The IRS has scanned more than 120,000 paper Form 940s since the start of this year, a 20-fold increase compared to all of 2022, the agency said earlier this month.
The scanning effort is part of a digital intake initiative, which will soon expand to include scanning of Forms 1040 and 941.
While the vast majority of tax returns are now filed electronically, millions of forms are still filed by paper, resulting in a time-consuming process of manually handling and transcribing these returns, the IRS said.
Having the capability to scan and electronically process paper returns will shorten the processing time for taxpayers who file paper returns. Read more.