The IRS Form 8821, also known as the Tax Information Authorization, is an important document used for granting authority to individuals or organizations to receive and inspect confidential tax information on behalf of a taxpayer. It is essential for understanding the duration and expiration of Form 8821 to ensure compliance with IRS regulations. Below is some relevant information regarding the validity and expiration of the Form 8821:
1. Expiration date: A Form 8821 does not have an explicit expiration date. Once validly executed by the taxpayer, it remains in effect until the taxpayer revokes or terminates the authorization.
2. Revocation by the taxpayer: The taxpayer can revoke the authorization provided to the third party at any time by submitting a written statement to the IRS stating their intent to revoke the Form 8821. This revocation should include the taxpayer's name, tax identification number, and signature.
3. Exceptions to revocation: The authorization granted by Form 8821 cannot be revoked with respect to tax returns or periods that the taxpayer is under examination or investigation by the IRS. It remains effective until the examination or investigation is closed or the IRS nullifies the authorization before its conclusion.
4. Limited duration authorizations: In certain cases, the taxpayer may specify a limited duration of authorization on the Form 8821. This allows the third party to access and inspect tax information for a specific period of time specified by the taxpayer.
5. Prior authorization forms: If a taxpayer previously granted authorization using Form 8821-AD (Authorization to Disclose Information to the Designee of an Individual Taxpayer), which was discontinued, the authorization remains valid until the taxpayer revokes it.
6. Periodic review: Although Form 8821 does not have a set expiration, it is recommended for taxpayers to periodically review their authorizations to ensure they are still accurate and necessary. This practice helps ensure that only authorized parties have access to confidential tax information.
It is important to note that this information is based on general guidelines, and it is advisable to consult the IRS guidelines or seek professional advice to understand specific circumstances and requirements regarding the duration and expiration of Form 8821.