Accounting & Tax Tips
January 10, 2024

IRS Expands Access to Business Tax Account to Partnerships and S Corps

In mid-December 2023, the IRS expanded access to the Business Tax Account application to include individual partners of partnerships and individual shareholders of S corporations as Phase II of the online self-service tax tool’s launch.

When introduced in October 2023, access to Business Tax Account was limited to sole proprietors who filed with an Employer Identification Number (EIN).

The IRS referred to this expansion as the second phase of the agency’s efforts to modernize taxpayer service using funds from the Inflation Reduction Act.

What Does this IRS Update Mean for Business Owners?

Depending on your business type, you may now access several account features to manage your federal tax obligations. Please note that access to some features may be limited or unavailable depending on your role in the business.

Benefits of the Business Tax Account include:

Increased Accessibility and Efficiency — You can now easily gain online access to pivotal tax information needed to manage your business tax obligations.

Empowering Partners and Shareholders — Individual partners or shareholders can now view various business tax-related data, promoting transparency and equipping you with the right information for strategic decision-making.

Ease of Compliance — Having on-demand access to business tax information will help you keep up with tax regulations, potentially reducing the occurrence and severity of compliance issues, and safeguarding your business from possible penalties.

Streamlined Tax Management — Partnerships and S Corp owners will now be able to view their due balances, access tax records, and even register for clean energy credits — a major step towards efficient tax management.

As advocates for business accounting, tax, and operational efficiencies, we’re hopeful this online tool will benefit our clients. We recommend creating an account on the IRS Business Tax Account website if you have not already done so.

Should you need help navigating these updates or the Business Tax Account tool, please reach out using the FREE CONSULT button below.

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