Entity Setup
How US Businesses Can Leverage the Enhanced Business Tax Account Features
With the IRS unveiling expanded digital tools for the Business Tax Account (BTA), businesses can streamline many administrative tax functions—here’s how to make the most of the new features.
By NomadicTax Research Team • 5-8 min read • July 29, 2026
## Overview
In July 2026, the **IRS expanded features for the Business Tax Account (BTA)**, enhancing the online platform’s utility for businesses and entities. These changes include **new notice types, better EIN verification tools**, and additional payment options.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai)) This article guides business owners on how to leverage these upgrades to save time, reduce errors, and improve compliance.
## What’s New in the Business Tax Account
- **Expanded digital notices**: Access notices like **CP081B** (We May Have a Refund for You), **CP211A** (Approval of extension request), **CP134R** (Refund for federal tax deposit discrepancies), among others, all online.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai))
- **EIN verification improved**: Designated officials can now download **Notice CP575** (Notice of New Employer Identification Number) instead of using **Letter 147C**.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai))
- **Offer in Compromise payments**: Eligible taxpayers can submit payments toward Offers in Compromise directly through BTA.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai))
- **Plan ahead payments**: You can schedule payments for any business day up to **one year in advance** and cancel them if needed.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai))
## Who Can Use These Features
- Sole proprietors with an EIN.
- Partners and shareholders filing Schedule K-1 with SSN or ITIN. For partners, tax years **2012-2023**; for shareholders, **2006-2023**.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai))
- S-corporations, C-corporations, governments (federal, state, tribal), and tax-exempt organizations.([irs.gov](https://www.irs.gov/newsroom/summer-2026-expanded-features-for-business-tax-account?utm_source=openai))
## Actionable Advice for Businesses
1. **Register and log in early** — get familiar before busy seasons.
2. **Save and use your EIN verification CP575 notice** — banks often require this. Replace Letter 147C with CP575 where accepted.
3. **Monitor digital notices regularly** — set up alerts if possible to avoid missing urgent matters.
4. **Schedule payments ahead** — for predictable obligations like estimated taxes.
5. **Use Offer in Compromise features** only if you meet IRS eligibility criteria—use the IRS Web tool to check.
6. **Use transcripts for accurate bookkeeping** — archived returns and payroll/excise records available under BTA.
## Potential Pitfalls
- LLCs that file as sole proprietors (**Schedule C or F**) are **not yet supported** in BTA.([irs.gov](https://www.irs.gov/businesses/business-tax-account?utm_source=openai))
- Some features are only available for certain entity types or roles.
- Digital notices require that address and contact info on IRS file be current.
## Example Scenario
Imagine “Acme Logistics, Inc.,” a C-corporation: The CFO needs an EIN verification to open a business bank account and schedule their next estimated tax deposit. Using the upgraded BTA, they download CP575, schedule the deposit three-months ahead, and see a notice CP081B showing they may be owed a refund for a prior overpayment. Because they’ve maintained timely tax filings and payments for the past three years, when a deposit was late, the **penalty for failure to deposit** is automatically exempted under the new IRS **Automatic Exemption from Penalty (AEP)** policy. (More on that in the **Policy section** below.)
## Conclusion
The upgraded BTA tools represent a move by the IRS toward **digital convenience, compliance ease, and reducing paper dependency**. Businesses that take action now to register, explore, and use these tools will gain smoother operations and stay ahead of compliance risks.