Thanks to a federal infusion of funds courtesy of the Biden administration, the Internal Revenue Service (IRS) is planning for taxes to be paperless by 2025.
The agency has been buried in paperwork for years but has begun to dig itself out thanks to the $80 billion influx of cash provided by Biden’s Inflation Reduction Act.
So far, that money has funded the most immediate need: more workers for an agency that has been understaffed in recent years. But Wednesday, Treasury Secretary Janet Yellen announced the new “paperless processing initiative” being instated by the IRS.
“Thanks to the IRA, we are in the process of transforming the IRS into a digital-first agency,” she said in a statement.
The official release from the IRS states that the move will “eliminate up to 200 million pieces of paper annually, cut processing times in half, and expedite refunds by several weeks.”
Taxpayers have had the ability for years to file the basic 1040 return digitally, but other processes up until now have required a paper component to be mailed into the bureau. Now fully paperless processing is expected to be integrated in the next two years.
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