Anyone who has ever called the IRS knows the drill. Thirty minutes on hold, maybe longer, listening to the same recorded message loop while wondering if a real person will ever pick up. The good news? Much of what used to require those painful phone calls can now happen online. The IRS rolled out an online account system that lets taxpayers view their records, download documents, and handle basic tasks without talking to anyone.
Setting one up takes a bit of effort—maybe half an hour if everything goes smoothly. But once it exists, that account becomes a window into exactly what the IRS knows and thinks about a taxpayer's situation.
What Can Someone Actually Do With This Account?
Pull up transcripts, for starters. These documents lay out everything the IRS has on file: income that employers and banks reported, payments received, refunds sent out, adjustments made along the way. The agency started adding W-2s and 1099s to the system recently, which means less waiting for paper forms every January.
Account holders can also check refund status, see balances owed, request Identity Protection PINs, and set up payment arrangements. Business owners get access to a separate portal that works the same way.
Before Getting Started, Gather a Few Things
The IRS uses a service called ID.me to confirm that people are who they claim to be. That verification process needs some documentation ready to go.
Have a valid email address handy. Dig out a government-issued photo ID—driver's license, state ID, passport, whatever. A smartphone that receives text messages will be necessary for security codes. And keep last year's tax return within reach, because the system might ask questions only someone holding that return could answer.
Here is a shortcut worth knowing: anyone who already set up an ID.me account somewhere else—for state unemployment benefits, VA services, that sort of thing—can use those same login credentials here.
The Actual Steps to Create an Account
Head to irs.gov/account. Click the button to sign in or create an account. The site bounces over to ID.me to handle verification.
New users hit "Create an Account" and punch in an email address. ID.me shoots a confirmation link to that inbox. Click it. Then create a password—eight characters minimum, and it needs uppercase letters, numbers, and symbols mixed in.
Next comes the personal information. Name has to match exactly what the IRS has on file, right down to middle initials. Add date of birth, Social Security Number, and current address. Typos or mismatches here will cause problems, so double-check everything.
The system then asks about multi-factor authentication. Most people go with text messages—every login triggers a code sent to the phone. Authenticator apps work too.
Now for the identity verification itself. ID.me gives two options. Option one: photograph a government ID, then take a selfie. Software compares the face in both images. Option two: schedule a video call with an ID.me representative who verifies identity through conversation, no biometrics involved.
Clear verification and the account activates immediately.
Getting Around Once Inside
The dashboard organizes everything under different tabs. "Records and Status" holds transcripts and income documents. "Notices and Letters" stores IRS correspondence—helpful for anyone who has lost an important notice in a pile of junk mail. "Payments" shows history and lets users make payments or set up plans.
Those transcripts deserve extra attention. When the IRS sends a notice claiming unreported income or a miscalculated credit, the transcript shows exactly what data the agency used. A CPA trying to sort out a client's tax mess will almost certainly want to review transcripts first.
Changing an Address
This part trips people up. The online account cannot actually change an address.
The IRS wants Form 8822 from individuals, Form 8822-B from businesses. Download whichever applies from irs.gov, fill it out, and mail it. Processing takes four to six weeks.
Or just put the new address on the next tax return. The IRS updates records automatically once that return processes. Couples who filed jointly but now live separately need to notify the IRS individually.
Changing a Name
Tax returns bounce back when the name on file does not match Social Security Administration records. Anyone who recently married, divorced, or legally changed their name needs to update the Social Security card first at ssa.gov or a local office. Only then will returns under the new name go through.
Letting a CPA or Tax Professional Into the Account
Old way: mail Form 2848, wait weeks for processing, hope nothing got lost. New way: the tax professional submits an authorization request electronically, it pops up in the taxpayer's online account, and a couple of clicks later the whole thing is done. That professional can then talk to the IRS and pull records on the client's behalf.
For Business Owners
Businesses have their own portal at irs.gov/businesses/business-tax-account. Setting it up works the same as the individual version. Owners can check balances, make payments, and grab transcripts tied to the EIN. Address or responsible party changes require Form 8822-B, and responsible party updates have a 60-day deadline.
When Things Go Sideways
Identity verification does not work for everyone on the first attempt. People who cannot get through online can call the IRS or visit a Taxpayer Assistance Center. Neither option is fast, but both exist.
Bigger problems—notices that make no sense, balances that appeared out of nowhere—really do call for professional help. A CPA can dig into transcripts, figure out where things went wrong, and handle the IRS directly.
Save Time With Online
That IRS online account saves time and eliminates a lot of guesswork. Taxpayers who take a few minutes to set one up will wonder why they waited so long.
Anyone struggling with account setup, confused by what their transcripts show, or dealing with an IRS situation that feels over their head should contact a CPA.
by Kate Supino