Power of Attorney (POA): Caution about inadvertently restricting your access to the low small business tax rate

If the person you appoint as your Attorney (your representative) under a Power of Attorney (POA) has a corporation of their own, their status as your Attorney can cause their corporation to be “associated” with your corporation, whether or not your Attorney has begun to act under the POA. This may reduce access to the low tax rate that applies to business income under the $500,000 “small business limit”.