IRS To Digitize Taxpayer Documents

The US Treasury Department has announced that taxpayers will be able to choose paperless options for Internal Revenue Service (IRS) correspondence starting from the 2024 filing season. By 2025, the IRS aims to process all tax returns digitally, reducing processing times and expediting refunds. Offshore paper documents will be digitized upon receipt. The move is expected to simplify taxpayer access to data, reduce errors, and provide quicker responses to questions. The IRS will introduce e-filing for an additional 20 tax forms, aiming to eventually offer over 150 forms in digital, mobile-friendly formats. This transition is projected to save costs, improve efficiency, and assist in detecting tax evasion through advanced analytics and pattern recognition. However, the transition might raise data privacy concerns and could be affected by budget cuts.