How to Complete and File Form 8821 Tax Information Authorization

Are you struggling to understand how to complete and file Form 8821 Tax Information Authorization? As a taxpayer, it’s crucial to know how to authorize someone to act on your behalf when it comes to tax matters. Form 8821 is a document that grants permission to an individual or organization to receive and inspect your confidential tax information. This blog article will guide you through the process of completing and filing Form 8821, so you can stay compliant with tax laws and protect your sensitive financial data.

Understanding Form 8821

Before we dive into the steps of completing and filing Form 8821, let’s understand its purpose and importance. In simple terms, Form 8821 is a tax information authorization document that allows a chosen representative to perform various tax-related functions on your behalf. These include viewing and receiving confidential tax information, communicating with the IRS, and resolving any disputes. By signing this form, you give your representative the authority to act for you, but not to negotiate or bind you legally.

Steps to Completing Form 8821

Now that you understand the importance of the form let’s move on to the next step, which is completing the form. Here is a step-by-step process on how to do it.

Step 1: Provide Your Basic Information

The first part of the form requires you to fill in your basic information, including your name, address, phone number, and social security number (SSN), or employee identification number (EIN).

Step 2: Select Your Representative

Next, you need to select the individual or organization that you want to authorize to receive and inspect your tax information. You will need to provide their name, address, and telephone number in this section of the form.

Step 3: Specify Authorization Type

You need to decide the scope of the authorization you are giving. You can give the authority to your representative to receive confidential tax information but not communicate with the IRS. Alternatively, you can give them authorization to both receive and communicate with the IRS.

Step 4: Indicate the Tax Form or Year

After specifying the scope of the authorization, you need to indicate the tax form, tax type, and year(s) for which you authorize your representative to receive and inspect your confidential tax information.

Step 5: Sign the Form

The final step is to sign the form in the appropriate space to certify that the information you have provided is correct to the best of your knowledge.

Filing Form 8821

After completing the form, you need to file it with the IRS. There are two ways to do it:

Option 1: Mail the form to the Service Center where you file your tax return

Option 2: Fax the completed form to the number provided in the instructions for Form 8821

It’s important to note that the IRS doesn’t accept electronic filing of Form 8821 at this moment.

Conclusion

Completing and filing Form 8821 Tax Information Authorization can seem daunting at first, but it’s a crucial step in protecting your confidential tax information and staying compliant with tax laws. By following the steps outlined in this article, you can complete the form easily and file it correctly. Remember, it’s important to choose your representative carefully and specify the scope of their authority explicitly. Happy Filing!

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