Filing Taxes With a POA?
GET FAMILIAR WITH IRS FORM 2848
A power of attorney (POA) is a legal document that authorizes a designated individual (“agent” or “attorney-in-fact”) to manage the affairs of another person (“principal”). It can be used for financial planning, emergencies, medical decisions (in certain states), or when someone is unable to make their own decisions. Many adult children seek to use their power of attorney (POA) to file tax returns on 
behalf of their aging parents. This can be tricky as certain IRS procedures must be followed. IRS Form 2848 Power of Attorney and Declaration of Representative is the primary document that applies and there are specific requirements as to who can represent the principal in filing this form. Only attorneys, CPAs, immediate family members, enrolled agents (federally authorized tax professionals), and certain other unenrolled return preparers are eligible. Both the taxpayer – principal and the POA must sign and date Form 2848, which may present an issue if the older parent suffers from significant cognitive challenges or they are unable to sign for other reasons. The document requires that a specific purpose is referenced (e.g. the filing of Form 1040) and the specific tax years for which the authority is sought. The form can be submitted online, via fax, or by snail mail to the IRS. If the POA represents that he or she has the authority to sign the tax return because the principal is infirm or out of the country, specific permission related to the reason must be granted by the IRS. Unfortunately, scammers are now exploiting Form 2848 in fraud schemes. They use stolen identities and forged signatures to gain access to the taxpayer’s IRS records – often to facilitate identity theft or the receipt of a phony tax refund. If this occurs, the POA or the principal must immediately revoke the POA (if the principal is able to do so) and consider obtaining an Identity Protection (IP) PIN from the IRS to prevent further misuse. The IRS also recommends that a new Form 2848 or a separate written statement to the IRS Centralized Authorization File (CAF) unit be submitted with “Revoke” written across it. You can monitor your IRS account online by creating or signing into an “Online Account” on the IRS website. This secure tool allows you to view your tax balance, payment history, five years of records, and recent notices, including the filing of unauthorized POAs or representatives. If you have questions, please contact the EverSafe team.
Government / Legislative Update
FBI FOCUSES ON RESIDENTIAL ROUTERS AND DEVICES
Earlier this month, the FBI issued a Public Service Announcement to alert consumers about residential proxies and their role in illicit networks. A “residential proxy” is an intermediary server between the consumer and the website they visit which makes their connection appear to originate elsewhere. Legitimate IP addresses assigned by an Internet Service Provider to 
consumers’ devices, such as a TV streaming device, digital picture frame, smartphone, tablet, and/or router, can be used to route traffic. Once an internet-connected device is compromised, the device’s IP address can be used by bad actors to hide their illegal online activity and make it appear that the consumer is responsible. According to the FBI, scammers are taking advantage of old, outdated routers and poorly-secured smart devices. Many individuals do not realize their internet connection could be used by someone else without their permission. The FBI has referenced several red flags that suggest your WiFi network may have been hacked and require further attention. They include: unusually high data usage, internet bills that show excessive traffic that doesn’t match your usage, a consistently slow or unreliable internet connection (especially if this is a change), a router that feels unusually hot or restarts frequently, and/or an unfamiliar device shows up in your routers “connected devices” list. The FBI recommends a number of steps to safeguard your home WiFi and avoid becoming a part of a criminal residential proxy network. They include: replacing an outdated router (especially if it no longer receives updates), rebooting your router regularly, making sure the updates provided by device manufacturers are installed, and being vigilant about rejecting apps that appear to be unofficial, suspicious-looking, or less than secure. If you suspect your router has been compromised, report it to the FBI’s Internet Crime Complaint Center (IC3).
Scam Alert
IMPERSONATION FRAUD MEETS CRYPTO
Scammers continue to pose as representatives from banks or credit card companies in an effort to gain access to the customer’s account. Although the schemes may differ, they are usually variations on a theme. It may start with a call that is spoofed to look as though it’s coming from a financial institution. The caller, purportedly from the bank, claims that there are suspicious looking transactions on the customer’s account. They ask the customer to “confirm” full or partial financial information (i.e. bank or credit card number) and/or personal identifying information (i.e. date of birth or social security number). The fraudster may persuade the customer to sign-in with them – and even obtain the digital one-time passcode which will access to their account. A newer element of many impersonation schemes is the scammer’s assertion that a cryptocurrency transfer is necessary. The victim is told to use bitcoin or another such currency to make payments or deposits to an unrelated account in order to “reverse” the fraud and “protect” their account. If the victim is unfamiliar with how to obtain crypto, they may be directed to a cryptocurrency ATM/kiosk in their area. The new account is, of course, owned and controlled by the scammer. And these kiosks are a favorite of criminals as cryptocurrency is decentralized and very difficult to trace. The kiosk operator adds an additional middleman. According to AARP research, 17 states have passed statutes to protect consumers from crypto kiosk–related scams. These laws limit daily transactions and require fraud warning signs. Many also require operators to provide transaction receipts to help law enforcement with investigations. If you have been targeted in a crypto scheme, a complaint should be filed with ic3.gov, even if a financial loss did not occur. And the FBI further advises consumers to be aware of cryptocurrency recovery services, especially those charging an up-front fee.
Good News
CENTENARIANS AND KIDS ARE A GOOD COMBO
The news isn’t all that fun to read these days. But this little piece has gone viral on social media a few times, and it feels like good news. It’s not complicated – just a montage of conversations between youngsters and a 101-year-old woman named Alice. Hope this Facebook video makes you smile.
