IRS Form 56
In the next decade, over one fourth of the population is expected to have dementia and/or Alzheimer’s. After age 65, one out of two of us will be afflicted.
Most of us will have to help our parents or our spouse by filing their tax return and maybe even handling an IRS audit. But, the IRS is not allowed to disclose information to anyone other than the taxpayer.
Like us, the IRS staff have parents and concerns regarding them, so they came up with a solution that does not need the approval of the grid-locked Congress.
The IRS had its attorneys issue a legal memo stating that the simple Form 56 solves the problem. If your parents file a Form 56 naming you as their agent, then you can handle their IRS tax matters. Form 56 is short and simple.
One thing to keep in mind is to be sure that your parent signs Form 56 before they lose their mental capacity.
To see Form 56, go to: http://www.irs.gov/pub/irs-pdf/f56.pdf