IRS now offers digital authorizations through the new Tax Pro Account
Posted on August 14, 2021
So – why might this matter to you? The IRS just handed taxpayers digital control over who can represent them or view their tax records if and when they have a dispute. That’s a great option for taxpayers and a groundbreaking step in the agency’s expansion of electronic options for taxpayers and tax professionals.
Mike Poynter, Teipen Group CPA agrees with Chuck Rettig, IRS Commissioner that “This is the first, basic step toward a more fully integrated digital tax system that will benefit taxpayers, tax professionals and the IRS.”
“It will also speed up the process of redressing and rectifying taxpayer complaints with the IRS,” clarified Poynter. “It will make the IRS work more efficiently to the benefit of the taxpayer.”
Here’s what the new digital authorization process does:
- The Online Account for individuals will allow individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA).
- It also authorizes taxpayers to view their tax accounts through Tax Information Authorizations (TIA).
- A key benefit of the completed digital authorization is speed. If accurate, the authorization will go directly to the Centralized Authorization File (CAF) database and will not require manual processing.
How it works:
- Tax professionals may go to the newTax Pro Account on gov to digitally initiate POAs and TIAs. (These digital authorization requests are simpler and more direct versions of IRS Forms 2848 and 8821).
- Once completed and submitted by the tax professional, the authorization requests will appear in the taxpayers’ Online Account for their review, approval or rejection and electronic signature.
- Because the taxpayers’ identities already are verified at the time of login, they simply check a box as their signature and submit the authorization request to the IRS.
Most requests will be immediately recorded and appear on the list of approved authorizations in the taxpayer’s Online Account and the tax professional’s Tax Pro Account — although some authorizations may take up to 48 hours. Tax professionals may then go to e-Services Transcript Delivery Service to see the taxpayer’s records.
To connect with their tax professionals, taxpayers either login to their Online Account using their IRS username and password or they must create an account after passing a one-time identity verification process.
Mike Poynter notes that taxpayers who cannot validate their identities cannot use this option, and their tax professional must use the fax, mail or online submission process, which will no doubt be slower.
This initial launch of the Tax Pro Account 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.
Have more questions? You can always ask you Teipen Group CPA for clarification, or review the following IRS publications:
- Publication 5533, Why You Should Create an IRS Online Account
- Publication 5533-A, How to Submit Authorizations Using Tax Pro Account and Online Account