Expand IRS Online Account Functionality

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

Since the beginning of FY26, the IRS has continued to communicate information regarding ongoing modernization initiatives and planned enhancements to taxpayer-facing digital services. In addition, the Department of the Treasury’s Strategic Plan for Fiscal Years 2026–2030 includes Objective 2.3, “Deliver a Modern Taxpayer Experience to Improve Service, Privacy and Collections,” which outlines Treasury’s commitment to modernizing tax administration and enhancing taxpayer services.

Although Treasury and the IRS have not publicly released a comprehensive, project-level IT modernization roadmap, they have provided substantial public information regarding modernization goals, priorities, anticipated benefits, implementation timeframes, and desired outcomes through strategic planning documents and other public communications. These communications provide stakeholders with meaningful insight into the IRS’s modernization strategy and planned improvements to taxpayer services, including enhanced digital capabilities and online account functionality. Accordingly, TAS considers this recommendation complete.

TAS will continue to advocate for increased transparency as the IRS finalizes more detailed plans for key modernization initiatives, including greater visibility into project scope, implementation milestones, anticipated benefits, and measures of success.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

In Q1 and Q2, the IRS focused on improving infrastructure to allow for more functionality.

The IRS has continued enhancing the Business Tax Account (BTA) platform as part of its broader digital modernization efforts. Recent updates expanded BTA access to additional entity types, including partnerships, tax-exempt organizations, and government entities, while also increasing online self-service capabilities such as payment management, transcript access, and digital notice retrieval. The IRS also strengthened Designated Official functionality and security requirements, including annual revalidation and enhanced identity verification controls. Additional improvements support digital lender transcript authorizations through Income Verification Express Service (IVES) and allow authorized users to manage multiple entities within a single account. These enhancements continue to reduce paper-based interactions and improve the overall taxpayer experience for businesses.

The IRS has continued enhancing Tax Pro Account (TPA) capabilities to improve digital services for tax professionals and authorized representatives. Recent updates expanded online authorization functionality, allowing practitioners to initiate, manage, and monitor powers of attorney and tax information authorizations more efficiently through fully digital workflows. The IRS also improved account access and security features, including enhanced identity verification requirements and expanded support for multi-client management. Additional enhancements increased access to taxpayer records and online account information, helping practitioners resolve issues more quickly without requiring paper submissions or phone assistance.

The IRS introduced online intake and election functionality supporting new Trump Accounts (IRC §530A accounts) for eligible children, allowing taxpayers to initiate account setup and related actions through IRS/Treasury digital channels. The IRS also expanded digital notice delivery and electronic authorization approval capabilities for powers of attorney and tax information authorizations.

TAS will continue to track expanded online account capabilities, monitor taxpayer experience and provide IRS feedback.

The IRS continued expanding self-service features in its online accounts. In the Individual Online Account, the IRS improved the Order a Transcript application by adding more transcript-ordering options, a confirmation page before submission, clearer information about obtaining transcripts through the online account, and user-interface improvements. The IRS is also finalizing updated disaster-related messages to provide more relevant information to taxpayers affected by federally declared disasters.

The IRS expanded Business Tax Account access to partnerships, government entities, tax-exempt organizations, and tribal governments. It also added options to make extension, audit, amended return, and offer in compromise payments and released 160 new digital notices while updating two existing notices. These changes give more business taxpayers the ability to obtain information and complete transactions without mailing documents or calling the IRS.

The IRS also enhanced Tax Pro Account by allowing practitioners to link business Centralized Authorization File numbers, add or remove authorized users, and view or withdraw active authorizations. It completed planned error-message improvements for the features used to link or request a Centralized Authorization File number.

TAS will continue to track expanded online account capabilities, monitor the taxpayer experience, and provide feedback to the IRS as digital services continue to evolve.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

The IRS was working towards implementing Login.gov as an alternative authentication method. In December 2025 these efforts were paused. TAS will continue to monitor and advocate for improvements in this area.

The IRS continued evaluating the online account enrollment process to identify barriers to successful identity verification. The IRS determined that taxpayers abandoning the enrollment process and failures to validate identity documents remain the most common causes of unsuccessful enrollment attempts. Taxpayers whose documents cannot be validated may retry using an alternate or additional identity document or complete verification through a video call.

These alternatives provide taxpayers with additional ways to complete enrollment after a failed attempt. However, the IRS has not yet reported whether the changes have reduced failure or abandonment rates.

TAS will continue monitoring the enrollment process and advocating for accessible alternatives, clear instructions, and targeted improvements that reduce unnecessary barriers to online account access.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

In Q1 and Q2, the IRS focused on improving infrastructure to allow for more functionality.

The IRS has continued enhancing the Business Tax Account (BTA) platform as part of its broader digital modernization efforts. Recent updates expanded BTA access to additional entity types, including partnerships, tax-exempt organizations, and government entities, while also increasing online self-service capabilities such as payment management, transcript access, and digital notice retrieval. The IRS also strengthened Designated Official functionality and security requirements, including annual revalidation and enhanced identity verification controls. Additional improvements support digital lender transcript authorizations through Income Verification Express Service (IVES) and allow authorized users to manage multiple entities within a single account. These enhancements continue to reduce paper-based interactions and improve the overall taxpayer experience for businesses.

The IRS has continued enhancing Tax Pro Account (TPA) capabilities to improve digital services for tax professionals and authorized representatives. Recent updates expanded online authorization functionality, allowing practitioners to initiate, manage, and monitor powers of attorney and tax information authorizations more efficiently through fully digital workflows. The IRS also improved account access and security features, including enhanced identity verification requirements and expanded support for multi-client management. Additional enhancements increased access to taxpayer records and online account information, helping practitioners resolve issues more quickly without requiring paper submissions or phone assistance.

The IRS introduced online intake and election functionality supporting new Trump Accounts (IRC §530A accounts) for eligible children, allowing taxpayers to initiate account setup and related actions through IRS/Treasury digital channels. The IRS also expanded digital notice delivery and electronic authorization approval capabilities for powers of attorney and tax information authorizations.

TAS will continue to track expanded online account capabilities, monitor taxpayer experience and provide IRS feedback.

The IRS continued broadening the range of self-service tools available through its online accounts. Individual Online Account users can now submit Form 4547, Trump Account Election(s), and view the status of the submission. Taxpayers who receive Notice CP53E can update their direct deposit information online. The IRS also added the ability to upload documents in response to select notices and receive refund status notifications.

The IRS expanded Business Tax Account access to partnerships, government entities, tax-exempt organizations, and tribal governments. It also added options to make extension, audit, amended return, and offer in compromise payments. These changes allow more business taxpayers to complete common transactions without paper correspondence or telephone assistance.

The IRS also enhanced Tax Pro Account by allowing practitioners to link business Centralized Authorization File numbers, manage authorized users, and view or withdraw active authorizations.

TAS will continue tracking these services and providing feedback to help ensure the tools are easy to use, secure, and effective in resolving taxpayer needs.