When you’re managing someone’s finances under a Power of Attorney, taxes are unavoidable — bills, refunds, and deadlines don’t wait for anyone. The good news: an agent under a Power of Attorney can generally handle a loved one’s taxes. The catch: the IRS often plays by its own rules.
Yes, an agent can usually handle taxes
A broad financial Power of Attorney typically lets you manage the principal’s tax matters — gathering documents, paying what’s owed, and dealing with returns. If your document grants general financial authority, tax handling usually comes with it.
The IRS often wants its own form
Here’s where people get tripped up: the IRS doesn’t automatically accept a standard state Power of Attorney form for everything. To formally represent someone before the IRS — talk to agents, handle notices, and sign in certain situations — the IRS generally wants its own Form 2848, Power of Attorney and Declaration of Representative. A durable Power of Attorney can sometimes be used instead, but it may need to be attached with a specific statement. When in doubt, a tax professional can tell you exactly what the IRS needs.
Signing a return for someone else
If the principal can’t sign their own return, an agent may be able to sign it — but the IRS has specific expectations about how, and often wants documentation of the authority attached. This is one of those areas where a quick call to a CPA or tax preparer saves a lot of headaches.
Keep it clean
- Use the principal’s money to pay the principal’s taxes — never commingle.
- Keep copies of returns, payments, and any Power of Attorney forms you submit.
- Loop in a tax pro for anything beyond a simple return — the cost is usually worth the certainty.
Managing the financial side of caregiving is exactly what the POA Caregiver Program and the National Handbook are built to make manageable, and our free tools help you stay organized and audit-ready.
This article is plain-English education, not legal advice. Power of Attorney law varies by state, and reading it does not create an attorney–client relationship. For guidance on your specific situation, talk with a licensed attorney in your state.