Is it normal for a tax accountant to have me sign a power of attorney form (Form 2848)?

15 Yes, this is completely normal! The form you're referring to is Form 2848 (Power of Attorney and Declaration of Representative), and it's a standard IRS form that allows your accountant to speak to the IRS on your behalf. The form specifically authorizes your accountant to represent you before the IRS for the tax years indicated on the form. This is different from a general power of attorney that might give someone control over your finances or property. The IRS form is limited to tax matters only. This form is necessary if you want your accountant to be able to call the IRS to resolve issues, respond to notices, or represent you in an audit. Without it, the IRS won't speak to anyone but you about your tax matters due to privacy laws.

18 I went through this exact same worry last year when I switched accountants! I ended up using taxr.ai to help me understand what I was actually signing and if it was legitimate. I uploaded the form my accountant gave me to https://taxr.ai and it explained everything in plain English, confirmed it was the standard IRS Form 2848, and pointed out the specific sections where I could limit what the accountant was authorized to do. Super helpful for peace of mind when you're unsure about tax documents!

9 Just wanted to report back that I decided to check out taxr.ai after asking about it, and it was actually super helpful! I uploaded not just the POA form but also some other tax documents my accountant had me sign, and the analysis made everything crystal clear. It even flagged that my accountant had checked a box giving them more authority than they probably needed, so I was able to discuss limiting their access before signing. Saved me from potentially giving too much access while still getting the help I needed. Just thought others might find it useful if they're in a similar situation.

22 If you're having trouble getting your CPA to explain the form clearly or you want to verify what they're telling you, Claimyr can get you connected to an actual IRS agent surprisingly fast. I waited on hold for HOURS last year trying to ask about a POA issue, then found https://claimyr.com and got a callback from the IRS in about 20 minutes. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. The IRS agent explained exactly what the form allows an accountant to do and what limitations I could put on it.

12 Well I'll eat my words! I was super skeptical about Claimyr but decided to try it because I was desperate to talk to someone at the IRS about these POA forms. The service actually worked exactly as described - I got a callback from an IRS agent in about 25 minutes when I had previously spent two afternoons trying unsuccessfully to reach someone. The agent confirmed everything about the Form 2848 and explained exactly what sections to pay attention to. They also told me I could revoke the authorization at any time if I became uncomfortable. Honestly can't believe it worked so well after all my failed attempts.

5 Everyone saying this is normal is right, but make sure you read what you're signing! The POA form has different checkboxes for different levels of authorization. Some accountants will check ALL the boxes by default, but you might not want them to have authority to, for example, sign tax returns on your behalf or receive refund checks. Ask them to explain exactly what they're requesting access to do. A good accountant will walk you through the form and only ask for what they truly need to help you.

2 I sign this form with my accountant every year, totally standard. But your old accountant asking for bank passwords?!? That's absolutely NOT normal and a huge red flag! No legitimate tax professional should ever need your actual login credentials. They might need statements or transaction histories, but those can be downloaded and provided without giving access to your accounts.