Quite simply, paper filing taxes refers to the practice of completing printed tax forms using a calculator and a pen, typewriter or word processor. Once the tax forms are complete, they are filed by mailing them to the IRS.

History

The Internal Revenue Service introduced electronic filing (E-Filing) in 1986, and the program became fully operational in 1987. Until then, paper filing taxes was the method used by all taxpayers.

Function

Paper filing taxes continues to serve as an alternative tax filing method for those who simply choose not to file electronically, those who lack access to a computer or who choose not to go to the extra expense of filing electronically.

Significance

Paper filing taxes requires that the data be transferred to electronic form by IRS employees once the returns are received. As a result, paper filing taxes delays receipt of refunds. That, of course, is not a concern for taxpayers who do not receive a refund.

Types

Every year, the IRS continues to mail out millions of tax form packets to taxpayers. For those who wish to paper file taxes, the forms in the packets can be used. IRS tax forms can also be obtained from local IRS offices, post offices and online. Paper filing can also be accomplished by completing fillable forms on the IRS website that can then be printed and mailed in.

Considerations

Paper filing taxes is the least-expensive but the most labor-intensive method. Errors are more common with paper filing, and as mentioned, receipt of tax refunds takes longer than when filing electronically.

Source:

"IRS Publication 17: Your Income Tax (2009);" Internal Revenue Service