The IRS is frequently criticized for its antiquated systems and technology. For the most part, it's criticism well deserved. However, in recent years modernization has been a high priority and advancements have been made.
Individual taxpayers have online access to more of their tax data, information, status updates, and helpful tools than ever before and tax professionals are also benefiting from a suite of new e-Services. Taxpayer accounts and most online services are accessed through a single IRS login. In addition, the IRS has launched online portals and several standalone web-based tools which have proven useful and convenient for taxpayers. Here's a quick summary of the different IRS.gov destinations and what you can do on each.
IRS.gov Homepage
The homepage is simple and well organized with links to all the major services and information areas.
IRS Tax Account and Secure Access Login
An IRS Tax Account is the primary means of accessing your individual taxpayer data, information, and most of the online functionality now offered by IRS.gov. Start here.
Get key information and status about your most recent tax return
See amounts owed and payment history
Make a payment
View your payment plan and status if you have one
Read copies of select IRS notices you have received
Verify Economic Stimulus Payments
Verify mailing address
Get AGI for use with tax preparation software
Request detailed tax records using Get Transcript
Establish and Identity Protection PIN (IP PIN)
Approve Power of Attorney and other forms initiated by tax professionals
To sign up for an IRS Tax Account, you will need to verify your identity through Secure Access which is the in-house verification system used by the IRS. The process is a bit tedious, but considering the sensitivity of the personal data that's understandable. You'll need all the following items to successfully verify your identity and setup your account:
Email address
Social Security Number (SSN) or Individual Tax Identification Number (ITIN)
Tax filing status and mailing address
One financial account number linked to your name:
Credit card – last 8 digits (no American Express, debit or corporate cards)
Student loan
Mortgage or home equity loan or Home equity line of credit (HELOC)
Auto loan
Mobile phone linked to your name (for faster registration) or ability to receive an activation code by mail
Unfortunately not every taxpayer will have these required items to complete the identity verification process online, and failures for one reason or another are not uncommon. In that case, the IRS does offer Secure Access verification and account creation by telephone through the e-Help desk 888-841-4648. Callers will still need an email address, prior year tax return, and information returns.
Child Tax Credit Update Portal
This important web portal was created to facilitate and manage the 2021 advance Child Tax Credit payments which were introduced in the March 2021 American Rescue Plan. Using the portal, taxpayers can accomplish the following:
View your advance payment history
Update your mailing address
Opt-Out of the advance payments in favor of the traditional lump sum tax credit See Child Tax Credit - Advance Payments or Lump Sum
Update tax information that could affect your advance payment amounts or eligibility
Either you will need a Secure Access IRS login to access the portal OR you can verify your identity and gain access using ID.me.
ID.me is a third party trusted identity verification service option used by the IRS for just this Child Tax Credit Update portal. The Social Security Administration also uses ID.me as a verification and login option for its website. The ID.me verification process is similar to IRS Secure Access though perhaps a little less rigorous. It is easiest to accomplish on a mobile device. You will need to upload a photo of two forms of identification as well as a selfie photo. Again, if you have a regular IRS Tax Account login, you can use it rather than ID.me to access to access the Child Tax Credit Update portal.
In addition to the advance payment update portal, there are two online tools related to the Child Tax Credit that taxpayers can use.
Eligibility Assistant - No login needed - Enter basic information about your qualifying children and income to determine if you are eligible for the Child Tax Credit and advance payments.
Non-filer Signup Tool - No IRS Secure Access or ID.me login needed - You will need an email address, date of birth, mailing address, social security number, and bank account if you have one. This tool is ONLY for individuals with qualifying children who were not required and did not file a 2020 tax return. It can also be used to claim a 2020 Recovery Rebate Credit and to receive your third Economic Impact Payment
Other IRS Online Tools and Services
Get My Payment - No IRS Secure Access or ID.me login needed - You will have to correctly answer basic security questions. - Use Get My Payment to determine the status of your Third Economic Stimulus Payment and PlusUp payments.
Payment schedule
Payment status
How payment was sent
Where’s My Refund? - No IRS Secure Access or ID.me login needed - You will be asked for your social security number, filing status, and exact amount of your refund. Use Where's My Refund to quickly check the processing and refund status of your return.
IRS2Go Mobile App - The official mobile app of the IRS has been around for a number of years, but functionality is still rather limited. The main feature is a convenient refund status check which mirrors the results of the Where's My Refund website (above). Taxpayers can also make a payment through the app, and there is a searchable database of Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) providers. Finally, the app can be used to generate login security codes for IRS Secure Access services instead of having the codes texted to your device.
Earned Income Tax Credit (EITC) Assistant - No login needed - The Earned Income Tax Credit is a major benefit for low and medium income taxpayers, especially but not exclusively those with dependents. Enter some basic information about your income, expenses, and dependents to determine if you might be eligible for this refundable tax credit.
Government systems and technology are frustratingly slow to adapt. There's a long way to go, but the IRS is on the right track with individual Tax Accounts and some of the different customer-centered online tools. It's well worth the time and trouble to get set up. You'll be glad you did.
As always at Monadnock Tax Services we are happy to help individuals and families with friendly tax advice and services. Give us a call at (603) 722-0184 or email info@monadnocktax.com