IRS Form 8821, officially called “Tax Information Authorization,” is a critical document that allows taxpayers to authorize a third party—like an accountant, financial advisor, or an institution—to access their private tax records held by the IRS. It provides limited access: authorized parties can receive and inspect tax information for specified tax years and types but cannot act on the taxpayer’s behalf.

How IRS Form 8821 Works

When you complete Form 8821, you specify exactly which tax matters and time periods the designated appointee can access. This precision is essential because the IRS shares information only within these defined limits. The form requires your personal or business details (including Taxpayer Identification Number or Employer Identification Number), the appointee’s identification, a clear list of tax forms or issues authorized, and the relevant tax years or periods.

Limits of Form 8821 Authorization

While the appointee can receive copies of notices, transcripts, and other tax records directly from the IRS, they cannot represent you in audits, sign forms, make decisions, or otherwise act as your Power of Attorney. Those actions require IRS Form 2848, Power of Attorney and Declaration of Representative.

Common Use Cases

  • Accountant or Tax Professional Assistance: Accountants often need access to your prior tax records to file amended returns or assist with IRS inquiries.
  • Financial Institutions: Banks or loan officers may request access to verify income for mortgage or student loan applications.
  • Estate or Trust Management: Executors or trustees might need access to deceased persons’ tax records.
  • Legal Proceedings: During divorce or other legal matters, authorized parties may need access for fair settlement or calculations.

Who Can Use Form 8821?

It can be used by individual taxpayers, business entities of all types, fiduciaries managing estates or trusts, and nonprofit organizations to authorize limited inspection or receipt of IRS tax information.

Tips for Using Form 8821 Effectively

  • Be explicit about the tax years and types of tax information authorized.
  • Use the latest version of the form from IRS.gov to avoid processing delays.
  • Keep a signed copy for your records.
  • To revoke authorization, submit a new form with “REVOKE” marked or send a written revocation to the IRS.

Avoiding Common Mistakes

Many confuse Form 8821 with Power of Attorney (Form 2848). Remember, Form 8821 only grants information access, not decision-making power. Also, incomplete forms, missing signatures, or vague tax period descriptions can cause rejections or processing delays.

Frequently Asked Questions

  • Duration: The authorization is valid until revoked or the specific tax matter concludes.
  • Multiple Appointees: You can specify multiple appointees if authorized for the same tax issues.
  • Submission: The IRS mailing address for Form 8821 varies depending on your location and tax type; always refer to the form instructions or IRS website.

For more details and to download the current Form 8821, visit the official IRS page: IRS Form 8821 Information.

By understanding and using Form 8821 correctly, you can securely share your tax information with trusted parties while maintaining control over your tax affairs.