The IRS has announced that it will cease the processing of paper returns at three IRS campuses over the coming years. The three affected locations are Covington, Kentucky, Fresno, California, and Austin, Texas. The IRS has attributed the change to the growth of electronic filing.
Paper return processing is to cease in Covington in 2019. In 2021, paper return processing will discontinue in Fresno and in 2024 in Austin. After 2024, only two locations will process paper returns. According to the IRS, approximately 7,200 employees will have their jobs phased-out. The agency reported that the Kansas City, Missouri, site will focus on individual returns, and the Ogden, Utah location will focus on business returns.
The IRS has projected that ending paper processing in the three locations will result in cost savings of $266 million. Annual savings in subsequent years are projected to be roughly $53 million. The National Treasury Employees Union (NTEU), which represents IRS employees, reported that other operations – including accounts management, compliance, call-sites and automated collection systems – will continue in the three locations.
If you have any questions about paper tax returns, please contact your tax advisor or Sean McKenzie, Principal, Tax Services, at 314.983.1246 or smckenzie@bswllc.com.
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