JJStephens Posted January 29, 2008 Report Share Posted January 29, 2008 I'm a relatively new EA. I know that except in very limited circumstances I cannot sign a personal income tax return on behalf of a client. If I have a 2848 signed by the client, can I sign Forms 1096 or W3 on their behalf? What about biz returns and 990s? If so, what do I need to do to make everything kosher. I thought I could but I cannot find a cite to back up my thought. Quote Link to comment Share on other sites More sharing options...
bay Posted January 29, 2008 Report Share Posted January 29, 2008 I'm a relatively new EA. I know that except in very limited circumstances I cannot sign a personal income tax return on behalf of a client. If I have a 2848 signed by the client, can I sign Forms 1096 or W3 on their behalf? What about biz returns and 990s? If so, what do I need to do to make everything kosher. I thought I could but I cannot find a cite to back up my thought. I have been in the business since for 17 years and I have never signed a tax return on behalf of a client even with a POA - I would highly advise you not to sign under any circumstances - It may also have an affect on your malpractice insurance. good luck Quote Link to comment Share on other sites More sharing options...
JJStephens Posted January 29, 2008 Author Report Share Posted January 29, 2008 I have been in the business since for 17 years and I have never signed a tax return on behalf of a client even with a POA - I would highly advise you not to sign under any circumstances - It may also have an affect on your malpractice insurance. good luck The malpractice issue is an angle I hadn't even considered. On the other hand, I do payroll for 20+ clients and it sure would be convenient to be able to sign 941s, W3s and 1096s. Quote Link to comment Share on other sites More sharing options...
bay Posted January 29, 2008 Report Share Posted January 29, 2008 The malpractice issue is an angle I hadn't even considered. On the other hand, I do payroll for 20+ clients and it sure would be convenient to be able to sign 941s, W3s and 1096s. I understand the convenience factor - but if you sign returns especially payroll tax returns - the IRS and other State and Local tax authorities may consider you a "responsbile person" - in the event that tax deposits are not made and there is some other hanky pancky, etc you can be held liable for the trust fund taxes. Do you also sign the payroll checks? Quote Link to comment Share on other sites More sharing options...
Chrisbry Posted January 29, 2008 Report Share Posted January 29, 2008 Complete Form 8655, have the client sign and fax the form to IRS. Then efile the returns. Then there are no forms to sign. Just keep the signed 8655 in your office. The authorization remains in force until revoked in writing by you or the client. { and it also covers any electronic forms you file for your states} That is -- unless the IRS LOOSES the friggin form (as opposed to loosing a friggin banana ) ! That phone call was just the corker for today. :angry: Quote Link to comment Share on other sites More sharing options...
JJStephens Posted January 30, 2008 Author Report Share Posted January 30, 2008 I understand the convenience factor - but if you sign returns especially payroll tax returns - the IRS and other State and Local tax authorities may consider you a "responsbile person" - in the event that tax deposits are not made and there is some other hanky pancky, etc you can be held liable for the trust fund taxes. Do you also sign the payroll checks? I had actually thought of this some time back and had decided not to pursue it on that basis . . . but then forgot. Oh, the agony of year-end induced senility. No, I don't sign checks. Quote Link to comment Share on other sites More sharing options...
JJStephens Posted January 30, 2008 Author Report Share Posted January 30, 2008 Complete Form 8655, have the client sign and fax the form to IRS. Then efile the returns. Then there are no forms to sign. Just keep the signed 8655 in your office. The authorization remains in force until revoked in writing by you or the client. { and it also covers any electronic forms you file for your states} That is -- unless the IRS LOOSES the friggin form (as opposed to loosing a friggin banana ) ! That phone call was just the corker for today. Are the forms from the same area in Armenia as the bananas?? Quote Link to comment Share on other sites More sharing options...
Chrisbry Posted January 30, 2008 Report Share Posted January 30, 2008 Are the forms from the same area in Armenia as the bananas?? Could be! The IRS lost it between Nov 29 and Jan 29. Maybe it's in the same place as all our ACKS. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted January 30, 2008 Report Share Posted January 30, 2008 This may not sound popular, but I think you all need to hear it. I am an attorney and can tell you that I have represented taxpayers and was able to shift responsibility to their accountants when the taxpayers have gotten themselves in trouble with IRS. I have only done this when the accountant has directed payments to vendors rather than IRS, but was able to shift the responsibility. Today, with IRS making us responsible for the tax information, we all have to be even more careful than before. My suggestion, never sign a client's return under any circumstances. Never write checks on behalf of a client and do not direct them to pay one vendor over another. CYA might be a good thing to consider these days! Joel Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 30, 2008 Report Share Posted January 30, 2008 Good advice. Keep the responsibility with the client as it should be. taxbilly Quote Link to comment Share on other sites More sharing options...
Booger Posted January 30, 2008 Report Share Posted January 30, 2008 This may not sound popular, but I think you all need to hear it. I am an attorney and can tell you that I have represented taxpayers and was able to shift responsibility to their accountants when the taxpayers have gotten themselves in trouble with IRS. I have only done this when the accountant has directed payments to vendors rather than IRS, but was able to shift the responsibility. Today, with IRS making us responsible for the tax information, we all have to be even more careful than before. My suggestion, never sign a client's return under any circumstances. Never write checks on behalf of a client and do not direct them to pay one vendor over another. CYA might be a good thing to consider these days! Joel I'm not an attorney, but I play one on TV. Booger Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted January 30, 2008 Report Share Posted January 30, 2008 I'm not an attorney, but I play one on TV. Booger I just want my frikkin banana! Quote Link to comment Share on other sites More sharing options...
jainen Posted January 30, 2008 Report Share Posted January 30, 2008 >>I just want my friggin banana!<< You said it was a "frikkin" banana before. I'm afraid your credibility suffers, JB, when you keep changing your story. Not as bad as a TV lawyer, but still we can't help wondering if in fact it was simply a "firgottin" banana. Quote Link to comment Share on other sites More sharing options...
Chrisbry Posted January 30, 2008 Report Share Posted January 30, 2008 but still we can't help wondering if in fact it was simply a "firgottin" banana. And those make the BEST banana bread! Quote Link to comment Share on other sites More sharing options...
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