Page 12 - Investment Advisor - September 2023
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                 WASHINGTON WATCH


                   By Melanie Waddell

                 Irs to digitally Process All returns by 2025



                 Thanks to the funding boost under the Inflation reduction Act, the agency
                 is becoming a digital-first agency, says Treasury Secretary Janet Yellen.































                       he Internal Revenue Service   2025, “the IRS will achieve paperless   By the 2025 filing season, the IRS “is
                       said in early August that the   processing digitizing all paper-filed   committing to digitally process 100%
                 Tagency is tapping its $80 bil-   returns when received.” In effect, the   of tax and information returns that are
                 lion budget boost under the Inflation   IRS said, “this means all paper will be   submitted by paper — as well as half
                 Reduction Act to accelerate paperless   converted into digital form as soon as it   of all paper correspondence, non-tax
                 processing for the 2024 and 2025 tax   arrives at the IRS.”         forms, and notice responses,” Yellen
                 filing seasons.                     Thanks to the Inflation Reduction   continued, as well as digitize “historical
                   Treasury Secretary Janet Yellen said   Act, “we are in the process of trans-  documents that are currently in storage
                 Aug. 2 in a statement that the agency’s   forming the IRS into a digital-first   at the IRS.”
                 “Paperless Processing” initiative “marks   agency,” Yellen noted. By next filing   The agency, according to Yellen,
                 a significant step in our efforts to [digi-  season, taxpayers “will be able to digi-  “receives about 200 million paper docu-
                 tize] IRS operations.”            tally submit all correspondence, non-  ments a year — many of which still
                   The “ambitious plan” will ensure that   tax forms, and notice responses to the   undergo manual processing. It also has
                 by filing season 2024, “taxpayers will be   IRS,” she added; taxpayers, of course,   decades of historical documents that
                 able to go paperless if they choose to do   “will always have the choice to submit   together cost around $40 million a year   Adobe Stock
                 so,” the IRS said, and by filing season   documents by paper.”      to store.”



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