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Form 2848 Power of Attorney


Roberts

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Would it be wrong to just automatically fill one out every year for each client and submit it to the IRS for the current year?

Does anyone do that? While the client is in the office, just have them sign the form and fax it in right away in case the IRS sends out a letter later.

Would it be a wrong thing to do?

 

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I was just thinking today, how nice it would be if I got copied on these notices. Sometimes the client gets with me right away, but many times, they bring it with the tax papers 10 months later. But, I'm not willing to get those forms for every client. Too many, too much. 

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I've met preparers who have all clients sign the POA when they sign the engagement letter every year. And, some that use prior and future years on each form, so a new copy is not needed every year.

I have a client sign a POA when needed, but I put prior/future years on the same form. Once in a great while, if a client alerts me to a potential issue, I have them sign a POA while they're here, prophylactically.

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8 minutes ago, Lion EA said:

I've met preparers who have all clients sign the POA when they sign the engagement letter every year. And, some that use prior and future years on each form, so a new copy is not needed every year.

I have a client sign a POA when needed, but I put prior/future years on the same form. Once in a great while, if a client alerts me to a potential issue, I have them sign a POA while they're here, prophylactically.

 I didn't know you could do future years! I always do the checkbox but that's almost always worthless by the time something comes to my attention. I like the "every other year" idea. My software will generate the 2848 so it would be easy to essentially auto generate.

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The Form asks for Year(s) and the Instructions state:

You may list the current year/period and any tax years or periods that have already ended as of the date you sign the power of attorney. You may also list future tax years or periods. However, the IRS will not record on the CAF system future tax years or periods listed that exceed 3 years from December 31 of the year that the IRS receives the power of attorney.You must enter the description of the matter, the tax form number, and the future year(s) or period(s). If the matter relates to estate tax, enter the date of the decedent's death instead of the year or period. If the matter relates to an employee plan, include the plan number in the description of the matter.

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42 minutes ago, Possi said:

I was just thinking today, how nice it would be if I got copied on these notices. Sometimes the client gets with me right away, but many times, they bring it with the tax papers 10 months later. But, I'm not willing to get those forms for every client. Too many, too much. 

Plus, being able to check the client's account for things like estimated tax payments.

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46 minutes ago, Abby Normal said:

Plus, being able to check the client's account for things like estimated tax payments.

This is my major issue and I devote a lot of time to it. I have a ton of clients who routinely give me bad information on their estimated tax payments and then blame me when the IRS sends them a letter or refund check later. My current issue is with a client who owes $25k to the IRS with penalties and interest - she didn't tell me the $25k refund in 2017 that was applied to 2018 was paid to her my mistake. She had a meltdown in my office. Writing a $25k check for her is nothing but getting the bill was huge!

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Having a 2848 on clients has its down side.  You will receive a lot of meaningless mail and in the case of joint returns, duplication of each letter.  If you have a secretary, it will less of a burden.  But, if you are a lone wolf like me, it can be a PIA.   I have one  MFJ client on a installment agreement covering  eight years and received 16 letters, last week.

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20 hours ago, Lion EA said:

I've met preparers who have all clients sign the POA when they sign the engagement letter every year. And, some that use prior and future years on each form, so a new copy is not needed every year.

I have a client sign a POA when needed, but I put prior/future years on the same form. Once in a great while, if a client alerts me to a potential issue, I have them sign a POA while they're here, prophylactically.

I'm one of those.  Every couple of years (and with every new client) I get a POA that goes back all open years and forward one from the current year.  It's really helped on several occasions (pulling transcripts using TaxHelpSoftware, or Canopy, calling on a letter received without having to scramble for a POA on short notice).  Actual representation work does not occur until a separate representation engagement letter is signed, though.

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I learned in a seminar last fall that under the new tax law, a separate 2848 was required for each year.  I don't know whether this changed or not, but it would seem that this new requirement would create a furor, and a pile of needless paperwork.

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Darn. I just got POAs signed yesterday for a 2017 issue, so requested 2016-2022, I think, but anyway more than one year. Hope CT and NY accept them anyway, since the states are what I'm worried about, states requesting more information after amending. The IRS is getting their CP2000 with lots of documentation, so hopefully they won't need a POA, won't need any more info.

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I've been sending them in, requesting multiple years, and those have been honored.  Just a couple months ago I sent one in for 2013 - 2018 (long time non-filer), and was able to pull transcripts a couple weeks later for ALL the years involved.  Well, except 2018, because there is nothing posted aside from the "appointed representative" notation.

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6 hours ago, Edsel said:

I learned in a seminar last fall that under the new tax law, a separate 2848 was required for each year.  I don't know whether this changed or not, but it would seem that this new requirement would create a furor, and a pile of needless paperwork.

This is not totally wrong.  It does apply to partnerships under the Centalized Partnership Audit Regime.

see top of page 4

https://www.irs.gov/pub/irs-pdf/i2848.pdf

 

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