Friday, May 4, 2012

Power of Attorney For Taxes

Filing your taxes is a whole lot of fun right? Come on, where else can you get robbed blind and just accept it? Before you tell your accountant to start working like a dog in the upcoming weeks, make sure that you have a power of attorney form that you turned over to him. Most people make the initial mistake of having the person doing their taxes sign the wrong form. For example, if you have your representative sign general or durable type, they will have control over every aspect of your financial decision making. When I say that I mean they could even sell your house for you if they chose too and they could do it legally against your will.

If you would like your accountant to have the power to do a range of things limited to your accounting throughout the year in reference to your banking and minor financial obligations you may be better off authorizing a general power of attorney form. This form gives your accountant the rights or series of rights to act on your behalf for a checklist of possible obligations or duties on your behalf. Most often times, business partners will use this form in the chance that someone may be out of town or just not able to make or preform an activity.

Limited power of attorney has many uses and most often is used around tax season as described for accountants but the other large portion of these forms are used in real estate transactions. As the importance of a real estate transaction may seem, allot of people will authorize a limited form to their attorney or even real estate broker to sign all the necessary documents for them. Have you ever been to a real estate closing? I understand, if you haven't they usually take between 3 to 7 hours depending on what is found in the deed. If you were getting paid 300 dollars per hour as an attorney wouldn't you want that thing to drag on as long as possible?

There are three major ways to cancel a limited power of attorney. The first, if you should become incapacitated or not able to think for yourself, second is in the event you die, and the third is if you sign a new power of attorney form or you sign a revocation that cancels it. There is no place where you submit to the government so if you got rid of all the evidence I guess you would be fine as well.

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