Law Amendment Changes Powers of Attorney Rule

A law amendment in Chapter 340 of the Laws of 2010, amended Title 15 of Article 5 of the New York State General Obligations Law, excludes from its requirements a power of attorney created on a form prescribed by a governmental agency for a governmental purpose.

As of Sept. 12, 2010 State Tax Form POA-1 will not require acknowledgment or witnessing if the appointed representative is licensed to practice in the state of New York as a certified public accountant, or public accountant, an attorney-at-law, or is a New York state resident enrolled as an agent to practice before the Internal Revenue Service. The acknowledgement requirement for the representative's signature would also no longer be required for the Department of Taxation and Finance power of attorney.

Prior to 2009, only a taxpayer’s signature needed to be notarized on certain government forms—a CPA or attorney was exempt from such requirements. But in what may have been a response to reported abuses of power of attorney privileges, the New York General Obligations Law was amended in 2008 to require that the signatures of all taxpayer representatives also be notarized on client documents.

According to the New York State Department of Taxation and Finance, Form POA-1-IND, Power of Attorney for Individuals, is obsolete (valid powers of attorney previously executed on Form POA-1-IND will continue to be valid); and Form POA-1, Power of Attorney, should be used by taxpayers as evidence that they have authorized an individual or individuals to represent them for tax matters administered by the New York State Tax Department, the New York City Department of Finance, or both.

The New York State Department of Taxation and Finance has released the following guidance on the matter. The New York State Department of Taxation and Finance stated that it plans to have the revised Form POA-1 and Instructions on its website by Sept. 12, 2010.