Signature Question

[Terry D EA]

Taxpayer is in a rehab in their home state. Taxpayer's spouse moved to another state a significant distance away. They are not separated nor are they intending on doing so and are MFJ. Can the spouse sign the return for the taxpayer? Would the spouse need to have a POA in order to do so. I've known these folks for 20 years and have prepared their returns all of those 20 years. Don't know if that even matters. 

[jklcpa]

I believe if injury or disease prevents one of a married couple filing MFJ, the spouse can sign the return. There is a checkbox that will allow you to attach the required dated explanation.

In Drake, this is found on the Misc tab and then on the screen entitled MISC-Miscellaneous Codes/Notes. Look to the right side of the screen where you will see "Special Signatures". Check that box and click "SCH" to attach your explanation.

I used this method for several years where husband suffered from several alzheimers and was in a facility, and the wife didn't have POA, and at that point husband lacked mental capacity to grant POA anyway. 

[Lee B]

Thanks, Judy

Something else I didn't know

[Terry D EA]

Judy,

I did briefly see that but took a minute to look at it again. In my situation it is the Taxpayer that is in rehabilitation and not the spouse. Would it still work. The check box states "Taxpayer is signing for the spouse and a statement is required". Should I make the spouse the taxpayer and the taxpayer the spouse?

 

[jklcpa]

I think it should still work. In the case I mentioned, the husband was listed first on the return as the taxpayer and the wife signed the returns.

When you check that box and create the explanation, a statement is generated that goes with the return, and "see statement" will print just below the husband's signature line on pg 2 of the 1040.  The 8879 doesn't have any indication, so I'd have the wife sign both lines and keep a copy of the statement with the 8879 in your file.

If that makes you uncomfortable, you could switch the wife to the primary taxpayer and husband as spouse.

[Terry D EA]

Thanks Judy, sounds good to me and I really don't have time to do all the switching. 

[Terry D EA]

I just submitted a ticket to Drake on this. The "See Statement 1" prints over top of the spouse's signature wording on the form 1040. When printed looks pretty bad and can't really be read at all. Second time this year I've had to report something like this to get it fixed. 

If you include a late election form 2553 with a 1120S form, The required wording does not print at the top of the form. The support agent at Drake agreed it looked bad and unprofessional. However, the programmers said they couldn't change it cause it would be out of the print range. Well, I used Pro Series last year for some 1120S returns that included a late election and it didn't print that way. As I said, I love Drake and have no plans on changing, they just need to clean this up a bit.

[Lee B]

If this statement is attached as a pdf, you could save it and then clean it up if you have a pdf editor.