Money Well Spent: IRS Expands Online Account Services for Businesses

Yesterday the IRS launched a new tool for businesses that expands online access to certain business tax account information. Available at IRS.gov/businessaccount, the new service is a key part of the agency's continuing service improvement initiative funded by the Inflation Reduction Act.

"This is part of the ongoing IRS modernization effort to make improvements for business taxpayers and others," said IRS Commissioner Danny Werfel. "This next step in the evolution of the Business Tax Account will help these businesses download transcripts and other features. Ultimately, these new online options will help make interactions easier for businesses while reducing paper-based processes and the need to call the IRS."

Under this new online tool, users can download a PDF of the following business tax transcripts:

1. For sole proprietors, Forms 940, 941, 943, 944, 945, 8752, 8288, 11-C, 730, and 2290.
2. For S corporations, Forms 940, 941, 943, 944, 945, 8752, 8288, 11-C, 730, 1120S, and 2290.
3. For partnerships, Forms 940, 941, 943, 944, 945, 1065, 8752, 8288, 8804, 11-C, 730, and 2290.

Additionally, sole proprietors can view certain notices:

1. CP080: Reminder - we have not received your return, credits may be on your account.
2. CP136: Annual notification of Federal Tax Deposit (FTD) requirements (Forms: 941, 941-SS).
3. CP216F: Application for extension of time to file an employee plan return – approved.

Individual partners and individual shareholders will be able to access Schedule K-1 information once a business return has been filed (with Schedule K-1s) and processed by the IRS. In order to access, individuals must have a Schedule K-1 for a minimum of one year during the 2019-2022 period on file. New businesses won't have access until a business return is submitted, processed, and on file with the IRS.

Sole proprietors with an EIN qualify to access their business tax account. Sole proprietors who have already set up an individual account under their SSN or ITIN, and have an EIN linked to their SSN or ITIN, can use their existing login to access their business tax account.

The IRS has stated that over time, its business tax account online system will be a one-stop application that provides business taxpayers a suite of digital products and services, including access to viewing letters or notices, requesting tax transcripts, adding third parties for power of attorney or tax information authorization, and storing bank account information to manage tax payments.

While the IRS is not always a good steward of its funding, this is welcomed development and -- dare I say -- money well spent.

If you have any questions about this Blog post or any other Treasury, IRS or tax-related matter, feel free to contact me directly at (214) 749-2464 or adaddino@meadowscollier.com.