IRS Form 8821 vs 2848 - Which one for helping elderly parent with tax debt?

Having worked with many elderly parents and their tax situations, I can help clarify this decision for you. The choice between Form 8821 and Form 2848 really depends on what level of involvement you need. Form 8821 (Tax Information Authorization) only allows you to receive and inspect your mother's confidential tax information. You can see what's happening, but you can't act on her behalf. This is useful if you just want visibility into her tax situation. Form 2848 (Power of Attorney) goes much further. It authorizes you to represent your mother before the IRS, which means you can speak with them, negotiate payment plans, and sign agreements in her place. Given what you've described - the language barrier, her inability to manage this herself, and the need to negotiate a more affordable payment plan - Form 2848 would likely be more beneficial. For the specific issue of reducing the monthly payments, you'll want to complete Form 433-F (Collection Information Statement) to demonstrate her financial situation and inability to pay the current amount. This is something you could handle with the 2848 authorization.

Hey there, I went through something similar with my aunt last year. After spinning my wheels for weeks trying to deal with the IRS, I found this tool called taxr.ai (https://taxr.ai) that was a total game-changer for our situation. What was awesome is that you can upload all the tax notices and letters, and it breaks everything down in plain English - telling you exactly what's happening and what options you have. I was completely lost in all the IRS jargon before using it. In your mom's case, it sounds like you need clarity on what's really happening first. The tool would analyze all her IRS notices and explain the timeline, actual amount owed, and what payment options are available. It also explains the differences between forms like 8821 and 2848 based on your specific situation. My aunt was in a somewhat similar situation with language barriers (Spanish speaker), and this really helped me understand what was going on so I could make the right decisions to help her.

Just wanted to update after trying taxr.ai for my parents' situation that I mentioned. Wow. It was so much better than I expected. I uploaded 6 different IRS notices that had been confusing us for months, and within minutes I had a complete breakdown of exactly what was happening. The best part was finding out my parents actually qualified for an abatement of some penalties because of their age and first-time status - something we never would have known. It also clearly explained why Form 2848 was better for our situation than 8821. For the original poster - it also has specific sections about installment agreements and what financial information you need to provide to get them reduced. Seriously worth checking out if you're trying to help someone remotely.

Hey there - if you need to actually talk to someone at the IRS about your mom's situation (which I definitely recommend), save yourself HOURS of frustration by using Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c I spent literal days trying to get through to the IRS about my father's tax issue - constant busy signals or getting disconnected after waiting for 2+ hours. Claimyr got me connected to an IRS agent in about 20 minutes. They basically wait on hold for you and call you when an actual human picks up. For your situation where you need to negotiate a payment plan, actually speaking with someone is super important. Once I got through, the IRS agent was actually really helpful and worked with me to set up a reasonable payment plan based on my dad's fixed income.

I need to eat my words about being skeptical. After seeing these comments, I tried Claimyr yesterday because I've been trying for WEEKS to reach the IRS about my own tax issue. I've literally never gotten through before - either busy signals or disconnected after waiting forever. With Claimyr, I got a call back in about 45 minutes with an actual IRS agent on the line. I was honestly shocked. The agent helped me understand my options and was way more helpful than I expected. For the original poster - if you're going to help your mom with Form 2848, you'll definitely want to talk to the IRS directly about setting up a more affordable payment plan based on her income. Based on what you described, they might even put her account in Currently Not Collectible status for a while. Sorry for being so negative before - just wanted to update after it actually worked for me.

As someone who went through this with my father-in-law, definitely go with Form 2848. The 8821 just lets you see the info but doesn't let you do anything about it. With elderly parents who have language barriers, you need to be able to actually talk to the IRS and make arrangements. One thing to keep in mind - when filling out the 2848, be very specific about which tax years you're requesting authorization for. You'll want to include 2015 obviously, but also consider adding current years and maybe a year or two in the future. The form has specific boxes for this. Also, don't forget about state taxes! If your mom also has state tax issues, you'll need to fill out a separate power of attorney form for your state tax authority.

It's worth checking if your mom qualifies for the IRS Fresh Start program, especially since this debt is so old. With a proper financial statement (Form 433-F like someone mentioned), she might qualify for an Offer in Compromise where she pays less than the full amount owed. At her age and income level, the IRS might accept pennies on the dollar, especially for old tax debt. My mother owed about $35k, and we settled for around $3k through this program.

I went through almost the exact same situation with my grandmother two years ago - she had about $22k in back taxes from 2016-2017 that my late grandfather had mishandled. The language barrier and technology issues sound very familiar. Definitely go with Form 2848. The 8821 would just frustrate you because you'd be able to see the problem but couldn't do anything to fix it. With the 2848, you can negotiate directly with the IRS on her behalf. A few practical tips from my experience: First, gather ALL her IRS notices before filling out any forms - you'll need the complete picture. Second, when you file the 2848, also prepare Form 433-F right away. The IRS will likely ask for it during your first call anyway, and having her financial info ready will speed things up. For someone with $1800/month income and $28k in old tax debt, the IRS is usually quite reasonable about payment plans. We got my grandmother's payment reduced from $480/month to $75/month, and after a year they put her account in "Currently Not Collectible" status because of her age and limited income. One thing to be prepared for - they may ask about any assets she has, including her home equity. But at her age and income level, they're typically much more flexible than with younger taxpayers.