Modernizing Taxation: Exploring IRS Technologies Taxpayers May Not Know Exist
- Dec 12, 2023
The IRS has long been associated with tangible paperwork and documentation, faxes, snail mail, wet-ink signatures, and other relics of the modern business world. However, in recent years, the IRS has slowly undergone a technological transformation aimed at making the tax-filing and information process more efficient and user-friendly. Taxpayers can take advantage of these enhancements to save an invaluable amount of time, money, and headaches by being able to promptly and easily gather or disseminate information to the IRS.
First, individual taxpayers will need to follow the instructions to set up an online account with the IRS. Once the online account is set up, taxpayers will have the ability to do all of the following in real time:
- Access Tax Records: Taxpayers can obtain copies of tax return transcripts, tax account transcripts, and wage and income transcripts, and request the transcripts be mailed to them from the portal. They can also access Information on other account information that they may need to file, such as Economic Impact Payments, Advance Child Tax Credits, etc.
- Make Payments and View Credit or Account Balances: Taxpayers can pay estimated tax payments, balance payments, and proposed tax assessments by bank account or credit card.
- Receive Certain Notices: Taxpayers can opt to receive certain notices online.
- Tax Return Transcript Authorization: Taxpayers can approve an income verification request from lenders and other third parties to request their tax information online.
- Power of Attorney and Tax Information Authorizations: Taxpayers can view which third parties have an authorization on file as well as approve or reject authorization requests.
- Sign Up for an Installment Payment Plan: Taxpayers can use their online account to apply/revise an installment payment plan online.1
Even without an online account, taxpayers can still:
- Check on the status of their refunds online, as long as they have their Taxpayer Identification Number or Social Security Number, filing status, and refund amount.
- Check on the status of amended returns,as long as they have their Taxpayer Identification Number or Social Security Number, date of birth, and address information.
Taxpayers can even download the IRS2Go app to check the status of their refund, make payments, and some other limited capabilities on their mobile devices!
Stay tuned for more information as Rajiv Uppal, the IRS’s new Chief Information Officer,2 is primed to further technological transformations within the IRS. With the influx of funding from the Inflation Reduction Act,3 these technological endeavors will only continue.
1See Payment Plans Installment Agreements | Internal Revenue Service (irs.gov) for balance amount limitations based on type of return and other factors.
2IRS selects Rajiv Uppal as new Chief Information Officer; veteran technology executive will assist with ongoing transformation work | Internal Revenue Service.
3Inflation Reduction Act of 2022 | Internal Revenue Service (irs.gov).
In this Issue: Q4 2023
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