The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have announced significant improvements for the upcoming 2024 Filing Season, following the successful implementation of the Inflation Reduction Act (IRA) investments in 2023. These changes aim to streamline tax processes and enhance taxpayer experiences.
**Key Developments:**
1. **Paperless Processing Initiative Progress:**
– **Digital Correspondence:** The IRS has achieved the first goal of its Paperless Processing Initiative ahead of schedule, allowing taxpayers to digitally submit responses to all notices.
– **Reduction in Mail Dependency:** Over 94% of individual taxpayers will now avoid mailing documents to the IRS, with the potential to digitally process up to 125 million paper documents annually.
– **E-filing Expansion:** By the 2024 Filing Season, 20 additional tax forms will be available for e-filing, including amendments to common business forms.
2. **Enhanced ‘Where’s My Refund’ Tool:**
– The tool will provide more detailed, plain language updates on refund statuses, optimized for mobile devices. This upgrade is expected to reduce the need for direct IRS inquiries.
3. **Improved Phone Service:**
– The IRS aims to maintain an 85% Level of Service with an average 5-minute call wait time on their main helpline. A 95% callback option will also be available for longer wait times.
4. **Expanded In-Person Services:**
– Increased availability at Taxpayer Assistance Centers and community assistance events are planned, along with enhanced in-person tax preparation support.
5. **Launch of Direct File Pilot:**
– A new tool for 2024, Direct File, will allow eligible taxpayers to e-file federal returns directly with the IRS for free. It will support various incomes and deductions and be available in English and Spanish.
6. **IRS Energy Credits Online (IRS ECO) Portal:**
– This new portal facilitates the registration and management of clean energy provisions under the IRA, including clean vehicle credits and monetization features for eligible organizations.
These initiatives, driven by IRA resources, represent the IRS’s commitment to modernizing its services and technology, aiming to provide taxpayers with more efficient, accessible, and user-friendly options for fulfilling their tax responsibilities.
For more detailed information, visit the IRS website.
