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Form 8821 vs. Form 2848

Two IRS third-party authorizations that are routinely mistaken for each other. One lets a designee look at your records; the other lets a representative speak and act for you. The IRS restricts who may hold the second one and does not restrict who may hold the first.

Quick Answer

The dividing line the IRS draws is between seeing and acting. A Tax Information Authorization appoints a designee to review and/or receive confidential information, and the IRS places no credential requirement on who that designee can be. A Power of Attorney authorises a representative to represent, advocate, negotiate and sign, and the IRS requires that person to be eligible to practise before it. Form 2848 also carries the information access Form 8821 grants, so the two are not a pair you choose between on equal terms: 8821 is the narrower authority, and filing it does not give anyone standing to argue your case. The IRS also notes a use that has nothing to do with a dispute — disclosing your information for a purpose other than resolving a tax matter, such as a lender's income verification — which only the Tax Information Authorization covers. Separately, the IRS states you have the right to represent yourself, and that authorising someone else does not relieve you of your own tax obligations.

1

Form 8821 (Tax Information Authorization)

Advantages

  • The IRS states it authorizes any individual, corporation, firm, organization, or partnership you designate to inspect and/or receive your confidential information verbally or in writing, for the type of tax and the years or periods listed on the form.
  • No professional credential is required of the designee. The IRS lists the permitted designees as any individual, corporation, firm, organization or partnership.
  • The IRS states it can disclose your tax information for a purpose other than resolving a tax matter, giving income verification required by a lender and a background check as examples.
  • The IRS states you can also grant an oral Tax Information Authorization by calling it, and that if you want the designee to receive copies of notices and communications you must say so on the call.
  • The IRS states it can also be used to delete or revoke prior tax information authorizations.

Disadvantages

  • It conveys no authority to act. The IRS describes the designee role as reviewing and/or receiving information, not representing you.
  • A designee cannot argue your case, negotiate, or sign anything on your behalf — the IRS reserves those to a Power of Attorney.
  • The IRS states it stays in effect until you revoke it or the designee withdraws, so an authorization granted for a one-off purpose does not lapse on its own.

Best For

Letting someone read your account — a lender verifying income, a preparer reconciling a balance, a family member reading notices — where nobody needs to speak to the IRS on your behalf.

Typical Cost

No fee to file either form.

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2

Form 2848 (Power of Attorney and Declaration of Representative)

Advantages

  • The IRS states the authorized person can represent, advocate, negotiate and sign on your behalf, and argue facts and the application of law.
  • The IRS states the authorization also allows the representative to receive your tax information for the matters and periods you specify — so it covers everything Form 8821 does.
  • The IRS states the representative can receive copies of IRS notices and communications if you choose.
  • The IRS states a student working in a qualified Low Income Taxpayer Clinic or Student Tax Clinic Program may represent you under a special appearance authorization issued by the Taxpayer Advocate Service.

Disadvantages

  • The IRS states the individual you authorize must be a person eligible to practice before the IRS, which rules out most friends and family in ordinary circumstances.
  • The IRS lists the eligible categories as attorneys, CPAs and enrolled agents; enrolled retirement plan agents and enrolled actuaries for the Internal Revenue Code sections described in Circular 230; and unenrolled return preparers, family members, employees and students only under special and limited circumstances.
  • The IRS states it stays in effect until you revoke the authorization or your representative withdraws it.
  • The IRS states authorizing a new representative for the same tax matters and periods automatically revokes the prior authorization, so overlapping representatives need deliberate handling.

Best For

Any situation where somebody needs to speak, negotiate or sign for you — a hearing, an offer, an appeal — and that person is eligible to practise before the IRS.

Typical Cost

No fee to file either form.

The Verdict

The dividing line the IRS draws is between seeing and acting. A Tax Information Authorization appoints a designee to review and/or receive confidential information, and the IRS places no credential requirement on who that designee can be. A Power of Attorney authorises a representative to represent, advocate, negotiate and sign, and the IRS requires that person to be eligible to practise before it. Form 2848 also carries the information access Form 8821 grants, so the two are not a pair you choose between on equal terms: 8821 is the narrower authority, and filing it does not give anyone standing to argue your case. The IRS also notes a use that has nothing to do with a dispute — disclosing your information for a purpose other than resolving a tax matter, such as a lender's income verification — which only the Tax Information Authorization covers. Separately, the IRS states you have the right to represent yourself, and that authorising someone else does not relieve you of your own tax obligations.

Frequently Asked Questions

Can I put a friend or family member on Form 2848?
Only under limited conditions. The IRS states your representative must be an individual eligible to practice before it, and lists attorneys, CPAs and enrolled agents, plus enrolled retirement plan agents and enrolled actuaries for the Code sections described in Circular 230. It states unenrolled return preparers, family members, employees and students qualify only under special and limited circumstances. Form 8821 carries no such restriction — the IRS states you may designate any individual, corporation, firm, organization or partnership.
Do I need Form 8821 as well if I file Form 2848?
Generally no, for the same matters and periods. The IRS states that authorizing a qualifying representative on Form 2848 will also allow that individual to receive and inspect your confidential tax information. Form 8821 would add nothing for the matters and periods a Power of Attorney already covers.
My lender wants my IRS information. Which form is that?
That is the Tax Information Authorization. The IRS states a Tax Information Authorization lets you disclose your tax information for a purpose other than resolving a tax matter, and gives income verification required by a lender as an example. A Power of Attorney is for representation in a tax matter, which is not what a lender is asking for.
How long does either authorization last?
The IRS states both stay in effect until you revoke the authorization or the designee or representative withdraws. Neither expires on a schedule. The IRS also states that granting a new authorization of the same kind, for the same tax matters and periods, automatically revokes the prior one. A Third Party Designee named on a return is different — the IRS states that authorization automatically expires one year from the return's due date, not counting extensions.
Is there a way to authorize someone without filing either form?
For narrow purposes, yes. The IRS states you can grant an oral Tax Information Authorization by calling it, limited to what you authorize on that call, and that oral disclosure authorization given during a conversation is automatically revoked once the conversation ends unless you state otherwise. It also describes a Third Party Designee named directly on your tax form, whose authority is limited to that specific form, period and issues related to processing that return.

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Sources

Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice. Report a correction.