Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

IRS Extends Business Tax Accounts to S Corporations and Partnerships

S.J. Steinhardt
Published Date:
Dec 19, 2023

Individual partners of partnerships and individual shareholders of S corps are now eligible for a business tax account, the IRS announced.

This is the second phase of business tax accounts announced by the agency. The first phase allowed unincorporated sole proprietors who have an active Employer Identification Number (EIN) to set up a business tax account, where they can view their business profile and manage authorized users. Sole proprietors without an EIN are not eligible to set up a business tax account.

The new business tax account is part of the agency's continuing transformation work, for which the IRS credited last year's Inflation Reduction Act. The ongoing effort is described in the IRS’s multiyear Strategic Operating Plan.

"This is part of the ongoing IRS modernization effort to make improvements for business taxpayers and others," said 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."

This phase of business tax account also adds new features. Users can now download PDFs of business tax transcripts, and sole proprietors can view certain notices.

The IRS plans to make the business tax account a one-stop application that provides business taxpayers a suite of digital products and services, including access to viewing letters or notices, requesting tax transcripts, adding third parties for power of attorney or tax information authorization, and storing bank account information to manage tax payments.

To learn about the preparation of both S corporation and partnership/LLC tax returns, along with the underlying laws and regulations, attend the Foundation for Accounting Education 's Tax Forms Boot Camp: LLCs, Partnerships, and S Corporations Webinar on Jan. 12, 2024.

Click here to see more of the latest news from the NYSSCPA.