The Pros and Cons of Paper Filing Taxes

Filing taxes by mail is the traditional method of submitting tax returns to the Internal Revenue Service (IRS). While most taxpayers now file electronically, paper filing remains a valid option. The choice between paper and electronic submission carries differences in processing time, security, and personal effort.

Advantages of Paper Filing

For some taxpayers, the appeal of paper filing lies in data security. This method avoids transmitting sensitive personal information, like a Social Security number and financial details, over the internet. By keeping the process offline, individuals may feel they have more control over their data, reducing concerns about security breaches or identity theft.

Paper filing is an accessible option for individuals without reliable internet access or those who are not comfortable using computers, ensuring all taxpayers can meet their obligations. The process also creates a physical copy of the exact return sent to the IRS. This provides an immediate, tangible record for personal files without needing to print from a software program.

Disadvantages of Paper Filing

A major drawback to paper filing is the longer processing time. An electronically filed return is processed by the IRS within days, but a paper return must be manually entered into the system, which can take weeks. Consequently, tax refunds are delayed. Taxpayers who e-file with direct deposit often receive refunds within 21 days, whereas paper filers may wait six to eight weeks or longer.

Paper returns have a higher error rate than electronically filed returns. Tax software has built-in calculators and error-checking features that identify mistakes before submission. A paper filer must perform all calculations by hand, increasing the likelihood of mathematical errors that can cause processing delays or IRS correspondence.

Another disadvantage is the lack of immediate confirmation of receipt. When e-filing, the taxpayer receives an electronic acknowledgment from the IRS, often within 24 hours. Paper filers face uncertainty and the risk of the return being lost, damaged, or delayed in the mail, which could lead to late-filing penalties even if mailed on time.

Preparing Your Paper Tax Return

To begin, collect all necessary income statements, such as Form W-2 from employers and various Form 1099s for other income sources. You will also need records for any deductions or credits you plan to claim. Once you have your documents, obtain the correct tax forms for the filing year, most commonly Form 1040.

You can get official IRS forms from the IRS website at IRS.gov to download and print. You can also order forms by phone at 1-800-TAX-FORM (1-800-829-3676) to have them mailed to you. Many local libraries and IRS Taxpayer Assistance Centers offer printed copies of common forms during tax season. It is important to use the forms for the correct tax year, as they change annually.

Complete the return legibly and accurately. You can fill out a printable PDF form on a computer before printing or complete it by hand using black ink. Transfer all figures from your W-2s and 1099s carefully, and double-check all mathematical calculations to prevent errors. Sign and date the return, as an unsigned return is invalid and will halt processing.

Submitting Your Paper Tax Return

After completing and signing your return, assemble the package correctly.

• Place the primary form, such as Form 1040, on top.
• Attach any required schedules in order of their sequence number, found in the upper-right corner.
• Attach federal tax withholding documents, like Form W-2, to the front of the return.
• Include a check or money order loosely in the envelope with a completed Form 1040-V, Payment Voucher, instead of stapling it to the return.

Finding the correct mailing address is an important step. The address is determined by the state you live in and whether you are enclosing a payment. The IRS provides a “Where to File” page on its website that lists the mailing addresses for Form 1040 filers based on these criteria. Using the wrong address will delay processing.

Mail your completed tax return to the appropriate IRS address. To get proof that you sent your return before the deadline, consider using a service like USPS Certified Mail. This provides a mailing receipt and delivery confirmation, which can protect you from late-filing penalties if your return is lost. You can check your refund status using the “Where’s My Refund?” tool on the IRS website, but information for paper returns will not appear for about four weeks after mailing.