Individual partners of partnerships and individual shareholders of S corporations can now open IRS business tax accounts, which previously were available only to sole proprietors, the IRS said Monday in launching the second phase of a new online self-service tool for businesses.
The new business tax account is part of the larger effort under last year's Inflation Reduction Act, P.L. 117-169, and described in the Service's multiyear Strategic Operating Plan released this spring.
"This is part of the ongoing IRS modernization effort to make improvements for business taxpayers and others," IRS Commissioner Danny Werfel said in a news release. "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."
Among the new features of the business accounts, sole proprietors, S corporations, and partnerships can now download a PDF of a business tax transcript for the following forms:
- Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return;
- Form 941, Employer's Quarterly Federal Tax Return;
- Form 943, Employer's Annual Federal Tax Return for Agricultural Employees;
- Form 944, Employer's Annual Federal Tax Return;
- Form 945, Annual Return of Withheld Federal Income Tax;
- Form 8752, Required Payment or Refund Under Section 7519;
- Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests;
- Form 11-C, Occupational Tax and Registration Return for Wagering;
- Form 730, Monthly Tax Return for Wagers; and
- Form 2290, Heavy Highway Vehicle Use Tax Return.
S corporations can also download Form 1120-S, U.S. Income Tax Return for an S Corporation, and partnerships can download Form 1065, U.S. Return of Partnership Income.
Sole proprietors can also view certain notices:
- CP080: Reminder — We Have Not Received Your Return, Credits May Be on Your Account;
- CP136: Annual Notification of Federal Tax Deposit (FTD) Requirements (Form 941 and Form 941-SS, Employer's Quarterly Federal Tax Return — American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands); and
- CP216F: Application for Extension of Time to File an Employee Plan Return — Approved.
Individual partners and individual shareholders will be able to access business tax account information after they file a business return with the Schedule K-1, Partner's [or Shareholder's] Share of Income, Deductions, Credits, etc., and the IRS processes it. Individuals must have a Schedule K-1 for a minimum of one year during the 2019–2022 period on file. They will only be able to view information for the year(s) they have a Schedule K-1 on file.
New businesses will not have access until a business return is submitted, processed, and on file with the IRS.
Sole proprietors with an employer identification number (EIN) qualify to access their business tax account, the IRS said.
Sole proprietors who have already set up an individual account under their Social Security number (SSN) or individual tax identification number (ITIN) and have an EIN linked to their SSN or ITIN can use their existing login to access their business tax account, the IRS said. At this time, sole proprietors who do not have an EIN can access their tax records by setting up an IRS individual online account.
To set up a new business tax account, taxpayers can visit irs.gov/businessaccount.
— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.