New milestones in Paperless Processing Initiative: 225 times more forms scanned than in 2022, 51 additional forms and letters available for online response
IR-2023-148,

New improvements to customer callback option to better serve taxpayers during high call volume, customer callback option will now be available for up to 95% of callers seeking live assistance
WASHINGTON — One year into its modernization efforts under the Inflation Reduction Act, the IRS has made significant progress toward its goals of delivering world-class service, upgrading its technology and ensuring high-income taxpayers, large corporations and complex partnerships pay taxes owed.

As the IRS marks the anniversary of the Inflation Reduction Act, it is announcing two new milestones as part of its Paperless Processing Initiative: Scanning 225 times more forms than in 2022 and enabling taxpayers to reply to an additional 51 forms and letters online.

In addition, the IRS has met its targets to further improve its customer callback option, so taxpayers do not need to wait on hold during periods of high call volume. The customer callback option will now be available for up to 95% of callers seeking live assistance.

Dramatically improved service in filing season 2023
Thanks to Inflation Reduction Act resources, the IRS delivered dramatically improved service in Filing Season 2023. IRS achieved an 87% Level of Service on its main taxpayer help line.

Through the end of Filing Season 2023, IRS answered 3 million more calls, cut phone wait times to three minutes from 28 minutes, served 140,000 more taxpayers in-person, digitized 80 times more returns than in 2022 through the adoption of new scanning technology, cleared the backlog of unprocessed 2022 individual tax returns with no errors, launched two new digital tools and enabled a new direct-deposit refund option for taxpayers with amended returns.

New paperless processing initiative to eliminate paper backlogs, speed refunds – 225 times more scanned returns than 2022
Using Inflation Reduction Act resources, the IRS launched an ambitious plan — the Paperless Processing Initiative — to ensure that by Filing Season 2024 taxpayers will be able to go paperless if they choose to do so, and by Filing Season 2025, the IRS will achieve paperless processing digitizing all paper-filed returns when received. In effect, this means all paper will be converted into digital form as soon as it arrives at the IRS.

The IRS has made significant progress scanning and e-filing paper returns. The IRS has scanned about 849,000 forms this year, including about 481,400 Forms 940, 304,000 Forms 941, and 64,000 Forms 1040. This is 225 times more forms than were scanned the previous year.

Customer callback option expanded to further improve phone service, now available for up to 95% of callers seeking live assistance
The IRS announced it has expanded the availability of its customer callback option to cover up to 95% of callers seeking live assistance. Expanding customer callback is one of several improvements to taxpayer service outlined in the agency’s Strategic Operating Plan.

The main goal of the customer callback feature is to enhance the taxpayer’s experience by giving them more options when the call volumes are high. The expansion included adding the customer callback option to an additional 73 toll-free applications, bringing the total number of applications with an option for customer callback to 116 taxpayer-facing applications.

New ability to respond to notices and file online
Taxpayers are now able to respond to notices online and have new online filing options. Until Filing Season 2023, when taxpayers received notices for things like document verification, they had to respond through the mail. During Filing Season 2023, taxpayers were able to respond to 10 of the most common notices for credits like the Earned Income and Health Insurance Tax Credits online, saving them time and money.
The IRS is now providing this capability to an additional 51 notices and letters received from the IRS. These updated IRS notices and letters, which taxpayers will receive in the coming weeks, will include instructions that guide them to the appropriate upload tool.
During Filing Season 2023, IRS also launched an online portal to allow businesses to file Form 1099 series information returns electronically. These forms previously needed to be submitted through the mail. Small business owners often prepare their own taxes, rather than hire professional preparers, and this new tool is saving thousands of small business owners time and money.
New voice and chatbots improve the taxpayer experience
IRS offered new voice and chatbots to help taxpayers with a wide range of issues, including securing account transcripts, getting answers to questions about balances due and getting help from the Taxpayer Advocate Service. Whether people call the IRS or visit online, there are new self-service options available around-the clock.

During business hours, many of the IRS voice and chatbots provide an option to connect with a live assistor if needed. In all, the IRS has nine taxpayer-facing voicebots in operation today, in addition to 10 chatbots. To date, taxpayers with balances due have messaged online with Collection chatbots more than 1.6 million times.

More than 13 million taxpayers have successfully called in and gotten information through voicebots. Nearly 24,000 payment plans have been established via voicebots for a total of over $152 million in projected revenue since going live in 2022—eclipsing the project costs of $13 million, giving America’s taxpayers a large return on investment.

New direct deposit refund option
IRS enabled a direct-deposit refund option for 1040-X amended returns. These refunds were previously only available by paper check, delaying taxpayers’ receipt of their refunds.

IRS Notice