When it comes to filing your tax return, spending 41 cents
could be the biggest mistake you ever make. Millions of taxpayers make the mistake of putting their income tax return in a regular letter-sized envelope, sticking on a 41 cent stamp, and placing the envelope in
their mailbox. And millions of taxpayers "get away" with this mistake year after year. Why do give the tax advice that putting your tax return in the mailbox
is a mistake? Let me explain.
What happens after you mail your tax return to the IRS?Every year, a small percentage of mail doesn't get
delivered. The U.S. Postal Service doesn't like to admit
this, but it's true. Furthermore, even if your tax return gets delivered to the IRS, every year a small percentage of tax returns get lost
by the IRS. Don't believe me? I'll never forget the day one of my
clients showed me a letter he received from the IRS: "We regret to inform you that we received your return...
but have lost it." Honest to goodness, this actually happened! So my question
to you is this: What are you doing to do if your
tax return is lost?If your tax return doesn't get delivered, or if it gets
delivered but is subsequently lost inside the mammoth IRS,
what are you going to do to prove that you actually mailed
the return? Just calling the IRS and saying, "Well, I mailed it on
time. I know I did!" isn't going to prove anything. And
the burden to prove you mailed the return on time will rest
on your shoulders. You have two ways to solve this potentially dangerous problem: OPTION #1 : File your return electronically. There are many benefits to e-filing. The one I want you to focus on now is this: When you e-file your return, you
receive an electronic acknowledgement within 48 hours
that the IRS has accepted your return. Bingo! Now you have proof positive that the return was filed. 'Nuff said? E-filing is rapidly becoming the filing method of choice. But the majority of returns are still filed on paper,
so here's a second way to avoid the "missing return"
dilemma. OPTION #2 : If you're a "paper filer", go to the post office and spend a measly $4.05 to send the letter via Certified Mail, Return Receipt Requested. Doing this will accomplish two very important things:
Certified Mail (which costs $2.30) provides the proof
that the return was mailed, and that it was mailed on time, on or before the
due date.
According to the IRS, a paper return is filed on time if it
is mailed in an envelope that is properly addressed and postmarked by the due date. When you use Certified Mail, you will get a receipt postmarked by the postal employee, and that date on the receipt is the postmark date.
So, should the return get lost by the IRS, or if the IRS questions whether you
mailed it on time, you will have written proof.
Plus, every piece of
Certified Mail is assigned a tracking number which can then be traced by the
U.S. Postal Service should a problem arise.
Return Receipt provides another level of insurance.
For an extra $1.75, when the letter is delivered, the IRS must sign or stamp a
receipt that documents the date of delivery. This receipt then gets mailed
back to you, so that you now have the written proof that the IRS received
it.
Technically, you only need to send the return via Certified Mail to prove that it was
indeed mailed on time. But I really like the Return
Receipt as well -- it gives you that extra "peace of mind"
to know that the IRS received it. And you'll know
exactly what day it was received. This is the proof of
delivery. So don't run the risk of having your tax return get lost in the mail. And don't run the risk of having your tax return get lost in the piles and piles of paper that flood the IRS each
year. Think about it. Well over 100 million personal income tax
returns are filed with the IRS every year, and the majority
of them are still prepared on paper and mailed by the U.S.
Postal Service. The U.S. Postal Service and the IRS are staffed by
hard-working people who are only human. People make mistakes.
To greatly reduce the chance of a mistake being made with
your return, don't you make the mistake of just putting your
tax return in the mailbox. Instead, e-file it, or take it to the post office and send it Certified Mail, Return Receipt Requested. It could
be the best $4.05 you ever spent!
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