Modernization plans for paper documents are hindered by funding cuts in the IRS.
High-speed scanners were already purchased by the IRS to digitalize paper documents. (Photo: Managed Outsource Solutions)
Digitalizing Paper Documents
The Internal Revenue Service (IRS) is facing the challenge of digitizing all its paper documents as Americans prepare to file their 2023 federal tax returns. While most people file electronically, the IRS still receives millions of paper documents such as returns and forms through mail.
There are over 1 billion paper documents stored at IRS campuses, and more paper documents will come in with the upcoming tax filing season. Currently, IRS employees manually enter the information from paper documents into the system, leading to transcription errors on about 22% of paper returns in 2021.
This process for the paper documents is time-consuming and could delay taxpayers’ refunds. In 2022, the IRS received $80 billion from the Inflation Reduction Act to invest in scanners and technology for digitization.
According to a published article by SmartNews, they have already purchased 132 high-speed scanners for paper documents and aim to digitally process all incoming paper tax returns and digitize the historical documents by the 2025 filing season. Going paperless could save the IRS $40 million in storage fees annually.
However, ongoing funding cuts, including a $20 billion reduction, may hinder the IRS’s modernization plans for paper documents and ability to provide effective taxpayer service.
Tips For Easier Tax Filing
In a published article by WRAL.com, he IRS has started accepting and processing 2023 federal income tax returns. To make the experience of filing taxes easier, efficient, and inexpensive, tips such as knowing your deadlines, referring to last year’s return, assessing major life changes, etc. should be known by everyone.
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