POA

[grandmabee]

tell me if I am correct in reading about the POA. I am doing a return for my client that now has a POA with his son.

the POA does not specificaly say he can sign the tax return. so does this mean to efile the return they have to have a 2848 completed?

the parents both have altzheimers(sp) and son is handling all their affairs. I do have a legal copy of the POA but the exact words do not say sign the tax return.

thanks

[jainen]

>>parents both have altzheimers<<

Yes, at least according to the IRS. A Power of Attorney does not grant the right to sign a tax return unless it specifically says so. And in any case a Power of Attorney ENDS when the maker becomes incompetent. The son should obtain legal counsel if he wants to handle his parents' affairs.

[SunTaxMan]

I thought POA ends on DOD, not "incompetency." I thought POA purpose was to handle affairs in case of incompetency, or am I thinking of durable POA?

[grandmabee]

>>parents both have altzheimers<<

Yes, at least according to the IRS. A Power of Attorney does not grant the right to sign a tax return unless it specifically says so. And in any case a Power of Attorney ENDS when the maker becomes incompetent. The son should obtain legal counsel if he wants to handle his parents' affairs.

This power of attorney says right in it that it "shall continue regardless of any change in my competency until death unless i shall earlier revoke." I thought that was the reason for a POA.

[TAXMAN]

I thought mine was good till death. Thats what the attorney said. I find that investment companies want their own form of POA which normally does not present a problem. I do not know if TP was incompentent.

Maybe KC has some take on this?

[gfizer]

Just depends on if the POA is a durable power. The general powers of attorney prepared by our office specifically include the power to sign and file federal and state tax returns and contain language stating that they will not be affected by the disability of the principal.