IRS touts enhanced tax options for businesses with online accounts

The Internal Revenue Service continues its efforts to get more taxpayers interacting with the agency electronically.

The latest move is enhancing business taxpayer accounts.

Upgrades for business filers: The business tax account, or BTA, was launched last fall as a way for certain business taxpayers to view and make balance-due payments online.

With the latest expansion, an eligible business taxpayer can use a BTA to pay Federal Tax Deposits (FTDs), and see and make a payment on their full balance due.

The account is also now accessible in Spanish with more translations planned.

Entities that can open a BTA: You can set up a BTA if your company operates as one of the following business entities.

• Sole proprietor, who files business tax returns with an employer identification number (EIN), or
• Partnership or S corporation, either as an individual partner or individual shareholder. In these cases the business taxpayers must have both a —
  • Social Security number or an individual tax ID number (ITIN), and Schedule K-1 on file. For partners, the K-1 must be from 2012-2022, and from 2006-2022 for shareholders.

The IRS notes that a limited liability company (LLC) that reports business income on Form 1040 Schedule C cannot yet use a business tax account.

Also, if your sole proprietorship income is reported using your Social Security number or an Individual Taxpayer Identification Number (ITIN) when your file your tax return, you need to use an individual online taxpayer account for electronic access to your taxpayer information.

The IRS says it is working on enabling access to online accounts for these and other business entities.

Establishing a BTA: If you can now set up a BTA, the IRS’ business tax account page has a link to help you do that.

But first, you’ll need to an ID.me account to establish your IRS account, either individual or business.

The BTA link’s first step will let you create an account with ID.me, a third-party digital identity network that also works with other state and federal agencies to secure clients’ access to online information. You’ll need a government issued photo ID, such as a driver’s license, to create your ID.me account.

Available business tax options: Once you’ve set up your business tax account, you can take care of myriad tax tasks.

They include —

• View and make a payment toward a balance due by using a bank account. This includes a payment on a return filed for the current year as well as late payments for past tax years and Federal Tax Deposits.
• Schedule a payment for any business day for up to a year and cancel a scheduled payment.
• View recently processed payments, including payments made through the Electronic Federal Tax Payment System (EFTPS) online, wire transfers, checks or money orders, and see if any payments were returned or refused.
• Store multiple bank accounts in their online “wallet” to manage tax payments.
• Request a tax compliance check.
• View the business name and address on file.
• Give account access to employees of the business.
• Register for clean energy credits (if eligible).
• View and download transcripts for various payroll, income, and excise tax returns.
• Sole proprietors can now download business entity transcripts from their BTA account. The transcript shows entity information like business name, mailing address, location address and more for the Employer Identification Number on file.
• View and download select digital tax notices including —
  • CP080: Reminder – We have not received your return, credits may be on your account.
  • CP136: Annual notification of federal tax deposit (FTD) requirements (Forms: 941, 941-SS).
  • CP216F: Application for extension of time to file an employee plan return – Approved.

These available BTA tasks vary depending on which business type of entity has established the online account. The IRS.gov business tax account page has details on which ones apply to which business types.

The IRS sees business taxpayer accounts as a key to modernizing the agency. Expanding online options also should help reduce paper-based processes that hamper the IRS and frustrate taxpayers.

You also might find these items of interest:

• Being the boss tax basics
• 11 steps (tax and more) to starting a business
• IRS receives 1 millionth uploaded tax document

 

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