IRS expands business tax accounts for for partnerships, S corps

Individual partners of partnerships and individual shareholders of S corps are now eligible for a business tax account, according to the Internal Revenue Service, joining sole proprietors.

The IRS said the expansion was part of the second phase of a new online self-service tool for businesses. Available at IRS.gov/businessaccount, the new account is a part of the agency’s continuing service improvement initiative.

“This next step in the evolution of the business tax account will help these businesses download transcripts and other features,” said IRS Commissioner Danny Werfel, in a statement. “These new online options will help make interactions easier for businesses while reducing paper-based processes and the need to call the IRS.”

The business tax account aims to eventually become a one-stop application that provides business taxpayers digital products and services, including access to viewing letters or notices, requesting tax transcripts, adding third parties for power of attorney or tax information authorization and storing bank account information to manage payments. 

Users can now download PDFs of business tax transcripts:

• For sole proprietors, this includes Forms 940, 941, 943, 944, 945, 8752, 8288, 11-C, 730 and 2290;
• For S corporations, this includes Forms 940, 941, 943, 944, 945, 8752, 8288, 11-C, 730, 1120S and 2290; and.
• For partnerships, this includes Forms: 940, 941, 943, 944, 945, 1065, 8752, 8288, 8804, 11-C, 730 and 2290.

Sole proprietors can also view notices CP080, CP136 and CP216F.
Individual partners and individual shareholders will be able to access business tax account information once they have filed a business return with the Schedule K-1 and it is processed by the IRS. Individuals must have a K-1 for a minimum of one year during the 2019 to 2022 period on file and will only be able to view information for the years they have a K-1 on file. New businesses won’t have access until a business return is submitted, processed and on file with the IRS. 

Sole proprietors need an EIN to access their business tax account. Sole proprietors who have already set up an individual account under their Social Security number or ITIN, and have an EIN linked to their Social Security number or ITIN, can use their existing login to access their account. Sole proprietors without an EIN are not eligible to set up a business tax account.