related issues. 5. Form 8802 — Application for United States Residency Certification: This form is used when an individual or organization seeks certification of their U.S. residency status from the IRS. A power of attorney may be granted to a representative who assists in the completion and submission of this application. It is important to note that these forms need to be correctly completed and signed by both the taxpayer and the designated representative. Additionally, the POA forms may require specific information, such as the taxpayer's identification numbers, contact details, and the representative's credentials. In conclusion, the Power of Attorney Form for IRS plays a vital role in delegating tax-related responsibilities and ensuring effective representation before the IRS. By choosing the appropriate form and designating a trusted representative, individuals and organizations can navigate the tax system confidently while safeguarding their interests.
