With record numbers of Americans e-filing their tax returns and recently announced e-filing options for corporations and tax exempt organizations, the Internal Revenue Service has launched a new online form that gives tax professionals a faster, easier method of applying to become an authorized e-filer.
As more and more taxpayers ask for e-file, tax professionals now have an online application form that cuts processing time and reduces errors associated with using the paper Form 8633, Application to Participate in IRS e-file. Once the application is approved by the IRS, tax professionals can e-file returns for their clients.
“With record numbers of Americans filing electronically, this process makes it even easier for tax professionals to become an authorized e-filer,” said IRS Commissioner Mark W. Everson. “This new online form provides a faster, smoother process for tax professionals to become e-filers.”
The online application is the latest segment of a suite of Internet-based business tools called “e-services” that give tax professionals and financial institutions new choices for working electronically with the IRS and easier access to client information.
The online application form joins four other products in the e-services line that serves tax professionals and those who file select information returns, such as banks and other financial institutions. The suite of e-services were developed and delivered through the IRS Business Systems Modernization program.
The e-service announced today joins four other applications already released, including:
- Online Registration — Before using other e-services, tax professionals must register online to create an electronic account. The registration process is a one-time process for tax professionals to select a user name, password and personal identification number.
- Preparer Tax Identification Number Application — The Preparer Tax Identification Number, or PTIN application, lets a paid preparer apply for and receive a PTIN immediately over the Internet.
- Bulk Taxpayer Identification Number Matching — Bulk TIN Matching is used by authorized payers or their agents who file the range of 1099 forms to match the taxpayer identification numbers with the names of those they pay. Payers can face a penalty if an incorrect number is submitted to the IRS. Up to 100,000 name/TIN combinations can be submitted for matching with a response received within 24 hours.
- Interactive Taxpayer Identification Number Matching — A smaller version of the bulk TIN matching application that authorized payers can use to match up to 25 taxpayer identification numbers and name combinations against IRS records with an immediate response.
Future e-services include premium products for e-filers who file more than 100 electronic returns, and include:
- Disclosure Authorization — Eligible tax professionals can complete, view and update authorization forms, receive acknowledgement of accepted submissions immediately — all online. This electronic submission of Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, speeds processing and provides immediate feedback about accepted submissions.
- Electronic Account Resolution — Tax professionals can resolve their client’s account problems sooner by electronically sending/receiving account related inquiries. Tax professionals can ask about individual or business account problems, refunds, installment agreements, missing payments or notices. IRS responses are delivered to an electronic secure mailbox within 72 hours.
- Transcript Delivery System — Tax professionals can request their client’s tax return transcripts, account transcripts, wage and income documents and verification of non-filing letters for individual and business taxpayers. Account information is provided quickly in a secure, online session or can be delivered to a secure mailbox within 24-48 hours.
All of these premium e-services are being tested now by a select group of registered users. Disclosure Authorization and Electronic Account Resolution are scheduled for delivery this spring; Transcript Delivery System is due for release this summer.
Only approved IRS business partners, such as e-filing tax professionals and payers are eligible to use e-services. Tax professionals and payers can register for e-services immediately through the Tax Professional's page on IRS.gov.