Which of the following statements concerning a power of attorney is INCORRECT? This constitutes: * A. The document must always be recorded. B. When used in regard to real estate transactions, the document must always be in writing. C. Authorization to act for the principal is granted to attorney-in-fact. D.
All of the following statements concerning a power of attorney are true except: a. POA can be used by authorized person to transfer real estate b. POA is not effective if the person signing the POA is mentally incompetent at the time of signing c. A special POA authorizes only specific transactions d. POA cannot be used after death to dispose of.
As a general rule, no writing is required to form an agency relationship, and even where a writing is required, the writing need only be signed by the principal (the one sought to be bound). Choice "c" is incorrect. A power of attorney, like other agencies, need not explicitly state a duration. Choice "b" is incorrect.
A power of attorney can be general or it can grant the agent only restricted authority. Answer (a) is incorrect because the power of attorney must be signed only by the person granting such authority. Answer (b) is incorrect because the power of attorney does not have to be for a definite, specified time period.
A practitioner who knows his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission.
The examiner must notify the taxpayer if the scope of the examination is expanded to include additional tax periods. Consequently, the taxpayer must be given time to secure a POA to cover the additional periods before any examination action is taken on those periods.
Periodic program reviews are conducted by FESP to:#N#Assess the effectiveness of specific programs within Examination or across the organization,#N#Determine if procedures are followed,#N#Validate policies and procedures, and#N#Identify and share best/proven practices.
The Director, Headquarters Examination, is the executive responsible for providing policy and guidance for SB/SE Examination employees and ensuring consistent application of policy, procedures and tax law to effect tax administration while protecting taxpayers’ rights. See IRM 1.1.16.3.5, Headquarters Examination for additional information.
Any individual who is enrolled as an agent to practice before the Internal Revenue Service and is in active status pursuant to the requirements of Circular 230. Fiduciary.
Under certain circumstances, an individual other than an attorney, CPA, enrolled agent, enrolled actuary, or student in LITC/STCP who prepares and signs a tax return or claim for refund, may represent the taxpayer before the Internal Revenue Service as an unenrolled return preparer, or non-credentialed preparer. Unenrolled or non-credentialed return preparers may represent the taxpayer before revenue agents, tax compliance officers, customer service representatives, or similar officers or employees of the Internal Revenue Service, including the Taxpayer Advocate Service. Unenrolled or non-credentialed return preparers may not:
Correspondence may only be sent to a TEFRA investor's POA if the Form 2848 meets the requirements of 26 CFR 301.6223 (c)-1 (e). This requirement is in addition to the regular taxpayer identification by name, address, TIN, and tax year of the investor.