Summary
The IRS recently announced a new plan to digitize most tax forms by 2025. Here’s what that means for you and how it differs from a previous digital plan the IRS announced earlier this year.
Listen
Links
Transcript
If you filed a tax return on paper the last few years, you’ve probably noticed it takes a long time for the IRS to process the return and send your refund check. Fortunately, the IRS is catching up on that paperwork, but they also announced a plan that would allow many more people to file electronically.
For Personal Tech Media, this is Two Minute Tech. I’m Jim Herman.
Earlier this month, the IRS announced a plan to allow all taxpayers to submit documents and correspondence digitally. The agency will begin with the most used tax forms and correspondence. The IRS also said that since a number of taxpayers only use the internet through a mobile phone, making the forms available in a mobile-friendly format is a priority.
The IRS says the conversion to digital processing could eliminate up to 200 million tax forms and other documents that must be sent by mail right now. With digital processing, the IRS hopes to lower processing times, enabling the agency to process refunds faster. The agency also said that this conversion will allow customer service to access information from the taxpayer’s return and other correspondence so that it can better respond to inquiries.
This announcement came on the heels of another report earlier this year that some taxpayers would be invited to participate in a pilot program involving submitting tax returns directly to the IRS. This system would allow taxpayers to bypass accountants and tax prep software and file their taxes through the IRS website. The program could roll out to more taxpayers in future years.