Accounting Firm in Texas

  What Is a Preparer Tax Identification Number? A preparer tax identification number (PTIN) is an Internal Revenue Service (IRS) identifier implemented in 1999 that has required all paid federal tax return preparers to register with the federal government and obtain a unique number since 2010. Tax preparers are any individuals who prepare, calculate, and file income tax returns on behalf of individuals or businesses, and receive compensation for their services. Preparer tax identification number applicants must provide satisfactory answers to several suitability questions to receive a preparer tax identification number. Tax preparers must renew their preparer tax identification numbers each calendar year. (Images source from: https://www.astps.org/wp-content/uploads/Really-Step-1.jpg ) Note:   A preparer tax identification number (PTIN) is an Internal Revenue Service (IRS) identifier implemented in 1999 that has required all paid federal tax ...

If you want someone to interface with the Internal Revenue Service (IRS) on your behalf, you'll need to take the formal action required to grant authority for this purpose. The authorization to share information and to allow someone else to deal with the IRS for you is made on Form 2848: Power of Attorney and Declaration of Representative. Your tax information is private. After all, it contains sensitive information including your name, address, date of birth, and your Social Security Number (SSN). You should never share it with anyone, unless, of course, there's a very good reason to do so. "It allows a tax pro to interface with the IRS on your behalf" At the same time, the IRS isn't able to share that information with others either. The agency can only share it with a third party if you authorize it to do so. You may, for example, hire a tax attorney to represent you in an audit. Read on to understand what signing Form 2848 allows someone representing you to d...

  What Is Power of Attorney? Power of attorney (POA) is a legal authorization that gives a designated person, termed the agent or attorney-in-fact, the power to act for another person, known as the principal. The agent may be given broad or limited authority to make decisions about the principal's property, finances, investments, or medical care. (Image source from: https://thumbor.forbes.com/thumbor/fit-in/1200x0/filters%3Aformat%28jpg%29/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F155416217%2F0x0.jpg ) Note:   A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person, the principal. The agent can have broad legal authority or limited authority to make decisions about the principal's property, finances, or medical care. The POA is often used when the principal can't be present to sign necessary legal documents for a financial transaction. A durable power of attorney remains in effect...