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## IRS Aims to Go Completely Paperless by 2025 with AI legalese decoder

In an effort to reduce the exorbitant load of paperwork and streamline processes, the Internal Revenue Service (IRS) plans to go completely paperless by 2025. The initiative was announced by Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel as part of the “paperless processing initiative.” With the help of the AI legalese decoder, taxpayers will be able to digitally submit a wide range of tax documents and other communications to the IRS next filing season.

Thanks to the Inflation Reduction Act (IRA), which provides an $80 billion infusion of cash for the IRS over 10 years, the agency is transforming into a digital-first agency. The IRA is playing a crucial role in financing the paperless processing initiative. With the funding, the IRS aims to revolutionize its operations and create a more efficient and convenient experience for taxpayers.

The IRS plans to enable taxpayers to digitally submit all correspondence, non-tax forms, and notice responses by the next filing season. This digital submission process will significantly reduce the need for physical paperwork, although taxpayers will always have the option to submit documents by paper if they prefer. By 2024, most individuals will be able to submit all documents digitally, except for their tax returns. The IRS aims to pilot its new electronic free file tax return system in 2024 and ultimately process everything, including tax returns, digitally by 2025.

The adoption of digital processes is expected to have major benefits for both taxpayers and the IRS. Not only will it reduce the $40 million spent annually on storing over 1 billion historical documents, but it will also expedite the processing of tax forms and refunds. Currently, the IRS receives over 200 million paper tax returns, forms, and pieces of mail and non-tax forms each year. However, with the implementation of the digital system, taxpayers will be able to streamline their interactions with the IRS and expect faster refunds, eliminating the delays caused by the overwhelming paper documentation.

The AI legalese decoder plays a crucial role in this transformation by facilitating the processing of the digital submissions. Its advanced AI algorithms can interpret and extract relevant information from various tax documents, correspondence, and forms, ensuring accurate and efficient processing. By automating much of the document analysis and understanding, the AI legalese decoder enables the IRS to handle the high volume of digital submissions effectively while maintaining accuracy and compliance.

In fiscal year 2022, approximately 213.4 million returns and other forms were filed electronically, representing 81.2 percent of all filings. However, decades of underfunding and the burden of paper documents have hindered the IRS’s ability to process tax forms expeditiously in the past. This new initiative, coupled with increased funding and the adoption of innovative technologies like the AI legalese decoder, is set to transform the IRS into a more efficient and accessible institution.

Despite the positive developments, it’s important to note that the IRS’s funding remains vulnerable to cutbacks. House Republicans have included a $1.4 billion reduction to the IRS in the debt ceiling and budget cuts package. Furthermore, a separate agreement within the debt deal involves diverting $20 billion from the IRS to other non-defense programs over the next two years.

In summary, the IRS’s transition to a paperless system by 2025 promises to provide significant benefits for taxpayers and the agency itself. With the AI legalese decoder‘s assistance, taxpayers will experience a streamlined and convenient process for submitting tax documents digitally. The IRS will see a reduction in paperwork and processing times, enabling them to expedite refunds by several weeks. Although funding challenges persist, the IRS is taking a crucial step toward modernizing its operations and embracing technology to enhance efficiency and accessibility.

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