The IRS has been working for more than a decade to reach a goal set by the IRS Restructuring and Reform Act of 1998 for 80% of all individual tax returns to be filed electronically by 2007. They didn’t reach this specific goal but they expanded their target to have 80% of all major tax returns (business returns, individual returns, payroll tax returns, etc.) by 2012. The IRS Oversight Board released its Electronic Filing 2010 Annual Report to Congress on Wednesday stating that this goal would not be met either. However, partly due to a new law requiring tax preparers file returns electronically, it is expected that more than 80% of individual income tax returns will be filed by 2012.
In November 2009, President Obama signed legislation that requires tax return preparers that file more than 100 returns for individuals, estates, and trusts in 2011 to electronically file the income tax returns. In 2012, preparers filing more than 11 individual returns must file returns electronically.
What if deep down you’re a rebel and you don’t want to e-file your income tax return this year. It’s OK. You can refuse (choose) not to file electronically and send in a paper return. Potts & Company will help you out. The IRS says a taxpayer can choose to file their return on paper. However, if you choose to file a paper return Potts & Company is required to document your decision by having you sign this statement:
“My tax return preparer, T. David Potts, CPA has informed me that he may be required to electronically file my 2010 income tax return Form 1040 if he files it with the IRS on my behalf. I do not want to file my return electronically and choose to file my return on paper forms. My preparer will not file my paper return with the IRS. I will file my paper return with the IRS myself. I was not influenced by T. David Potts, CPA or any member of his firm to sign this statement.”
In other words, Potts & Company can no longer help you by putting postage on your envelopes, preparing certified mail receipts, or taking your paper returns to the Post Office. Your on your own! Seems rather silly, doesn’t it? (I wonder how much revenue the U.S. Postal Service has lost due to the requirements for electronically filing tax returns?)
If you want to be a rebel, I’m for you. Give ‘em hell. Personally, I like to go through life unnoticed my the IRS. I think my chances to go unnoticed are better by hiding in the crowd. I personally e-file my income tax return.
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