Starting from the next tax year, a significant transition is underway for most US taxpayers as they will be able to file their taxes entirely paperless with the Internal Revenue Service (IRS). This move is part of the IRS's broader initiative to achieve total paperless processing by the 2025 tax season. The goal is to save approximately 200 million sheets of paper annually and significantly reduce tax processing times.

This transition to paperless filing is not intended to replace existing tax preparation services like TurboTax. However, taxpayers will have the option to switch to paperless filings in 2024, potentially leading to faster refund processing times by several weeks.

The adoption of digital filings will have several benefits for both taxpayers and the IRS. Correspondence that requires document verification will no longer rely on traditional mail, reducing processing times and potential delays. The IRS currently allows taxpayers to submit their Form 1040 online, but the transition to paperless will involve making many other paper-only documents digital, with further advancements in this direction anticipated by 2025.

In response to the growing use of smartphones for computing needs, the IRS will also design forms that are more compatible with smaller screens. The agency estimates that over 94% of individual taxpayers will no longer need to mail any paper documents. By 2025, all mail-in filings to the IRS will be digitized and processed electronically.

Currently, the IRS receives approximately 76 million paper tax returns and forms, along with 125 million other pieces of conventional mail each year. The transition to paperless filing aims to improve efficiency, reduce costs associated with physical document storage, and streamline the tax filing process for both taxpayers and the IRS.