People designate a power of attorney for many different reasons. For example, a person who is unable to handle his or her affairs for whatever reason may decide that a power of attorney is the best way for their affairs to be managed properly, whether they are related to health care of a small business. Some people may even want to grant power of attorney to a person they trust for tax purposes, but it is important to make sure that you understand the ins and outs of this approach before moving forward.
First of all, a power of attorney does not necessarily grant someone the ability to sign another person’s tax return, unless this is specifically authorized and also allowed under IRS code. Furthermore, there are other matters to be aware of. For example, if you file a joint tax return, you may have to take a different approach than someone with another type of tax filing status. If you have power of attorney responsibilities, you may be unsure of which steps need to be taken in order for you to file a tax return for someone else, and it is pivotal to familiarize yourself with IRS requirements.
With tax season around the corner, this is an important issue for many people and it is very helpful to review the ins and outs of filing a tax return with power of attorney beforehand. If you browse through our website, you will find other information that is related to financial affairs.