New York recently (June 13, 2021) reformed its power of attorney forms. The changes were made to simplify the power of attorney form. The reforms also provide safe-harbor provisions for good-faith acceptance of an acknowledged POA (Power of Assistance). The department of taxation and finance allows taxpayers to have representatives who act on their behalf. For this to happen, you need to send the department a power of attorney document.
New York power of attorney form 2021A power of attorney form is a legal document that allows an individual to represent another before the department of taxation and finance. The department of finance and taxation has two tax department forms available. They both allow a taxpayer to be represented by someone else in financial matters. Form ET-14, also known as Estate Tax Power of Attorney, deals with specific tax matters. The form allows an individual to act on an executor’s or administrator’s behalf for an estate tax matter. Form POA-1, also known as Power of Attorney, deals with specific tax filling periods, tax types, and tax matters. The form allows an individual to perform all tax-related activities on behalf of a taxpayer. Apart from estate-tax related activities, the individual can:
- Make legally binding decisions on behalf of a taxpayer regarding conciliation conferences, audits, and settlement agreements.
- Receive confidential data related to the taxpayer’s assessments, fillings, collection of debts, and notices.
New York durable power of attorney form 2021Suppose a taxpayer lost mental capacity and had filled power of attorney form. Then, the POA will automatically stop being effective. The durable power of attorney form solves this issue. A durable power of attorney is still effective even after the taxpayer has become mentally incapacitated. Thus, a durable power of attorney is available for finances and medical care, especially for taxpayers who can no longer handle matters independently.
A durable power of attorney short form 2021In early 2021, the New York Statutory Short Form Power Of Attorney was revised through Assembly Bill A05630A and Senate Bill S888. Some of the significant changes to a power of attorney include:
- Eliminating the exact wording required in favor of substantially compliant language.
- Provide safe-harbor provisions for good-faith acceptance of an acknowledged POA
- Introducing sanctions for those who unreasonably refuse to accept a valid POA
- Suggested language for permissible modifications is provided in a separate document. The document can then be copied and pasted into the POA form.
New York general power of attorney form 2021There are many types of power of attorney forms available in New York. The three primary POA forms include special, medical, and general power of attorney. A general power of attorney grants broad legal authority to act on a person’s behalf. It includes filling returns, borrowing money, settling bills, among others. The form was designed to provide an agent with broad powers that don’t require a taxpayer to predict every possible legal scenario in advance.
New York power of attorney requirementsFor an individual to complete a valid power of attorney, they must be at least 18 years old. The individual should understand what a power attorney is and the consequences of giving an agent the power to act on their behalf. On top of all this, the principal requires to produce the following documents when creating a power of attorney:
- The original power of attorney form and its photocopy
- Valid passport in original with photocopy (first/ last and valid visa page) of the executant’s
- Two passport size photographs not older than six months
- ID cars copy of attorney you are creating the POA for