Power of Attorney Form for Irs

DOCUMENT CONTROL & SUMMARY

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STATUTORY & LEGAL COMPLIANCE NOTICE

This document is intended to establish a formal legal relationship between a Taxpayer (Principal) and a Representative (Attorney-in-Fact). While this document provides the legal framework for such representation, the Internal Revenue Service (IRS) generally requires the submission of IRS Form 2848 (Power of Attorney and Declaration of Representative) to record the authority in the Centralized Authorization File (CAF) system. This agreement serves as the underlying legal instrument governing the rights, duties, and liabilities between the Parties and shall be used to supplement and authorize the filing of Form 2848. Users are advised to consult with tax counsel to ensure compliance with Circular 230 regulations.

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PARTIES & RECITALS

This Power of Attorney for Tax Matters (the "Agreement") is entered into as of [Effective Date] by and between:

PRINCIPAL: [Company Full Legal Name / Individual Full Legal Name], a [Entity Type, e.g., Delaware Corporation / Individual], with a principal place of business/residence located at [Principal Address], and Taxpayer Identification Number [TIN/EIN] (hereinafter the "Principal").

REPRESENTATIVE: [Representative Full Legal Name / Firm Name], with a principal place of business located at [Representative Address], (hereinafter the "Representative").

RECITALS: WHEREAS, the Principal desires to appoint the Representative to act as its agent and attorney-in-fact regarding specific federal tax matters before the Internal Revenue Service; WHEREAS, the Representative is qualified (as a licensed CPA, Attorney, or Enrolled Agent) and agrees to accept such appointment under the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties agree as follows:

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OPERATIVE CLAUSES & LEGAL TERMS

1. SCOPE OF APPOINTMENT & AUTHORITY

The Principal hereby appoints the Representative as its true and lawful attorney-in-fact. The Representative is authorized to perform any and all acts that the Principal can perform with respect to the tax matters described below: 1.1. Authorized Tax Matters: This authority applies to [Tax Type, e.g., Federal Income Tax / Employment Tax / Excise Tax] for the following tax periods: [Tax Years/Periods, e.g., 2021-2025]. 1.2. Specific Acts Authorized: The Representative is granted full power to: (a) Receive and inspect confidential tax information; (b) Sign any agreements, consents, or other documents with the IRS, including waivers of restriction on assessment or collection of deficiencies and consents to extend the statutory period for assessment or collection; (c) Execute settlement agreements (Closing Agreements) under IRC Section 7121; (d) Receive (but not endorse) refund checks; (e) Substitute or add representatives as permitted by Circular 230.

2. COMPENSATION & PAYMENT TERMS

2.1. Professional Fees: The Principal shall compensate the Representative at a rate of [Amount in USD] per hour or a flat fee of [Amount in USD]. 2.2. Invoicing: Representative shall issue invoices on a [Monthly/Quarterly] basis. Principal shall remit payment within [Number] days of receipt. 2.3. Late Interest: Any undisputed amounts not paid when due shall accrue interest at a rate of 1.5% per month or the maximum rate permitted by law. 2.4. Expenses: The Principal shall reimburse the Representative for all reasonable out-of-pocket expenses incurred in the performance of services under this Agreement, provided that any expense exceeding [Amount in USD] requires prior written approval.

3. TERM & TERMINATION

3.1. Term: This Agreement shall commence on the Effective Date and continue until the completion of the designated tax matters or until terminated. 3.2. Termination for Convenience: Either Party may terminate this Agreement upon [Number] days' written notice to the other Party. 3.3. Termination for Breach: Either Party may terminate this Agreement immediately if the other Party materially breaches any provision and fails to cure such breach within [Number] days of receiving notice. 3.4. Revocation of POA: Upon termination, the Principal shall be responsible for filing IRS Form 2848 (or a revocation notice) with the appropriate IRS service center to formally revoke the Representative’s authority in the CAF system.

4. INTELLECTUAL PROPERTY & WORK PRODUCT

4.1. Ownership: All tax returns, workpapers, and schedules prepared by the Representative for the Principal shall be the property of the Principal once paid for in full. 4.2. Work Made for Hire: To the extent applicable, all deliverables created under this Agreement shall be considered "work made for hire" under the U.S. Copyright Act.

5. MUTUAL CONFIDENTIALITY & NON-DISCLOSURE

5.1. Confidential Information: "Confidential Information" includes all non-public information disclosed by one Party to the other, including tax records, financial statements, and business strategies. 5.2. Obligations: Each Party shall maintain the confidentiality of the other's information with at least the same degree of care it uses for its own. Representative is specifically bound by IRC Section 7216 regarding the non-disclosure of tax return information.

6. REPRESENTATIONS & WARRANTIES

6.1. Principal Warranties: Principal represents that all information provided to the Representative is accurate and complete to the best of its knowledge and that it has the legal authority to enter into this Agreement. 6.2. Representative Warranties: Representative represents that they are in good standing with their respective licensing board (State Bar / State Board of Accountancy) and are not currently disbarred or suspended from practice before the IRS.

7. LIMITATION OF LIABILITY & INDEMNIFICATION

7.1. Limitation: In no event shall either Party be liable for any consequential, indirect, or punitive damages. The Representative's total liability shall not exceed the total fees paid under this Agreement in the twelve (12) months preceding the claim. 7.2. Indemnification: Principal agrees to indemnify and hold Representative harmless from any claims, penalties, or interest arising from the Principal’s provision of fraudulent or materially inaccurate information.

8. DISPUTE RESOLUTION & ARBITRATION

Any controversy or claim arising out of or relating to this Agreement shall be settled by binding arbitration administered by the American Arbitration Association (AAA) in accordance with its Commercial Arbitration Rules. The venue for arbitration shall be [City, State]. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

9. GOVERNING LAW & JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of the State of [Governing State], without regard to its conflict of law principles, and the federal laws of the United States (specifically the Internal Revenue Code).

10. MISCELLANEOUS

10.1. Severability: If any provision is held unenforceable, the remainder of the Agreement shall remain in effect. 10.2. Entire Agreement: This Agreement constitutes the entire understanding between the Parties and supersedes all prior agreements. 10.3. Counterparts: This Agreement may be executed in counterparts, including electronic signatures, which together shall constitute one instrument.

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EXECUTION & FORMAL SIGNATURE BLOCKS

IN WITNESS WHEREOF, the Parties hereto have executed this Power of Attorney as of the Effective Date first written above.

FOR THE PRINCIPAL (TAXPAYER):

Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role, e.g., CEO / Individual] Company: [Company Legal Name] Date: [Date]

FOR THE REPRESENTATIVE:

Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role, e.g., Managing Partner / CPA] Date: [Date]

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STEP-BY-STEP EXECUTION & FILING GUIDE

Step 1: Completion of Bracketed Fields

Open this document in a word processor (Microsoft Word or Google Docs). Use the "Find and Replace" function to locate all brackets (e.g., [Company Full Legal Name]) and replace them with the accurate, legal information of the parties. Ensure the Taxpayer Identification Number (EIN or SSN) matches official IRS records.

Step 2: Verification of Authority

• For Corporations: Ensure the person signing as "Principal" has the corporate authority to bind the entity (usually an officer such as the CEO, CFO, or President).
• For the Representative: Ensure the Representative is a qualified individual under Circular 230 (Attorney, CPA, Enrolled Agent).

Step 3: Formal Execution

• Wet Signature: Print the document and sign using blue or black ink.
• Digital Signature: This document is designed for compatibility with DocuSign, Adobe Sign, or HelloSign. Ensure the digital certificate includes a timestamp and IP log for audit purposes.

Step 4: Supplemental IRS Filing (Critical)

The IRS will generally not recognize this private contract without the submission of IRS Form 2848.

1. Transcribe the "Scope of Authority" from Section 1 of this document onto Part I of Form 2848.
2. Have the Principal sign Form 2848.
3. Submit Form 2848 via the IRS Online Account, Fax, or Mail to the appropriate IRS service center based on the Taxpayer's location.

Step 5: Record Retention

Maintain the original signed version of this Agreement and a copy of the filed Form 2848 in the Principal’s permanent tax file for at least seven (7) years following the conclusion of the representation.