TAX 670 FINAL PROJECT
I. BONUS DEPRECIATION AND EXTRA DEDUCTION
Subject: Bonus Depreciation and Extra Deduction
Background
Nora is a sole proprietor who owns a bakery business called C-C Bakery, and she has been
running it for three years. The average profit of the business is $ 500,000 p.a. for the past two
years. She wishes to buy a few new as well as used equipment for her business, including a new
oven ($ 10,000), a new connected refrigerator and freezer ($ 7,000), a new bakery display case ($
5,000), and a used commercial mixer ($ 5,000). She also plans to make certain improvements to
the building, which will cost approximately $ 20,000. a a a a
Issues to be addressed
The main issue that has been identified and addressed in the memo is whether Nora is
eligible for bonus depreciation or not. The option for Nora to avail extra deductions has also been
ascertained.
Legal aspects and analysis
Bonus depreciation refers to the tax incentive which enables business entities to instantly
deduct a significant percent relating to the purchase price of an eligible asset like machinery. It is
regarded to be a kind of tax relief for small- and medium-sized business firms, especially the ones
that intend to make a decent asset purchase. According to Eichfelder et al. (2023), bonus
depreciation can influence real investment decisions that are made by firms. IRS allows
companies to deduct an amount which is higher than the normal depreciation allowance. The 2017
Tax Cuts and Jobs Act has implemented ‘100 % additional 1st year depreciation deduction’
(Internal Revenue Service, 2020). This rule is applicable to depreciable business assets whose
recovery period of 20 years or less. Based on the provision that has been introduced by the Act,
Nora should be able to deduct 100 % of the asset value in the first year.
The Protecting Americans from Tax Hikes Act, which is also known as the PATH Act, has been
introduced in the US by the Obama administration. It basically allowed individuals, businesses as
well as families to renew or expand diverse tax credits. Based on the PATH Act, which is still
applicable, the bonus depreciation provision is applicable to a qualified leasehold improvement
property (United States Senate Committee On Finance). Hence in the case of Nora, the
improvements that she intends to make to the building include air condition duct as well as
roofing works, which is likely to cost around $ 20,000, is eligible for bonus depreciation. a a a a
According to 26 U.S. Code §179, taxpayers can opt for the cost relating to the deduction of
specific kinds of property instead of needing cost capitalization and depreciation pertaining to the
property (US. Code, 2023). Section 179 (b) (1) states that a taxpayer can have a maximum
deduction of $ 1,000,000 in a year (US. Code, 2023). Thus, in the case of Nora, she is most likely
to take up to $ 42,000 (i.e., $ 10,000 + $ 7,000 + $ 5,000 + $ 20,000). The rule of bonus
depreciation is applicable on new products, and hence the value of the used commercial mixer has
not been included in the computation. The used commercial mixer has to be entirely depreciated
before the purchase. Another alternative that Nora can hypothetically consider is that she can opt
for another § 179 deduction in order to reduce the price of the intended materials before the
purchase and then make a deduction on the balance amount.
Nora must choose the method of depreciation that will be applicable to the business assets.
She can consider both the straight-line depreciation method or the double-declining depreciation
method. But there is a possibility that Nora has to deduct the entire amount of $ 42,000 in the first
year, as a result of which she would not be able to make use of the bonus depreciation option. In
case that is the situation, then based on the applicable tax bracket, she will be able to save $ 14,700
(estimated tax bracket of 35 %) after excluding the used purchase materials. a a
Conclusion
On the basis of the U.S. Code 179 as well as the 2017 Tax Cuts and Jobs Act, the bakery
business of Nora will be eligible to avail the provision relating to bonus depreciation along with
extra deductions. However, the extra deductions that will be applicable mainly depend on the
choices that Nora will make while choosing the type of deduction. As the provisions will work in
her favor, the decision to make purchases for her bakery business is an ideal choice that will not
only help her to expand her business but also minimize the costs that she will have to bear. Based
on the applicable tax-related requirements and regulations, her bakery is qualified to take
advantage of bonus depreciation and extra deductions.
Thank You
II. CHARITABLE GIVING
Subject: Charitable Giving
Facts:
Nora has decided to contribute $ 70,000 in December of the year to the Boys and Girls
Club, which is a charitable and nonprofit entity. The purpose of the memo is to advise her on
charitable contributions and identify the tax advantages or limitations that may arise as a result of
her charitable giving.
Issue:
• Decision on whether Nora should contribute from her business account or personal
account.
• Associated tax advantages or limitations
Conclusion:
• Nora must contribute to charity from her personal account
• Both tax-related advantages and limitations will arise if Nora makes charitable
contributions
Analysis:
Sources for evaluating appropriate tax situation
One of the appropriate sources that can be used for assessing Nora’s tax situation is
Internal Revenue Code (IRC) section 170. As per IRC § 170 (a) (1), the deduction for any
charitable contribution within the taxable year is allowed. IRC § 170 (b) (1) further states that
charitable contributions must be made to qualified entities, and the aggregate contribution must
not exceed 50 % of the contribution by the taxpayer for the specific taxable year. Based on IRC §
170 (b) (2), the total deductions of a corporate must not exceed 10 % of the taxable income of the
taxpayer (U.S. Code § 170, n.d.). Another important source is Section 220.183 of Florida Statutes.
As per Section 220.183 of Florida Statutes, a 50 % credit of community contribution is allowed
against any tax that is due for a taxable year (The Florida Statutes, 2023). It also states that no
business is entitled to get over $ 200,000 in annual tax credit for approved contributions that have
been made in a single year. Similarly, IRS Publication 526 is another resource that explains the
procedure for claiming deductions for charitable contributions (Internal Revenue Service., n.d.).
Research documentation
On the basis of IRC § 170 (b) (1), as Nora is an individual, she can deduct up to 50 % of
her adjusted gross income for a charitable giving that is made to a qualified entity. IRS
Publication 526 states that an individual has a limit on the deduction of 50 % of adjusted gross
income. The deduction rate may vary depending on the contribution amount. As Nora’s adjusted
gross income is likely to be around $ 350,000, her available contribution is $ 175,000 at 50 %. If a
contribution is made from her C-C Bakery business, the deduction rate is 10 % as per IRC § 170
(b) (2) (U.S. Code § 170, n.d.). Such a limitation does not apply if she makes a contribution from
her personal account.
In Florida state, as per Section 220.183 (a-b), if someone makes a contribution to a charity,
they are eligible for a credit of 50 % of any tax due for the year. However, the contribution must
be specifically reserved and used for projects that have been covered in Florida Statutes § 220.03
(1) (t).
Application of research
Based on the research, as Nora’s bakery business is performing well, she must make
charity to give back to the community. If she makes a contribution from her corporate account, a
10 % limit is applicable. However, if she makes a contribution from her personal account, there is
a much higher limit, i.e., 50 %. Since Boys and Girls Club is a qualified charity organization
(Internal Revenue Service., n.d.), she is qualified for the 50 % limit deduction if she makes a
deduction from her personal account. By making a contribution from her personal account, the
threshold is $ 175,000 (50 %). By contributing $ 70,000, her adjusted gross income will reduce
from $ 350,000 to $ 2,80,000 after making the contribution deduction.
Furthermore, Nora can also derive benefit from Florida’s taxation rules and arrangements
since her adjusted gross income can be further decreased to $ 2,45,000 for the purpose of sales
tax. However, Nora must bear in mind that the carryover of corporate charitable deductions is
limited by a specific % of the adjusted gross income (Internal Revenue Service, n.d.).
Findings and advice
Based on the analysis, Nora must make charitable contributions from her personal account
and not from her corporate account. The higher contribution threshold at the individual level will
help her to make a greater contribution from her personal account. Moreover, she can take
advantage of Section 220.183 of Florida Statutes, which can give rise to tax-related benefits for
her by reducing her adjusted gross income after making adjustments for her contributions to the
Boys and Girls Club charity organization. The decision to contribute to charity from her personal
account can give rise to tax benefits.
III : HOME OFFICE DEDUCTIONS
Subject: Advice on Home Office Deductions
Fact:
Nora, in her 2,000-square-foot home regularly uses a 300-square-foot room exclusively as an
office for her C-Corp bakery business for performing administrative functions like paying bills
and ordering supplies.
Issue:
• To determine whether Nora can take any deductions for her home office.
Conclusion:
• Nora can make deductions for her home office where she exclusive performs
administrative functions.
Analysis:
A. Identified sources
The relevant sources relating to the business use of one’s home are:
IRC § 162
It allows deduction for all necessary and ordinary expenses paid or
incurred during the taxable year relating to business
IRC § 280 A (a)
It is a vital source relating to home office deductions which focuses on
the disallowance of specific expenses in connection with the
commercial or business application of home, rental of vacation homes,
etc. (26 U.S. Code § 280A, n.d.).
IRC § 280 A (c) (1) (A)
It focuses on an exception to the disallowance of expenses relating to
the commercial use of home
IRC § 280 A (c) (1)
It focuses on the exception that permits a home office deduction only if
the exclusive use is for the convenience of the employer (in case of an
employee).
IRC § 280 A (c) (1)
It emphasizes that a principal place of business is one used by the
taxpayer if there is no other fixed location to conduct substantial
management or administrative activities.
IRC § 280 A (c) (5)
It highlights the limitation for the home office deduction.
IRC § 280 A (c) (6)
It disallows a deduction relating to home office expenses if the space is
rented by the taxpayer to their employer.
Revenue Procedure
2013-13, 2013-6 IRB 478
It presents an optional alternative means to compute the home office
expenses amount
IRC § 67 (a)
It restricts an individual’s aggregated (total) miscellaneous itemized
deductions to the amount that surpasses 2 % of adjusted gross income.
IRC § 67 (b)
It gives the definition of the miscellaneous itemized deductions
IRC § 67 (g)
It briefly suspends all miscellaneous itemized deductions for tax years
before 2026 and after 2017.
IRC § 62 (a) (2) (A)
It allows an employee a deduction for particular expenses that they have
paid in connection with the performance of services, if the employee is
under a reimbursement or other expense allowance arrangement.
Treas. Reg § 1.62-2 (c)
(1)
It provides the definition of a reimburse or other expense allowance
arrangement
B. Research documentation
In the specific scenario, Nora, who owns and operates a C-C Bakery, has a 300-square-
foot room in her 2,000-square-foot home which she uses as an office for performing
administrative functions like ordering supplies and paying bills. Based on IRC § 280 A, one can
qualify for a home office deduction if the home office can be treated as the principal main place of
conducting business. To be considered the principal place of business, it must be ‘exclusively and
regularly’ used for conducting management or administrative activities (Internal Revenue
Service, n.d.). It implies that Nora must use no other place where administrative or management
activities relating to her business are carried out. a
In Nora’s case IRC § 162 will allow the deduction for all the ordinary and necessary
expenses paid or incurred during the taxable year in carrying on any trade or business but IRC §
280 A (a) disallows individuals and S corporations from deducting the use of a dwelling unit if it
is used as a residence. Since a portion of Nora’s residence is exclusively used regularly as the
principal place for performing administrative functions of the business, then the deduction is not
disallowed. In Nora’s case there is no other fixed location where she undertakes substantial
administrative activities for her bakery. As the bakery is a C-Corp, Nora is seen as an employee of
the corporation. As an employee, Nora can claim the home office deduction provided the space
use is for the employer’s convenience. Based on the following elements Nora’s her home office
expenses are deductible:
• The exclusive use of the room in her home on a regular basis.
• As an office for performing the bakery business.
• It leads to the convenience of the employer.
• Administrative functions like paying bills and ordering supplies are undertaken.
• There is no other fixed location where Nora conducts substantial administrative activities
for her bakery business.
C. Application of research
As per IRC § 280 A (c) (1) the home office of Nora is eligible for home office deductions
since the 300-square-foot room, which is used as an office, is used for carrying out administrative
activities (Internal Revenue Service, n.d.). The specific administrative functions that she performs
relating to her bakery business are ordering supplies and paying bills. Two methods can be used
for making deductions relating to home office use – simplified method or regular method.
• Simplified method – Under the simplified method, Nora is allowed to deduct up to 300 sq.
ft multiplied by $ 5 for the home office (Internal Revenue Service, n.d.).
• Regular method – Under the regular method, a distinction is made between the direct
expenses and the indirect expenses. While the direct expenses are fully deductible, for the
computation of the indirect expenses, a calculation is necessary. The computation
involves the division of the square foot of the home office by the total square foot of the
house. It helps to arrive at the percentage of the home that is used for carrying out
commercial activities. By adding the percentage of indirect expenses with the direct
expenses, it is possible to arrive at the final value relating to home office deduction. The
same percentage can also be used for the purpose of calculating the deductible component
relating to utility costs, housing payments, insurance premiums, and business costs.
Regardless of the method that Nora uses for arriving at the home office deductions, the
total deduction value cannot be more than the gross income from the commercial use of the home
minus the business-related expenses. In the case of the regular method, it is possible to carry over
any amount which is over the gross income limitation to future years. But the simplified method
does not allow carrying over any value to the future. The reporting of the simplified method is
done on Schedule A (Internal Revenue Service, n.d.), whereas the reporting of the regular method
has to be apportioned between Schedule A, C, and F, whichever is applicable.
D. Documentation of findings and advice
If Nora decides to use the simplified method for calculating her home office deductions,
the computation will be as follows:
$ 5 * 300 sq. ft = $ 1500
It implies that she can deduct a maximum of $ 1500 for her home office use.
In case Nora uses the regular method, all direct expenses are entirely deductible under the
method. However, she must ascertain the percentage of her home used for the home office
purpose to arrive at the indirect expenses portion. The computation for the same is presented
below:
300 sq. ft / 2000 sq. ft * 100 = 15 %
Home depreciation can also be deducted under this method. 15 % of her home that is used
for commercial purposes can be deducted from the home value at either the adjusted basis or the
fair market value. The amount achieved has to be multiplied by the MACRS Percentage Table
provided in Publication 587, depending on the specific month when she started using her home for
business purposes. After making computations using either of the methods, she must determine
whether the gross income limitation is met. If the gross income from the bakery business is equal
to or is more than the computed business expenses, she must deduct them entirely. If the business
income is lower, the deduction acts as the limit.
For computing home office deductions, the simplified method is a simple approach where one
does not have to keep track of diverse expenses relating to the home office. In Nora’s case, the
regular method is more suitable as, although it is complex; it will allow higher deductions by
allowing home depreciation.
Thank You
IV: a RESPONDING TO IRS NOTICE
Summary Analysis
Based on the IRS notice CP21E that Nora received, it was observed that the IRS had raised
questions regarding certain deductions claimed on the filed corporate and individual tax returns.
There are three specific tax issues that were adjusted. The first issue was the Bonus depreciation
where Nora bought certain equipment for her business, including a new oven, connected freezer
and refrigerator, bakery display, commercial mixer, and improvements to the building. The
second issue was charitable deductions. The questions were raised concerning verifying the Boys
and Girls Club as a qualified 501(c)3, a non-profit and charitable organization, and the tax advice
received related to deducting charitable donations on corporate and individual returns. The third
issue was the home office deduction, where the IRS seeks evidence and support for the deduction
claimed on Nora’s individual return, particularly regarding prorated expenses related to the square
footage of Nora’s home.
Document research and analysis
Bonus Depreciation
The first issue identified, Bonus Depreciation, refers to a tax incentive that enables
corporate organizations to immediately deduct a significant amount of the purchase price of
qualified equipment, such as machinery. Bonus depreciation may affect how businesses decide to
actually spend their money (Eichfelder et al., 2023). Further, The Tax Cuts and Jobs Act of 2017
introduced a provision for "100% additional 1st-year depreciation deduction," applicable to
depreciable business assets with a recovery period of 20 years or less (Internal Revenue Service,
2020). The Protecting Americans from Tax Hikes (PATH) Act extended bonus depreciation to
include qualified leasehold improvement property. Section 179 of the U.S. Code allows taxpayers
to expense certain property costs rather than capitalizing and depreciating them.
Charitable Deductions
The research was conducted for Charitable Deductions, where Nora's tax situation for
charitable contributions can be assessed using IRC Section 170, which allows deductions for
charitable donations within the taxable year. As an individual, she can deduct up to 50% of her
adjusted gross income for qualified charitable contributions. However, if contributions are made
from her C-C Bakery business, according to IRC § 170 (b) (2) (U.S. Code § 170, n.d.), the
deduction is limited to 10%. In Florida, Section 220.183 offers a 50% credit against tax due for
charitable contributions but limits annual tax credits to $200,000. Contributions must align with
projects specified in Florida Statutes § 220.03 (1) (t). IRS Publication 526 guides claiming
charitable deductions.
Home Office Deduction
The research to determine the applicable laws for Nora's home office deductions led to
identifying key Internal Revenue Code (IRC) sections, primarily IRC § 162 and IRC § 280A.
Deductions for essential and typical business costs are permitted under IRC 162, while IRC 280A
covers home office deductions and disallowances. Given that it is exclusively and routinely
utilized for administrative tasks linked to her C-Corp bakery business and no other fixed site for
significant management or administrative responsibilities, further investigation showed that
Nora's home office qualified for deductions under IRC 280A(c)(1).
Outcome and Advice
Bonus Depreciation: Nora should carefully consider her depreciation method choice. She may
not utilize bonus depreciation if she deducts the full $42,000 in the first year. Estimated tax
savings could be approximately $14,700 (based on a 35% tax bracket, excluding purchase
materials).
Charitable Deductions: Nora should make charitable contributions from her personal account
for greater tax benefits. Utilizing Section 220.183 of Florida Statutes can reduce her adjusted
gross income and provide tax advantages.
Home Office Deductions: Nora is eligible for home office deductions based on IRC Section
280A. She can choose between the simplified or regular method to calculate deductions, with the
regular method likely offering higher deductions due to home depreciation.
RESPONSE LETTER
C-C BAKERY
1234 Bakery Road, Jacksonville, Florida, 32256
Telephone: (xxx) xxx-xxxx
September 3, 2023
Department of the Treasury
Internal Revenue Service
Jacksonville, Florida 32256
Attention: Ms Celine Mila
Agent ID: 7749403809
Notice: CP21E
Taxpayer ID: C-C Bakery
EIN: xx-xxxxxxx
Tax Year: 2019
Form: 1120
Taxpayer ID: Nora
EIN: xxx-xx-xxxx
Tax Year: 2019
Form: 1040
Dear Ms. Mila:
I am writing this letter in response to the IRS Notice CP21E regarding Nora’s C-C
Bakery’s deductions claimed for bonus depreciation, charitable contributions, and home office
deduction for 2023. Signed powers of attorney (Form 2848) authorizing me to represent the
taxpayers in this matter are enclosed.
Bonus Depreciation: Bonus depreciation was claimed on eligible assets (oven, refrigerator,
bakery display case, building improvements) due to the Tax Cuts and Jobs Act, allowing a 100%
first-year deduction. These assets are categorized as qualified property under the Act, supporting
their eligibility.
Charitable Deductions: The Boys and Girls Club's qualification as a 501(c)(3) organization can
be verified through publicly available IRS records or official confirmation letters. Tax advice
certainly included that Nora should donate to charities from her personal account for larger tax
advantages.
Home Office Deduction: To support the home office deductions, Nora should maintain records
of her home's total square footage, the specific square footage used for the home office, and
related expenses such as utilities, insurance, and mortgage interest. These deductions are taken
under IRC § 280A, considering the exclusive and regular use of the space for business
administrative functions. Nora uses her 300-square-foot home office exclusively for bakery
business admin tasks. This aligns with her eligibility for the home office deduction meeting IRS
criteria.
Please telephone me at (xxx) xxx-xxxx if you have any additional questions.
Respectfully submitted
CC: Nora
Enclosures: Notice CP21E
Forms 2848
Reference
26 USC 179: Election to expense certain depreciable business assets. US. Code (n.d.).
https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A179+edition%3A
prelim%29
Conant, D., & Chaille, S. (2022). Asset depreciation method comparison: An excel-based
classroom exercise. Journal of Education for Business, 97(5), 351-356.
Eichfelder, S., Knaisch, J., & Schneider, K. (2023). How does bonus depreciation affect real
investment? Effect size, asset structure, and tax planning (No. 278). Discussion Paper.
IRS finalizes regulations for 100 percent bonus depreciation. Internal Revenue Service. (2020).
https://www.irs.gov/newsroom/irs-finalizes-regulations-for-100-percent-bonus-
depreciation
The United States Senate Committee on Finance: The United States Senate Committee on
Finance. United States Senate Committee On Finance. (n.d.).
https://www.finance.senate.gov/download/summary-of-the-protecting-americans-from-
tax-hikes-path-act-of-2015
Charitable contribution deductions. Internal Revenue Service. (n.d.).
https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-
contribution-deductions
Legal Information Institute. (n.d.). 26 U.S. Code § 170 - charitable, etc., contributions and gifts.
Legal Information Institute. https://www.law.cornell.edu/uscode/text/26/170
Statutes & constitution :view statutes : The 2022 Florida Statutes (2023, August 5).
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String
=&URL=0200-0299%2F0220%2FSections%2F0220.183.html
Publication 526 (2022), charitable contributions. Internal Revenue Service. (n.d.).
https://www.irs.gov/publications/p526
Legal Information Institute. (n.d.). 26 U.S. Code § 280A - disallowance of certain expenses in
connection with business use of home, rental of vacation homes, etc.. Legal Information
Institute. https://www.law.cornell.edu/uscode/text/26/280A
Publication 587 (2022), business use of your home. Internal Revenue Service. (n.d.).
https://www.irs.gov/publications/p587
Simplified option for Home Office deduction. Internal Revenue Service. (n.d.-c).
https://www.irs.gov/businesses/small-businesses-self-employed/simplified-option-for-
home-office-deduction
Form
2848
(Rev.
January
2021)
Department
of
the
Treasury
Internal
Revenue
Service
Power
of
Attorney
and
Declaration
of
Representative
▶ Go to www.irs.gov/Form2848 for instructions and the latest information.
OMB No. 1545-
0150
For IRS Use
Only
Received by:
Name
Telephone
Function
Date
/
a a
/
P I Power of Attorney
Caution: A separate Form 2848 must be completed for each taxpayer. Form 2848 will not be
honored for any purpose other than representation before the IRS.
1
Taxpayer information. Taxpayer must sign and date this form on page 2, line 7.
Taxpayer name and address
C-C BAKERY
1234 Bakery Road, Jacksonville, Florida, 32256
Telephone: (xxx) xxx-xxxx
Taxpayer identification number(s)
123456-789
Daytime telephone
number
Plan number (if
applicable)
hereby appoints the following representative(s) as attorney(s)-in-fact:
2
Representative(s) must sign and date this form on page 2, Part II.
Name and address
Freddy Arguello
GRAY ,ME ,04039
CAF No.
PTIN a
Telephone No. a a Fax
No. a a
Check if new: Address Telephone No. Fax No.
Check if to be sent copies of notices and communications
Name and address
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PTIN a
Telephone No. a a Fax
No. a a
Check if new: Address Telephone No. Fax No.
Check if to be sent copies of notices and communications
Name and address
CAF No.
PTIN a
Telephone No. a Fax
No. a a
Check if new: Address Telephone No. Fax No.
(Note: IRS sends notices and communications to only two
representatives.)
Name and address
CAF No.
PTIN a
Telephone No. a Fax
No. a a
Check if new: Address Telephone No. Fax No.
(Note: IRS sends notices and communications to only two
representatives.)
to represent the taxpayer before the Internal Revenue Service and perform the following acts:
3
Acts authorized (you are required to complete line 3). Except for the acts described in line 5b, I authorize my
representative(s) to receive and inspect my confidential tax information and to perform acts I can perform with respect to
the tax matters described below. For example, my representative(s) shall have the authority to sign any agreements,
consents, or similar documents (see instructions for line 5a for authorizing a representative to sign a return).
Check
Form
for
Common
Errors
&
Reminders
Description of Matter (Income, Employment, Payroll, Excise,
Estate, Gift, Whistleblower, Practitioner Discipline, PLR, FOIA,
Civil Penalty, Sec.
4980H Shared Responsibility Payment, etc.) (see instructions)
Tax Form Number
(1040, 941, 720, etc.) (if
applicable)
Year(s) or Period(s) (if
applicable)
(see
instructions)
Income
a a a a a a a a a a a a a a a a a a a
a a a a a a a a a a a a a a a a a a a a a a a 1120
a a a a a a a a a a 2017,2018,2019
4
Specific use not recorded on the Centralized Authorization File (CAF). If the power of attorney is for
a specific use not recorded on CAF, check this box. See Line 4. Specific Use Not Recorded on CAF in the
instructions
▶
5a Additional acts authorized. In addition to the acts listed on line 3 above, I authorize my representative(s) to
perform the following acts (see instructions for line 5a for more information): Access my IRS records via an
Intermediate Service Provider;
Authorize disclosure to third parties; Substitute or add representative(s); Sign a return; a
Other acts authorized:
For Privacy Act and Paperwork Reduction Act Notice, see the instructions. Cat. No.
11980J
Form
2848
(Rev.
1-2021)
Running Head: FINAL PROJECT 1
Form 2848 (Rev. 1-2021)
Page 2
b Specific acts not authorized. My representative(s) is (are) not authorized to endorse or otherwise negotiate
any check (including directing or accepting payment by any means, electronic or otherwise, into an account
owned or controlled by the representative(s) or any firm or other entity with whom the representative(s) is
(are) associated) issued by the government in respect of a federal tax liability.
List any other specific deletions to the acts otherwise authorized in this power of attorney (see instructions for
line 5b):
6
Retention/revocation of prior power(s) of attorney. The filing of this power of attorney automatically revokes
all earlier power(s) of attorney on file with the Internal Revenue Service for the same matters and years or periods
covered by this form. If you do not want to revoke a prior power of attorney, check here
▶
YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN
EFFECT.
7
Taxpayer declaration and signature. If a tax matter concerns a year in which a joint return was filed, each spouse
must file a separate power of attorney even if they are appointing the same representative(s). If signed by a corporate
officer, partner, guardian, tax matters partner, partnership representative (or designated individual, if applicable), executor,
receiver, administrator, trustee, or individual other than the taxpayer, I certify I have the legal authority to execute this
form on behalf of the taxpayer.
▶ IF NOT COMPLETED, SIGNED, AND DATED, THE IRS WILL RETURN THIS POWER OF
ATTORNEY TO THE TAXPAYER.
a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a
a a Owner Signature Date Title (if applicable)
Nora C Bakery
Print name Print name of taxpayer from line 1 if
other than individual
P II Declaration of Representative
Under penalties of perjury, by my signature below I declare that:
•
I am not currently suspended or disbarred from practice, or ineligible for practice, before the Internal Revenue Service;
•
I am subject to regulations in Circular 230 (31 CFR, Subtitle A, Part 10), as amended, governing practice before the Internal Revenue
Service;
•
I am authorized to represent the taxpayer identified in Part I for the matter(s) specified there; and
•
I am one of the following:
a Attorney—a member in good standing of the bar of the highest court of the jurisdiction shown below.
b Certified Public Accountant—a holder of an active license to practice as a certified public accountant in the jurisdiction
shown below.
c Enrolled Agent—enrolled as an agent by the IRS per the requirements of Circular 230.
d Officer—a bona fide officer of the taxpayer organization.
e Full-Time Employee—a full-time employee of the taxpayer.
f
Family
Member—a
member
of
the
taxpayer’s
immediate
family
(spouse,
parent,
child,
grandparent,
grandchild,
step-parent,
step-
child,
brother,
or
sister).
g Enrolled Actuary—enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242 (the
authority to practice before the IRS is limited by section 10.3(d) of Circular 230).
h Unenrolled Return Preparer—Authority to practice before the IRS is limited. An unenrolled return preparer may represent,
provided the preparer (1) prepared and signed the return or claim for refund (or prepared if there is no signature space on
the form); (2) was eligible to sign the return or claim for refund; (3) has a valid PTIN; and (4) possesses the required
Annual Filing Season Program Record of Completion(s). See Special Rules and Requirements for Unenrolled
Return Preparers in the instructions for additional information.
k Qualifying Student or Law Graduate—receives permission to represent taxpayers before the IRS by virtue of
his/her status as a law, business, or accounting student, or law graduate working in a LITC or STCP. See
instructions for Part II for additional information and requirements.
r Enrolled Retirement Plan Agent—enrolled as a retirement plan agent under the requirements of Circular 230 (the
authority to practice before the Internal Revenue Service is limited by section 10.3(e)).
FINAL PROJECT 25
▶ IF THIS DECLARATION OF REPRESENTATIVE IS NOT COMPLETED, SIGNED, AND DATED,
THE IRS WILL RETURN THE POWER OF ATTORNEY. REPRESENTATIVES MUST SIGN IN THE
ORDER LISTED IN PART I, LINE 2.
Note: For designations d–f, enter your title, position, or relationship to the taxpayer in the “Licensing jurisdiction”
column.
Designation—
Insert above
letter (a–r).
Licensing
jurisdiction (State) or
other licensing
authority
(if applicable)
Bar, license,
certification, registration,
or enrollment number (if
applicable)
Signature
Date
B
a a ME
Form
2848
(Rev.
1-2021)
