Paper filing taxes causes significantly slower processing times (often 6+ weeks), higher error rates due to manual data entry, and increased risks of documents being lost in the mail. It lacks the immediate confirmation of e-filing, results in slower refunds, and requires postage costs, unlike the IRS's preferred, more secure, and faster electronic, or "e-file," method.
Even though e-Filing may seem like a simpler process, paper filing might have less potential security risks than e-Filing. Paper filing allows you to avoid entering personal information on the internet. Information such as your name, address, and Social Security number could be at risk when electronically filing.
The Disadvantages of Paper Filing
Paper filing takes longer to process since it requires postage. Unlike e-filing, which takes a few days, paper filing might take weeks. Also, refunds can take up to six weeks to arrive after filing taxes.
E-filing is the best way for most people to file taxes, but there are cases where you may be forced to paper file. For instance, if your return has been rejected multiple times or you need to complete a form that cannot be e-filed.
E-file is the best way to file an accurate and complete tax return. The tax software does the math for you, and it helps you avoid mistakes. technology. The IRS has safely and securely processed more than 1.2 billion e-filed individual tax returns since the program began.
If you've filed by mail, you'll receive a letter stating that your tax return has been accepted. Until then, your return will be in “pending” status. State returns may take longer to be accepted, staying in “pending” status for several days.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
But what if you're filing a paper return? If you're filing a paper copy of your tax return, the IRS won't technically reject it because of missing or incorrect information. However, your return won't be considered as filed until it's corrected.
There is no change to the filing method of paper tax returns; see File by Paper. For other documents, except POA declarations and TIA forms, filed with us that require original signatures, we will accept: A photocopied, faxed, or scanned copy of the signature page with original signatures.
The IRS maintains that filing returns electronically can prevent mistakes and lower the odds of an audit. The error rate for a paper return is 21%.
Businesses may need to train their staff to use the digital systems effectively and ensure compliance with MTD regulations. This can take time and effort, and may initially slow down productivity as staff members adjust to the new processes. Furthermore, there are concerns about data security and privacy.
File electronically and choose Direct Deposit for your tax refund – it's the fastest and safest way to receive your money.
The IRS generally issues refunds within 21 days of e-filing, but paper-filed returns can take 6 to 8 weeks.
Businesses that show losses are more likely to be audited, especially if the losses are recurring. The IRS might suspect that you must be making more money than you're reporting. Otherwise, why would you stay in business? Most likely to be audited are taxpayers reporting small business losses.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
However, while the IRS can go back to any unfiled tax return, they generally don't try to enforce filing requirements for returns older than six years. The only exceptions might be if they: Find signs of fraudulent or illegal behavior. Need the information to inform returns for later tax years.
Effective September 30, 2025, the IRS discontinued the issuance of paper checks for all tax-related refunds. All payments from the IRS will be made electronically via direct deposit, electronic funds transfer, prepaid debit cards, or other approved digital methods.
If you are receiving a tax refund, use the IRS Where's My Refund tool to see if your return was accepted. You can view the status for the past 3 tax years. If you owe money or are receiving a refund, you can check your return status by signing in to view your IRS online account information.
The IRS "Dirty Dozen" is an annual list of the most common and dangerous tax scams, compiled to warn taxpayers about schemes that aim to steal money, personal information, and data, often peaking during tax season but occurring year-round. Key threats on recent lists include phishing emails, bad social media tax advice, fake charities, scams related to COVID-19 relief, fraudulent fuel/family leave credit claims, and "ghost" tax preparers. The IRS urges vigilance against these tactics, emphasizing that these schemes can lead to identity theft, financial loss, and even criminal penalties.