New IRS Tax Pro Account Tools Make Business Tax Payments Easier
Small-business owners who work with a tax professional now have another way to simplify certain federal tax payments.
The IRS announced on November 6 that authorized tax professionals can now make certain payments on behalf of business clients through the IRS Tax Pro Account. Previously, tax professionals could use the system to view business clients’ balances and payment activity, but they could not submit payments for those clients through the account.
The expansion gives accountants and other authorized tax professionals another tool for helping business owners stay current with their federal tax obligations.
Which Business Tax Payments Can a Professional Make?
According to the IRS, an authorized tax professional can now use Tax Pro Account to make several types of payments for business clients, including:
- Full or partial balance payments
- Payments related to amended returns
- Extension payments
- Payments toward proposed tax assessments
- Federal tax deposits
The tax professional must have the appropriate IRS authorization for the client and the particular tax matter involved.
What Is IRS Tax Pro Account?
The IRS introduced Tax Pro Account in 2021 as a secure online service designed specifically for tax professionals.
Among other capabilities, authorized professionals can use the account to manage taxpayer authorizations and review certain client information.
For business clients, the system can provide access to information such as:
- Balances due
- Payment activity
- Authorization relationships
The new payment capability means tax professionals can now do more than simply review the information—they can help complete certain transactions as well.
Why This Matters for Small-Business Owners
Business taxes can involve more than simply filing an annual income tax return.
Depending on the business, owners may have federal tax deposits, extension payments, outstanding balances or other obligations that need to be handled throughout the year.
Missing a payment or misunderstanding an IRS balance can potentially lead to penalties, interest and unnecessary correspondence.
Having an accounting professional involved throughout the year can help business owners understand what is due, when it is due and how the payment should be applied.
The IRS’s expanded Tax Pro Account capabilities make that working relationship even more useful.
Authorization Is Important
The new service does not mean a tax professional can simply access a client’s IRS account or make payments without permission.
The IRS requires the professional to have the appropriate authorization for the taxpayer and the specific tax matters involved.
That safeguard is important because business tax accounts contain sensitive financial information.
It is another reason business owners should be careful about who they authorize to handle tax matters on their behalf.
Tax Preparation Is Only Part of the Relationship
Many business owners think of an accountant primarily as the person who prepares their tax return once a year.
But effective tax management often requires much more.
Throughout the year, businesses may need help with:
- Estimated tax payments
- Federal tax deposits
- Extension payments
- IRS balances and notices
- Recordkeeping
- Tax planning
- Correcting previously filed returns
Working with an accounting professional who understands your business can make those responsibilities easier to manage.
Partner With Fast Forward Accounting
At Fast Forward Accounting, the goal is not simply to prepare a return and send you on your way.
We help business owners understand their tax responsibilities, stay organized and address issues before they become larger problems.
The IRS’s continued expansion of digital tools for tax professionals creates additional ways for us to help clients manage their federal tax obligations efficiently and securely.
If you own a business and would rather spend your time running it than navigating IRS payment systems and tax deadlines, partnering with Fast Forward Accounting can help keep your tax responsibilities moving in the right direction.
Source: IRS
