The IRS Widens Digital Access and Congress Approves Key Nonprofit Transparency Bills
In a major step toward modernizing tax administration, the IRS announced on April 6, 2026, a significant expansion of its Business Tax Account (BTA) platform . This online self-service portal is now available to partnerships, federal, state, and local governments, Indian tribal governments, and tax-exempt organizations . This expansion is a key part of the agency’s ongoing service improvement effort . This move gives millions more entities secure, convenient access to their tax information, reducing the need for phone and paper interactions .
IRS Chief Executive Officer Frank J. Bisignano emphasized the benefits of digital access: “By opening the Business Tax Account to partnerships, tax-exempts and other organizations, we’re giving millions more entities secure, convenient access to their tax information” .
Through the BTA, eligible users can now view tax balances, make payments, download select digital notices, view eligible transcripts, request a tax compliance check, and see their business name and address on file with the IRS . This expansion is particularly beneficial for nonprofit organizations, simplifying tasks such as verifying exempt status and ensuring compliance with filing requirements. This digital shift allows for more efficient management of a nonprofit’s tax obligations, providing clarity and reducing administrative burden.
New Congressional Legislation on Taxpayer Rights and Nonprofit Transparency
The House Ways and Means Committee recently approved a series of bills aimed at protecting taxpayer rights and increasing transparency in the nonprofit sector . Among these, the Tax Exempt Hospital Transparency Act (H.R. 9504) is particularly noteworthy for nonprofits . This legislation mandates additional reporting requirements for large tax-exempt hospitals (those with more than 100 inpatient beds and/or more than $100 million in net patient revenue) . It requires them to disclose detailed information about the financial assistance provided, spending to address community health needs, quality improvement, nonclinical programming, and advertising costs . The bill is intended to ensure that nonprofit hospitals are fulfilling their community benefit obligations in exchange for their tax-exempt status, which was valued at $37.4 billion in 2021 alone .
Other bills approved by the committee include the AI Tax Integrity Act of 2026, which directs the Treasury Secretary to establish a pilot program to use artificial intelligence (AI) to identify inaccurate tax returns, including those resulting from identity theft and fraudulent claims . The Taxpayer Advocate Participation Act authorizes the National Taxpayer Advocate to appear as amicus curiae in federal court cases related to tax law, protecting taxpayer rights in precedential issues . These developments highlight a growing focus on leveraging technology to combat fraud and ensuring that nonprofits operate with transparency and accountability. For organizations navigating these changes, staying informed is essential. Nova Tax & Accounting Services provides comprehensive audit and assurance support and Form 990 preparation to help nonprofits meet their compliance obligations.