Is it normal for my tax accountant to have me sign a power of attorney form? Should I be worried?

13 Yes, this is absolutely normal. What you're signing is likely IRS Form 2848 (Power of Attorney and Declaration of Representative), which allows your accountant to speak to the IRS on your behalf, receive notices, and represent you in matters related to your taxes. This is standard practice for most accounting relationships. The power of attorney is limited to tax matters only - your accountant won't have authority over other aspects of your finances or personal affairs. It specifically defines which tax forms and years they have authority to discuss with the IRS. Your previous experience where an accountant requested banking passwords was definitely concerning and not standard practice. Good accountants will request statements or specific information, but should never need your actual passwords.

19 I had the exact same concerns when I first started working with a professional! After years of doing my own taxes, I was hesitant to hand over any kind of power to someone else. When my accountant asked me to sign a POA form, I actually researched for hours trying to figure out if I was making a mistake. That's when I found https://taxr.ai and it was a HUGE help. I uploaded the POA form my accountant gave me and it explained every clause in plain English. It confirmed this was totally standard practice and even highlighted the specific limitations on what my accountant could and couldn't do. Gave me total peace of mind!

22 Just wanted to follow up - I actually tried taxr.ai after commenting here and I'm really glad I did! I uploaded the POA form my accountant gave me and it explained everything line by line. Turns out there was a section where my accountant had checked boxes for more tax years than we had discussed, and I was able to ask them about it before signing. They said it was just so they could access my previous returns for reference, but I appreciated being able to have that conversation. Definitely worth checking it out if you're unsure about tax documents!

11 If you're still worried about the POA situation, you might want to just call the IRS directly and ask them about it. That's what I did when I was in a similar situation. Fair warning though - I spent THREE DAYS trying to get through to someone at the IRS. Kept getting disconnected or told to call back later. So frustrating! Then someone recommended https://claimyr.com to me. You can check out how it works here: https://youtu.be/_kiP6q8DX5c Basically they hold your place in the IRS phone queue and call you when an agent is about to answer. I got through to the IRS in less than 2 hours! The agent confirmed that POA forms are totally normal and explained exactly what my accountant could and couldn't do. Honestly saved me so much stress and time.

5 Ok I'm eating my words here. After posting that skeptical comment I decided to try Claimyr anyway because I was getting absolutely nowhere trying to reach the IRS myself. It actually worked! Got a call back when an agent was ready to talk, and got my questions answered about the POA form. The agent confirmed it's completely normal procedure and actually recommended making sure the form clearly specifies which tax years it covers. Honestly wish I'd known about this service years ago - would have saved me countless hours of frustration.

3 I'm an enrolled agent and just want to add - the Form 2848 Power of Attorney is absolutely standard practice. In fact, it makes things much more efficient because we can handle notices or questions from the IRS directly without having to constantly go back and forth with you. That said, PLEASE read what you're signing! Make sure the years and forms listed are only what you're comfortable with. Some accountants will list "all years" and "all forms" which might be broader than necessary. Don't be afraid to ask questions or request changes before signing.

14 My accountant never asked me to sign anything like this. Should I be concerned that they're filing my taxes without this form? Been using the same guy for years...

I was in the exact same boat as you last year! After doing my own taxes for years, I was really nervous about signing any kind of power of attorney form. But after researching it thoroughly, I can confirm it's completely standard practice. The key thing is to make sure you understand exactly what you're signing. The Form 2848 should clearly specify which tax years and forms your accountant can handle. Don't be afraid to ask them to walk through it line by line with you - any reputable accountant will be happy to explain everything. Also, remember that you can revoke this authorization at any time if you're not comfortable with the arrangement. The fact that you're asking these questions shows you're being appropriately cautious, which is a good thing when it comes to your financial documents! Your instincts were right about that previous accountant asking for banking passwords - that's definitely not normal and you were smart to back out of that situation.

This is such a timely question! I just went through this exact situation a few months ago when I switched to a new accountant. Like you, I was really nervous about signing any kind of power of attorney form after years of doing my own taxes. What really helped me was asking my accountant to explain exactly what the Form 2848 would allow them to do and what it wouldn't. They were very patient in walking through each section and explaining that it's really just about being able to communicate with the IRS on my behalf if needed - like if there are any questions about my return or if I get a notice. One thing I learned is that you can be very specific about the scope. I ended up limiting mine to just the current tax year and specific forms related to my individual return. You don't have to give blanket authorization for all years and all forms if that makes you uncomfortable. The red flag you mentioned about the previous accountant wanting your banking passwords is spot on - that's definitely not normal practice and you were right to walk away from that situation. A legitimate accountant will ask for statements and documents, but should never need direct access to your accounts.

I completely understand your hesitation about signing a power of attorney form - it's actually really smart that you're being cautious and asking questions before signing anything! The Form 2848 (Power of Attorney and Declaration of Representative) is indeed standard practice in the accounting world. It allows your accountant to communicate directly with the IRS on your behalf, which can be incredibly helpful if there are any questions about your return or if you receive notices. A few things to keep in mind: - The POA is limited only to tax matters, not your general finances - You can specify exactly which tax years and forms it covers (you don't have to authorize "all years") - You can revoke it at any time by filing Form 2848-R with the IRS - Any reputable accountant should be willing to explain every section of the form to you Your previous experience with an accountant requesting banking passwords was absolutely a red flag - you were 100% right to walk away from that situation. Legitimate tax professionals will ask for statements and documents, but should never need direct access to your accounts. Since this is your first year working with this accountant, I'd suggest limiting the POA to just 2024 and the specific forms related to your current tax situation. You can always expand it later once you've built more trust with them.

As someone who's been through this exact situation, I can definitely confirm that signing a Form 2848 (Power of Attorney) is completely standard practice! I was just as nervous as you are when my accountant first asked me to sign one. The form basically allows your accountant to communicate with the IRS on your behalf - things like responding to notices, getting copies of transcripts, or handling any questions that might come up about your return. It's actually really convenient because otherwise you'd have to be involved in every single interaction with the IRS. What I'd recommend is asking your accountant to show you exactly what they're checking off on the form. You can limit it to specific tax years (like just 2024) and specific forms (like just your 1040). Don't feel pressured to give them blanket authorization for "all years" if that makes you uncomfortable - especially since this is your first year working together. You were absolutely right to be suspicious of that other accountant asking for banking passwords! That's never normal. A legitimate accountant might ask for bank statements or other documents, but they should never need your actual login credentials. Good luck with your taxes! Sounds like you're asking all the right questions to protect yourself.

This thread has been incredibly helpful! I was in almost the exact same situation a few months ago - first time using a professional accountant after years of TurboTax, and I got really nervous when they asked me to sign Form 2848. What really helped me was doing some research on the IRS website about what the form actually does. It turns out it's not just normal - it's actually recommended by the IRS when working with tax professionals. The form creates a clear legal framework for your accountant to represent you, which protects both of you. One thing I learned that might be helpful: you can actually request a copy of your signed Form 2848 from the IRS at any time to see exactly what authorizations are on file. This gave me extra peace of mind knowing I could always verify what my accountant was authorized to do. Your instinct to be cautious is spot on, especially after that sketchy experience with the banking passwords. But based on everything I've learned, signing a properly completed Form 2848 with a reputable accountant is actually the professional way to handle the relationship. Good luck with your taxes!