Your Tax Question - 022

Dear John, My in-laws have retired to Tahiti but have retained their permanent address here in the states. I have the Power of Attorney and am responsible to make sure their taxes get done. I expect it to be nothing more than a 1040A form but they will not be here to sign their forms. Since I have the Power of Attorney can I just sign for them. Thanks, William
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Hi William,

First off, since your in-laws live in another country they have an automatic 6 month extension for getting their taxes completed and filed. They will have to pay interest on any taxes due after April 15, but they will not be penalized for being late. You will need to file form 2350 to register the extension and you should check out publication 54 as it will have details about this situation.

And second, this is the first year that you do not need to send in a physical signature on a separate form to the IRS. Instead, if the return is submitted electronically their signature forms just need to be held on file for 3 years. All you would have to do is have them fill out form 8878 and form 8879 then fax them to you for your tax preparer's records.

Good luck,
John

If you need help with this, please email me.