TITLE: IRS Business Tax Account August 2026 Update: What International Sellers Need to Do Now
The IRS has expanded its Business Tax Account (BTA) features for eligible business taxpayers. The August 2026 improvements make it easier to access IRS notices, manage payments, verify business information, and monitor federal compliance online.
These changes do not replace existing filing obligations. International sellers must still assess whether they need to file Form 1120-F, Form 5472, a pro forma Form 1120, or other U.S. returns.
This guide explains what has changed and the practical steps you should take now.
Understand what the August 2026 IRS update changes
The latest BTA enhancements are mainly operational. They improve how you manage your IRS account, but they do not remove your responsibility to file accurate returns on time.
Eligible businesses may now be able to:
- View and download a broader range of digital IRS notices.
- Review recent payments, including returned or refused payments.
- Schedule certain payments up to one year in advance.
- Manage eligible payment plans.
- Store more than one bank account for payment processing.
- Submit certain Offer in Compromise payments online.
- Request a tax compliance check.
- View business details, including the name and address held by the IRS.
- Grant account access to eligible employees.
- Download selected tax transcripts and EIN verification documents.
The IRS has also expanded access to certain notices, including notices relating to EIN verification, filing extensions, refunds, and federal tax deposit discrepancies.
Check your BTA regularly. Digital notices may contain deadlines for responding, paying, or submitting further documents. Missing an online notice can create the same compliance problem as missing a paper notice.
Review the IRS Business Tax Account update for the latest eligibility and access information.
Set up your Business Tax Account access correctly
International sellers often operate through several entities. You may have a UK Limited Company, a U.S. LLC, a U.S. corporation, or a foreign corporation selling into the U.S. Each entity may have separate tax and account responsibilities.
Use this checklist:
-
Identify every U.S.-connected entity.
Include U.S. LLCs, corporations, branches, and entities used for marketplace, warehouse, fulfilment, or payment activities. This prevents one entity from being overlooked. -
Confirm the responsible party and authorised users.
Make sure the correct business official can access the IRS account. Add internal finance staff or compliance providers only where appropriate. This improves continuity when responsibilities change. -
Verify the legal name, address, and EIN.
Incorrect IRS records can delay filings, payments, and financial account verification. Download available EIN documentation and retain it with your company records. -
Add payment controls.
Review bank accounts saved in the BTA and confirm that payment instructions match the correct legal entity. This reduces the risk of paying the wrong account or missing a federal tax deposit. -
Create a notice review routine.
Assign a named person to check the account at least weekly during filing and payment periods. Save every notice and record the action required.
The BTA is a useful compliance tool. It is not a substitute for bookkeeping, transaction reconciliation, or return preparation.
Check whether Form 1120-F applies to your foreign corporation
Form 1120-F is the U.S. Income Tax Return of a Foreign Corporation. A foreign corporation may need to file when it conducts a U.S. trade or business, has effectively connected income, or has certain U.S.-source income that is not fully covered by withholding.
The IRS identifies several situations that may create a filing requirement, including:
- Operating a U.S. branch.
- Conducting regular and continuous profit-seeking activities in the United States.
- Having employees or agents performing business activities in the United States.
- Holding an interest in a U.S. partnership conducting a trade or business.
- Receiving certain U.S.-source income.
- Receiving forms such as Form 1042-S or Form 8805 in circumstances that require a return.
Selling to U.S. customers alone does not automatically answer the question. Your structure, inventory arrangements, contracts, personnel, agents, fulfilment model, and income flows all matter.
Being an importer of record also does not automatically determine your federal income tax filing position. However, importer-of-record responsibilities can provide important evidence about how goods enter the United States and which entity is responsible for customs activity.
If you are one of the us importers of record managing stock, customs entries, and fulfilment, maintain clear records showing:
- Which entity owns the goods.
- Who pays import duties and customs charges.
- Where inventory is stored.
- Who contracts with warehouses and fulfilment providers.
- Which entity records U.S. sales.
- How funds move between related companies.
The IRS Form 1120-F filing responsibilities page explains the main filing circumstances and deadlines.
Record the correct Form 1120-F deadline
Your Form 1120-F deadline depends on whether the foreign corporation has a U.S. office or place of business.
- With a U.S. office or place of business: generally due on the 15th day of the fourth month after the end of the tax year.
- Without a U.S. office or place of business: generally due on the 15th day of the sixth month after the end of the tax year.
For a calendar-year corporation, that commonly means April 15 or June 15, depending on the facts.
You can generally request an extension by filing Form 7004 before the original deadline. An extension gives more time to file. It does not automatically extend the time to pay tax.
A foreign corporation that is uncertain whether it has a U.S. trade or business may also consider whether a protective return is appropriate. This can help preserve the ability to claim deductions and credits if the IRS later determines that a U.S. filing obligation existed.
Treat Form 5472 as a separate compliance priority
Form 5472 is an information return. It reports transactions between a reporting corporation and foreign or domestic related parties.
A reporting corporation can include:
- A U.S. corporation that is at least 25% foreign-owned.
- A foreign corporation engaged in a U.S. trade or business.
- A foreign-owned U.S. disregarded entity, such as a single-member LLC owned by a non-U.S. person.
Common reportable transactions include:
- Capital contributions.
- Owner distributions.
- Intercompany loans.
- Interest payments.
- Inventory purchases and sales.
- Management fees.
- Commissions.
- Reimbursements.
- Rent and insurance payments.
- Transfers of property
