IRS Launches New Tax Pro Account

July 19, 2021

The Internal Revenue Service took a groundbreaking step in expanding their electronic options for both individuals and tax professionals with today's launch of a new feature that gives individuals digital control over who can represent them or view their tax records.

The new feature is one of many recent enhancements to the Online Account for individuals. It allows individuals to authorize their tax practitioners to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with Tax Information Authorizations (TIA).

“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.”

Tax Professionals

Tax Pro Account is a separate tool from e-Services. Tax professionals should use their IRS usernames and passwords to access the Tax Pro Account or create an account after verifying their identities. They must be in good standing with the IRS and already have a CAF number prior to making requests through Tax Pro Account. For Power of Attorney, they must also have:

The authority to practice before the IRS as an attorney, certified public accountant, enrolled agent, enrolled actuary or enrolled retirement plan agent
License to practice in the 50 United States or the District of Columbia as an attorney or certified public accountant

As of today, tax professionals can start using the new Tax Pro Account to digitally initiate POAs and TIAs. These digital authorization requests are simpler versions of Forms 2848 and 8821. They must enter their personal information and their clients’ personal information exactly as it appears on IRS tax records to initiate the authorizations. These tax matters can be authorized from year 2000 and forward, plus 3 future years:

Form 1040 Income Tax
Split Spousal Assessment or Form 8857 Innocent Spouse Relief
Shared Responsibility Payment (2014 or later)
Shared Responsibility Payment - Split Spousal Assessment (2014 or later)
Civil Penalty (periods ending March 31, 2000 through the current year, plus 3 future years ending Dec. 31.)

Once they complete and submit them, the authorization requests will appear in their client's Online Account for review, approval or rejection and electronic signature. Since their identities are verified at the time of login, they can just check a box as their signature and submit the authorization request to the IRS. All representatives must be authorized on the same day.

Submitting with Tax Pro Account will revoke any prior authorizations on file with the IRS for the same tax matters, tax periods and authorization types. If they wish to keep other authorizations intact, a Form 2848 or 8821 must be submitted by fax, mail or online. If authorizations for overlapping tax periods and tax matters are requested, the subsequent overlapping requests will not process if approved on the same day. Authorization requests can be reviewed and managed in Tax Pro Account to ensure proper processing.

Individuals

The digital authorization process is currently available only to individuals, not businesses or other entities, and only to those with addresses in the United States. Individuals can login to their Online Account to connect with their tax professional using their IRS username and password. They must create an account after passing a one-time identity verification process. If they can't validate their identities, they can't use this option, and their tax professional must use the fax, mail or online submission process. The IRS will announce a new process for this application later this year.

There are other features available to individual taxpayers using their Online Account. They can view:

The amount they owe, updated for the current calendar day
Their balance details by year
Their payment history and any scheduled or pending payments
Key information from their most recent tax return
Payment plan details
Digital copies of select notices from the IRS
Their Economic Impact Payments, if they have any
Their address on file

They can also: make a payment online; see payment plan options and request a plan with Online Payment Agreement; and access their tax transcripts via Get Transcript.

This initial launch of the Tax Pro Account represents the first release of the tool. Additional functionality will be added for individuals and tax professionals over time that will increase the options for electronic interactions.

A key benefit is that the completed digital authorization will go directly to the Centralized Authorization File (CAF) database and will not require manual processing as long as its accurate, and most requests will be recorded immediately and appear on the list of approved authorizations in both the individual's Online Account and the tax professional’s Tax Pro Account. Tax professionals can then go to the e-Services Transcript Delivery Service to see the individual's records. Some authorizations could take up to 48 hours.

This new digital authorization option will be a much faster process, allowing the IRS to reduce its current CAF inventory and focus on the authorization requests received through fax, mail or online via the Submit Forms 2848 and 8821 Online page that require IRS personnel to handle.

The IRS created two e-Posters for tax practitioners to share and educate their clients about the new process:

Tax Pro Account is available:

Monday 6 a.m. ET to Saturday 9 p.m. ET
Sunday 10 a.m. to midnight ET (Occasionally down for additional hours for maintenance)