Why do I need to sign a Power of Attorney form?

Why Do I Need to Sign a Power of Attorney (Form 2848)?

When dealing with tax matters, it is often necessary to authorize a third party to act on your behalf with the IRS or state tax agencies.
At Sidr Tax, we require our clients to sign a Power of Attorney (Form 2848) for several important reasons:

Unified Authorization: Form 2848 serves as a universal authorization at the federal level. This means that you do not need to complete separate forms for each state you wish to autofile with. It simplifies the process, making it more efficient and less burdensome during onboarding.

Mandatory for State Communications: Certain states have regulations that require a power of attorney to be on file
before tax professionals like us can discuss your details with them. This is essential for resolving any issues or questions that may arise about your filings. (Note: some states will still require a state specific POA form to be signed regardless of the 2848 form being signed, and we will do what we can to quickly resolve the issues by involving our clients into our conversations with them, or have the state specific Power of Attorney form signed.)

Enables Comprehensive Representation: By signing Form 2848, you empower Sidr Tax to represent you fully in a wide range of tax matters, including audits, collections, and appeals. This comprehensive representation is crucial in ensuring that all your interests are adequately protected.

Facilitates Timely Resolution of Tax Matters: With a power of attorney, we can act quickly on your behalf to handle any inquiries or actions required by tax authorities. This proactive representation helps in resolving matters efficiently, potentially reducing penalties and interest that could accrue due to delayed responses.

Increases Accuracy in Filings: As your authorized representative, Sidr Tax can access relevant tax information directly from the IRS or state agencies. This direct access helps ensure that the information used in your tax filings is accurate and up to date, minimizing the risk of errors.

Provides Peace of Mind: Knowing that qualified professionals are managing your tax affairs can provide significant peace of mind. The Power of Attorney (Form 2848) ensures that Sidr Tax can take swift and effective action whenever necessary, without needing your immediate involvement in every step.

Limited authorization: By signing the Power of Attorney form, you are only providing Sidr Tax permission to access to file sales tax related forms. You do not authorize Sidr Tax permission for any other tax forms.

Conclusion

Signing a Power of Attorney (Form 2848) is a crucial step in empowering Sidr Tax to serve you effectively and efficiently. It allows us to act on your behalf in various tax-related matters and ensures that your tax responsibilities are managed professionally and promptly.

If you have any further questions about this process or need assistance in filling out the form, please do not hesitate to contact us.
You can always chat with us in-app, or email us at support@sidr.io.

Updated on: 05/08/2024