New Upgrades to IRS Tools for Small Business Owners
Part of the Inflation Reduction Act signed into law by President Biden aims to make improvements to the customer service options available to taxpayers through the IRS. Upgrades to the IRS phone service and online portal will streamline the process of filing online and responding to IRS notices and letters. Let’s take a look at what small businesses can expect with these new upgrades!
More Online Tools
The ability to complete tasks online is one of the biggest improvements that can be made in the world of customer service. The IRS plans to launch Business Online Accounts, where small business taxpayers can create an online account to view tax information, schedule payments, track progress, and access business tax transcripts. Business Online Accounts is scheduled to launch prior to the 2023 tax filing season.
The recent launch of a Form 1099 e-file portal for small businesses made it easier for small businesses to file Form 1099 information returns online. And later in the summer of 2023, small business owners will have the convenience of responding to some notices online (including LTR0143C, Signature Missing). Come 2024, small business owners can respond to even more notices—like correction of self-employment income and employment-related identity theft; these notices will also include straightforward instructions on what the taxpayer needs to do next.
Upgraded Forms
New, more simple tax forms will also be introduced for small business owners that file their own taxes. The most frequently used forms, including Forms 940, 941, and 944, are going to be made mobile-friendly and available in various languages. This will increase access to many business owners, in addition to making it easier for them to complete tax filing tasks from any device.
Automations
And finally, the IRS is making moves to automate many of their non-digital processes and ensure more forms are available online. These forms include the most popular options, such as Forms 1040 and 941. Digital scanning is also being enhanced. According to the IRS website, “The vast majority of tax returns are now filed electronically. But millions of forms are still filed by paper, which means a time-consuming process of manually handling and transcribing of these tax returns. By providing a capability to scan and electronically process paper returns, the IRS will be able to shorten the processing time for taxpayers who file paper returns.”
Enhancements like these have the power to take away some of the stress of filing taxes. As a small business owner, you’ve got more important things to worry about than navigating the world of Uncle Sam. We’ll be following all the latest developments in small business regulations right here at the Financial Pantry. If you need a loan, ARF Financial is also the place to get pre-qualified for a line of credit for your business. With just 4 questions and 5 steps, our online application is the quickest way to get approved. Come see for yourself!