Online Tax Accounts

An IRS online account is a secure portal on IRS.gov that allows you to access your tax information digitally, similar to online banking. The IRS is strongly encouraging taxpayers to create one because it improves security and gives you faster access to your federal tax information. With the federal government phasing out paper checks for payments and refunds, having an online account with direct deposit and payment information is becoming functionally necessary.

More than 95% of federal payments to taxpayers are already made electronically. Now, individuals still receiving paper checks must transition to electronic payment methods. As of September 30, 2025, the federal government began the process of eliminating paper checks for nearly all payments, including tax refunds. As of October 2025, IRS check disbursement operations were transitioned to a third-party, significantly limiting capacity to issue paper checks except in approved circumstances. For those who do not provide banking information, refunds are expected to be significantly delayed.

Similarly, payments made to the government, such as for taxes due and estimated tax payments, have transitioned to electronic systems. Approved electronic methods for payment include direct payment or payment from your IRS account (both at IRS.gov), Electronic Federal Tax Payment System (EFTPS) if you have an account established, as well as third-party real-time payment systems.

The primary objectives for the electronic payment requirements are to combat fraud, increase efficiency, reduce operational costs and improve financial security. Paper-based instruments are significantly more vulnerable to loss, alteration, theft, and delivery delays in comparison to electronic transfers.

To set up an IRS online account at www.IRS.gov you will need a government issued photo ID, such as a driver’s license, state ID, or passport. In addition, you will need a smartphone or computer with a webcam, an email address, a cell phone capable of receiving texts, your Social Security number and bank routing and account numbers.

Most states also offer online accounts. With the new USPS postmark date rule now reflecting the date your mail is first processed by an automated sorting machine (not the date you dropped it in the mailbox), it may benefit you to make electronic tax payments to your state, as well.

- Pamela Smitson, CPA, CGMA®, Reify Wealth Advisors

This article was included in the Reify Wealth Advisors Quarterly Newsletter.