What are the expectations for paperless tax filing? Among other things, the elimination of the IRS’s massive catalog of 200 million pieces of paper per year, slashing processing time and speeding up refunds.
The ball gets rolling in 2024 filing season, when taxpayers will have the option to file taxes online, free of charge, using a software system developed by the IRS and the U.S. Digital Service, the White House’s technology consulting agency.
Other highlights of the inaugural paperless initiative include:
By the 2025 filing season, the IRS plans to “achieve paperless processing for tax returns.” According to a statement by Treasury Secretary Janet Yellen, this "Paperless Processing initiative is the key that unlocks other customer service improvements.” Among the improvements expected from the initiative:
These improvements are funded by the landmark Inflation Reduction Act, which increased the IRS budget by approximately $80 billion over 10 years. After years of insufficient manpower, the IRS immediately allotted $1 billion to hire customer service and enforcement staff for the 2023 season. This follows an investment in March of 2023 in new scanning technology to quickly and accurately scan and process returns.
Of course, taxpayers will continue to have the option to file their taxes on paper. With digitization, the overall process is vastly more streamlined. However, the IRS stresses that digital filing is the preferred way to get taxes filed—and refunds to the taxpayer more quickly.
If you are a taxpayer, tax professional, or have a business question about how paperless filing will impact you, talk to the tax group at Robert J. Fedor, Esq., LLC. With offices in Chicago and Cleveland, our knowledgeable attorneys are here to help. For more information, contact our office or call us at 800-579-0997.