A state tax power of attorney (POA) form is a document that allows another individual (also called a “representative”) to manage taxes for someone else with a state’s Department of Revenue. The tax power of attorney form typically authorizes tax attorneys and accountants as representatives. Still, it can also designate anyone, such as a family member or friend, to handle taxes.
State tax power of attorney forms are state-specific, so filers must download the forms provided by their state’s governing tax agency.
IRS Form 2848 vs. State Tax POA
Both IRS Form 2848 (Power of Attorney and Declaration of Representative) and a State Tax Power of Attorney can be used for tax-related matters. However, these forms are not identical:
- IRS Form 2848 can only be used when filing federal taxes.
- Under Form 2848, the agents must be eligible to practice before the IRS (like attorneys, CPAs, and enrolled actuaries).
- The IRS form has a maximum validity of three years and requires renewal, while state tax forms may last up to six years, contingent on the state, with possible extensions for an additional six years.
Forms – By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
When to Use a State Tax Power of Attorney
You will only need this form for your state tax filing. A state tax power of attorney allows your assigned representative to talk to state tax agencies about your taxes. Without a written POA, state tax agencies cannot and will not discuss your:
- Tax account
- Confidential financial information
- Settlement agreements, judgments, or closing agreements
Powers of attorney are advisable when an individual has multiple taxes to file, such as business and personal income taxes, or needs to file taxes in various states. It’s also wise to have a POA in place as one age and may need a representative or estate planning attorney to access IRS records or other state franchise tax board documents.
What Are State Tax Agencies?
Every state has its tax agency, separate from the Internal Revenue Service. State tax boards are variously known as the state’s Department of Revenue, Division of Taxation, Franchise Tax Board, Comptroller, or State Tax Commission. Some states, like California, have multiple tax agencies resembling the federal government’s agencies.
State tax agencies collect state taxes, everything from state sales tax to property tax to estate tax. These taxes help pay for state government spending. Schools, police and fire departments, and local low-income projects come from state taxes.
The IRS collects federal taxes, which account for a portion of all state taxes. Federal taxes pay for federal government spending, including military needs and federal projects like interstate highways and national parks. Some of the money is returned to the states through federal grants.
State Tax Agencies
The following is a list for each state with its corresponding tax agency:
Choosing a Representative for Filing State Taxes
State tax agencies have their requirements regarding who can assist you with your taxes. In general, their requirements mirror those of the IRS. Some states limit the ability of family members or unenrolled preparers to help with tax filing. Your safest action is to ask a legal or tax professional before making your choice.
Some states, such as California, require anyone not a licensed professional to complete a state course and register with the state’s Franchise Tax Board to become a registered tax preparer. This course gives the filer instructions on completing tax forms and requires them to post a bond, like a CPA or notary.
Who Can Be a Representative?
Individuals you can select as your representative include:
- A legal professional, such as a tax attorney.
- Certified Public Accountant (CPA).
- Enrolled Agent. The IRS and some states enroll and register tax preparers who can complete and file tax forms.
- Enrolled Actuaries. The Joint Board for the Enrollment of Actuaries allows their members to complete and file tax documents.
- Unenrolled tax preparers, subject to state requirements.
- Qualified law students or bar applicants, subject to state requirements.
Do I Need a Lawyer to Fill Out a Tax POA?
No, you do not need a lawyer to complete your state tax power of attorney. The representative named on your POA does not need to be an attorney. Some states require a notary seal on the POA, and you may want a legal or tax professional to review the document before you submit it.
Can I Have Multiple Representatives on My Tax POA?
Maybe. It depends on the state and the purpose of the POA. For instance, California allows multiple representatives to be named. You can also use California’s form for non-tax purposes, such as payment of a court debt.
Each state has its requirements and allowances for its tax power of attorney. If your state allows it, you can have more than one representative.
Can I Revoke My Tax POA?
You can usually revoke your state tax POA at your discretion. Some states have automatic expiration dates, and the POA terminates after a certain amount of time, usually between three to six years from the signing date, unless they are revoked sooner. Older POAs often have no expiration date and must be revoked on request or by submitting a new POA.
An IRS power of attorney must be revoked by writing “REVOKE” across the top of the first page of the previously executed POA with a current signature and date below this annotation.
Can a Power of Attorney Representative Sign a Tax Return?
No. Your power of attorney representative cannot sign your tax return except in very limited situations. You may request permission from the IRS or state tax agency in cases of:
- Severe disease or injury preventing you from signing.
- Continuous absence from the US (including Puerto Rico) for at least 60 days prior to the last date required for filing.
- Another good cause, with permission requested explicitly from and granted by the IRS or state tax agency.
Check with your particular state, which may allow your power of attorney representative to sign your tax return.
Powers & Limitations of a Tax POA Representative
A Tax Power of Attorney grants an individual or organization the authority to represent and act on behalf of another person in matters related to taxes. Here are the powers and limitations of your representative:
Proper Authorization
Each power of attorney form has a series of checkboxes or line items that grant or deny your representative certain powers. You can limit your representative to a range of years (such as this tax year only) or specific actions.
Requirement for Signing the Return
Your power of attorney should be signed with the following or similar statement: “(Taxpayer name), by (representative name) under the authority of the attached power of attorney.”
Attaching the POA
The IRS and state tax agencies will not accept documents from a power of attorney representative unless the POA’s declaration, properly signed and dated by you, is attached.
Limitations
The power of attorney form, both state and federal, only gives your representative permission to complete your tax return, receive and inspect confidential tax information, and discuss tax matters on your behalf. It does not absolve or release you from your obligation to pay your taxes. In most cases, it does not release you from liability for errors in the tax return itself.