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IRS Expands Tax Pro Account Capabilities

S.J. Steinhardt
Published Date:
Oct 2, 2023

The IRS has expanded the capabilities of its Tax Pro Account, enabling tax professionals to access new services to help their clients.

The new capabilities will help tax professionals manage their active client authorizations on file with the IRS's Centralized Authorization File (CAF) database. Tax professionals will be able to see their client's tax information, including balance due amounts. They can also withdraw from their active authorizations online in real time. These enhancements are part of ongoing transformation efforts made possible under the Inflation Reduction Act.

Tax professionals need to have a CAF number in order to use a Tax Pro Account; a CAF number cannot be requested through the Tax Pro Account for security reasons. Currently, the digital authorization process is available only for individual taxpayers, not for businesses or other entities.

With the recent enhancements, tax professionals can now use a Tax Pro Account  to send Power of Attorney (POA) and Tax Information Authorization (TIA) requests directly to a taxpayer's individual  IRS Online Account. Upon the taxpayer's approval and validation of the information, the authorization records immediately to the CAF database, which avoids faxing, mailing, uploading and long review and processing time by the CAF Unit.

"Tax professionals provide a vital service to taxpayers and the nation, and the IRS is committed to making improvements to help them serve their clients," IRS Commissioner Daniel Werfel said in a statement. "As part of our transformation efforts, we will be working to add new technology and expand our relationship with the tax professional community. The ongoing improvements to the Tax Pro Account are just part of a larger effort."

More than 260,000 people have used a Tax Pro Account since its July 2021 launch, the IRS reported. The webpage has been viewed more than 2.7 million times.

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