The IRS has expanded its Tax Pro Account, unveiling business-level digital capabilities for tax practitioners who work in tax preparation companies, accounting firms, or other organizations, the agency announced on Feb. 9.
The latest enhancements give tax-professional businesses greater visibility and control over their Centralized Authorization File relationship, helping organizations that serve larger numbers of taxpayers manage authorizations more efficiently while reducing paper-based processes, the IRS said in a media release.
“These updates establish the digital foundation for future expansions supporting tax professionals,” the agency said. “Sole proprietorships and other businesses that do not use CAF systems are not impacted by this change.”
Frank Bisignano, the head of the Social Security Administration who is also serving as CEO of the IRS, said Monday that this taxpayer-favorable change will improve the way tax-professional businesses serve their clients.
“The improvement demonstrates that the IRS continues investing in technology improvements that reduce paper submissions, streamline taxpayer interactions, and expand self-service digital options,” he said in a statement.
What’s new?
According to the IRS, this release allows designated business representatives to:
- Manage business CAF access, including specifying which employees are authorized to act under the business CAF.
- Link the business CAF number to the company’s employer identification number through their Tax Pro Account.
- View taxpayer information associated with the business CAF within the scope of active authorizations.
- View and withdraw active authorizations on behalf of the tax-professional business.
“Building on enhancements delivered in 2023 and 2024 that expanded digital authorization management and ‘act on behalf of’ capabilities for individual clients, this release extends Tax Pro Account beyond sole practitioners to support tax professionals who operate as part of a business entity using a business CAF number,” the IRS said.
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Launched in July 2021, Tax Pro Account provides individual tax professionals with a secure, intuitive digital experience to:
- Manage authorization relationships with taxpayers.
- Link or request individual CAF numbers.
- View taxpayer information, such as balance due, payment activity, and audit status.
- Make payments or create payment plans on behalf of individual taxpayers.
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More information about Tax Pro Account can be found here.
Photo credit: hapabapa/iStock
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