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IRS decision costs the Postal Service millions – Fedline – The Federal Times Blog – federal news, government operations, agency management, pay & benefits

January 30th, 2012 | IRS Postal Service | Posted by Sean ReillycloseAuthor: Sean Reilly Name: Sean ReillyEmail: Site: About: See Authors Posts (178) Seldom does one federal agency save money at another’s expense.  But that’s how it’s looking more than a year after the Internal Revenue Service opted to stop delivering millions of income tax forms by mail.The IRS announced the  decision in September 2010 as part of a push to economize on its annual printing and postage budget.  As of this past August, the savings on postage costs just from not mailing Form 1040 packages amounted to about $4.1 million, according to a  recent report by the Treasury Inspector General for Tax Administration. That was money lost to the U.S. Postal Service, which is in financial crisis driven partly by the shift to e-mail and electronic commerce.The Postal Service recouped about half of that amount because the IRS used postcards to notify taxpayers of the change. But as the report notes, that was a one-time expense. And the report doesn’t attempt to quantify what the Postal Service will lose from the additional taxpayers who go with the IRS’ advice to “e-file” their annual returns.   Tags: IRS. U.S. Postal Service

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