irs changes its power of attorney rules for spouses

IRS Changes Its “Power Of Attorney” Rule

for Spouses

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Couples who filed joint returns must now file separate powers of attorney.

LAW OFFICE OF DAVID PARKER PLLC www.parkertrustlaw.com

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According to a recent article in the Journal of Accountancy, the

IRS is changing its rules regarding the filing of powers of

attorney by spouses. In the past, a married couple that filed a

joint tax return could also file a joint power of attorney.

According to the new rules, which take effect as of March 1 of

this year, they must instead file separately. The IRS will after

that date not accept the older versions of Form 2848, Power of

Attorney and Declaration of Representative, instead it will only

accept the new version released in October 2011.

http://www.journalofaccountancy.com/Web/20125103.htm


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The new version requires filers of a joint tax return each to file a

separate power of attorney on separate forms even if the two

have the same representative. In addition, the new form requires

inclusion of the designated representative’s preparer tax

identification number (PTIN). The form includes a space for a

new category of representative, registered tax return preparer.

However, those couples who have already filed a joint power of

attorney with the IRS do not need to file new ones; the new

rules include a grandfather clause.


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This change seems to indicate that the IRS is moving to

acknowledge spouses separately even when they file their tax

returns jointly. It remains to be seen whether this concept will

be extended to other aspects of tax regulations. For those

concerned with NY estate planning, of course, greater effort

will be required to coordinate the individual efforts and filing of

spouses to make sure the partnership is sound. Failure of a

power of attorney intent could of course have profound

consequences for New York asset protection.


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As always, it will be worthwhile keeping our eyes on future

changes to the rules. This may or may not indicate a trend or a

new way of thinking for the agency, which may or may not

continue past the Obama administration to that of the

president’s successor, whoever that is and whenever he or she

takes office.

Law Office of David Parker

Estate Planning and Elder Law

www.parkertrustlaw.com

http://www.parkertrustlaw.com/



irs changes its power of attorney rules for spouses

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