But DOGE and Congressional cuts could threaten further enhancements
I finally opened a taxpayer account with the Internal Revenue Service last year.
My motivation was that for the first time in ages I filed the hubby’s and my joint 1040 before April 15, but didn’t send the tax due at the same time. Instead, I electronically paid Uncle Sam on Tax Day.
So, I wanted to make sure that the IRS properly connected the tax return we filed early and the money we sent at the last possible minute. It did.
Since then, I’ve visited the individual taxpayer online account page at IRS.gov a couple of times a year. Again, it was to follow up on payments, specifically estimated tax amounts.
Now, the IRS has added more options for taxpayers when they go to their online accounts.
Information return access: Taxpayers now can find Form W-2, Wage and Tax Statement and Form 1095-A, Health Insurance Marketplace Statement, via their online account.
These information forms will be available for tax years 2023 and 2024 under the Records and Status tab in the taxpayer’s account.
The documents should make it easier for taxpayers to file their taxes by having the information on these forms readily available at their accounts. It also consolidates important tax records into one digital location, making record keeping easier.
W-2 and 1095-A forms, like all information return documents, required to be reported to payees and the IRS by the issuers. This includes employers, financial institutions, government agencies, and other payers.
The IRS compares what’s on its copies of information returns with what taxpayers report on their tax returns.
Married couples need separate accounts: If you’re married, you’re probably used to sharing just about everything. That includes shared tax filing via a joint tax return.
But when it comes to accessing information returns online at IRS.gov, each spouse will need a separate taxpayer online account.
Only information return documents issued in the taxpayer’s name will be available in their online account. Their spouse must log into their own taxpayers account to retrieve their information return documents. This is true whether they file a joint or separate return.
The IRS also notes that state and local tax information, including state and local tax information on the Form W-2, will not be available on the IRS.gov online account. You need to keep these paper records mailed to you by the original issuers.
More info return access, maybe: Currently, online taxpayer accounts provide individuals with a wide range of access to tax information and the ability to complete a variety of tax acts.
In addition to finding their W-2 and 1095-A forms, taxpayer online account owners can —
- View key details from their most recent tax return, such as adjusted gross income (AGI).
- Request an identity protection PIN and view it throughout the year.
- Check refund status.
- Get account transcripts, including wage and income records.
- Sign tax forms, such as powers of attorney or tax information authorizations.
- View and edit language preferences and alternative media.
- Receive and view over 200 IRS electronic notices.
- View, make, and cancel payments.
- Set up or change payment plans and check their balance.
You can see more on the options available to taxpayers at the IRS.gov’s online account for individuals page.
The IRS says that in the coming months, it plans to add more information return documents to taxpayers’ individual online accounts. The expansion is part of former IRS Commissioner Danny Werfel's ambitious generational digital transformation plan for the tax agency.
But that and other IRS plans may not be fulfilled.
Downsizing IRS (and more): The Trump administration, largely through actions of the Department of Government Efficiency (DOGE) created by the president’s billionaire backer Elon Musk, has been working feverishly to reduce the federal government’s size.
That includes cuts to the IRS.
DOGE began by targeting federal employees who’ve been working from home. Then late last month, it axed 6,700 IRS employees during height of tax-filing season. DOGE also reportedly is looking to close at least 113 IRS Taxpayer Assistance Centers (TACs) across the country.
Meanwhile, DOGE is continuing efforts to get more access to IRS operations, and taxpayer records, as part of its downsizing goal. All of this is happening without an official leader at the tax agency.
Congress also poses potential fiscal obstacles to the IRS doing not only its existing job, but expanding services such as the online taxpayer account. Republicans who control both the House and Senate have long wanted to cut the tax agency’s budget, and it could be a prime target in the current funding fight on Capitol Hill.
More on taxpayer account creation: I’ve been blogging about taxes for almost 20 years and writing about them for financial sites for longer. I also am a long-time user of the IRS’ Electronic Federal Tax Payment System (EFTPS) system.
But I must confess that I was hesitant to open an online taxpayer account at IRS.gov.
I balked in part because I already have a gazillion online accounts. Adding another password to remember (or more often forget) wasn’t appealing.
Plus, to ensure that I am me when I sign on, the IRS demanded I use a third party digital identity service, ID.me, to create my tax agency account. When the IRS started using ID.me a few years ago, it got some brushback.
Even though ID.me was being used by other federal offices, as well as state agencies and private companies, some were concerned about ID.me’s use of facial recognition technology. Ultimately, the IRS offered a workaround. Taxpayers could choose to authenticate their identity through a virtual interview instead of providing biometric data to ID.me.
And I must admit that now that I have an ID.me account, I’ve used it to access other government sites.
That’s my way of saying that once I established my IRS account (using ID.me without any problem), I’ve found it useful. So, you might want to give an account a shot, while it’s still around.
You also might find these items of interest:
- IRS’ latest moves enable more digital taxpayer interactions
- IRS touts enhanced tax options for businesses with online accounts
- IP PIN adds taxpayer security, and in 2025 will help processing duplicate dependent claims
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