The IRS has added new features to its Business Tax Account, giving eligible businesses more ways to view digital notices, make payments, and manage federal tax information online. The update, announced August 6, extends the online account to more everyday tasks.
Sole proprietors who have an Employer Identification Number can use the Business Tax Account, so the changes reach a wide slice of self-employed workers. The new tools cut down on mailing paper and calling the agency.
What The Business Tax Account Now Offers
Users can now open a growing library of digital IRS notices inside the account, including notices about a possible refund, an approved extension, and a federal tax deposit discrepancy. Seeing those online means less waiting on the mail.
The account also lets designated officials download an EIN verification notice, the CP575, which banks and lenders often request. Users can view the balance and details of an existing payment plan and make a payment toward it, and eligible taxpayers can submit payments toward an Offer in Compromise.
Why This Matters For The Self-Employed
Solo owners handle their own back-office tax work, and every task that moves online saves time. Pulling an EIN letter on demand, for example, removes a common snag when opening a business bank account or applying for financing.
The account also gives owners a clearer view of what the IRS is actually sending them. Catching a notice about an extension or a deposit discrepancy early can head off a bigger problem at filing time.
The payment features also help owners who are managing a balance with the IRS. Being able to see a payment plan and pay it from the same screen makes it easier to stay current without a phone call.
What Self-Employed Owners Should Do Next
If you have an EIN, set up or sign in to your Business Tax Account and confirm your details are correct. Downloading your CP575 now means you have it ready the next time a bank asks for proof of your EIN.
Owners carrying a balance should check whether their payment plan and any Offer in Compromise options are listed on the account. Handling those online can prevent missed payments that trigger penalties.
What To Watch Next
The IRS has been steadily expanding its digital accounts, so more notice types and payment features are likely in future updates. The timing is useful with third-quarter estimated taxes due September 15.
Watch for the account to add support for more business types and more of the notices that solo owners receive. Wider coverage would make it a genuine one-stop tool for self-employed tax management.
Photo by Sasun Bughdaryan: Unsplash
