How to Fill Out Form 8821, Tax Information Authorization

IRS Form 8821, Tax Information Authorization, is a document that allows a taxpayer to designate a third party to inspect and receive their confidential tax records from the Internal Revenue Service (IRS). Common uses include providing income verification to a mortgage lender or allowing a financial advisor to review tax history. This form does not grant the ability to represent the taxpayer before the IRS. For representation, such as negotiating with the IRS, Form 2848, Power of Attorney, is required.

Information Needed to Complete Form 8821

For Line 1, you must provide the taxpayer’s full name, address, and phone number. A Taxpayer Identification Number (TIN) is also required; for individuals, this is a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). For businesses, trusts, or estates, the Employer Identification Number (EIN) is used. If the authorization relates to a joint return, each spouse must file a separate Form 8821.

Line 2 requires the details of the person or firm being appointed, including their full name, address, and contact numbers. This section also includes fields for a Centralized Authorization File (CAF) number and a Preparer Tax Identification Number (PTIN). The CAF is an IRS database for third-party authorizations, and the PTIN identifies paid tax preparers. While these numbers are requested, they are not mandatory, and you can write “NONE” if the appointee does not have one.

The scope of the authorization is defined on Line 3, where you must specify the tax information to be disclosed. This requires detailing the Type of Tax Information, the Tax Form Number, and the Year(s) or Period(s). For example, for personal income taxes, you would enter “Income” as the type, “1040” as the form number, and the relevant year, such as “2024.” You can list multiple years or a range, but cannot use general statements like “all years.”

Line 4 is a checkbox for a “Specific-Use Tax Information Authorization.” This should be checked if the authorization is for a one-time purpose, such as providing income verification for a loan application. When this box is checked, the authorization is not recorded on the CAF and will not revoke any prior authorizations.

Filing a new Form 8821 automatically revokes earlier authorizations for the same tax matters unless the specific-use box on Line 4 is checked. If you have a prior authorization that you do not want to revoke, you must check the box on Line 5 and attach a copy of that prior authorization.

Line 6 requires a signature from an authorized individual. For an individual tax return, the taxpayer must sign and date the form. For a business or other entity, an authorized person, such as a corporate officer, a partner, or a fiduciary, must sign and provide their title.

Submitting the Completed Form

Once completed and signed, the form must be submitted to the IRS. For the authorization to be valid, the IRS must receive it within 120 days of the signature date.

You can submit the form online through the IRS website, or by mail or fax. The official form instructions provide the correct mailing addresses and fax numbers, which are generally determined by the taxpayer’s address on Line 1. However, if the authorization is for a specific use and relates to an ongoing matter, it may need to be sent to the specific IRS office handling that matter.

After submission, the IRS takes approximately five weeks to process the form. Once processed, the authorization is entered into the CAF system, unless it was designated for a specific use. The designated appointee can then contact the IRS to receive the authorized tax information verbally or in writing. The appointee should have a copy of the processed Form 8821 available when making inquiries.