Everything You Need to Know About Tax Information Authorization Form 8821
As a taxpayer, you are always expected to stay on top of your tax situation. Knowing the ins and outs of tax laws and regulations can be daunting, but it can help protect you from legal and financial consequences. One common tax form you may need to be familiar with is Form 8821, also known as the Tax Information Authorization.
What is Form 8821?
Form 8821 is a legal document used by individual taxpayers or businesses to authorize an individual or organization to access their tax information. Tax information includes items such as the individual’s income, tax payments, refunds, and tax return transcripts. By filling out and filing Form 8821, an authorized party can gain access to this information and assist the taxpayer with their tax-related issues.
Who Can Be Authorized?
The individual or organization authorized to access the taxpayer’s tax information must be specified on Form 8821. The authorized person can be an attorney, certified public accountant (CPA), enrolled agent, or any other person authorized by the taxpayer. It’s important to note that an authorization granted on Form 8821 does not permit the authorized person to represent the taxpayer before the IRS.
Why Do You Need Form 8821?
Form 8821 is helpful when a taxpayer needs assistance with their tax returns but is not able to be present themselves. This scenario can arise when the taxpayer is out of the country or experiencing a medical emergency that renders them unable to attend to their tax affairs.
Also, Form 8821 can be helpful in situations where the taxpayer has hired a tax professional to help them manage their taxes. By authorizing their tax professional, the taxpayer facilitates the process of sharing returns, payments, or other information that could affect their tax situation.
How to Fill Out Form 8821
To fill out Form 8821, you’ll need to provide your personal information, including your name, address, and taxpayer identification number (TIN). Then, you must identify the person or organization that you want to authorize and specify what tax information you are authorizing them to access. The form also requires you to sign and date it.
Conclusion
Form 8821 is an important document that enables taxpayers to grant others access to their tax information. This form comes in handy when individuals need help managing their taxes or cannot represent themselves before the IRS. By filling out Form 8821 correctly and authorizing a trustworthy person or organization, taxpayers can help streamline the process of managing their taxes.
