E-signature of POA

[Margaret CPA in OH]

I'm using Verifyle for electronic signatures and now have a client unable to sign (elderly, dementia, nursing home).  I have a copy of the Durable POA.  So the POA should sign 8879 that name as POA, correct?  If I input the email in the POA's name to get it to her, that should suffice I'm thinking as that it what Verifyle enters in the signature block.  Thoughts?

[Abby Normal]

I don't think the IRS will accept an e-signature on a 2848. Also, fax a copy of the durable poa along with the 2848.

[Margaret CPA in OH]

Abby, there are two different things here, I think.  I did not mention a 2848 but agree that an actual signature of a POA faxed with the 2848 works.  I did exactly that just a couple of months ago for a client (sister, POA) to get a payoff amount from collections. Got it in to Ogden the day before shutdown and payoff amount arrived about 10 days ago.

I am asking about the POA to sign the tax return electronically.  The durable POA specifically states, "To prepare and file tax returns for me and to act for me in tax matters."  I have had in the past people with POA physically sign returns as POA as I have it on file.  I was asking about e-signing as electronic signatures are now accepted for tax returns.

[Catherine]

21 hours ago, Margaret CPA in OH said:

I was asking about e-signing as electronic signatures are now accepted for tax returns.

I accept e-signatures from POAs, as long as I have a copy of the the durable power of attorney for my files.  

[Roberts]

22 minutes ago, Catherine said:

I accept e-signatures from POAs, as long as I have a copy of the the durable power of attorney for my files.  

I do also.

[Abby Normal]

22 hours ago, Margaret CPA in OH said:

Abby, there are two different things here, I think.  I did not mention a 2848 but agree that an actual signature of a POA faxed with the 2848 works.  I did exactly that just a couple of months ago for a client (sister, POA) to get a payoff amount from collections. Got it in to Ogden the day before shutdown and payoff amount arrived about 10 days ago.

I am asking about the POA to sign the tax return electronically.  The durable POA specifically states, "To prepare and file tax returns for me and to act for me in tax matters."  I have had in the past people with POA physically sign returns as POA as I have it on file.  I was asking about e-signing as electronic signatures are now accepted for tax returns.

Yeah, I misread what you were asking.

[Max W]

Has form 56 been submitted to the IRS?  This simplifies the process as a 2848 can be used instead of a non-IRS POA which has to state specifically what year and tax form it applies to and contain wording used in the 2848.  After that, if the return is e-filed, the POA, or the 2848, has to be mailed in with form 8453.

http://www.mclr.net/siteAssets/site12603/files/MCLR_Signing_a_Tax_Return_for_Someone_Else.pdf

https://www.irs.gov/instructions/i2848

 

[Margaret CPA in OH]

Max, Form 56 has not been submitted. In looking at it there is a place to specify the tax form and year so seems to take the place of a 2848 and a non-IRS POA.  Or what am I missing?  The client is 90, has a level of dementia, but also cannot be accessed due to the COVID restrictions.  So I don't see how to have the client sign a 2848. Form 56 seems appropriate and adequate but has to be mailed to IRS first or can it be mailed with a copy of the POA with 8453?  If it is mailed before filing, how would anyone know that it is accepted/in force?  Why would 2848 also be needed?

I've read and reread instructions for 56 and the nice summary you referenced. I don't quite see the need for 2848.  The only question I have on 56 is authority, 1g Other.  I would state the Durable POA.  And the POA as fiduciary is a personal representative per the definitions in the instructions.  What am I missing, please?  Except for the inaccessibility of the client, we do have time to get this completed by July 15.

[Max W]

After looking over the forms and instructions, I think you right.  A fiduciary can't use 2848 unless it is a family member, so Form 56 and the durable POA are sufficient.  They have to be mailed, along with 8453, within 3 days of the E-filing.  It is mailed to the same center where paper returns would be sent.  

 

 

 

[Margaret CPA in OH]

Great, Max, and thanks.  Knowing that 56 can be mailed with 8453 is a relief.  Will do and breathe easier. 

Somehow it seems after more than 20 years of this, learning new (to me) things is still possible!