While you are acting in a representative capacity under a power of attorney, you are not immune to prosecution if you knowingly perform a criminal act, even if the benefit goes to another party. If the principal (the person who granted the power of attorney) to you (the agent) has obtained a refund based on a false tax return, if you know or should have known that the return was false, if you cash the check, you may very well be held liable for not only the amount refunded but you may also have some criminal liability. On the other hand if you do not know that the return was false but have an uneasy feeling, you may want to check with a qualified person to see if the refund is legitimate.
Answered on Oct 20th, 2011 at 12:16 PM