I was told that to handle IRS documents for my mom I should fill out form 2848. But, I see that it just authorizes an accountant to do so. What about the forms I am filling out on her behalf to hire a caregiver...Employer Identification number, etc. and filing taxes for the employee, etc. I can't see how this form helps me to do that. Is there another form I should use? I have a financial POA, but have heard it is not enough for the IRS and they have their own form.
Just checked the 2848 and instructions. This might help. Download the instructions for completion of the form. (Sometimes you have to read the instructions very carefully to figure out how to use the form - it isn't always clear.
"Specific Instructions
Part I. Power of Attorney"
Line 1. Taxpayer Information" - Read the instructions for an individual.
in Part III, check F, which is for a "family member".
From looking at the instructions, it does specify how an individual family member can complete the form 2848 and use it for the purposes you state.
As to a POA, this is directly from the 2848 Instructions:
"The IRS will accept a power of attorney other than Form 2848 provided the document satisfies the requirements for a power of attorney. See Pub. 216, Conference and Practice Requirements, section 601.503(a). These alternative powers of attorney cannot, however, be recorded on the CAF unless you attach a completed Form 2848. See Line 4. Specific Use Not Recorded on CAF, later, for more information. You are not required to sign Form 2848 when you attach it to an alternative power of attorney that you have signed, but your representative must sign the form in Part II, Declaration of Representative. See Pub. 216, Conference and Practice Requirements, section 601.503(b)(2).
For more information, see Non-IRS powers of attorney under When Is a Power of Attorney Required? in Pub. 947."
Makes sense, right? You have to read it a few times to get the jist of it and work through the requirements. It's like completing a puzzle, or following one of those maze type puzzles where you wander through various paths until you find the correct on.
Here's the link to the Instructions in case you don't have them:
https://www.irs.gov/pub/irs-pdf/i2848.pdf
One interesting analogy I love to quote is from Robert Sapolsky's "Why Zebras Don't Get Ulcers", in which this somewhat eccentric but I think brilliant neuro
biologist compares mammals of the animal vs. human varieties.
In his analysis, he addresses situations when the fight or flight syndrome activates, comparing how stress is handled in animals vs. humans. His examples are humorous, an interesting counterpart to some of the more esoteric neurological observations he makes.
He discusses an anology of stress faced by zebras - they're happily munching away on grass or whatever it is they eat, when a group of lions surrounds them and gives chase. Some may outrun the lions; others may not. For the former, after the chase is over, they can return to their munching. For the latter, well, it's not quite so peaceful but is soon over.
Not so with humans. We have to worry about how to pay for mortgages, college, deal with the neighbors who may have "music" blasting through the night. We have toxic bosses; some people have toxic spouses. One doesn't just move to the next field to get away from them. Divorce is complex and sometimes just as toxic.
There are job interviews, ensuring our makeup and hair are as perfect as we can get them, our clothes are clean and don't have fuzzies from the cat sleeping on them. Will we give the right answers or accidentally say something we regret? Will we get another chance? If we don't get the job, how do we pay the bills?
Zebras don't have cable bill; they don't have utility or mortgage bills. They are their own vehicles and don't have to buy tires, antifreeze, or oil. Nor do they have insurance.
And then there's the IRS. Words cannot describe the fear it can create in humans.
So we humans have ongoing challenges and stresses, whereas the zebras' challenges are periodic. Hence, we develop ulcers, become stressed, perhaps overeat, may drink too much, become ill, develop other physical issues ...the "whole ball of wax" of stress responses, of which the IRS and government regulations (include Medicare and Medicaid) can be primary stress factors.
If we were zebras, we wouldn't have to deal with the IRS, but then we'd have to deal with lions...and other predators, and the stress would be of a different kind.
Anyway, I try to think of taxes and IRS forms as a mathematical puzzle - analyze the components, break them down, deal with the apparent inconsistencies (and that's often difficult because of the obtuse language that's used), and have plenty of your favorite refreshment available, whether it's chocolate, fruit, pop, or something in the liquid form but much stronger.
jenlwren, maybe you need an attorney, sorry.
It can be scary and frustrating, but be aware that you are not likely to get audited, and often and "audit" is simply the IRS needing a small piece of information. You just fill out your forms and forget about it.
but, on the other note, do you mind telling a little about what she did with her money, because I have that situation and wanting to do the same thing
If you have money that needs to be put into tax deferred investments you need to go to a financial planner. There is a well known guy on the radio on Saturday afternoons that advises that people go to a planner that charges a fee for services rather than a % of your investment annually. Hope this answers your question.
Who was named as trustee of that family trust? There's likely a successor trustee identified, so if your mother was trustee, the successor trustee would handle the trust assets after her passing.
The one thing that I can not find out is I remember her sitting all of us children down and telling us that she and Dad had all of their funereal arrangement taken care of also. I know that they have a double burial plot where Dad is but she said that everything was pre-paid and I can not find any paperwork to show me the information. Think that we lost the pre-paid funeral deal when the funeral home was sold from a private family owned business to a corporate owned one. However the family business funeral home re-opened a few years later under the same name but they tell me there is no record. Same with the cemetery, I remember that was pre-paid also, but they say no also. Guess that the paperwork is hidden wherever she "hid" her sterling silver and chest and her "little gray box" that had all of her personal/family records in.