What does Form 8821 authorize?

• A. Authorization for a representative to act before the IRS.
• B. Authorization for the representative to receive confidential tax information.
• C. Authorization to sign and file tax returns.
• D. Authorization for the representative to exonerate penalties.

Answer: (B)

Form 8821 is about who can receive your tax information. It authorizes the IRS to disclose confidential tax information to a specific person or organization you name on the form. It does not grant authority to act before the IRS, sign or file tax returns, or waive penalties. The form is used when you want a representative to get copies of notices, transcripts, and other IRS data so they can advise you or help prepare information, without giving them broader representation powers.