What the New IRS ‘Paperless Processing Initiative’ Means for You
In an effort to modernize and streamline its operations, the IRS has unveiled plans to implement ” paperless processing ” of tax returns by 2025. and that “its limited ability to digitally accept these forms prevents the IRS from delivering the world-class service that taxpayers deserve.” By reducing reliance on traditional paper-based methods, the IRS aims to improve the taxpayer experience, improve data accuracy, and expedite refund processing. Here’s what the IRS’s new paperless filing initiative means for you as a taxpayer.
Transition to digital federal tax returns
Traditionally, taxpayers have mailed their returns and supporting documents, resulting in, say, sub-optimal processing times , not to mention the potential errors associated with manual processing. The initiative encourages taxpayers to file their returns electronically through the IRS’ secure online platform or through authorized tax software providers.
However, the IRS notes that taxpayers who wish to file paper returns and correspondence can continue to do so during the 2024 filing season.
Benefits of electronic tax filing
By using digital filing, the IRS aims to reduce processing times, which means faster tax refunds for qualifying taxpayers. Paper refunds can take weeks to process, while electronic refunds usually take a few days.
According to the agency, “Once the paper returns are digitized, data extraction will enable IRS customer support staff to respond to taxpayer questions and resolve issues faster and more accurately.”
The IRS has invested heavily in the security of its online filing systems to protect taxpayer information from potential cyber threats and identity theft. The electronic archive provides a secure channel for the transfer of sensitive data, since encryption protocols exist to protect data during transmission and storage. Taxpayers can access their filed returns and related documentation online at any time, making them easier to record and use in the future. In addition, electronic registrars often receive real-time feedback on potential errors or missing information, reducing the likelihood of returns being rejected and subsequent delays.
What to do if you do not have access to the Internet?
The IRS recognizes that not all taxpayers have internet access or may experience digital literacy issues, and there will still be alternative ways to file and get help. Free, fillable forms are available for taxpayers who prefer the digital option but do not require detailed guidance. In addition, local IRS offices and partner organizations offer free tax assistance programs for those who need help navigating the new e-Filing process.
“This paperless data initiative is key to other customer experience improvements,” Treasury Secretary Janet Yellen said in a speech on Wednesday. “This will allow taxpayers to view their documents, securely access their data, and save time and money.” Let’s hope your next filing season is smoother than ever before – not that that’s saying much .