With the IRS achieving its key paperless processing initiative goal, taxpayers can now digitally submit all responses three months ahead of schedule.
The United States Department of the Treasury has announced that the IRS has reached its first objective in the Paperless Processing Initiative by enabling taxpayers to digitally send all correspondence and replies to notices. The Document Upload Tool was launched in Feb. 2023, and the IRS has received over 35,000 responses to notices so far. This marks the first time over 94% of taxpayers will no longer need to send mail to the IRS, according to a press release by the department. It allows up to 125 million paper documents per year to be submitted digitally. Moreover, they mentioned that an updated version of the Where's My Refund tool will offer more detailed refund status messages and operate smoothly on mobile devices. The new features on this tool are expected to benefit taxpayers during the filing season in 2024 as it will provide a more detailed refund status message and updates on their refunds.
In addition, the IRS intends to enhance phone service and transparency with taxpayers. During filing season, they plan to maintain an average call wait time of five minutes or less, provide an 85% level of service on their helpline, and ensure a 95% call back availability option if wait times exceed 15 minutes. To further increase transparency, community assistance visits will be hosted by the IRS during filing season 2024 allowing face-to-face interactions between taxpayers and IRS customer service representatives.
According to another press release from The United States Department of Treasury, Direct File is a new feature that allows taxpayers free e-filing for their federal tax returns directly with the IRS. This tool operates across various digital devices including mobile phones, laptops tablets and desktop computers offering services in English and Spanish from next year onwards specifically targeted towards low- to moderate-income working individuals who take standard deduction. Furthermore, eligible taxpayers can claim a series of benefits including the Earned Income Tax Credit, Child Tax Credit and deductions for educator expenses and student loan interest. The IRS will introduce Direct File in a phased manner, with initial stages being invitation-only. "Based on current projections, the IRS anticipates that at least several hundred thousand taxpayers across the country will decide to participate in the pilot", stated The United States Department of Treasury.
