IRS Expands Tax Pro Account Digital Tools to Modernize Tax Firm Operations

The way tax professionals interact with the Internal Revenue Service continues to evolve as the agency accelerates its digital modernization efforts. In February 2026, the IRS announced an important expansion to its Tax Pro Account platform that directly affects accounting firms, tax preparation companies, and other organizations representing multiple taxpayers.

For years, tax professionals have managed client authorizations through a combination of digital portals, mailed forms, and manual internal processes. While Tax Pro Account has existed since 2021, much of its functionality was originally built for individual practitioners. This latest update reflects a shift toward supporting firm based tax practices and recognizing how tax work is actually performed in the real world.

By introducing business level tools, the IRS aims to reduce administrative friction, improve authorization management, and help tax professionals serve clients more efficiently while maintaining proper controls.

Key Takeaways

• The Internal Revenue Service expanded its Tax Pro Account with business level features for tax professionals

• Firms can now link business CAF numbers to EINs and manage employee access

• Authorized representatives can view taxpayer information and withdraw authorizations online

• This update reduces reliance on paper submissions and streamlines client service

• The Tax Pro Account now supports larger tax preparation companies and accounting firms

What the IRS Announcement Means for Tax Professionals

On February 9, 2026, the Internal Revenue Service announced a significant update to the Tax Pro Account.

They would be adding new digital capabilities designed for tax professionals operating in businesses, such as accounting firms, tax preparation companies, and other organizations serving multiple taxpayers. This expansion marks a major step forward in the IRS's digital transformation effort by improving how tax professionals interact with authorizations and manage client information online.

The IRS stated that the update gives tax professional businesses greater visibility and control over their Centralized Authorization File, commonly referred to as CAF, relationships. For firms handling numerous clients, managing CAF authorizations efficiently is critical to daily operations, especially during filing season and audit resolution work.

Traditionally, tax professionals relied heavily on paper based processes to handle authorizations, link CAF numbers, or assign access rights within their teams. These manual steps often introduced delays, errors, and additional administrative burden.

With the new enhancements, many of these tasks can now be completed directly through the secure online Tax Pro Account portal, reducing turnaround times and improving accuracy.

New Digital Features Now Available

Under the expanded system, designated business representatives have the ability to manage authorization activity for the entire firm rather than on an individual by individual basis.

Specifically, firms can now:

• Manage business CAF access and determine which employees are authorized to act on behalf of the firm

• Link a business CAF number to a company Employer Identification Number, or EIN, directly through the Tax Pro Account

• View taxpayer information that falls within the scope of active authorizations

• View and withdraw active authorizations in real time

These changes build on earlier enhancements that allowed individual tax practitioners to digitally manage client authorizations and act on their behalf. Now, firms with formal business structures can operate within a single, streamlined digital environment that better reflects how teams collaborate on client matters.

For firms experiencing staff turnover or seasonal hiring, the ability to grant and revoke access digitally is particularly valuable. It improves internal controls while reducing the risk associated with outdated authorizations remaining on file.

Why This Matters for Tax Firms and Clients

For tax professionals and business owners, digital efficiency is more than convenience. It directly affects how quickly filings are handled, how authorizations are maintained, and how clients are served over time.

With the IRS expanding online capabilities, firms can expect several operational benefits:

• Faster authorization workflows because requests and withdrawals can be completed online without mailing forms

• Improved team management since firms control which staff members can access sensitive client data

• Reduced risk of lost or delayed paperwork, especially during busy tax filing seasons

These improvements translate into better client experiences. Faster access to taxpayer information allows professionals to respond more quickly to IRS notices, resolve issues sooner, and maintain clearer communication with clients.

The IRS also emphasized that this update is part of an ongoing effort to modernize systems, reduce paper submissions, and improve taxpayer services for both professionals and individual taxpayers. Additional enhancements to Tax Pro Account are expected over time.

How Tax Pro Account Works Right Now

Tax Pro Account was originally launched in July 2021 and has been steadily updated to support more digital features for tax professionals. The platform allows users to request or link a Centralized Authorization File number, submit power of attorney and tax information authorizations, and access taxpayer information online.

Prior to this latest expansion, most digital capabilities focused on individuals acting as sole practitioners. Firms often had to rely on internal tracking systems and paper forms to manage authorizations across teams. The new tools now extend digital access to organized business entities, closing a significant gap in IRS online services.

Make Digital Tax Practice Management Easier with Better Tools

As the IRS expands capabilities for larger tax practices, the importance of technology that supports everyday workflow continues to grow. That is where tools like Bizora help tax firms operate more efficiently.

Bizora provides tax research workflow automation and client management dashboards as the Vault that complements digital IRS services such as Tax Pro Account. By reducing manual processes and improving visibility across engagements, tax professionals can spend less time on administration and more time advising clients.

If you want a smarter way to manage tax authorizations, track client data, and optimize compliance operations, try Bizora and elevate your firm’s digital capabilities today.

Frequently Asked Questions

What is Tax Pro Account?

Tax Pro Account is a secure online portal offered by the IRS that allows tax professionals to manage authorization relationships, link CAF numbers, and access client information digitally.

Who benefits from the latest IRS update?

The enhanced features are designed for tax professionals operating within businesses such as accounting firms, tax preparation companies, and other organizations that serve multiple taxpayers.

Can individual practitioners use the new features?

Sole practitioners without a business CAF number may not use the new business level tools, but they can continue using Tax Pro Account for individual authorizations.

Do these IRS updates reduce paper processing?

Yes. One of the primary goals of the expanded digital capabilities is to reduce reliance on mailed or faxed forms for authorizations and data access.

Is there a cost to use Tax Pro Account?

Tax Pro Account is provided free by the IRS to eligible tax professionals who meet authorization requirements.