Everything You Need to Know About Tax Information Authorization Form 8821
Do you need to share your tax information with someone else? Maybe you’re applying for a mortgage or a loan, and the lender needs to see your tax documents. Or perhaps you’re planning to hire a tax professional to help you prepare your tax return. In these situations, the IRS offers a solution called Tax Information Authorization Form 8821.
Here’s everything you need to know about this form and how to use it.
What is Tax Information Authorization Form 8821?
Tax Information Authorization Form 8821 is a document that allows you to give your consent for someone else to access your tax information. The form authorizes the IRS to disclose information regarding your tax return to the person or entity you’ve listed on the form. This could be a tax professional, a lender, or anyone else who has a legitimate need for your tax information.
Why Use Tax Information Authorization Form 8821?
One of the main benefits of using Tax Information Authorization Form 8821 is that it gives you control over who can access your tax information. This can be particularly valuable if you’re concerned about the privacy of your financial information.
In addition, using Form 8821 can make the process of working with a tax professional or applying for a loan much smoother. With your authorization, the authorized person can obtain your tax information directly from the IRS without having to involve you in every step of the process.
How to Fill Out Tax Information Authorization Form 8821
Filling out Tax Information Authorization Form 8821 is a straightforward process. Here are the steps you need to follow:
1. Download the form from the IRS website or pick up a copy from your local IRS office.
2. Provide your full name, social security number, and current address.
3. Choose the individuals or entities that you’re authorizing to receive your tax information. Include their full name, address, and telephone number.
4. Specify the type of tax information that you’re authorizing to be disclosed. This could include tax returns, transcripts, or account information.
5. Sign and date the form.
6. Submit the form to the individual or entity that you’re authorizing to receive your tax information.
Common Questions About Tax Information Authorization Form 8821
Here are some frequently asked questions about Form 8821:
How long does Tax Information Authorization Form 8821 stay in effect?
Form 8821 stays in effect until you revoke it, or until the expiration date listed on the form has passed. You can revoke the form at any time by submitting a written request to the IRS.
Can I use Tax Information Authorization Form 8821 to authorize multiple individuals or entities?
Yes, you can list multiple individuals or entities on Form 8821, as long as you complete a separate form for each person or entity.
Is there a fee to use Tax Information Authorization Form 8821?
No, there is no fee to use Form 8821.
Conclusion
Tax Information Authorization Form 8821 can be a valuable tool if you need to share your tax information with someone else. By following the steps outlined above, you can complete the form and authorize the disclosure of your tax information to the appropriate individuals or entities. Remember, always exercise caution when sharing your personal and financial information, and only authorize disclosure to trustworthy sources with a legitimate need.
