How to create an online account at IRS to get transcripts, make payments, more

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.

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.

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.