- You can get account transcripts by creating an online account with the IRS.
- Tax filers first need an account with ID.me to access their online IRS account.
The last thing many people want to do is take yet another extra step when it comes to doing their taxes. But the option to create an online account with the IRS could well be worth considering, according to tax professionals.
This tax season, the IRS is highlighting improved and expanded features for its online account for individuals, which taxpayers can create at IRS.gov. The online accounts are not a requirement, so you can still e-file a return without creating such an account.
The biggest selling point: By creating an online account, you can avoid the need to call the IRS for all sorts of questions. You can find answers day or night without having to call the IRS hotline at 800-829-1040.
“The world itself is more digital,” said April Walker, lead manager for Tax Practice & Ethics with the American Institute of CPAs.
Many people are increasingly comfortable paying their bills online, including their tax bills. They’d rather pay online than put a check in the mail.
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Walker, who set up her own online account with the IRS about five years ago, said it wasn’t the easiest process to verify her identity then to set up the account but she was able to do it. More information exists now on IRS.gov, though, she said on how to verify your identity to set up these accounts.
During the pandemic, the tax filers did experience some difficulties when the IRS “Get My Payment” tool periodically would clunk out. That tool was designed to help people track their coronavirus relief payments and allow taxpayers to provide direct deposit information to receive the Economic Impact Payments more quickly.
And about four years ago, many people had complained about having difficulty setting up the online account at IRS.gov because they couldn’t get past the authentication process. But that’s not the case now, according to tax experts.
Why you might want to create an online IRS account
The IRS has expanded what’s being offered through these online accounts, and it could be helpful to many people who do their own taxes and taxpayers who need to make payments.
“You don’t have to set up an account to be able to make payments,” Walker said, “but if you set up an account you can very easily see that your payment was made and that it was applied to your account.”
In addition, she said, some people who make estimated payments, including retirees and others, lose track of what payments they’ve already made and they can use the online account to keep better track of what they’ve paid already.
You don’t want discrepancies on your tax return, she said, with the amount you think you paid for estimated taxes in 2024 and the amount that the IRS has on record.
Someone who is still on the job and receives salaries and wages often is able to avoid going through the hassle of making estimated quarterly payments. If you owe a lot in taxes each year, the IRS notes, you can ask your employer to withhold more tax from your earnings.
You’d file a new Form W-4 with your employer. And you can use a special line on Form W-4 to enter the additional amount you want your employer to withhold.
Sometimes, the goal is simply to get your tax planning in order — or figure out a new way to make payments.
“With the same ease that taxpayers have when banking online or placing an online shopping order, they can log in and get the latest on their payment history, balance, and more,” according to an IRS alert about its online accounts last year.
Creating the account does take extra work. The IRS requires you to have an account with ID.me to access the online account relating to taxes.
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Preparing to create an online IRS account
To get started, you’d need your photo identification — such as a driver’s license, state ID or passport — to verify your identity. And you’d need access to a computer that has a camera to make sure that everything is matching. You might need to update your browser settings. It’s best to understand the instructions upfront before you try to create the account.
The ID.me site has a useful tip sheet online called “IRS and ID.me” for how to create an ID.me account and how to troubleshoot some issues.
If you have an ID.me account from a state government or federal agency, the IRS notes, you can sign in without a need to sign up again by going through a verification process.
Individuals who have already verified their identity with ID.me would simply need to login, according to the company, and pass a two-factor authentication process, such as sending a code to your phone.
“ID.me is a service created, maintained, and secured by a private technology provider,” according to a tip on how to create an online account by the Taxpayer Advocate Service.
“If you do not have an ID.me account, you must create a new account using your online account at IRS.gov.”
ID.me says its services offer consumers a way to “securely prove their identity online, expanding digital access while protecting privacy and preventing fraud.” The company states online that ID.me is “the only digital wallet that meets the federal government standards for secure multifactor authentication.”
You go to IRS.gov to create an online account for individuals.
“The federal government does not have access to ID.me data unless an individual provides explicit consent to share certain data elements,” according to an ID.me spokesperson.
ID.me does not sell data, according to its spokesperson, and does not share data without the explicit consent of an individual.
“ID.me’s role is to ensure the user is who they are claiming to be so the right user is matched to the right records at the right time and to prevent unauthorized access and scams,” according to the spokesperson.
A word about privacy
Right now, many people might be concerned about the privacy of their financial data. The Washington Post, for example, reported that Elon Musk’s cost-cutting group is seeking access to a heavily guarded IRS system that provides detailed financial information about every taxpayer, business and nonprofit in the country, according to three people familiar with the activities.
USA Today reported that the Department of Government Efficiency is seeking direct access IRS computer systems that have vast amounts of sensitive data.
While such news is unsettling, it isn’t reason alone to not use an online account.
Information that is in a taxpayer’s online accounts is already in Internal Revenue Service system, whether your create an online account or not, said Nina E. Olson, executive director of the Center for Taxpayer Rights.
“I don’t think the account, per se, increases someone’s exposure,” she said.
Once you sign up for an IRS online account, you can see key details that you can use, if needed, to file this year’s tax return. You can spot your adjusted gross income from last year’s tax return, if you cannot find it. You can access your tax records through the IRS “Get Transcript” tool.
Or you can request an Identity Protection PIN. Or you can authorize another person to represent you before the IRS or view your tax records.
You also can get account transcripts that include wage and income records. And you can make a payment online, set up payment plan options, or check your balance to see how much you still owe the IRS. The feature also promises to offer expanded alerts to scams and schemes.
To be sure, you often are able to get this information through other channels. If you lost last year’s return, for example, you can request a transcript by mail if you don’t want to go online to www.irs.gov and click on “Get Your Tax Record.”
If you do call the IRS, it’s important to know that IRS customer service representatives can’t access your online account. “They also don’t have the same view as what is shown in online account,” according to the IRS.
The IRS notes that a taxpayer’s balance will update no more than once every 24 hours, usually overnight. And, typically, you’d need allow one to three weeks for payments to show in the payment history.
The IRS also notes: “Only the taxpayer should log into their account. Credentials should never be shared with others.”
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.