Form 2848 or Power of Attorney (POA) is a written document in which the taxpayer appoints an attorney to act on their behalf, thus granting authority to the attorney to perform certain acts or functions. Signing a Power of Attorney means you are declaring that attorney to be your representative for the terms listed on the agreement. Powers of attorney are routinely granted to allow the tax lawyer to take care of a variety of transactions such as: representation before the IRS, request and inspect tax return information, handling a tax audit, obtaining tax transcripts, speaking to the IRS or Comptroller’s Office on a taxpayer’s behalf. A power of attorney may expire on a date that is stated in the document or upon written cancellation from the attorney or taxpayer. Also keep in mind if engaging with several entities to work on your tax situation each new POA will revoke the previous unless otherwise stated on the form.
What happens after the taxpayer signs the Power of Attorney?
In our firm after we send off the Power of Attorney to the appropriate agencies the burden of having to deal with your tax problem on your own is immediately lessened. Signed and invoking a Power of Attorney means you are no longer allowed to be harassed by the IRS. Now state and federal agencies must contact your council for the tax related controversy. Also once you appoint a representative it marks the beginning of a very important stage. Having appointed a representative means you have begun the process to resolve tax controversy. Our firm contact the Internal Revenue Service and, if appropriate, the State of Maryland to determine the status of your return filings and the amount of any balances due. We will attempt to obtain all income information provided to them by employers. It is your responsibility to obtain copies of any documents that have withholding information that is not included in these transcripts, as well as disclose any income not reported to the Internal Revenue Service.
Tax information authorization Form8821
The 8821 form authorizes a qualified representative to obtain, inspect, and receive your confidential tax information. The years and specific periods will be listed directly on the form. Often times a firm will use an 8821 to authorize a law clerk or tax preparer to help in the process of tax resolution. By using this authorization it allows the tax staff the ability to gather the important information for your case and finally present it to the attorney for review.
Other Commonly Used Forms and Documents
Engagement Letter- This contract is used by a law firms to outline the expectations of the client and the limitations of the arrangement. The engagement letter sets the terms of the relationship and outlines the duties the tax attorney will perform and their requirements from a client.
Form 4506- This form is used to request a copy of a tax return. Often times we use this form in place of a Power of Attorney when all our firm needs to do is review your transcripts. Request for Copy of but we are not necessarily representing the taxpayer before the IRS. As a law firm we always want to be in compliance when performing any tax action this form allows us to perform necessary duties and ensure taxpayers are in compliance with the law.