What Is a CAF Number on Form 8821?

A Centralized Authorization File (CAF) number is a unique identification number assigned by the IRS to tax professionals and other authorized third parties. This number helps the IRS efficiently manage and track authorizations, ensuring secure and proper access to taxpayer information, especially through forms like Form 8821.

Understanding the CAF Number

The CAF number is a nine-digit identifier that the Internal Revenue Service (IRS) assigns to tax professionals, such as attorneys, Certified Public Accountants (CPAs), enrolled agents, and other authorized representatives. This unique number is typically issued the first time a representative submits a valid authorization form to the IRS, such as Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization. The CAF number serves as a key to streamlined access, allowing the IRS to quickly verify the representative’s approved status and the scope of their authorization.

The primary purpose of the CAF system is to create a centralized database that records and tracks individuals authorized to receive confidential tax information or represent taxpayers. This system helps the IRS confirm that only authorized individuals receive sensitive taxpayer data, enhancing security and privacy. It also eliminates the need for the IRS to repeatedly request authorization documents for each interaction, making communication more efficient. Without a CAF number, a tax professional cannot legally access client tax records or represent them before the IRS, making it a foundational element for practitioners.

Form 8821 Tax Information Authorization

Form 8821, “Tax Information Authorization,” is an IRS document that taxpayers use to grant permission to an individual, corporation, firm, organization, or partnership to inspect or receive their confidential tax information. This form is essential for allowing a designated third party, such as a tax professional or even a family member, to communicate with the IRS regarding specific tax matters. It enables the authorized party to receive copies of notices, transcripts, and other communications directly from the IRS.

Form 8821 grants access to information only; it does not confer the authority to act on the taxpayer’s behalf or represent them in official proceedings. For example, while a tax professional with a Form 8821 can obtain a client’s tax transcripts or account information, they cannot negotiate with the IRS, sign documents, or make decisions for the taxpayer. This distinction sets it apart from Form 2848, Power of Attorney, which grants broader representation rights. Taxpayers typically complete Form 8821 when they need a third party to review their tax records for purposes like tax preparation, financial planning, resolving tax issues, or simply to receive copies of IRS correspondence.

Obtaining and Using a CAF Number

Tax professionals obtain a CAF number the first time they submit a valid authorization form, such as Form 2848 or Form 8821, to the IRS. When submitting one of these forms for the initial request, the representative should enter “NONE” in the CAF number field on the form. The IRS will then assign a unique nine-digit CAF number to that representative and typically mail it to them within two to four weeks. This assigned number should then be used on all subsequent authorization requests.

When completing Form 8821, the authorized representative’s CAF number is entered in Section 2, “Designee(s).” This section requires the full name, mailing address, Preparer Tax Identification Number (PTIN), and contact information of the designee. If a representative has multiple CAF numbers from previous interactions, they should use the one associated with their professional identity. Accurately providing this information ensures that the IRS can properly link the authorization to the correct representative and their existing CAF record.

Submitting Form 8821 and Next Steps

Once Form 8821 is completed, taxpayers have several methods for submission to the IRS. The form can be submitted online through the IRS’s secure upload portal, by fax, or by mail. The correct mailing address or fax number depends on the taxpayer’s geographic location, and these details are provided in the instructions for Form 8821. If the authorization is for a specific use not recorded on the Centralized Authorization File, such as for loan companies or background checks, the form should be mailed or faxed directly to the IRS office handling that specific matter.

After submission, the IRS begins processing the authorization. Processing times typically range from three to six weeks for faxed forms, or six to eight weeks for mailed forms. Online submissions may be processed faster, potentially within ten days to three weeks. The IRS does not typically send a confirmation notification when the form is processed, but authorized representatives can check the processing status online or view active authorizations in their Tax Pro Account. Once processed, the authorized representative can begin using the authorization to access the taxpayer’s information.