New Initiative Launched by IRS
The Internal Revenue Service has announced a new initiative called “Paperless Processing”. This initiative’s objective is that by 2025 to allow all tax returns to be filed electronically. Another objective is that by 2024 to allow taxpayers to go paperless for the IRS correspondence. As a result, it will not be necessary to print and mail your paper forms to the IRS. Currently you are able to e-file some tax returns and forms, but with this initiative you will be able to e-file 20 additional tax forms.
Why IRS Wants to Adopt This Initiative?
The IRS wants to make an easy process for the taxpayers who will now be able to digitally submit forms. The IRS also want to make things easier for its IRS agents who will now be able to digitally process the forms received. In addition, this process will reduce paper waste and will streamline the tax processing.
This initiative is part of the IRS’ efforts to modernize its system and to improve customer service for the taxpayers. This will bring a couple of benefits for taxpayers, including:
- Fewer errors: electronic filing reduces the chances of errors or omissions related to your tax return(s), which can delay refunds or result in penalties
- More security: electronic filing protects your personal information from identity theft or fraud, as paper forms can be lost or stolen in the mail
- More convenience: you, as a taxpayer can file your return(s) anytime, anywhere, using your computer, smartphone, or tablet; you can also use IRS Free File, a free service that offers online tax preparation and filing options for eligible taxpayers
- Access to your data: IRS will digitize up to 1 million historical documents
- Better customer service: customer service will have easier access to IRS database and past paper returns, thus being able to answer more questions and resolve more issues; with this initiative the IRS will be able to process the refunds several weeks faster than it does now
- Better IRS enforcement: having a robust digital database, the IRS can extract data for advanced analytics and pattern recognition methods to go after wealthy taxpayers and big corporations that are trying to evade paying taxes by using complicated tax schemes
Conclusions
The IRS encourages all taxpayers to take advantage of Paperless Processing and file their returns electronically. However, taxpayers who prefer to file on paper can still do so. The IRS will continue to accept and process paper returns. But they warn that the taxpayers may experience longer processing times and delays in receiving their refunds.
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This material is for informational purposes only. It does not constitute tax, legal or accounting advice.