As more and more tax returns are being filed electronically, the need for the IRS to maintain paper submission processing sites has diminished substantially.
As a result, the IRS plans to close three of its five paper submission processing sites by 2024 and to cut roughly 7,200 jobs. The IRS will close its paper submission processing sites in Covington, Kentucky by 2019, in Fresno, California by 2021 and in Austin, Texas by 2024.
The IRS is taking this step in response to a significant reduction in paper tax return filings and to conserve its reduced budget resources. The IRS will continue to maintain two paper submission processing sites, one in Kansas City, Missouri, for individual tax returns and one in Ogden, Utah, for business tax returns. Considering the significant shift to electronic filing in recent years, the IRS’ closing of three paper submission processing sites is not surprising.
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