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IRS business tax accounts are now available to individual partners of partnerships and individual shareholders of S corporations, a privilege that was previously available only to sole proprietors.

The IRS counts the move as part of its “continuing transformation work,” expanding its business tax account capabilities and eligible entity types in its second phase of a new online self-service tool for businesses. It’s available at IRS.gov/businessaccount to the following business types:

  • A sole proprietor who files with an employer identification number (EIN).
  • An individual partner or shareholder with a Social Security number or an individual tax ID number (ITIN) and a Schedule K-1 for the years the partner or shareholder would like to access the business tax account.

New businesses won’t have access until a business return is submitted, processed, and on file with the IRS. The expanded access to individual partners and shareholders does not include everything a sole proprietor with an EIN can access. Currently, they can only view business balances due and download specific tax form transcripts, while a sole proprietor with an EIN can also view select digital notices, request a tax compliance check, give account access to employees, and register for clean energy credits (if eligible). However, the IRS says access for more business types and roles is coming soon.

“This is part of the ongoing IRS modernization effort to make improvements for business taxpayers and others,” says IRS Commissioner Danny Werfel. “This next step in the evolution of the Business Tax Account will help these businesses download transcripts and other features. Ultimately, these new online options will help make interactions easier for businesses while reducing paper-based processes and the need to call the IRS.”

Should you sign up for the service or wait for more features to be unveiled? That’s between you and your tax consultant. While features are limited, the IRS does promise more are on their way. It may be worth it to sign up now and get established if you’re eligible. In theory, as this Inc. article points out, a business tax account could help you save time and money because it’s meant to be more convenient and can give you access to information that could help you reduce errors.

Photo from 123rf.com

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