IRS seeks to improve service with business and professional accounts

In an effort to improve service and modernize the agency's technology, the IRS launched a business tax account for sole proprietors.

Financial advisors, tax professionals and their unincorporated business owner clients can use the new accounts, provided the firm in question is solely their firm and they file with an employer identification number, the IRS said Oct. 20. The first version of the accounts enable the business owners to verify their correct name and address on file with the agency, give employees access to the records and request a check for compliance with tax laws. Future updates will display the firm's payment history; include the ability to pay, schedule or cancel taxes; link to agency letters or notices; and allow users to authorize powers of attorney, ask for records and enter bank account information for direct transfers.  

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The agency followed through on an initial pledge this past summer to start the business tax accounts, and it's also working to bulk up its online tax pro accounts, according to a report in FP sister publication Accounting Today.

"We are making continued enhancements to our tax professionals' online accounts, helping them manage their active client authorizations on file with a centralized authorization file database, which stores the information on individuals authorized to act on a taxpayer's behalf," IRS Commissioner Danny Werfel said at a press conference last week. "Tax professionals can now view their clients' tax information, including balance due amounts. Also, tax pro account users can now withdraw from their active authorizations online in real time."

The technology and service upgrades stem partially from increased budgets for the agency as part of the Inflation Reduction Act, which is also ramping up IRS enforcement resources targeting wealthy tax dodgers.