Friday, September 24, 2010

IRS stops mailing out tax packages

Individual and business taxpayers will no longer receive paper income tax packages in the mail from the IRS. These tax packages contained the forms, schedules and instructions for filing a paper income tax return.

The IRS is taking this step because of the continued growth in electronic filing and the availability of free options to taxpayers, as well as to help reduce costs. In early October, the IRS will send a postcard to individuals who filed paper returns last year and did not use a tax preparer or tax software. The information will explain how to get the tax forms and instructions they need for filing their tax year 2010 return. The forms and instructions will be available in early January 2011.

Beginning January 1, 2011, most tax preparers will be required to e-file their clients' individual and fiduciary income tax returns.

I believe this is a positive step to reduce use of papers.