Understanding Form 8821: Essential Information You Need to Know
The IRS Form 8821 serves as an authorization document that enables an individual or an organization to designate another party, such as Startco, to obtain tax-related information on their behalf. Below is a breakdown of key fields and considerations when completing this form:
- Company Name: This is the name of the business for which the 8821 form is being filed.
- Business Location: The jurisdiction of your business (Delaware or Wyoming, for example) will determine this entry.
- Timeline for EIN Update: Startco will reach out to the IRS for an Employer Identification Number (EIN) update 45 business days after submission.
- Contact Information: This should match the phone number you provided on your SS4 form, which is the Application for Employer Identification Number.
- Assigned Startco Team Member: This individual is responsible for communicating with the IRS to obtain any required verification letters.
- Startco's Business Address: This field will contain the official business address of Startco.
- Startco's Contact Number: The phone number provided here is solely for purposes related to Form 8821. Clients should not contact this number for other reasons.
- Authorization to Startco: This part of the form empowers Startco to call the IRS and obtain the verification letter on your behalf.
- Purpose of Form 8821: This field outlines why the form is being filed, usually to grant Startco authority to obtain specific tax documents or information.
- Name of the Responsible Party: This refers to the person in charge of the tax matters for the entity.
- Role of Corporations: If the entity is an LLC, this section should specify whether it is a single-member or multi-member LLC.
Additional Note: The form should be signed and dated, and these fields often appear in red for emphasis.
Understanding Form 8821's various fields and requirements can help streamline the process and ensure that you are in compliance with IRS regulations.
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