Today I want to talk to you about some exciting developments from the IRS that will directly impact your tax experience. The IRS has recently unveiled ambitious plans for the 2024 tax season, aiming to offer digital correspondence as part of its decade-long overhaul for improved service, technology, and compliance.
You may be wondering what this means for you. By 2025, the IRS intends to achieve “paperless processing” for tax and information returns used by employers and financial institutions. This move is expected to eliminate up to 200 million pieces of paper annually, cut processing times in half, and speed up refunds by several weeks. Just imagine the benefit of receiving your refunds much faster!
The current system has its flaws, with the IRS dealing with a staggering 76 million paper tax returns and forms each year, along with 125 million pieces of correspondence, responses to notices, and other forms. This has led to delays and added to backlogs. The agency even spends around $40 million annually to store a whopping 1 billion historical documents.
However, the paperless processing initiative is the key to unlocking significant customer service improvements. Treasury Secretary Janet Yellen believes it will allow taxpayers to securely access their data, view their documents, and save both time and money. This means a more seamless and responsive customer service experience for you.
Don’t worry; you’ll still have the option to send paper returns in 2025 if you prefer. However, the IRS is committed to digitally processing 100% of tax and information paper filings, along with half of paper correspondence, non-tax forms, and responses to notices. These changes will expedite refunds, reduce processing errors, and deliver an overall better tax experience.
Experts believe that this initiative is a true game-changer for the IRS. Eric Hylton, the national director of compliance for Alliantgroup, praises the move, stating it will push the organization forward tremendously. Charles Rettig, former IRS Commissioner and board member of K1X, also supports the initiative, as it will preserve limited human resources and allow IRS employees to focus on other service areas.
While the IRS is taking significant steps towards a more efficient future, it’s important to note that they need to allocate more funds for improved technology to achieve their goals fully. But with the support of organizations like the American Institute of CPAs, which has been pushing for these changes, we can be optimistic that these steps will lead to reduced processing times and better overall experiences for taxpayers.
As we look ahead, let’s keep an eye on these developments and hope that the IRS continues to prioritize your convenience and satisfaction. Here’s to a smoother and more modern tax experience for all of us!
IRS unveils ‘paperless processing initiative’ for taxpayers (cnbc.com)
