Important IRS Deadline:
Revalidate Your Business or Nonprofit Tax Account by July 29
If you're the Designated Official for your business or nonprofit organization's IRS Business Tax Account, there is an important deadline you shouldn't overlook.
What Is a Designated Official?
A Designated Official is the individual authorized to act on behalf of a business within the IRS Business Tax Account (This term applies to businesses AND nonprofits who have IRS Business Accounts.)
For corporations, this is generally an officer such as the President, Vice President, CEO, CFO, COO, Secretary, or Treasurer. The individual must also be authorized to legally bind the business and must have received a Form W-2 from the entity for the most recent tax year. Eligibility requirements vary depending on the entity.
This Requirement Also Applies to Many Nonprofit Organizations
This annual revalidation requirement isn't limited to for-profit businesses.
Nonprofit organizations, including 501(c)(3) charities, can establish an IRS Business Tax Account and designate an authorized individual to manage the organization's online IRS account.
For nonprofits, the Designated Official is typically an officer such as the President, Treasurer, Executive Director, or another individual authorized by the organization's governing body to act on behalf of the organization.
Maintaining an active Business Tax Account allows nonprofit leaders to securely access IRS information, review account activity, receive notices electronically, download important tax documents, and manage authorized users.
If your nonprofit has already established an IRS Business Tax Account, be sure your Designated Official completes the annual revalidation by July 29 to avoid losing that role.
Why Does This Matter?
The IRS Business Tax Account allows eligible businesses to view balances, make federal tax payments, access payment history and tax transcripts, receive IRS notices electronically, download EIN verification notices, manage authorized users, and review tax compliance information. These online services can save considerable time and eliminate paper correspondence.
What Happens if You Miss the Deadline?
If you do not complete your annual revalidation by July 29, your current Designated Official role expires. Although there is no tax penalty, you will lose your Designated Official status and must complete the registration process again before regaining full access.
Haven’t Set Up Your IRS Business Tax Account Yet?
If you've never created an IRS Business Tax Account, now is an excellent time to do it.
The IRS Business Online Account provides secure online access to many IRS services that previously required paper correspondence or lengthy phone calls. Setting up an account requires identity verification through ID.me and confirmation that you are authorized to act on behalf of the organization.
If you're unsure whether your organization already has an account or who should serve as the Designated Official, your CPA can help determine the appropriate next steps.
How to Revalidate
1. Sign in to your IRS Business Tax Account.
2. Look for the notification to renew your Designated Official role.
3. Complete the revalidation before the July 29 deadline.
The IRS opens the annual revalidation period each year beginning June 15 for most businesses.
Don't Wait Until You Need Access
Many business owners don't log into their IRS Business Tax Account until they need an EIN verification notice, an IRS transcript, or another important document.
Discovering that your Designated Official access has expired at that moment can create unnecessary delays and frustration.
Whether you're renewing an existing account or setting one up for the first time, taking a few minutes now can help ensure you have uninterrupted access when you need it most.
The article is meant for informational purposes only. Please contact me directly to discuss how this applies to your individual tax situation. I offer a complimentary initial consultation and would be happy to help determine the best approach for your business.