The US Internal Revenue Service has expanded its Tax Pro Account, adding new digital features designed specifically for tax professionals who work in companies, accounting firms, and other organisations. The agency announced the update saying the changes are aimed at making authorisation management easier for businesses that handle large numbers of clients.
What is IRS Tax Pro Account?
Tax Pro Account was launched in July 2021 to give individual tax professionals a secure and easy-to-use digital platform. Through the account, professionals can manage authorisation relationships with taxpayers, link or request individual CAF numbers, and view key taxpayer details such as balances due, payment activity, and audit status.
The platform also allows tax professionals to make payments or set up payment plans on behalf of individual taxpayers. With the latest update, the IRS is now extending these digital benefits to firms and organisations that operate at a business level.
Better control over business authorisations
The new features give tax-professional businesses more visibility and control over their Centralised Authorisation File, or CAF, relationships. According to the IRS, this will help firms manage client authorisations more efficiently and cut down on paper-based processes.
“These updates establish the digital foundation for future expansions supporting tax professionals,” the agency said in the statement. It also clarified that “Sole proprietorships and other businesses that do not use CAF systems are not impacted by this change.”
What business representatives can now do
With this release, designated representatives within a tax firm can manage who in the organisation is allowed to act under the business’s CAF. They can also link the firm’s CAF number to its employer identification number using the Tax Pro Account.
In addition, businesses can view taxpayer information connected to their CAF, as long as there is an active authorisation in place. The system also allows firms to review and withdraw active authorisations on behalf of the business when needed.
Expansion beyond sole practitioners
The IRS said this update builds on improvements made in 2023 and 2024, which focused on digital authorisation management and “act on behalf of” capabilities for individual clients. “Building on enhancements delivered in 2023 and 2024 that expanded digital authorisation management and ‘act on behalf of’ capabilities for individual clients, this release extends Tax Pro Account beyond sole practitioners to support tax professionals who operate as part of a business entity using a business CAF number,” the agency stated in the release.