Discussion:1040 signature question
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Discussion Forum Index --> Basic Tax Questions --> 1040 signature question
Discussion Forum Index --> Tax Questions --> 1040 signature question
| 15 May 2008 | |
| Older couple has been confined to a nursing home for several months. They have a court-appointed conservator. Can the conservator sign their returns on their behalf? Anyone ever run into this? | |
| 15 May 2008 | |
| Are the t/p's incompentant? Is a "court-appointed conservator" equivalent to a guardian? Does conservator have a POA? If yes to the first two questions then conservative may sign on their behalf, but should attach court order showing authority. If conservator has POA, he/she would be able to sign regardless of competancy. | |
| 15 May 2008 | |
| The conservator court-appointed, yes. He(conservator) is not the guardian. That, I believe, is the adult protective services division of the state. The conservator does not have a POA. Not sure about the competency of the taxpayers. Neither one, however, is able to continue living at home and are now confined to a nursing home. Thanks for your input. Any suggestions based on my response? | |
| 15 May 2008 | |
| The existence of a conservator implies incompetence, but I'd check the court documents to be sure of the extent of the conservator's powers. | |
| 16 May 2008 | |
| Is it not best to have a court approved legal document that says IRS matters are allowed, signed by the taxpayers and the conservator? I think you have to attach that document to each year filed and signed by the conservator. I agree with JDugan as to process.
When one spouse is uanable to sign due to disease or illness the other spouse can sign "By Husband (or Wife)". The signing spouse must attach a statement of reason for inalbility and that the incapacitated spouse has consented. An agent is permitted to sign a return if the taxpayer is unable to do so because of disease. The agent becomes liable for penalties if it is false or fradulent. You can also check Reg 1.6012-1(a)(5). | |
| 16 May 2008 | |
| Also, I looked again at Reg 1.6012-1(a)(5), and I am confused. I did not think a Form 2848 allowed the agent given power to sign a return. Guess I am wrong, looks like the Reg says it is all that is needed as far as POA is concerned. | |
| 16 May 2008 | |
| A Court appointed conservator has authority to sign a tax return but should document the authority by attaching a copy of the court order. A Form 2848 is not required but does make it easier for the conservator to communicate with the IRS. I have been conservator in several cases for approximately 10 years. The conservator is appointed due to incapacity of someone to manage their financial affairs and is required to report to the Court on an annual basis. | |
| 16 May 2008 | |
| By the way, a conservatorship is an easy way to increase your professional liability insurance rates. | |
| 16 May 2008 | |
| A Guardian is usually response for physical care of an individual such as living conditions, medical care, etc. A Conservator is responsible for care of the individual financial issues such as check book, investments, paying bills, collecting money, andd paying taxes. | |
| 16 May 2008 | |
| Does the court order specify tax matters? Or is it a general document that is acceptable? | |
| 16 May 2008 | |
| You must look at the court order. My experience is that it relates to all financial matters. However, this practice may differ in other states and courts. | |
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