Form 8821, Tax Information Authorization, lets you name any individual, company or organization to inspect or receive your confidential IRS tax information for the tax types and years you list. It doesn't let them represent you, argue your case or sign anything for you; for that you need Form 2848.
Lenders, bookkeepers, payroll firms and some tax preparers will ask you to sign a Form 8821. It's narrower than a power of attorney, but it still hands over sensitive information, so it pays to know exactly what you're authorizing and for how long.
What a Form 8821 does and doesn't allow
| Your designee can | Your designee can't |
|---|---|
| Inspect and receive your tax information, verbally or in writing | Speak on your behalf or advocate your position |
| Get online tax information through IRS e-Services once the form is on file | Sign waivers, consents or closing agreements |
| Receive information for the tax types, forms and years on line 3 | Pass the authorization to someone else |
| Be an individual, corporation, firm, organization or partnership | Endorse or negotiate your refund check, or receive your refund by direct deposit |
That last column comes straight from the IRS instructions, and the refund rule is absolute: the IRS says a designee is never allowed to endorse or negotiate a taxpayer's refund check or receive a refund by direct deposit.
Form 8821 or Form 2848?
Form 2848 is a power of attorney for people eligible to practice before the IRS, such as attorneys, CPAs and enrolled agents, and it lets them represent you. Form 8821 is for anyone you want to see your information, whether or not they can represent you. The IRS instructions point unenrolled return preparers who don't meet the representation rules to Form 8821, so they can still see your records. My guide to a tax attorney versus a tax preparer covers which professional you might need.
The 120-day rule for lenders
Here's the rule to know if a lender asks for one. If you sign Form 8821 so a third party can see your tax information for a purpose other than resolving a tax matter, such as income verification for a lender, the IRS must receive it within 120 days of your signature. The 120-day limit doesn't apply when the form is for help with a tax matter with the IRS. So if a lender's paperwork sits on a desk for months, the authorization can go stale.
Your privacy protection
The instructions note that section 6103(c) limits how information disclosed under your consent can be used, and holds the recipient subject to penalties, brought by private right of action, for any unauthorized access, other use or redisclosure without your express permission. In plain terms, the company you authorize may only use the information for the purpose you agreed to.
How to complete and submit Form 8821
- Line 1: your name, address and taxpayer identification number.
- Line 2: the designee's name, address and CAF number if they have one.
- Line 3: the type of tax, the form number and the years or periods. A general reference such as 'all years' is returned.
- Line 4: tick it only for a specific use not recorded on the CAF, and send that form to the IRS office handling the matter.
- Line 5: decide whether to keep earlier authorizations.
- Line 6: sign and date it.
- Submit it online at IRS.gov/Submit8821 with a Secure Access account, by fax or by mail.
If you sign electronically, the instructions say you must submit online. Tax professionals can also use the IRS Tax Pro Account, where most requests record immediately to the Centralized Authorization File (CAF).
Years you can include
You can list the current period, past periods and future periods, but the IRS won't record future periods more than 3 years after December 31 of the year it receives the form. If your bookkeeper needs ongoing access, put a renewal date in your calendar rather than listing a decade of future years. For past years, use specific periods: the instructions give examples such as '2017 thru 2019', and for fiscal years you enter the ending year and month.
The automatic revocation trap
This one catches businesses that use several advisers. The IRS says authorizations on prior Forms 8821 are automatically revoked unless you attach copies of the earlier forms to the new one, or use line 5 to keep them. So when your new payroll company sends an 8821, signing it could quietly cut off your accountant's access. Form 8821 can also be used on purpose to delete or revoke earlier authorizations.
If you're looking for help, my guide to hiring a remote accountant explains what to check before you hand over access.
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My verdict
Form 8821 is the right form when someone only needs to see your tax records, and it's safer than a power of attorney because the designee can't act for you. Read line 3 and line 5 before you sign: list only the years they need, and keep earlier authorizations if you still want your accountant in the loop. And if it's for a lender, make sure they send it in within 120 days.
Frequently asked questions
What is Form 8821 used for?
To authorize an individual or organization to inspect and receive your confidential IRS tax information for the tax types and years you list.
Can someone represent me with Form 8821?
No. Form 8821 doesn't authorize anyone to speak for you or represent you before the IRS. Use Form 2848 for representation.
How long is Form 8821 valid for a lender?
If it's for a purpose other than a tax matter, such as income verification, the IRS must receive it within 120 days of your signature.
Does a new Form 8821 cancel earlier ones?
Yes, unless you attach copies of the earlier forms or choose to keep them on line 5. The IRS says prior authorizations are otherwise automatically revoked.
Can my designee receive my tax refund?
No. The IRS says a designee can never endorse or negotiate your refund check or receive your refund by direct deposit.
Can I write all years on Form 8821?
No. The IRS says a general reference such as All years, All periods or All taxes will be returned. List the specific years or periods instead.
Can I submit Form 8821 online?
Yes, at IRS.gov/Submit8821 with a Secure Access account. Forms signed electronically must be submitted online.
