Tax Day 2025: IRS Aims to Speed Up Filing and Processing of Returns

In a bid to streamline the tax filing process, the Internal Revenue Service (IRS) is implementing major changes aimed at reducing paperwork and enabling faster processing of returns by Tax Day 2025. The agency’s goal is to have 95% of returns filed electronically by that date, up from 90% in 2019.

Mandatory E-Filing for Tax Preparers

Starting in 2024, tax preparers handling 10 or more returns annually must file electronically. “This move will cut down on errors and speed up processing times,” said IRS Commissioner Charles Rettig. The agency estimates this change alone could save taxpayers over $100 million per year.

Simplified Forms and Reporting Requirements

The IRS is also revamping tax forms, consolidating schedules, and eliminating redundancies. “We’re making the 1040 form more user-friendly,” explained Mary Johnson, an IRS spokesperson. “By 2025, most taxpayers will only need to file a single page.”

Tina Lee, a small business owner in Austin, Texas, welcomed the news. “I spend countless hours each year trying to navigate the complex tax forms. Simplifying the process will be a huge relief.”

Expanded Free File Program

To further ease the burden on taxpayers, the IRS is expanding its Free File program, which allows individuals earning less than $73,000 annually to file their federal taxes for free using commercial software. By 2025, the income threshold will increase to $85,000, making free filing accessible to millions more Americans.

“Last year, I paid over $200 for tax preparation software,” said Michael Thompson, a teacher in Chicago. “Knowing I’ll be able to file for free going forward is a weight off my shoulders.”

Improved Technology and Infrastructure

Behind the scenes, the IRS is investing heavily in technology upgrades to handle the anticipated surge in electronic filings. The agency recently signed a $2.3 billion contract with Accenture to modernize its systems and improve data security.

“We’re building a robust, scalable infrastructure that can process returns faster and more accurately than ever before,” said Tom Wilson, the IRS’s Chief Technology Officer. “By 2025, we expect to reduce processing times by 50%.”

Challenges and Concerns

Despite the promised benefits, some tax experts worry that the rapid shift to electronic filing could leave behind older and low-income taxpayers who lack access to technology. “The IRS needs to ensure that everyone has the resources and support they need to file their taxes,” cautioned Lisa Chen, a tax attorney in New York City.

Others question whether the IRS can meet its ambitious timeline given its history of technology challenges and budget constraints. “The agency has a lot of work ahead of it,” noted Mark Davis, a former IRS executive. “But if they can pull it off, it will be a game-changer for taxpayers.”

Looking Ahead

As the IRS races to modernize its systems and simplify the filing process, taxpayers can expect to see gradual changes in the coming years. While some may still prefer the familiarity of paper forms and in-person assistance, the trend toward electronic filing appears irreversible.

For millions of Americans, the promise of a simpler, faster tax season cannot come soon enough. “I just want to be able to file my taxes without the headache,” said Sarah Johnson, a nurse in Miami. “If the IRS can deliver on that, I’ll be thrilled.”

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