Tax Tips: Why should taxpayers have an IRS online account?

The IRS constantly issues reminders and tips on its website and social media accounts to help taxpayers avoid penalties, make the most of payments and credits and achieve good tax planning. Why should taxpayers have an IRS online account?

Sometimes taxpayers need help to keep up with their federal tax benefits and responsibilities, how can having an IRS online account help them?

An IRS online account is a safe and easy way for individual taxpayers to view specific details about their federal tax account, and here are some of the benefits and features of this online system.

Taxpayers can view:

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

After viewing their information, a taxpayer can:

• Select an electronic payment option.
• Set up an online payment agreement.
• Go directly to Get Transcript.

New authorization feature

According to the IRS website, the new "authorization" option in Online Account 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.

The agency has informed that taxpayers' balances will update no more than once every 24 hours, usually overnight and that taxpayers should also allow 1 to 3 weeks for payments to show up in the payment history.

To access their information online, taxpayers must register through Secure Access, which is the agency's two-factor authentication process that protects personal info.

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