In an effort to enhance taxpayer services and embrace technology, the Internal Revenue Service (IRS) has taken a significant step forward. On October 20, the IRS announced the launch of new business tax accounts, marking a pivotal move towards a more tech-friendly approach. The initial release is specifically tailored for sole proprietors.
Key Features of the Business Tax Accounts:
Enhanced Accessibility: Businesses, starting with sole proprietors, now have access to an array of features aimed at streamlining interactions with the IRS.
Comprehensive Services: Over time, businesses will be able to:
Check tax payment history
Make payments securely
View notices and communications
Authorize powers of attorney
Conduct various other business transactions with the IRS.
Initial Phase Highlights:
The initial phase focuses on unincorporated sole proprietors with an active employer identification number (EIN).
Sole proprietors can now set up a business tax account, providing them the ability to view their business profile and manage authorized users seamlessly.
What's Next: The IRS envisions expanding these capabilities to include a broader spectrum of businesses, fostering an environment where companies can efficiently manage their tax-related affairs in one centralized platform.
Benefits for Unincorporated Sole Proprietors:
Efficiently manage tax affairs with a dedicated business tax account.
Access a comprehensive view of the business profile.
Streamlined authorization management for designated users.
As this initiative progresses, businesses can expect an enriched and user-friendly experience when engaging with the IRS. Stay tuned for updates on further enhancements and expansions to the business tax account features.
For inquiries or assistance, please contact our team at ECS Financial Services.
About The Author - Kimberly Siegel, CPA, is a Tax Partner at ECS Financial Services, a CPA firm located in Northbrook, IL. She has worked in public accounting for more than 30 years, representing clients in business and personal income tax across a wide variety of industries. Kim’s areas of expertise include tax planning, multi-state tax compliance, and income tax audits, while managing multi-state sales tax compliance, conducts sales tax research, and represents clients in sales tax audits. She is also experienced in accounting and financial statement preparation and analysis.