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Hi and welcome to today's video where were talking about IRS Form 8821 Tax Information Authorization Well point out some common mistakes with this form and provide tips for how you can avoid them Tip 1 What is Form 8821 and when should you use it When helping your client resolve an issue with the IRS you need access to their personal tax information Form 8821 authorizes any individual organization or tax professional to receive confidential tax documents for their client It can also revoke previous tax information authorizations that are no longer required By accessing this information you can identify what returns your client needs to file how much tax interest and penalties are due or if their account is in collections However there are several actions that Form8821 does not authorize you to do The biggest misconception with this form is that it authorizes representative power Form 8821 cannot authorize you to represent your clients before the IRS This includes speaking to the IRS on your clients behalf executing waivers consents closing agreements or any other representative matters To receive this authorization you need to fill out Form 2848 Power of Attorney and Declaration of Representative Go check out our video on Form 2848 to learn more about it Tip 2 Play it safe You're probably wondering why would I bother with the Form 8821 if you can just fill out Form 2848 Here's why In many cases clients don't tell you the full story right away This can make it difficult to decide if you want to take a client on And in these instances you want to start with Form 8821 The 8821 allows you to assess your clients tax situation before becoming more liable yourself Once you file Form 2848 you are expected to represent your client If you do not meet the expectation of a rigorous defense on behalf of your client you may be subject to a professional liability law suitor malpractice By filing Form 8821 first you can get access to all the information you need to fully understand your clients situation and determine if full Power of Attorney is necessary to help your client Tip 3 Tax Information commonly misunderstood section in Form 8821 is found in Part 3 Tax Information There are two parts of this section and both can cause confusion The Intermediate Service Provider is the first part that instructs you to check a box if you want access to IRS records via an intermediate service provider By checking this box tax information such as transcripts can be easily accessed through third party software like Canopy If this box is left unchecked you must access these forms directly from the IRS If you're not sure whether to check this box — go ahead and checIISis allowingws you multiple options for retrieving your clients tax documents Tax Information Details second part of this section deals with the identification of the tax documents you need access to The difficulty is recognizing the difference between column A and D Column A asks for the type of tax such...