What form of notice does IRS need when my daughter would need to file my taxes in the case of my incapacitation by dementia or other disability.
I have had a DPOA created, naming her my "agent" or "attorney-in-fact", and have found that banks and brokerages, etc require a form of their own to be in place prior to any such instance.
Thanks for any advice.
Form 2848 Power of Attorney and Declaration of Representative
Part II. Declaration of Representative
f Family Member—Enter the relationship to the taxpayer (must be a spouse, parent, child, brother, sister, grandparent, grandchild, step-parent, step-child, step-brother, or step-sister).
I saw the 2848 form, but am confused by the first paragraph that says "The individual you authorize must be a person eligible to practice before the IRS".
Does the "f Family Member" selection override the "eligible to practice" requirement, or what ?
Is there not a simpler form to merely allow a family member to file my taxes for me ?
Right. But the instructions to the 2848 say that if it's a family member, you don't use that form. It refers to a Revenue Procedure that says what needs to be in a POA for the IRS.
Under common law you could give someone the ability to sign your name, separately from a power of attorney. When you direct someone to sign your name, it is considered your signature.
f Family Member--Enter the relationship to the taxpayer (must be a spouse, parent, child, brother, sister, grandparent, grandchild, step-parent, step-child, step-brother, or step-sister).
No. Your daughter is eligible to practice if you authorize her to represent you. The form has checkboxes for you to grant her authority to sign your return if you are incapacitated due to disease or injury, exactly the circumstance you anticipate.
This is the form to use.
f Family Member--Enter the relationship to the taxpayer (must be a spouse, parent, child, brother, sister, grandparent, grandchild, step-parent, step-child, step-brother, or step-sister).
You are going to have to provide a properly cited accurate quote. I read through the instructions before I posted and found nothing of the kind. This is the correct form to file to give his daughter the power of attorney he requires and to authorize her, as his representative, to sign his return.
I looked at both the 2848 and instructions a few days ago, and that's what I read. When I read it again today, you're correct. I don't know what I was looking at earlier, but you're right and I was wrong.
Eligible to practice has a broad meaning for using the Form 2848. Adam Kerman is correct. A family member can represent you before the IRS. The 2848 instructions tell you this.
So I did a search looking for an example of Form 2848 covering my possible need. I found this that gives line by line info on what to fill in.
Unless anyone sees a problem with this, this what we plan to do.
My thanks to all
I don't agree that the Web page properly summarized the instructions. Three future tax years is an internal limitation on IRS's own use of the Centralized Authorization File in which information from Form 2848 is recorded.
You may grant your daughter power of attorney for more than three years. It's just that IRS will not record tax years that exceed 3 years from December 31 of the year IRS receives the power of attorney in the CAF.
That just means your daughter needs to attach a copy of the power of attorney in later years. Typically, a copy the power of attorney is attached regardless. The person holding power of attorney has no idea what IRS recorded in the CAF.
Again, your first instinct was correct. Do it now BEFORE the need arises, for once it does, you won't have adequate control to arrange your own affairs.
I think you are wise to do this now. Too many people don't.
Thanks for the clarification. BTW, I'm also going thru this process with my 2 banks, 2 brokerages, 3 insurance co, 1 credit card. All want a form of their own, created "ahead of time", in addition to my DPOA. Some are simple, others almost as overdone for the need, as Form 2848 ! Next up are State Tax and SSA.
And yes I see many stories of those totally unaware of the need for all this. I'm 79 , and only learned of all this about 6 months ago :-(
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