A small minority of people file paper tax returns; the vast majority, over 90%, e-file, with figures often around 93-95% for electronic filings, meaning only about 5-7% file on paper, though paper filings still represent millions of returns annually and create processing backlogs for the IRS. The IRS aims to increase digital submissions further by enabling more forms and correspondence to be handled online.
There is no change to the filing method of paper tax returns; see File by Paper. For other documents, except POA declarations and TIA forms, filed with us that require original signatures, we will accept: A photocopied, faxed, or scanned copy of the signature page with original signatures.
In recent years, more than 85 percent of individual income tax returns have been submitted electronically. While this percentage is relatively high, almost 20 million returns are still submitted on paper.
During 2022, individual taxpayers e-filed approximately 92 percent of returns received by the IRS. 8 Specifically, 152 million returns were e-filed, while 13.2 million were filed on paper.
The IRS maintains that filing returns electronically can prevent mistakes and lower the odds of an audit. The error rate for a paper return is 21%. The error rate for returns filed electronically is 0.5%.
E-file is the best way to file an accurate and complete tax return. The tax software does the math for you, and it helps you avoid mistakes. technology. The IRS has safely and securely processed more than 1.2 billion e-filed individual tax returns since the program began.
The IRS is phasing out paper tax refund checks for individual taxpayers, effective September 30, 2025. This change affects the 7% of taxpayers who still receive paper checks, requiring them to switch to an electronic refund method.
E-filing is the best way for most people to file taxes, but there are cases where you may be forced to paper file. For instance, if your return has been rejected multiple times or you need to complete a form that cannot be e-filed.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
March 2021 – IRS destroys 30 million paper-filed, informational tax returns.
Almost everyone can file electronically for free on IRS.gov or with the IRS2Go app. The IRS Free File program, available only through IRS.gov, offers eligible taxpayers brand-name tax preparation software packages to use at no cost.
There isn't one single "highest tax paying country" as it depends on what's measured (income, corporate, total tax revenue), but countries like Denmark, Finland, Japan, and Ivory Coast (Côte d'Ivoire) consistently rank highest for top personal income tax rates, often exceeding 50-60%, while nations like Belgium can have the highest overall tax burden on labor (tax wedge) for average earners, with high social security. Nordic countries and some European nations generally have high income taxes, funding extensive social services.
If you electronically file (e-file) your tax return
E-filed tax returns are processed faster than paper ones, and so refunds come more quickly– sometimes within ten days if you ask for a direct deposit or 21 days if you ask to have a check mailed to you.
Businesses that show losses are more likely to be audited, especially if the losses are recurring. The IRS might suspect that you must be making more money than you're reporting. Otherwise, why would you stay in business? Most likely to be audited are taxpayers reporting small business losses.
The IRS started 2025 with just over 102,000 employees. As of mid-2025, the IRS has just under 76,000 employees (including employees who took an early resignation offer but are still considered “employed” through September 2025), according to a report from the National Taxpayer Advocate.
The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly, most audits will be of returns filed within the last two years. If an audit is not resolved, we may request extending the statute of limitations for assessment tax.
The IRS "10k rule" primarily refers to the requirement for businesses and financial institutions to report cash transactions over $10,000 by filing Form 8300 (for businesses) or a Currency Transaction Report (CTR) (for banks), under the Bank Secrecy Act. This rule helps combat money laundering, tax evasion, and terrorist financing, requiring reporting for single transactions or related transactions totaling over $10,000 in cash within a year, with penalties for non-compliance.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
Key Takeaways
If a business intentionally disregards the requirement to provide a correct Form 1099-NEC or Form 1099-MISC, it's subject to a minimum penalty of $660 per form (tax year 2025) or 10% of the income reported on the form, with no maximum.