A power of attorney, or POA, is a legal document that gives another person the authority to make decisions on their behalf. POAs come in different forms, each suited for a specific purpose. Here we will look at 3 different types of POAs and explain why you may receive a request for one.
- POA 8821 authorizes any individual, corporation, firm, organization, or partnership you designate to inspect and/or receive your confidential information verbally or in writing for the type of tax and the years or periods listed on the form, or to delete or revoke prior tax information authorizations.
- There are many instances where filing Form 8821 is best for a client’s case such as for receiving IRS notices. If Form 8821 is filed, any IRS notices will be sent to the client as well as to their POA. The POA will usually get the notices a day or more before the client, which will give them a head start on working with them to resolve their IRS issue. This can be helpful for clients who aren’t great about taking care of their notices.
- Form 8821 automatically expires, unlike Form 2848 which requires a manual cancellation. This makes it particularly useful for basic tasks like requesting the client’s tax information that doesn’t require full representation.
- You can submit Form 8821 online here: https://www.irs.gov/tax-professionals/submit-power-of-attorney-and-tax-information-authorizations
- Use Form 2848 Power of Attorney and Declaration of Representative to authorize an individual to represent you before the IRS.
- The individual you authorize must be eligible to practice before the IRS.
- Specific acts can be authorized on Form 2848 such as representing a client, requesting information (transcripts). Specific forms and periods must be listed and must be revoked.
- You can find Form 2848 here: https://www.irs.gov/pub/irs-pdf/f2848.pdf
- Use this form to authorize the Michigan Department of Treasury to communicate with a named individual or entity acting on your behalf.
- Also use this form to designate a representative to receive copies of correspondence regarding a particular tax dispute (other than City Income Tax).
- You can find Michigan From 151 here: https://www.michigan.gov/documents/taxes/151_06-17_607339_7.pdf
If you have any questions regarding the three Power of Attorney’s listed above, please don’t hesitate to contact us at 248-934-0550.