8821 Information

8821 FAQ

8821 FAQ, Last Updated: August 08, 2025

For more detailed information please also review the 8821 Troubleshooting Guide.

Why is our 8821 being rejected by the IRS?

The average time for an 8821 to be accepted by the IRS is 5-10 business days, if it has taken longer than this then there are numerous reasons it could be getting rejected:

The business name or individual’s name entered does not match what the IRS has on record.

The TIN (SSN or EIN) entered is incorrect.

The formatting of the TIN (SSN or EIN) is incorrect.
- SSN = xxx-xx-xxxx
- EIN = xx-xxxxxxx

The individual who signed the form is not an authorized signatory.

The title used for the authorized signer is missing or incorrect.

The entity type used is incorrect.

The form used is illegible or poor quality (best practice is to type rather than handwrite).

An incorrect document was uploaded, or the version of Form 8821 is no longer accepted.

The tax forms and periods are missing or do not match the entity type.

A signature is missing or illegible.

The execution date on the signature is over 4 months old or missing

Identity Theft. The IRS has frozen the account

*Pro tip: To confirm what information the IRS has on record, the client can call and request a 147c letter. Also, looking at the most recent income tax return filed is recommended to ensure the information is consistent.

Why can’t TaxNow help when an 8821 is being rejected?

It is the responsibility of the client to ensure all information entered on the Form 8821 is accurate. Here are a few reasons why TaxNow can’t definitively explain or assist when an 8821 is being rejected:

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1. The IRS is inconsistent in processing
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‍The IRS does not always follow a perfectly consistent review process for 8821 forms. Some submissions may be accepted even if:

Signer roles aren't clearly documented

A newer 8821 may be on file

The form is slightly outdated or has minor formatting issues

‍‍This unpredictability makes it hard for TaxNow, or any third party, to explain why something was accepted or rejected.
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2. IRS doesn’t provide detailed feedback

When the IRS accepts a form, it usually doesn't issue a confirmation with a breakdown of what it verified or why it was approved. The same is true for forms that are not accepted; the IRS will not provide feedback on the reason.

3. Timing overlaps

If multiple Form 8821-intake process still involve manual IRS review, the IRS may process them out of order or retain an older one on file even after a newer one is submitted. That can create confusion if you're tracking real-time status via IRS e-Services. Typically, anytime a new 8821 is submitted, it will void the one that was already in place.

4. The system is partly manual

Some parts of the Form 8821-intake process still involve manual IRS review, especially for businesses. This introduces human error and discretion into the system, something TaxNow cannot predict or prevent.

My Client’s account went active but why is it only showing partial data?

1. It can take up to 3 business days for all data to fully load into the client’s dashboard.
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2. If 3 business days have passed and you’re still only seeing partial data, this could be due to an IRS error.

The Form 8821 will need to be uploaded again.

If after the second upload the error is not fixed, we suggest withdrawing the Form 8821 completely and uploading a new one.

*Please reach out to our CX team to assist with these steps at cx@taxnow.com or your designated Account Manager