As we're sure you're aware, the past year and a half living under a global pandemic has been unbelievably challenging for everyone. It has been exceptionally difficult for us as preparers navigating complex new tax laws and provisions, incorporated in the middle of tax season no less. One of the biggest challenges we've had during this time is dealing with an already under-funded, technologically deprived, and short-staffed IRS. Issues that would, in non-pandemic years, take us a few days to resolve now take weeks or even months. Add to it the US Mail delays affecting tax documents from being delivered and it truly has been a recipe for frustration. At times this season we've felt helpless in being able to assist our clients.
Because of these challenges out of our control, we have made the decision that we are now going to recommend that all of our clients complete a Power of Attorney Form 2848. This limited power of attorney form allows Matt and Ryan to pull client transcripts so we can see exactly what the IRS has on your account. It will let us know what estimated tax payments you've made and when you made them, thus eliminating any notice or letters our clients would receive for having mismatched information on their return and in the IRS system. If you're missing a tax document, we can see a Wage and Income transcript that the IRS already has on file of that document so you don't have to worry about getting it to us as homework. If the IRS sends you a notice, they are required to send us one as well and often we get it before our clients do. Now we can contact you with information about what's going to happen and how to solve a problem before you even know there is one. Not to mention, with an active Power of Attorney on file, we can contact the IRS on your behalf so you don't have to.
As of August 18, 2021, Power of Attorney Form 2848 are being sent to clients based on how they requested to sign their 2020 tax return. If you requested a paper copy to sign and send back to us then our office is mailing out a paper copy of the Power of Attorney forms to you to sign and return. If you requested that you sign your return electronically then a digital copy of the Power of Attorney forms have been placed in your portal for you to download, print, sign, and return to us. Email notifications for portal users went out today from members of our support staff, Lisa Catania and Mari Pridemore and they should be in your inboxes waiting for you.
Ideally we'd like for this to be completed well before tax season 2021 (taking place in calendar year 2022) so as to take advantage of it for next year. Currently it takes between 65 and 80 days for a Power of Attorney to be accepted by the IRS so that we can help a taxpayer with an issue. Before the pandemic it used to take roughly 10 business days. The POA helps us help you so please return them to us as soon as possible. If you have any questions or concerns about the forms please reach out to us at office@lincolntax.com or call us (301) 371-5104.