Who Can Sign Tax Returns for a Company

Annual Return Program Participants – This voluntary program recognizes the efforts of returnee preparers who are not typically lawyers, accountants or registered agents. It is designed to promote training and preparation for the registration season. The IRS issues an annual program completion statement for the production period to bring back preparers who receive a certain number of hours of continuing education in preparation for a specific tax year. In this case, the taxpaying corporation was amalgamated into a new corporation. The officers of the original taxpayer were not affiliated with the new corporation and signed a series of Form 872s to extend the tax period of the new corporation. The Court of Finance concluded that the new company had not been allowed to challenge the validity of the signatures and concluded that it was a question of fact whether the taxpayer of the company existed at the time the forms were signed and whether the officers were authorized.5 However, while the case may differ from the situation envisaged by the CCA, because Texas International Corp. The Tax Court found that the company`s taxpayer encouraged the IRS to falsely assume who was authorized to sign Form 872. Attorneys – Licensed by state courts, the District of Columbia, or their agents, such as the State Bar Association. As a rule, they obtained a law degree and passed a bar examination.

Lawyers generally have continuing education and professional standards. Lawyers can offer a range of services; Some lawyers specialize in preparing and planning tax returns. RESTRICTED PERFORMANCE RIGHTS: Some creators without any of the above references have limited practice rights. They can only represent clients whose tax returns they have prepared and signed, but only before financial officers, customer service representatives, and similar IRS employees, including the Taxpayer Advocate service. They cannot represent clients whose tax returns they have not prepared, and they cannot represent clients in appeals or collection matters, even if they have prepared the tax return. Tax returns prepared with limited agency powers include: The IRS code lists the specific agents authorized to sign a federal corporation tax return: president, vice president, treasurer, assistant treasurer, chief accounting officer, or other officer authorized to sign, such as the chief financial officer. These officers are all automatically authorized to sign the declaration, and no corporate action is required to approve the action. In addition, the CCA notes that in the future, the LLC could legitimately be prevented from claiming that the agent was not authorized to sign the tax return, power of attorney, or extensions of time for the IRS to assess the tax (Form 872). Cam Merritt is a writer and editor specializing in business, personal finance, and home design. He has contributed to USA Today, The Des Moines Register and Better Homes and Gardens. Merritt holds a degree in journalism from Drake University and an MBA from the University of Iowa.

The instructions for signing a corporation income tax return are the same whether the corporation is a traditional Subchapter C corporation or a Subchapter S corporation. A Subchapter S corporation is referred to as a “small business corporation” in the Internal Revenue Code and files its taxes with another tax return, Form 1120S. You cannot allow someone who is not authorized to sign important documents such as a tax return. The reasons are quite simple. The IRS makes your organization responsible for accurately accounting for your organization`s assets and liabilities. An authorized person should have this information readily available. An unauthorized person can cause liability problems. You want to make sure your business is viable in the eyes of your customers. There are situations where someone other than an officer of the company can sign the declaration.

When one corporation is amalgamated with another, the original entity no longer exists, so the officers of the new corporation are responsible for signing the final declaration of the defunct corporation. If a business is bankrupt and a receiver or trustee manages the business or supervises its liquidation, that insolvency administrator or trustee signs the declaration. In this case, the insolvency court makes an order authorizing the insolvency practitioner or trustee to sign the declaration and the order must be attached to the company`s statement. The IRS instructions for Form 1120, the standard corporate income tax return, require that the return be signed by an officer of the corporation.

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