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IRS’ New Paperless Processing Initiative Targets Digitalization Starting 2024; Janet Yellen Quoted

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IRS’ New Paperless Processing Initiative Targets Digitalization Starting 2024; Janet Yellen Quoted
Janet Yellen

The Internal Revenue Service has initiated the next step of its digitalization plan – an effort that would give taxpayers the option to go paperless beginning in the 2024 tax filing season.

On Wednesday, the agency shared that it expects the initiative to enable individuals to electronically submit their selected tax forms as well as non-tax forms, notice responses and other correspondence by Filing Season 2026.

“This ‘Paperless Processing’ initiative is the key that unlocks other customer service improvements,”commented Treasury Secretary Janet Yellen.

“It will enable taxpayers to see their documents, securely access their data, and save time and money. And it will allow other parts of the IRS to rely on these digital copies to provide faster refunds, reduce errors in tax processing, and deliver a more seamless and responsive customer service experience,” Yellen explained.

With the digitalization of non-tax document submissions, the IRS expects to convert 125 million paper files and accommodate 94 percent of taxpayers online instead of by mail per year.

The electronic filing of 20 additional tax forms, including amendments to Forms 940, 941 and 941SSPR, is expected to result in the paperless processing of 4 million documents per year.

The agency is working toward electronically processing all paper-filed information and tax returns by the 2025 filing season. This would amount to 76 million documents being digitally processed every year, reducing times to refund taxpayers.