IRS paperless policies are making filing even more taxing

This time of year, citizens across Northern Michigan and all around the country, are busy with work, family, and, perhaps a bit of spring cleaning.  It is also tax season, and I’ve heard this year from many constituents in Northern Michigan about how this already cumbersome process has become even more confusing.   

A few weeks ago, I spoke with residents at a local library in Gaylord about the hardships they have been facing with tax preparations.  The message was clear in that tax filing process is becoming even more complex.  For the first time, all Americans will need to learn how the President’s health care law impacts their tax status. 

{mosads}In true bureaucratic fashion not only are the regulations getting more complex to comply with, but getting the basic instructions on how to do your taxes is getting more difficult.  

The IRS stopped publishing paper versions of basic tax instructions for individual filers.  Known as Publication 17, the Tax Guide for Individuals, this document includes most of the information that families and individual filers need to complete their own taxes.  The only place to find the instructions on paper is through Government Printing Office, where a hard copy version can be ordered for $23.   

This move makes it significantly more difficult for the more than 9 million Americans who still prefer to file their returns through the mail. More concerning, it completely overlooks the needs of the quarter of American households without Internet access, not to mention the 45 percent of senior citizens without a computer.  

While some would argue that budget cuts have forced IRS officials to make tough decisions, others will rightfully question how IRS is spending their resources on politically motivated activities.  But one thing we can agree on is that we can’t transfer the cost directly to Americans who need help the most.  As National Taxpayer Union spokesman Pete Sepp notes, “Until we simplify the tax code, some basic publications will have to be made available in print.” 

While the IRS’ goal may be to drive more taxpayers to e-file, the reality is that e-filing remains virtually impossible for many rural areas in Northern Michigan, and over a quarter of the American population.  According to 2010 Census data, more than 25 percent of American households have no regular Internet access. These Americans need to file their taxes on paper, and they need access to paper tax forms and instructions to do so. 

And while e-filing may seem cheaper for the IRS, recent experience has shown that it is neither inexpensive nor 100 percent safe for taxpayers. Earlier this month, a surge of fraudulent returns forced one major tax software provider to temporarily suspend its state e-filing activities. The FBI is currently investigating the breach, which reportedly involved the theft of personal data from old tax returns. 

Tax-time fraud is not an isolated incident.  Recent years have shown a spike in identity theft and fraud directly linked to online tax filing. The Government Accountability Office testified before the U.S. Senate that the IRS has seen a 400 percent increase in these criminal activities since 2008 as a direct result of e-filing.   

While the IRS claims it will save $1 billion dollars over 10 years by promoting e-filing, the reality is that the agency is losing up to $5 billion each year due to e-filing scams and  fraudulent refunds in the form of non-traceable debit cards.   

With such rampant fraud the IRS should give taxpayers a choice in how they file, not corral them into e-filing by taking away paper forms and instructions.  The government is right to have robust Internet services for those who can use them.  But it cannot ignore the very real needs of a significant population that is not connected to the digital revolution. 

I am committed to supporting the needs of those citizens in our region and across the United States who choose, for whatever reason, to file paper returns.  It is my belief that the IRS should make basic information for individual tax filers publically widely available in both paper and electronic formats.  Americans should have a clear choice in how they file their taxes and the appropriate guidance to do so.  

Benishek has represented Michigan’s 1^st Congressional District since 2011. He sits on the Agriculture; the Natural Resources; and the Veterans’ Affairs committees.