Setting up an online account with the IRS can be a bit challenging, as acknowledged by Walker, who created her own account around five years ago. While the process of verifying her identity and establishing the account was initially complex, she managed to navigate through it successfully. More guidance is now available on IRS.gov to assist with the identity verification process for setting up these accounts.
During the pandemic, taxpayers encountered difficulties using the IRS “Get My Payment” tool, which occasionally experienced technical glitches. This tool was intended to help individuals track their COVID-19 relief payments and provide direct deposit information to expedite the receipt of Economic Impact Payments.
Approximately four years ago, many individuals faced obstacles when attempting to create online accounts on IRS.gov due to authentication issues. However, tax experts have since confirmed that this is no longer a prevalent issue.
Benefits of Having an Online IRS Account
The IRS has broadened the services available through these online accounts, providing valuable resources for individuals managing their taxes and making payments. While setting up an account is not mandatory for making payments, having one allows taxpayers to easily confirm the status of their payments and ensure proper allocation to their accounts. This feature can be particularly beneficial for individuals, including retirees, who make estimated payments and may struggle to keep track of their payment history.
Maintaining accurate records is crucial to prevent discrepancies on tax returns, particularly regarding estimated tax payments. By monitoring payments through the online account, taxpayers can ensure that the IRS’s records align with their own financial records.
Preparation for Creating an Online IRS Account
To begin the process, you will need a valid photo identification, such as a driver’s license, state ID, or passport, for identity verification. Access to a computer with a camera is also necessary to confirm your identity. It is advisable to review the instructions thoroughly before initiating the account creation process.
The ID.me site offers a helpful tip sheet titled “IRS and ID.me” to guide you through the necessary steps for accessing IRS online services.
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Learn how to create an ID.me account and troubleshoot issues. If you already have an ID.me account from a state government or federal agency, the IRS states that you can sign in without registering again by undergoing a verification process. Individuals who have verified their identity with ID.me only need to log in and complete a two-factor authentication process, like receiving a code on their phone.
ID.me is a service managed by a private technology provider and endorsed for creating online accounts by the Taxpayer Advocate Service. To create a new ID.me account, use your online IRS.gov account. The company emphasizes that its services allow individuals to securely confirm their identity online, enhancing digital access while safeguarding privacy and preventing fraud. ID.me is highlighted as the sole digital wallet meeting federal government standards for secure multifactor authentication.
Creating an online account for individuals is done through IRS.gov. ID.me states that the federal government cannot access their data without explicit consent from the individual. The company does not sell or share data without the individual’s permission. Their primary purpose is to verify users’ identities to prevent unauthorized access and scams.
Regarding privacy concerns, it’s noted that the IRS already contains taxpayers’ financial data within its system. According to Nina E. Olson from the Center for Taxpayer Rights, signing up for an IRS online account does not significantly increase one’s exposure. The account allows access to important details for filing tax returns, such as viewing adjusted gross income from the previous year, obtaining tax records through the “Get Transcript” tool, requesting an Identity Protection PIN, authorizing representation before the IRS, or making online payments and checking balances owed.
While recent reports of efforts to access sensitive IRS data are concerning, it’s essential to weigh the benefits of using online accounts for tax-related tasks.
If you prefer not to access the IRS website at www.irs.gov and click on “Get Your Tax Record” online, you have the option to request a transcript by mail. It is important to note that if you decide to call the IRS for assistance, their customer service representatives do not have access to your online account. The IRS emphasizes that the information available to representatives may differ from what is displayed in your online account.
The IRS further explains that a taxpayer’s account balance will be updated no more than once every 24 hours, usually occurring overnight. Additionally, it may take one to three weeks for payments to reflect in the payment history section.
It is crucial to remember that only the taxpayer should log into their account, and credentials should never be shared with others as per the IRS guidelines.
For more insights on personal finance matters, you can reach out to Susan Tompor, a reputable columnist, at stompor@freepress.com. Stay updated by following her on Twitter @tompor.
This informative article was originally published in the Detroit Free Press, advising individuals to consider creating an online account for access to essential information and enhanced features provided by the IRS.
