PROFIT FROM IT: IRS upgrades for Small Business

Improvements are planned to phone service, in-person and online options that hopefully will allow small business taxpayers get the help they need when they need it, following the infusion of extra funding from the Inflation Reduction Act of 2022 passed last summer.

Some of the enhancements to help small business taxpayers in the near future that are planned include:

Expanded online service tools

Before next filing season, the IRS will launch Business Online Accounts. This tool is being designed with small business taxpayers in mind. Additional features are scheduled to rollout in 2024. As the tool evolves, small businesses will be able to:

Use their account to see their tax information and schedule and track payments.

Access business tax transcripts will also be available online in an easy-to-read format.

Additional ability to respond to notices and file documents online

The IRS recently launched an online portal for businesses to file Form 1099 series information returns electronically. Businesses used to have to submit these forms by mail.

Later this summer, small business owners will be able to respond to certain notices online like LTR0143C, Signature Missing. The IRS will continue to improve and expand these features.

By 2024, small business owners will be able to respond to the correction of self-employment income, employment-related identity theft notifications and dozens of other online notices. The IRS will also simplify the language in the notices sent to taxpayers. These notices will have clear instructions on what taxpayers need to do.

Simplified, mobile-friendly forms

Small business owners who file their own taxes will save time with new simplified tax forms.

The IRS will modernize tax forms that small businesses most frequently use, including Forms 940, 941 and 944. The updated forms will be streamlined, mobile-friendly and available in multiple languages.

Digitization to eliminate paper-based processes

The IRS says improved processing times and faster refunds are on the way as it automates paper-based processes and makes more forms available online. The IRS is expanding its scanning of paper forms to include the most popular forms, Forms 1040 and 941. The IRS states it is on track to scan millions of returns in 2023, which will save small businesses time and money by speeding up processing and refund delivery.

We in the tax professional community applaud the IRS for these steps and view them as the just the start of improving IRS service to taxpayers. We continue to advocate for taxpayers as we continuously suggest needed improvements, urging along the IRS (and sometimes Congress) to improve simplicity and efficiency in the administration of our tax system.

Lane Keeter, CPA is the Senior Partner of EGP, PLLC, CPAs & Consultants (www.egpcpas.com), a full-service financial firm with offices around Arkansas, Managing Partner of EGP’s Heber Springs office, and winner of The Sun-Times Reader’s Choice Award for Best Accountant.