An IRS account allows you to access your tax records, make payments, view certain notices and more.
The IRS doesn’t make many things easy – but they do make it easy to access your tax records online by creating an IRS account.
An IRS account is a must-have tool for taxpayers – but especially small business owners. It allows you to view past tax records, your balance, payment history and more. It takes only a few minutes to create.
If you don’t have an account yet, here’s why you should make one as soon as possible – and how to do it.
Am I required to create an IRS account?
You’re not required to have an IRS account for any reason. You can still pay your taxes without an IRS account.
However, having an IRS account can make your life a lot easier. You have access to tax information that you may need during tax season or throughout the year. If you ever need to view your past tax payments or apply for a payment plan, creating an IRS account is the way to do it.
What’s available on my IRS account?
Your IRS account is a useful tool if you know what to look for and how to navigate it. Here are five of the most important pieces of information you may need that you can find from your IRS account:
1. Tax transcripts
You’re unable to pull exact copies of your past tax returns from your IRS account. Your account provides you with transcripts instead, which are summarized versions of your returns with some of the most important pieces of information.
There are a few different types of transcripts available:
- Tax return transcripts: Provides most line items from your Form 1040 for the current and three prior tax years
- Tax account transcripts: Shows filing status, taxable income and payment types for current year and up to nine prior tax years
- Record of account transcripts: Combines tax return transcript and record of account transcript information for current year and up to three prior tax years
- Wage and income transcripts: Shows information from Forms W-2, 1099, 1098 and 5498 for the current year and up to nine prior tax years
- Verification of non-filing letter: States if the IRS has not processed your Form 1040 after June 15 for current tax year or up to three prior tax years
You can request any of these transcripts by filing Form 4506-T, but it’s much quicker to use your IRS account.
2. Payment plan application and management
You’re required to register for an IRS account before you apply for a payment plan. So if you create an IRS account now, you can make it easier to apply for one in the future.
Once you’ve created your account and have been approved for a payment plan, you can use your account to view the details of your plan. This is a great and simple way to see how much you’ve paid and how much you owe.
3. Payment options and history
You don’t need an IRS account to pay your taxes, but you can pay from your account without having to make a guest payment. Your account saves your personal and bank information so you don’t need to go through the hassle of entering everything again to make guest payments.
You can also view the last five years of payment history, including your quarterly estimated payments, and any scheduled or pending payments.
4. Information on special payments
If you’ve received stimulus checks, which the IRS called economic impact payments, or advanced Child Tax Credit payments, they’ll appear on your IRS account.
All stimulus checks and advanced Child Tax Credits have been distributed already. But if you’re behind on your tax returns, you may need that information to catch up and file them correctly.
These payments don’t include your tax refund. Visit the IRS’s "Where's My Refund?" page to check your refund status.
How to create an IRS account
Creating an account only takes 5-10 minutes. Here’s an overview of the registration process:
- Visit IRS.gov/your-online-account
- Select “Sign in to your Online Account”
- Select “Create an account” with ID.me
- Follow the instructions
You’ll need your driver’s license and phone for the process. In order to verify your identity, you’ll have to upload a photo of your ID and either take a photo of yourself or participate in a live video interview.
The bottom line
An IRS account is a simple yet essential for small business owners. It allows you to view and make payments, request tax transcripts, apply for payment plans and much more.
During tax season, it makes accessing records a quicker and easier process.
Need help filing your next returns as a small business owner? Schedule a free call with a DiMercurio Advisors team member today to put your taxes in experts’ hands – and spend more time focusing on the parts of your business you actually love.
