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As a financial or tax professional there will be times that you need to access a taxpayer's information. It may be to verify their income, to see past tax returns, or to see if they are in tax compliance. You can access the information on their tax account by submitting a signed and completed Form 8821, Tax Information Authorization to the IRS.
In the past, lenders would have clients complete Form 4506-T to verify their income. Those are being phased out. So now, lenders as well as tax professionals are using Form 8821 to gain access to the tax account information of their clients. If you are a tax professional or lender, understanding the purpose of this form and how to fill it out correctly is important to your business process.
To help you do that let's take a look at the purpose of the form and how to fill out each section. As a bonus, at the end of this article, you will find a mini-class where I go over a completed Form 8821 on video, explaining how to fill it out line by line.
What is the Purpose of Form 8821?
Form 8821 gives third-party authorization to access the tax information of a taxpayer.
Note: This form is for third-party use only. Do not use this form if you need to access your own tax account and transcripts. You can do that by creating an account on IRS.gov. You can find a walkthrough to guide you through that process here: How to Get an IRS Transcript Online in 3 Steps.
Unlike Form 2848, Tax Power of Attorney and Declaration of Representative, the 8821 does not make the third-party the tax representative. This is an important distinction to make because the 8821 only allows third-party access to the information on the tax account. This includes things such as:
Tax returns
Wage & Income transcripts
The 8821 does not allow you to act on behalf of the taxpayer about things on the tax account like negotiating or signing any tax documents.
This is why the form is often used by tax professionals who need to find the status of their client's accounts. I personally will use Form 8821 vs. Form 2848 if my client can not pay in full for me to be their tax power of attorney. By doing the 8821 I can still pull the transcripts but not be on the hook for their account. If you are studying to become a credentialed tax professional, such as an Enrolled Agent or CPA, this form will allow you to still help taxpayers with IRS issues. You can use this form to do a transcript Investigation, complete missing returns, and diagnose the case.
If you are not a tax professional using this form you can use it to verify the income and tax compliance of someone you may be considering for a loan.
Section 1 - Taxpayer Information
You will enter the taxpayer's name the way it is shown on their last tax return. It is also important to ask the taxpayer if they have moved since they filed their last tax return. If they have the address you put on the form won't match what the IRS has in their system. This form also will not update their address.
Your client will need to complete Form 8822 to update their address with the IRS. If your client is a business they will need to file Form 8822-B to change their business address.
If you are working with a married couple keep in mind that each one needs their own Form 8821 to designate you as the person authorized to access their tax account.
For corporations, partnerships, and associations the name, EIN, and business address will go in section one.
When working with a trust you will need the name, title, and address of the trustee. You will also enter the name and EIN of the trust.
For an estate, you will use the name and address of the estate. If there is no EIN you will use the social security number of the deceased taxpayer.
Section 2 - Designee(s)
You are the designee as the third party who will have access to the taxpayer's information. You will enter your full name and mailing address that you have on file associated with your PTIN and CAF number. If you do not have a CAF number yet put NONE and the IRS will issue one to you. One shortcut to apply for a CAF number is to apply via the online Tax Pro Account.
If there are to be more than two designees check the box on line 2. You will need to attach a list of designees to Form 8821 when you submit it. This list should include their name, address, and requested numbers as well.
As a designee, you can receive copies of all notices and communication from the IRS for your client. In my practice, I do not check this box for Form 8821. I only receive notices for my clients for whom I have power of attorney. This is something to consider in your firm. Only 2 designees are able to receive copies of the notices and correspondence.
If any of your information has changed be sure to check the appropriate box so the IRS can update your information on file.
Section 3 - Tax Information
This section specifies what part of the tax account your client has authorized you to have to their account.
The checkbox on line 3 determines whether or not you can use third-party software to access the tax account. You must disclose to the client if you are using one of these privately-owned companies to connect to the IRS and pull their information. Some examples are Pitbull Software, IRS Solutions, and Tax Help Software.
Note: In my firm, I use Pitbull Tax Software to pull transcripts. If you want to check out Pitbull I have an affiliate code that you can use to sign up here - Sign up for Pitbull with Timalyn's code. If you purchase a user license you can use promo code: GGXGXS to receive a discount on the user license.Â
Section 3 has 4 columns. Let's look at each separately.
Column a is where you will enter the type of tax information. This refers to the type of tax or tax form that you want access to. If you are working with an individual an example of what you would put here is "income".
Column b is where you enter the tax form number. Using the example above, you would put "1040". This would allow you access to anything related to their income on the 1040 or that should be on their 1040. For example, if they haven't filed their tax return you would still be able to see the wage and income transcripts. That is because the taxpayer should be reporting that information on the 1040.
Column c is where you put the years or periods that you have authorization for. This is referring to tax years, not the years the tax return is due. For example, if you need access to a person's 2020 tax return you would put "Income, 1040, 2020".
If you were doing payroll you would put "Payroll, 941 and 940, 2020". You can put the range of years or the tax periods needed if it is not for income tax.
You cannot put "all taxes" or "all years". You have to specify the time frame. You cannot go more than 3 years into the future from the end of the current tax year. As of the time of this article, it is 2024. So you would not be able to put any further than 12/31/2027.
Column d is for specific information that you want the IRS to provide. This would include but is not limited to things such as:
Balance due amount
Lien information
4980H employer shared responsibility
Specific tax schedules
Tax liability
Column d will limit your authorization to whatever you put in that column. If you do not want your authorization limited you can enter "not applicable".
Section 4 - Specific use not recorded on the Centralized Authorization File (CAF)
This section of Form 8821 is not talked about often. My guess is that most people submitting this form are pulling wage and income transcripts to complete a return. That use is recorded on the CAF system. Section 4 is for people who need the account information for other things. Such as background checks, school, or loan companies. If you are a lender, completing background checks, or doing anything but the person's taxes to confirm a person's income or tax compliance you would check box 4. Here is a list of examples. These uses not recorded on the CAF are not limited to this list.
If you check this box, per the IRS instructions you should mail this form. Otherwise, you must bring it aka fax every time you speak with the IRS in order to obtain the information you need.
An 8821 for a specific use not recorded on the CAF will not revoke any prior authorization.
Section 5 - Retention/Revocation of prior tax information authorizations
When you submit your 8821 to the IRS they will revoke all prior tax information authorizations on file. Unless you tell them not to. If you submit on with the box in section 4 checked you can skip this section.
To keep the IRS from revoking the prior submission, you must attach a copy of the tax information authorization you want to retain and check the line 5 box.
If you would like to revoke your own authorization you can write "REVOKE" across the with a current taxpayer signature and date. If you cannot get the form signed you can also revoke it from your online Tax Pro Account.
Another option is to send a statement to the IRS. You will do this based on where you would mail the form. The statement should have the following things:
Your authority you are losing on the account,
Your name and address,
The tax matters and tax periods, and
Sign and date the notification
The taxpayer can also revoke your authorization by sending a form or submitting another Form 8821 signed and dated with "REVOKE" written across the top.
Section 6 - Taxpayer signature
If you will be submitting this form to the IRS via fax or mail the IRS requires a wet signature on the form. If you submit the form online the taxpayer can use an electronic signature. As a third party submitting the form, you have to provide evidence that you authenticated the signature.
Wet Signature
If you are submitting this form on behalf of an individual they must sign and date this form for it to be valid. Their signature and date go on the first line. Their printed name goes on the second line.
If you are submitting this form for a tax entity other than an individual there is other criteria that the signer must meet. If you are working with a married couple each spouse must have and sign their own form.
For corporations, the following people may sign Form 8821:
An officer with authority under the applicable state law to bind the corporation,
A person designated by the board of directors or other governing body,
An officer or employee on written request by any principal officer and attested to by the secretary or another officer, and
Any person authorized to access information under §6103(e)(1)(D), except for bona fide shareholders of record owning 1% or more of the outstanding stock of the corporation.
If you are filling out this form for a partnership the rules also differ. Any person who was a member of the partnership during any part of the tax period covered on the 8821 can sign it. However, if Form 8821 covers more than one tax year or period, the person must have been a member each year that the Form 8821 covers.
For a trust, a trustee having the authority to bind the trust must sign the Form 8821. If the trust has not submitted Form 56 yet they will need to do that to identify the current trustee.
If you are working with an estate the executor who has the authority to bind the estate is who must sign Form 8821. Form 56 will identify the executor. The IRS only requires one executor to sign Form 8821, even if there are multiple executors.
In a situation where the taxpayer is dead, insolvent, or the tax entity no longer exists the IRS will require documentation showing the authority of the person signing the 8821. §6103(e) gives more guidance.
Electronic Signature
If the taxpayer signs the form electronically it must be in an acceptable format. This includes:
Handwritten signature input on an electronic signature pad
Handwritten signature, mark, or command input on a display screen with a stylus device
A scanned or digitized image of a handwritten signature attached to an electronic record
Signature created using third-party software; or
The typed name is typed into the signature block.
If the taxpayer signs the form remotely you must authenticate their identity. For individuals, this means:
Inspecting a valid government-issued photo ID and compare to a selfie of the client or video conference
Record the name, SSN, address, and DOB of the taxpayer
Verify the taxpayer's name, address, and SSN or ITIN through secondary documentation
Federal or state income tax return
IRS notice or letter
Social Security Card
Credit card or utility statement
To authenticate a business entity taxpayer's identity in a remote transaction the third party must:
Confirm through documentation that the signer has the authority to sign on behalf of the entity
Inspect a valid government-issued photo ID of the individual authorized to sign
Record the name, EIN, and address of the business entity taxpayer
Verify the business entity taxpayer's name, EIN, and address through secondary documentation
W-2
1099
IRS notice/letter
Utility Statement
How to File Form 8821
If you do not check the box on line 4 you can submit Form 8821 online, by fax, or by mail. You can submit the form online via your Secure Access Account at IRS.gov/Submit8821. You should also create a Tax Pro Account at IRS.gov/TaxProAccount. One of the perks of having this account is being able to see the taxpayers you have authorization for.
Where to File Form 8821
There are 4 different fax numbers that you can send Form 8821 to. The IRS determines which fax number you will use based on where you live. The same rule applies for mailing the 8821 to the IRS. If you do check the box on line 4 you can only fax or mail Form 8821 to the IRS. The chart below shows where you would fax or mail Form 8821 and you can also find it in the Form 8821 instructions.
The IRS must receive this form within 120 days of the taxpayer's signature.
Your Location | Use this address | Use this fax number |
AL, AR, CT, DE, DC, FL, GA, IL, IN, KY, LA, ME, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, or WV | Internal Revenue Service 5333 Getwell Road, Stop 8423 Memphis, TN 38118 | 855-214-7519 |
AK, AZ, CA, CO, HI, ID, IA, KS, MN, MO, M, NE, NV, NM, ND, OK, OR, SD, TX, UT, WA, WI, or WY | Internal Revenue Service 1973 Rulon White Blvd., MS 6737 Ogden, UT 84201 | 855-214-7522 |
All APO and FPO addresses, American Samoa, Commonwealth of the Northern Mariana Islands, Guam, US Virgin Islands, Puerto Rico, a foreign country, or otherwise outside of the United States. | Internal Revenue Service International CAF Team 2970 Market Street MS 4-H14.123 Philadelphia, PA 19104 | 855-772-3156 Outside of the US 304-707-9785 |
Now It's Your Turn!
Now that you know how to complete the form let's make sure you know how to apply what you have learned. Answer the following questions in the comment section.
1 - How do you plan to submit 8821s in the future? What will your process be?
2 - Have you created your Tax Pro Account yet? Even if you do not plan to submit taxpayer information authorization forms online you should still create an account. You will be able to monitor which taxpayer accounts you have access to. You will also be able to revoke your access instantly from the account. This is good if you and the taxpayer are no longer working together.
3 - What questions do you have remaining about this form?