Definition & Meaning of Form 8821
The IRS Form 8821, also known as the Tax Information Authorization, is a document that allows taxpayers to authorize another individual or entity to receive and inspect their tax information. This form is particularly useful for individuals who want to allow a tax professional, such as an accountant or attorney, to access their tax records. By completing Form 8821, taxpayers can ensure that their designated representative can obtain necessary information from the IRS without the taxpayer being present.
Form 8821 does not grant the authority to represent the taxpayer before the IRS; it merely allows access to information. This distinction is important, as it means that while the authorized person can view documents and records, they cannot make decisions or act on behalf of the taxpayer in tax matters.
How to Use the Form 8821 Instructions
To effectively use the Form 8821 instructions, it is essential to follow a systematic approach. Begin by downloading the form from the IRS website or accessing it through a tax preparation software. Once you have the form, read through the instructions thoroughly to understand the requirements and the information needed.
When filling out the form, ensure that you accurately complete all required fields, including the name and address of both the taxpayer and the authorized representative. It is also crucial to provide the taxpayer identification number, such as a Social Security number for individuals or an Employer Identification Number for businesses.
After completing the form, review it for accuracy before submission. The completed Form 8821 can be mailed to the IRS or submitted in person, depending on the specific circumstances and preferences.
How to Obtain the Form 8821 Instructions
The instructions for Form 8821 can be obtained directly from the IRS website. The IRS provides a downloadable PDF version of the form along with detailed instructions for completion. This resource is available for free and can be accessed by searching for "IRS Form 8821" on the IRS website.
Additionally, tax preparation software often includes the latest version of Form 8821 along with step-by-step instructions for filling it out. This can be a convenient option for those who prefer a guided approach to completing tax forms.
How to Fill Out Form 8821
Filling out Form 8821 involves several key steps. Start by entering the taxpayer's name and address in Block 1. If the taxpayer is a business, include the business name and address. In Block 2, provide the name and address of the individual or entity that will be authorized to receive tax information.
Next, in Block 3, enter the taxpayer identification number. For individual taxpayers, this is typically the Social Security number, while businesses will use their Employer Identification Number. Ensure that this information is accurate, as it is critical for the IRS to process the authorization.
In Block 7, the taxpayer must sign and date the form. If filing jointly, only one spouse needs to sign. For corporations, the form must be signed by an authorized officer, such as the President or Chief Executive Officer, with the title and date included.
Steps to Complete the Form 8821
Completing Form 8821 involves a series of straightforward steps:
- Download the form: Access the IRS website to download Form 8821.
- Fill in taxpayer information: Enter the name, address, and taxpayer identification number in the appropriate blocks.
- Designate an authorized representative: Provide the name and address of the individual or entity authorized to receive information.
- Sign and date the form: The taxpayer must sign the form, ensuring all information is accurate.
- Submit the form: Mail or submit the completed form to the IRS as required.
Who Typically Uses the Form 8821
Form 8821 is commonly used by individuals and businesses who need to authorize a third party to access their tax information. This includes:
- Taxpayers: Individuals who want their accountants or tax preparers to access their tax records.
- Business owners: Owners of corporations or partnerships who need to allow their financial advisors to obtain tax information.
- Legal representatives: Attorneys who require access to a client’s tax information for legal matters.
Using Form 8821 is beneficial for those who may not be able to interact directly with the IRS due to time constraints or other reasons.
Important Terms Related to Form 8821
Understanding key terms associated with Form 8821 can help clarify its purpose and usage:
- Tax Information Authorization: The official title of Form 8821, which allows access to tax records.
- Authorized Representative: The individual or entity designated by the taxpayer to receive tax information.
- Taxpayer Identification Number (TIN): A unique number assigned to individuals and businesses for tax purposes, including Social Security numbers and Employer Identification Numbers.
IRS Guidelines for Form 8821
The IRS has specific guidelines regarding the use of Form 8821. It is essential to ensure that the form is filled out completely and accurately to avoid processing delays. The IRS requires that the form be submitted in writing, and it cannot be filed electronically.
Additionally, the IRS may take several weeks to process the form, so it is advisable to submit it well in advance of any deadlines or tax-related matters. Taxpayers should also keep a copy of the completed form for their records.
