TAP 04-006

Free File Record Retention

Statement of Issue:

Although the Internal Revenue Service (IRS) does not require the individual taxpayer to archive their tax return by either saving the return on a disc or by printing a copy, it is prudent to retain tax returns for at least three years. Since taxpayers should archive their tax returns, it is unfortunate that this has not been incorporated as a free service by the FreeFile Alliance.

Proposal:

The IRS should negotiate immediately with the participating FreeFile Alliance to provide taxpayers free archiving and printing of tax returns. Before starting the electronic filing process, the taxpayers should be informed of the additional cost to maintain the appropriate records.

Response Notes:

In response to similar feedback, the IRS now requires all Alliance members to allow taxpayers who qualify for their free service to print out a copy of their federal return for free. This capability must be provided for the same period of time that such services are provided for free to paying customers.