Ongoing processing backlogs of paper-filed returns point to the IRS’ need for a systemwide strategy to increase electronic return filing, the Treasury Inspector General for Tax Administration (TIGTA) said in a recent audit report.
While e-filing of individual returns swelled to 93.4%, leaving 10.6 million filed on paper in calendar 2020, e-filed business returns were only 63.3% of total business returns, leaving more than double the number of paper-filed ones, 22.3 million.
The TIGTA report, dated, May 5, highlights the benefits of using e-filing for both taxpayers and the government. The report also touches on one strategy to modernize paper filing by using barcode scanning. Learn more.