Understanding Power of Attorney (POA) Notifications

POA (power of attorney) notifications are sent out from taxing authorities, like states or the federal government, when they receive POA authorizations. For example, if your startup outsources payroll and human resource functions to a third-party payroll provider, you will need to provide a POA authorization for each state in which your company pays wages, so your payroll provider can process things like unemployment benefit claims. If you use an accounting firm like Kruze Consulting, we will submit a POA authorization to the IRS so the we are able to contact the IRS about your returns or tax history. When the taxing authority receives the POA authorization, they may notify your company. If you submitted the POA authorization, you don’t need to take any action.

A sample notification from the California Employment Development Department is below:

Dear Employer:

Our records show that you have retained a representative to act on your behalf in tax and/or benefit reporting matters. In accordance with your contract with this representative, you may no longer receive some of our tax or benefit forms. You may, however, continue to receive our general Employment Development Department mailings depending on your specific contract with this representative.

Different states and the federal government have different POA authorization forms and requirements, and your payroll provider can help you with submitting them. If you have questions about a notification that you’ve received, please contact us.