IRS expands business CAF capabilities

The IRS has released the first phase of expanded Business Centralized Authorization File (CAF) capabilities, marking an important step toward more secure and scalable third-party access to taxpayer information. These changes primarily affect multimember tax firms and other organizations that rely on firm level authorizations to serve clients efficiently.

These first steps are important, and other changes from the IRS will be needed to fully unlock the capabilities of business CAF.

Background on business CAF

Taxpayers authorize third parties to access their IRS account information using Form 8821, Tax Information Authorization, or Form 2848, Power of Attorney and Declaration of Representative. Once recorded in the IRS CAF unit, the designee may obtain taxpayer information, including transcripts, for up to seven years.

A designee may be an individual or an entity, such as a tax firm or a company. When a firm is designated, any authorized employee may contact the IRS using the firm’s CAF number. This firm level authorization is commonly referred to as business CAF (also called firm or entity level CAF). Many firms use business CAF to enable staff to interact with the IRS and receive transcripts through the IRS’ Practitioner Priority Service (PPS).

Historically, business CAF use was limited largely to phone interactions. Firm members could not access client information through IRS online tools, including the Tax Pro Account (TPA) or the Transcript Delivery System (TDS).

However, use of transcripts has grown significantly in the past six years. In 2024, tax pros and other users downloaded almost 1.5 billion IRS transcripts to help serve their clients, answer account questions, and file accurate returns. Use of TDS grew dramatically during the pandemic (14X). Instead of calling the IRS and experiencing long wait times, tax pros and firms relied on the data on transcripts which often provided the answers needed. Firms were also enabled to have mass, secure access to transcripts via intermediate service provider (ISP) software applications. ISPs, such as Tax Help Software, were able to download and analyze thousands of transcripts in minutes. This powerful software tool opened the door for scaling transcript use by firms.

What changed in February 2026

In February 2026, the IRS released initial enhancements to business CAF focused on security and online access.

Improved security controls. The IRS has expressed ongoing concerns about unauthorized access resulting from misuse of Forms 2848 and 8821. Under the new framework, firms can now explicitly control which employees have online access to taxpayer information. A firm leader designated as an authorized person (AP) manages access for firm members, who are designated as authorized users (AUs).

Online access through Tax Pro Account. Authorized firm members may now view taxpayer information online through their individual TPAs for clients listed under the firm’s business CAF. These improvements lay the groundwork for future functionality, including scalable access to IRS transcripts.

Business CAF improves security and streamlines IRS processing

Business CAF is most beneficial for firms with multiple employees or complex authorization needs. Sole practitioners typically do not require business CAF, as they can be designated individually.

For larger firms, business CAF significantly improves security and access management. Previously, firms relied on listing multiple individual designees on Forms 8821. When an employee left the firm, access could persist unless the former employee proactively withdrew their authorizations, creating an ongoing security risk.

A single firm level business CAF designation allows firm leadership to centrally manage access, remove users as needed, and reduce reliance on multiple individual authorizations.

Business CAF is also important for the IRS. Once the IRS releases business CAF access to TDS, the IRS will gain a significant benefit, as it will speed up Form 8821 recording with the IRS CAF unit. 

Currently, firms put several individual designees on Form 8821 to obtain access to IRS TDS. Using multiple individual designees on Forms 2848 and 8821 can significantly slow processing times. In 2026, CAF authorization processing times fluctuated between one and 12 business days, depending on the volume and resources at the IRS. In the past, CAF processing times have been as long as 26 business days.

Last year, the IRS processed almost 7 million authorizations, which took over 972,000 employee hours in the CAF unit (about 500 full-time equivalent employees). Enabling full business CAF capabilities will greatly reduce IRS CAF processing needs.

Current limitations of business CAF

As of March 2026, business CAF does not provide access to the TDS. Because only individual designees can currently download transcripts through TDS, many firms continue to list individual names on Forms 8821. Industry groups are actively working with the IRS to prioritize access to TDS for business CAF users.

Once TDS access is enabled for business CAF, the IRS is expected to see meaningful reductions in CAF processing time and staffing demands, as firms will no longer need to submit multiple individual authorizations.

Enable the new capabilities of business CAF

To take advantage of the expanded business CAF features and utilization of filed business CAF Forms 8821, firms must complete three steps:

1. Obtain business tax account designated official status.
   The firm leader must qualify and register as a designated official (DO) in the IRS business tax account. DO status is currently available for S corporations, C corporations, and partnerships, and typically requires W-2 employment as a bona fide firm representative, and authority to bind the entity.
2. Link business CAF to the Tax Pro Account.
   The designated official links the firm’s CAF number to their Tax Pro Account, establishing authorized person status.
3. Authorize firm members.
   The authorized person designates authorized users within the Tax Pro Account, granting them access to client information associated with the firm’s business CAF.

Authorized persons and users may view and manage Forms 8821, monitor account balances and payments, make payments and track audit status. Additional features are expected to be added over time.

Staying informed on business CAF changes

Business CAF expansion is a significant step forward for firms seeking secure, centralized access to client IRS data. While the current release is limited, future enhancements could significantly improve efficiency for both tax professionals and the IRS.

NATP will continue to monitor developments to business CAF and other IRS online capabilities and provide updates as additional functionality becomes available.