The IRS is falling behind on its push to make the agency less reliant on paper, a watchdog found — an issue that has long been the agency’s Achilles’ heel.
The IRS didn’t achieve its goal to digitally process all paper-filed Forms 940, 941, and 1040 by the 2025 tax filing season due to implementation delays and the inability to increase the number of scanned paper tax returns, the Treasury Inspector General for Tax Administration said in a reportTuesday. The 1040 is the individual income tax return, while the 940 and 941 forms are filed by employers.
The agency ...