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Enhancing Small Business Taxpayer Experience: New Improvements and Tools

    Published May 23, 2023

    In a bid to provide an enhanced experience for small business taxpayers, the Internal Revenue Service (IRS) introduced changes during National Small Business Week, recognized from April 30 to May 6. These changes aim to facilitate seamless interaction with the IRS, tailored to the specific needs of small business owners. By implementing new advancements in phone service, in-person assistance, and online options, the IRS aims to ensure that small business taxpayers can readily access the support they require at any given time.

    These initiatives stem from the Inflation Reduction Act (IRA), which was passed in August 2022. The IRS’s Strategic Operating Plan outlines its strategy for utilizing the IRA’s funding to enhance customer service and address other critical priorities.

    Let’s delve into some of the forthcoming improvements that will greatly benefit small business taxpayers:

    Expanded Online Service Tools: Unleashing the Power of Digital Solutions

    The IRS will introduce Business Online Accounts before the next filing season. This user-friendly tool is specifically designed to cater to the needs of small business taxpayers. Over the course of 2024, additional features will be rolled out, empowering small businesses to:

    1. Access Tax Information and Payment Tracking: Utilize their account to conveniently view their tax information, as well as schedule and track payments.
    2. Simplified Business Tax Transcripts: Gain easy online access to business tax transcripts in a format that is effortless to comprehend.
    3. Efficient Notice Response and Document Filing: Respond to notices and file necessary documents online. Small business owners will soon be able to handle specific notices, such as LTR0143C (Signature Missing), through the online portal. The IRS remains committed to continually improving and expanding these features.

    By 2024, small business owners can expect the ability to respond to various online notices, including those related to self-employment income corrections, employment-related identity theft notifications, and numerous others. Moreover, the IRS aims to simplify the language used in taxpayer notices, providing clear instructions on the required actions.

    Simplified, Mobile-Friendly Forms: Saving Time and Effort

    To streamline the tax filing process for small business owners, the IRS will introduce new and simplified tax forms. These forms are specifically tailored to the needs of small businesses and are designed to:

    Maximize Efficiency: Modernize commonly used tax forms, such as Forms 940, 941, and 944, ensuring they are user-friendly and intuitive.

    Mobile Accessibility: Ensure these updated forms are easily accessible on mobile devices, allowing small business owners to conveniently complete their tax obligations.

    Additionally, these forms will be made available in multiple languages, further facilitating compliance for businesses operating in diverse linguistic environments.

    Digitization for Efficiency: Embracing a Paperless Future

    To expedite processing times and refunds, the IRS is committed to digitizing paper-based processes, offering significant benefits to small businesses. The following key digitization initiatives are currently underway:

    1. Automated Processing: By automating paper-based processes, the IRS aims to accelerate processing and refund delivery, resulting in valuable time and cost savings for small business taxpayers. As part of this initiative, the IRS will expand its scanning capabilities to include popular forms such as Forms 1040 and 941. In 2023 alone, millions of returns are slated to be scanned, underscoring the IRS’s commitment to streamlining operations.
    2. Online Form Availability: Expanding the availability of forms online will offer greater convenience to small business owners. This shift enables businesses to access and submit forms electronically, further reducing reliance on traditional mail-based submissions.

    Through these comprehensive enhancements, the IRS aims to foster an environment where small business taxpayers can seamlessly navigate tax obligations while leveraging modern digital tools and resources.

    By embracing innovative technologies and streamlining processes, the IRS is paving the way for a future where small businesses thrive with greater ease and efficiency. These advancements not only simplify tax compliance but also empower small business owners to focus on what matters most: nurturing their entrepreneurial ventures and driving economic growth.