The IRS announced a new feature today that gives your clients online access to authorize you to represent them or view their tax records. “The ability for taxpayers to connect online with their tax professional is a groundbreaking step for the IRS,” said Chuck Rettig, IRS Commissioner. “This is the first, basic step toward a more fully integrated digital tax system that will benefit taxpayers, tax professionals and the IRS.”
The IRS launched an online portal for taxpayers in 2016. Today, the portal allows taxpayers to view information ranging from balance due and payments made to digital copies of some IRS notices. The portal is updated daily. Taxpayers can also make payments through the portal, see payment options and request a payment plan and access their tax records.
The new feature, Tax Pro Account, is an enhancement designed to facilitate your representation of your clients. The Tax Pro Account portal will allow you to initiate Powers of Attorney and Tax Information Authorizations for your clients. You should use your IRS username and password to access the Tax Pro Account or create an account. Once you submit the digital (and simpler) versions of Forms 2848 and 8821, the authorization requests will appear in your clients' Online Accounts for their review, approval or rejection and electronic signature.
Processing of POAs and TIAs will no longer be manual since taxpayers already verified their identity in setting up and using their Online Account. Most requests for POAs and TIAs will be recorded and appear on the taxpayers account immediately, although it may take up to 48 hours.
The IRS is planning to add additional functionality to the tool over time, increasing options for digital interactions between taxpayers and tax professionals. Currently, the process only applies to individual tax payers, not businesses or other entities.
Tax Pro Account is available now. This initial launch represents the first release of the tool. Over time, additional functionality will be added for taxpayers and tax professionals that will increase the options for electronic interactions.
You can find more information about Tax Pro Account at:
Here are tools you can use to educate your clients about the new processes: