We use cookies to personalise the website and offer you the greatest added value. They are, among other purposes, used to analyse visitor usage in order to improve the website for you. By using this website, you agree to their use. Further information can be found in our data privacy statement.



Introducing the Enhanced IRS Business Tax Account – Benefits for Our Clients

PrintMailRate-it
​​​​​​​​​TaxMatters_Banner.png


Rödl & Partner Tax Matters Volume 2025-1, published January 13, 2025

As part of the IRS’s Digital First Initiative, the Business Tax Account (BTA) platform has been significantly expanded, now offering a range of new features and broader accessibility. Previously available primarily to sole proprietors and S corporations, the BTA has been extended to include C corporations. This enhancement opens the door for millions more businesses to efficiently manage their tax-related responsibilities online.​

Key Highlights and Enhancements:
1. Expanded Access for Corporations:
- C and S Corporations: Individuals who are authorized to legally bind these entities—known as Designated Officials (DOs)—can now register and use the BTA.
- Greater Reach: By including C corporations, many more taxpayers can engage with the IRS through a secure, user-friendly digital environment.
2. Designated Official Role:
- Full Online Access: DOs, such as Presidents, CEOs, CFOs, LLC Managing Members, and other qualifying corporate officers, can view account balances, make Federal Tax Deposits, and access tax transcripts directly online.
- Streamlined Registration: DOs request a unique, non-transferable PIN that will be mailed to the company’s IRS-registered address. This PIN allows full access, and annual re-validation ensures ongoing security and authorization. Multiple DOs can be appointed for uninterrupted access.
3. Faster Lending Processes with IVES:
- Income Verification Express Service (IVES): Through the BTA, DOs and sole proprietors can quickly approve or reject tax transcript authorization requests from lenders. This significantly speeds up lending decisions and reduces the back-and-forth that can delay loan applications.
4. Supported Forms and Documents:
The BTA supports a comprehensive range of federal tax forms and returns, including:
- Form 1120: U.S. Corporation Income Tax Return
- Form 1120-S: U.S. Income Tax Return for an S Corporation
- Form 1065: U.S. Return of Partnership Income
Schedule K-1 (Form 1065 or Form 1120-S): Partner’s/Shareholder’s Share of Income, Deductions, Credits, etc.
Schedule C (Form 1040): Profit or Loss from Business (Sole Proprietorship)
Form 941: Employer’s Quarterly Federal Tax Return (for employment taxes)
​- Form 2290: Heavy Highway Vehicle Use Tax Return

Benefits and Why This Matters:
Greater Efficiency: Businesses can manage critical tax matters—such as reviewing balances, making deposits, and accessing past returns—from a single online portal, saving time and reducing administrative overhead.
Improved Control and Transparency: With direct online access to payment history, transcripts, and other tax data, businesses can make more informed financial decisions and respond quickly to compliance inquiries.
​- Faster Financing Approvals: By using IVES through the BTA, businesses can expedite lender requests for income verification, potentially resulting in quicker loan approvals and less paperwork.
Enhanced Client Experience and Advisory Value: For those assisting businesses with their tax matters (such as trusted advisors, financial institutions, or support teams), understanding and leveraging the BTA can streamline workflows, reduce routine inquiries, and allow for a more strategic and consultative approach.

Getting Started:
1. Prepare Necessary Information:
Gather your Employer Identification Number (EIN), recent relevant tax returns (e.g., Form 1120 or Form 1120-S), and ensure you have the official IRS-registered mailing address on hand.
2. Activate Your Business Tax Account:
Visit the IRS BTA portal and sign in using an existing ID.me profile or create a new one. Complete the verification process to activate your account.
​3. Register as a Designated Official (If Applicable):
Qualifying corporate officers can request a PIN by mail to finalize their DO status. Once received (usually within 5-10 business days), this PIN grants full online privileges for managing the corporation’s tax matters. Consider appointing multiple DOs to maintain continuous access and functionality.
 
Additional Resources: For more details, including step-by-step instructions and video overviews, visit the Business Tax Account Overview on the IRS website at Business tax account | Internal Revenue Service and Business Tax Account Overview​.

If you have any questions or need assistance activating your BTA, understanding the DO registration process, or utilizing IVES, please reach out to your local Rödl & Partner representative. Embracing these new tools will help ensure a more convenient, efficient, and responsive approach to managing business tax responsibilities.

This publication contains general information and is not intended to be comprehensive or to provide legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Consult your advisors. The fact that you have received this publication does not create an accountant-client or advisory relationship between you and Rödl Langford de Kock LLP or any of its subsidiaries or affiliates. If you wish to hire Rödl Langford de Kock LLP or any of its subsidiaries or affiliates you will need to speak with one of our accountants and enter into a written agreement establishing the scope of engagement. We have made reasonable efforts to ensure the accuracy of the information contained in this publication, however this cannot be guaranteed. Neither Rödl Langford de Kock LLP nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including, but not limited to, incidental or consequential damages arising from errors or omissions. Any such reliance is solely at user’s risk. Any tax and/or accounting information contained herein is based on our understanding of the facts and assumptions we have been asked to make for the purpose of this publication alone, and on the tax laws and/or accounting principles in effect as of the date of this advice. No assurance is given that the conclusions would be the same if the facts or assumptions change, or are not as we understand them, or that the tax laws and/or accounting principles will not change subsequent to the issuance of these conclusions. In addition, we do not undertake any continuing obligation to advise on future changes in the tax laws and/or accounting principles, or of the impact on the conclusions herein. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Rödl Langford de Kock LP.

Copyright © January 2025 Rödl Langford de Kock LP
All rights reserved. ​

Contact

Elisa Fay

CPA

Managing Partner Rödl National Tax

+1 404 525 2600

Send inquiry

Profile

Contact Person Picture

Deutschland Weltweit Search Menu