Phil, An Enrolled Agent, Prepares William’s Income Tax Return. William Gives Phil Power Of Attorney, Including

Phil, an enrolled agent, prepares William’s income tax return. William gives Phil power of attorney, including the authorization to receive his federal income tax refund check. Accordingly, the IRS sends William’s $100 refund check to Phil’s office. William is very slow in paying his bills and owes Phil $500 for tax services. Phil should
a. Use William’s check as collateral for a $100 loan to tide him over until William pays him.
b. Refuse to give William the check until William pays him the $500.
c. Get William’s written authorization to endorse the check, cash the check, and reduce the amount William owes him to $400.
d. Turn the check directly over to William.

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This entry was posted onOctober 31st, 2009 at 10:13 pm. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can Trackback..

3 Responses

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  1. Ruben G

    The answer is d.
    You can’t take someone’s money without going through the legal system!

    October 31, 2009 10:16 pm | #1
  2. Just moi

    D is the answer. I gave my accountant a power of attorney and in most cases if not all it is limited to the filling of the forms only. Money is not included.

    October 31, 2009 11:08 pm | #2
  3. Pablo

    e. Extort the money and run to Mexico.
    [This is a real world lawyer example, isn;t it?]

    October 31, 2009 11:08 pm | #3