Hey there! As a taxpayer, you might need some extra help when it comes to filing taxes or dealing with complex tax laws. If you find yourself in this situation, one option is to give someone power of attorney with the Internal Revenue Service (IRS). In simpler terms, you can authorize another person or entity to act on your behalf for certain tax-related matters. Let's dive into what power of attorney actually means and how it works with the IRS.
What Does Power of Attorney Mean?
Power of attorney is a legal document that allows someone else to act on your behalf. The person you grant this power to is called an "agent" or "attorney-in-fact" and follows your instructions. This document should be completed carefully, as it can be used for various purposes, including filing taxes.
How Does Power of Attorney Work with the IRS?
When you grant power of attorney to someone for IRS matters, you'll need to fill out and submit a Form 2848. This form specifies the particular tasks you're delegating and who will be responsible for completing them on your behalf. Once it's properly filled out and signed by both parties, you can either mail it to the IRS or submit it electronically through e-Services.
It's important to note that there are certain tax matters where power of attorney cannot be used. For example, only taxpayers themselves can sign up for Electronic Federal Tax Payment System (EFTPS) accounts. However, once they have their account, they can grant their agent access if they need help managing online payments. Also, keep in mind that power of attorney doesn't allow anyone to make decisions about audits. Taxpayers still need to appear in person when requested by an auditor during an audit hearing.
All in all, giving someone power of attorney with the Internal Revenue Service can simplify complicated tax processes like filing returns and managing online payment systems. To make this work effectively, taxpayers should understand what power of attorney entails and how to set up their agent before submitting Form 2848. Understanding this process ensures that all aspects of your taxes are handled properly and efficiently by authorized individuals who have your best interests at heart.