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

1. IRS Changes Its “Power Of Attorney” Rule
for Spouses
Couples who filed joint returns must now file separate powers of attorney.
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2.  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.
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3.  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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4.  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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5.  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.
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6. Law Office of David Parker
Estate Planning and Elder Law
 www.parkertrustlaw.com