Why it matters

Managing federal tax obligations often means keeping track of payments, notices, tax records, and other IRS correspondence. The IRS is making that process more convenient by expanding the tools available through its Business Tax Account.

For eligible businesses, BTA can provide a central place to view important tax information and handle certain tasks online, potentially reducing the need to rely on paper notices or contact the IRS by phone.

What is the IRS business tax account?

The Business Tax Account is an online, self-service platform that allows authorized users of certain businesses and organizations to securely access and manage federal tax information.

The IRS has continued to add features to the platform, with the goal of giving taxpayers more ways to manage their federal tax obligations online.

And the platform is becoming more useful. New and expanded features announced by the IRS include access to digital notices, payment-plan information, and additional payment options.

What can businesses do through Business Tax Account?

Depending on the business type and the user's role, BTA offers several tools that can make routine tax administration easier.

1. View and make tax payments- Eligible users can view balances due and make payments from a bank account. This can include payments for the current tax year, late payments for prior years, and federal tax deposits. Businesses can also schedule payments up to one year in advance and cancel scheduled payments when needed. The account also provides access to recently processed payments, including payments made through the Electronic Federal Tax Payment System (EFTPS), wire transfers, checks, and money orders. Users can see whether payments were returned or refused. Businesses can also store multiple bank accounts in an online "wallet" to help manage tax payments.
2. Access IRS notices online- One of the newer features is an expanding library of digital IRS notices. Recently added notices include notices related to refunds, filing extensions, and federal tax deposit discrepancies, among others. For businesses that are accustomed to keeping track of paper IRS correspondence, having certain notices available online could make it easier to access and manage important information.
3. Download EIN Verification- Designated officials can now download Notice CP575, which confirms a newly issued Employer Identification Number (EIN). The IRS says this notice can be used at banks and financial institutions in place of Letter 147C, which is used when an EIN was previously assigned.
4. Manage payment plans and offers in compromise- BTA also gives eligible users the ability to view the balance and other details of an existing payment plan and make a payment toward that plan. Eligible taxpayers can also submit payments toward an Offer in Compromise, which allows certain taxpayers to settle tax debts for less than the full amount owed.
5. Access tax records and give employees access Depending on eligibility and user role, businesses can also:

• Request a tax compliance check
• View the business name and address on file with the IRS
• Give eligible employees access to the account
• View and download transcripts for certain payroll, income, and excise tax returns
• View and download certain digital IRS notices

Who can use Business Tax Account?

BTA isn't available to every taxpayer yet. The IRS currently supports access for several types of businesses and organizations, including:

• Sole proprietors with an IRS-issued EIN
• Individual partners and shareholders who meet certain requirements
• S corporations
• C corporations
• Federal, state, and local governments
• Indian tribal governments
• Tax-exempt organizations

Individual partners and shareholders must have a Social Security number or Individual Taxpayer Identification Number and have a Schedule K-1 on file, subject to the tax-year requirements outlined by the IRS.

What should businesses do now?

If your business is eligible for Business Tax Account, it may be worth setting up access and becoming familiar with the platform before you need it. Having access to your federal tax information online can make it easier to monitor payments, retrieve certain notices and transcripts, and keep track of information maintained by the IRS.

Keep in mind that BTA access and features depend on your business type and user role, and the IRS is continuing to expand the platform. As the IRS adds more capabilities and expands access to additional entities, Business Tax Account could become an increasingly useful tool for businesses managing their federal tax obligations.