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Benefits of Creating an Online IRS Account

Michael Reynolds | November 7, 2022

Nobody likes dealing with taxes. It’s a necessary part of our modern society, but it can also be a point of stress and complication for many.

As I work with folks on their financial planning needs, tax issues come up a lot. If I had to pick the number one area of planning that causes the most problems for people, its taxes.

Some of the issues that I see regularly include:

  • Failing to file on time.
  • Failing to pay on time.
  • Getting behind on quarterly estimates.
  • Getting behind on multiple years of tax filings.

Once tax issues start to pile up, it can be difficult to get caught up, which is why I am so focused on advising folks to not get behind on taxes.

One of the best ways to stay on top of your tax situation is to get better visibility into your profile with an online IRS account.

An IRS account is just what it sounds like: an account with the Internal Revenue Service that displays your tax history and lets you make and track payments online.

Setting up an IRS account is fairly simple. You need to go to:

From there, follow the steps to create an account. Once you’ve created an account, you can view:

  • Any payoff amount, which is updated for the current day.
  • The balance for each tax year for which you owe taxes.
  • Your payment history.
  • Key information from your most current tax return as originally filed.
  • Payment plan details if you have one.
  • Digital copies of select IRS notices.
  • Economic Impact Payments if you received any.
  • Your address on file.

After viewing your information, you can:

  • Make payments.
  • Set up an online payment agreement.
  • Update your profile information.

There is also a new “authorization” feature. The new "authorization" option allows taxpayers to control who can represent them before the IRS or view their tax records. They can also approve and electronically sign Power of Attorney and Tax Information Authorization requests from their tax professional.

This option can be very valuable and can help you streamline communication between your tax professional and the IRS.

I advise all my clients to set up an IRS account in order to get visibility into their history with the IRS.

So much of the time, the hardest (and most stressful) part of tax issues is simply not knowing where you stand. An IRS account gives you a clear view of your tax history, as well as options for managing payments and payment plans.

Getting the right information is the first step toward resolving any tax issues you may have.

If you’re not sure what your current tax situation is, you would like to make online payments, or would like a clearer view of your history with the IRS, consider setting up an online IRS account.