IRS expands Tax Pro Accounts

The Internal Revenue Service is adding new capabilities to the online Tax Pro Account, allowing firms to specify which staff members are authorized to act under the business's Centralized Authorization File access.

The update builds on the increasing capabilities of the Tax Pro Account, which the IRS introduced in 2021. The Tax Pro Accounts already include features such as linking or requesting individual CAF numbers; managing authorization relationships with taxpayers; viewing taxpayer information such as balance due, payment activity and audit status; and making payments or creating payment plans on behalf of individual taxpayers. The new features enable firms and their 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. 

Sole practitioners and other businesses that don't use CAF systems aren't likely to be impacted by the latest changes, the IRS noted, but the updates could benefit clients.

"This taxpayer-favorable change will improve the way tax-professional businesses serve their clients," said IRS CEO Frank Bisignano in a statement Monday. "The improvement demonstrates that the IRS continues investing in technology improvements that reduce paper submissions, streamline taxpayer interactions, and expand self-service digital options."

The Tax Pro Accounts also offer power of attorney and tax information authorization requests, as well as withdrawal of POA and TIA requests.