Is it usual for a CPA to ask a client to sign a POA before preparing a tax return?
Tuesday, March 30th, 2010 at
12:59 am
I was referred to a private CPA by a friend after making a mistake on my 2002 Tax return which ended up costing me 00. When I consulted with this CPA, he said that in order that he could act in my behalf I would have to give him a POA. Is this normal. What can he do with it?
Tagged with: CPA • mistake • poa • tax return
Filed under: CPA
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Yes, it is normal.
They use it to contact the IRS in your name and gather your old Tax forms.
This way they can see what deductions you might have missed, what allowances you may be entitled to, and any credits you have coming.
Of course, you could do this for them,and spend your time mailing off forms, and requests…
But I’m lazy.
I signed a limited POA and got a larger than expected return.
I hope you do to!
Boy, that sounds a little fishy to me. I have no idea but I might check with another CPA first.
Is it a limited Power of Attorney? You should contact an attorney.
My guess is it’s a limited power of attorney but I wouldn’t say this is exactly common if you’re just asking him to prepare your taxes. I’m sure the reason he’s doing this is so that, if you encounter any issues where he would need to speak with the IRS, he would be able to speak with the IRS on your behalf without you needing to be involved; however, you could just indicate that he has the authority to discuss your return with the IRS (there’s actually a spot on the 1040 for this very thing).
If you just want him to prepare your taxes and nothing more, you could refuse the POA and just tell him that, if the need should arise later, you’ll sign one at that point in time. OR, if you’re really not comfortable with it, just find a different CPA who’s willing to not require a POA