Leveraging IRS Online Tools
The Internal Revenue Service (IRS) has been steadily expanding its suite of online tools and services for tax practitioners, aiming to streamline processes and improve efficiency. With the Inflation Reduction Act of 2022 providing additional funding, the IRS remains committed to delivering cutting-edge technology and analytics to support tax professionals. New online tools are set to help tax practitioners save time and enhance their service to clients by reducing frustrations around notice responses and time delays from paper responses.
To access IRS online tools, tax practitioners must first verify their identity through ID.me, a third-party identity verification service. Once identification is established, practitioners can upload fully executed third-party authorization forms (Form 2848 or Form 8821) to the Centralized Authorization File (CAF) online, eliminating the need for fax or mail.
The improved Tax Pro Account allows practitioners to link their account with their CAF number, granting access to various features. These include viewing taxpayer account information and balances, managing active authorizations, and accessing a secure mailbox for receiving transcripts. Additionally, tax practitioners can now digitally execute authorizations with individual taxpayers who have created an online IRS account.
Tax practitioners can access the Transcript Delivery System (TDS) directly through their Tax Pro Account, without the need for separate login credentials. TDS enables authorized practitioners to retrieve taxpayer account and tax return transcripts, wage and income documents, records of accounts, and verification of non-filing letters. This streamlined access saves time and improves efficiency.
Secure Messaging allows authorized tax practitioners and taxpayers to communicate directly with Large Business and International Division (LB&I) representatives. This platform facilitates correspondence, document submission, and quick information exchange during examinations. The IRS Office of Appeals also offers a similar Secure Messaging function, further enhancing communication efficiency.
The IRS Document Upload Tool (DUT) allows taxpayers to respond to all IRS notices electronically. DUT operates as a digital mailroom, sorting and routing uploaded documents to the appropriate location. While confirmations cannot serve as legal proof of delivery or receipt, DUT significantly streamlines the process of responding to notices.
The expanding suite of IRS online tools presents tax practitioners with valuable opportunities to save time, enhance efficiency, and improve client service. By leveraging these tools, tax professionals can streamline communication, access critical information quickly, and respond to IRS notices more effectively. As the IRS continues to invest in technology and expand its online services, tax practitioners should stay informed and adapt their practices to maximize the benefits of these evolving tools.
Christine Gervais
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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