For years, taxpayers and accounting professionals have dealt with a frustrating process when trying to authorize an accountant or tax advisor to access IRS records. Paper forms had to be signed, faxed, or mailed to the IRS, and then processed manually. In many cases, taxpayers and their accountants waited days or even weeks before the authorization became active.
The IRS is now moving much of that process online through its Tax Pro Account system. The platform allows taxpayers to electronically approve a Power of Attorney (POA) or Tax Information Authorization (TIA) request from their tax professionals. Once approved, accountants can access authorized tax information much faster than under the traditional paper-based process.
For taxpayers, this change is more than just a convenience. It can help simplify communication with the IRS, speed up problem resolution, and make it easier for accountants to assist with tax planning, notices, payment issues, and transcript requests throughout the year.
Under the new system, a tax professional initiates the authorization request through the IRS Tax Pro Account portal. The taxpayer then logs into their own IRS Online Account using ID.me or Login.gov credentials to review and approve the request electronically. Once approved, the authorization is generally processed within two days and, in many cases, much sooner.
Currently, the digital authorization system is available only to individual taxpayers with a U.S. address in one of the 50 states or Washington, D.C. The portal does not yet support digital authorizations for partnerships, corporations, or other business entities, although the IRS has indicated additional expansion is planned.
Taxpayers should understand that there are two different types of authorizations involved. A Tax Information Authorization (TIA) allows an accountant to view tax records and account information. A Power of Attorney (POA) goes further and allows the professional to represent the taxpayer before the IRS.
Once authorization is active, accountants may be able to access information, including prior-year transcripts, wage and income records, balances due, payment history, IRS notices, and estimated tax information. This can significantly reduce delays when responding to IRS notices or resolving account issues.
The system also benefits taxpayers directly. By creating an IRS Online Account, taxpayers can independently access a wide range of information and services year-round. According to the IRS guidance included in the attached materials, taxpayers can:
- View tax records and transcripts
- Check refund or amended return status
- Access IRS notices digitally
- View balances due by tax year
- Make and schedule payments
- Review payment history
- Create or modify payment plans
- Access Forms W-2 and certain Forms 1099
- Request an Identity Protection PIN (IP PIN)
- Electronically approve requests from tax professionals
While the system offers many advantages, taxpayers should also understand that setting up an IRS Online Account requires identity verification through ID.me. This process typically includes providing a Social Security number, date of birth, mailing address, and government-issued photo identification. Some users may also need to complete facial recognition or video verification steps.
For some taxpayers, particularly elderly individuals or those uncomfortable with technology, the process may feel intimidating. In those situations, traditional paper authorization methods using Forms 2848 or 8821 are still available.
Taxpayers should also know that authorizations remain active until they are revoked or withdrawn. If a taxpayer changes accountants or no longer wants a representative to have access, the authorization should be reviewed and updated accordingly.
Steps taxpayers should know about the IRS Tax Pro authorization process
- Your accountant submits the authorization request
The process begins when your tax professional submits a digital authorization request through the IRS Tax Pro Account portal using their Centralized Authorization File (CAF) number and your taxpayer information.
- You create or log into your IRS Online Account
Taxpayers must access their IRS Online Account through IRS.gov using ID.me or Login.gov credentials. If an account has not yet been created, identity verification will be required.
- Review and approve the authorization electronically
After logging in, taxpayers can review the authorization request, including the tax years and matters covered, and approve it electronically.
- The IRS processes the authorization
Once approved, the authorization is generally added to the IRS Centralized Authorization File (CAF) system within approximately two days.
- Your accountant can assist more efficiently
After authorization becomes active, your accountant can access approved IRS records and assist with notices, payment issues, transcript requests, tax planning, and other account matters more efficiently.
As the IRS continues modernizing its systems, taxpayers who establish an IRS Online Account may find it easier to manage tax matters and work more efficiently with their accountants throughout the year. For many taxpayers, taking the time to complete the setup process now may help reduce delays and frustration later when tax issues arise.
For more information about IRS Online Accounts, Power of Attorney authorizations, or tax-related questions, contact your Stephano Slack tax manager or partner at 610-687-1600 or TaxInfo@StephanoSlack.com.
Author Thomas McDermott, CPA, MST, Senior Tax Advisor, works closely with high-net-worth individuals and business owners, helping them navigate complex financial decisions and create customized plans that support long-term success. Tom can be contacted at 856-489-0222 or tmcdermott@stephanoslack.com.
Disclaimer: This content is for informational purposes only and doesn’t constitute professional advice.
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