The Internal Revenue Service on Monday announced a significant expansion of its online Business Tax Account platform, extending digital self-service access to millions of additional entities that previously relied solely on paper and phone interactions.
Partnerships, federal, state and local governments, Indian tribal governments and tax-exempt organizations are now eligible to use the platform, joining sole proprietors (individually owned businesses), S corporations (small pass-through corporations), and C corporations (traditional corporations taxed separately) already on the system.
What The Platform Offers
Through the Business Tax Account, eligible users can view tax balances, make payments, download digital notices, access payroll and income transcripts, request tax compliance checks, and verify business information on file with the IRS.
“By opening the Business Tax Account to partnerships, tax-exempts and other organizations, we’re giving millions more entities secure, convenient access to their tax information,” said IRS Chief Executive Officer Frank J. Bisignano. “Digital access will reduce the burden on these taxpayers because they no longer will be limited to paper and phone interactions to perform simple tasks with the IRS.”
The Digital Drive Behind It
Monday’s expansion is the latest step in a broader federal push toward fully electronic tax administration. An executive order signed on March 25, 2025, directed the Treasury to shift all federal payments away from paper where permitted by law. The IRS subsequently stopped issuing paper refund checks for individual taxpayers after September 30, 2025.
The Friction It Has Created
That transition has not been seamless. More than 830,000 taxpayers have received or are expected to receive IRS Notice CP53E, informing them their refunds were delayed because valid banking information was not on file. Taxpayers who miss a 30-day response window face waits of more than 10 weeks for paper refunds. The National Taxpayer Advocate flagged roughly 10 million taxpayers who received paper refund checks last year as most at risk from the new policy, particularly unbanked individuals and those facing geographic barriers.
The Rising Fraud Risk
As digital adoption accelerates, so does fraud. The IRS released its annual Dirty Dozen list of top tax scams this season, highlighting AI-enabled phone fraud, phishing, spoofed caller IDs and fake charity schemes as primary threats. A McAfee survey found 23% of U.S. adults said they or someone they knew had lost money to a tax scam, with victims reporting average losses of $1,020. The IRS urges taxpayers to obtain an Identity Protection PIN and report suspicious activity to both the IRS and the Federal Trade Commission.
The IRS says most refunds are still issued within 21 days for those using direct deposit. The filing deadline for the 2025 tax year remains April 15.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
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