When taxpayer wants an Enrolled Agent, CPA or tax attorney to take action on their behalf with the IRS, a power of attorney is required to be filed. This power of attorney allows the representative to take the best course of action when dealing with the IRS on the behalf of the taxpayer.
Required Power of Attorney
Power of attorney is required when a taxpayer wants a recognized representative to:
1. Act as an advocate or perform various acts on behalf of the taxpayer. These acts include preparing and filing documents, communicating with the IRS, and representing the taxpayer at conferences, hearings, and meetings.
2. File a waiver of restrictions on the assessment or collection of a deficiency or disallowance of a claim for credit or refund.
3. Extend the statutory period for assessment or collection of tax.
4. File a closing agreement with the IRS.
5. Receive a check on the behalf of the taxpayer from the U.S Treasury.
6. Sign a tax return on behalf of a taxpayer. This can only happen under special circumstances that make it unable for the taxpayer to sign the return.
While having a power of attorney issued for a representative allows them to sign documents on a taxpayer behalf, it is still best practice to have the taxpayer sign all the documents themselves. This ensures that the taxpayer understands what is being signed and keeps the representative from being sued for malpractice.