All About IRS Form 8821: The Tax Information Authorization

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All About IRS Form 8821: The Tax Information Authorization

Submitting sensitive information is part and parcel of complying with the IRS. While the agency has enacted strict security measures in the interest of keeping your data safe, you have the option to share these details.

Central to this initiative: completing IRS Form 8821, which is officially known as the Tax Information Authorization.

Not sure how this form works or why you would want to submit it in the first place? Keep reading to find out:

When Is Form 8821 Necessary?

Form 8821 is often a matter of personal preference. Some taxpayers prefer for authorized individuals to have access to their records. This is commonly necessary when working with a tax professional, such as an enrolled agent. Upon submitting this form, tax professionals are easily able to access information about:

  • Which returns need to be filed
  • Whether accounts are in collection
  • The amount of tax interest or penalties due

All this can play a vital role in assessing your tax situation, particularly when you struggle to communicate the scope of the problem with your enrolled agent. The sooner this professional receives access to these vital details, the more quickly he or she can take steps to resolve your tax concerns.

Keep in mind that Form 8821 does not authorize representative power. This form never gives tax professionals the ability to speak with the IRS on a client’s behalf. Instead, these powers are granted by Form 2848.

 

What Information Is Needed to Complete the Authorization?

Should you choose to move forward with this authorization, you’ll need to submit contact information for both you and the designee (the person who will receive authorization). Be prepared to provide details about the types of tax information the authorized individual will be allowed to access. You will also have the opportunity to revoke previous authorizations.

Would you like to learn more about the process of working with an enrolled agent? Our team at the Highland Tax Group would be happy to chat about your concerns. Contact us today to learn more.