This form is a special 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. The principal also authorizes the agent to receive reimbursement for reasonable amounts, travel costs, lodging, meals, attorney or accountant fees.
The Power of Attorney form with the IRS is a legal document that allows an individual or entity to designate another person or organization as their representative for tax-related matters. This form grants the designated representative the authority to act on behalf of the taxpayer and handle various tax-related tasks, including filing tax returns, responding to IRS inquiries, and negotiating or settling tax debts. It is important to note that the Power of Attorney form with the IRS is specifically designed for tax-related matters only. There are different types of Power of Attorney forms with the IRS, each serving a specific purpose. These forms include: 1. Form 2848 — Power of Attorney and Declaration of Representative: This widely used form allows taxpayers to appoint a representative to act on their behalf with the IRS. It grants the designated representative the authority to perform a range of actions, such as accessing the taxpayer's tax information and representing them during audits or collections. 2. Form 8821 — Tax Information Authorization: Unlike Form 2848, this form does not grant the representative the authority to negotiate or settle tax debts. Instead, it allows the tax professional or organization to access the taxpayer's tax information and correspond with the IRS regarding specific tax matters. 3. Form 4506-T — Request for Transcript of Tax Return: Although not a traditional Power of Attorney form, Form 4506-T can be used to grant designated representative access to the taxpayer's tax return information. It is commonly utilized when the taxpayer needs to authorize a third party, such as a lender or mortgage company, to obtain their tax transcripts. When completing these Power of Attorney forms with the IRS, it is crucial to provide accurate information and ensure that the designated representative's authority aligns with the taxpayer's specific needs. It is advisable to consult with a tax professional or legal advisor to understand the implications and specific requirements associated with each form, as well as to ensure compliance with IRS regulations.
