TAXES, THE OLD-FASHION WAY

Tax season is here and that means a host of articles and columns about computerized tax packages, online filing, commercial tax preparers, and the like. What you won’t find is much about the way a sizeable number of taxpayers still prepare tax returns: on their own with pencil, pen, paper forms, and a printed edition of this year’s IRS instruction book. That’s right, in the digital age some folks are still doing taxes the old-fashion, pre-computer way.

What’s wrong with these people? Who are these Neanderthals? Yes, many of them cannot be described as “young.” Their ranks probably contain proportionally fewer facebookers, twitterers, and app addicts than do the ranks of electronic filers. But that does not mean they are computer illiterate. Indeed, some of them are actually pretty good on the keyboard and can click a mean mouse.

Familiarity is one explanation for staying with paper. When you’ve prepared taxes by hand for two, three, four or more decades, the task is not as formidable as it must appear to a newbie. No contesting the fact that the forms and instructions are humongous. But the humongousness didn’t suddenly appear. It’s been a creeping thing, a little more each year. If you were able to get over the hurdle ten or so years ago when the IRS made a major thing of having taxpayers do preliminary calculations on worksheets in the instruction book—for example, the Unrecaptured Section 1250 Gain Worksheet or the (and this one’s a killer) Schedule D Tax Worksheet—you’re probably hooked. You will be doing taxes by hand until the Grim Reaper calls or your children conclude you’ve become too addled for driving a car, feeding yourself, or keeping track of finances.

Another reason for the old-fashion approach is Black Box Fear. What is actually happening inside those computerized tax packages? Why do different packages come up with different, although usually close, bottom lines? Computers certainly have many beneficial aspects. But they have also given us cars that mysteriously accelerate or suddenly lose the ability to stop. And they have given us financial engineers who in turn gave the financial system a brutal knee to the groin. The financial system is still doubled over from that little gift.

So Black Box Fear keeps some taxpayers attached to those tangible forms and instructions. If a calculation produces something odd, at least an individual with a little—or maybe a lot of—patience can work his or her way back through the procedure and the numbers.

There are other reasons for doing taxes oneself. Cheapness—damned if I’m paying money to have my taxes done. Cantankerousness—think you’ve made it too tough for me, eh? Inquisitiveness—how complex has Congress and the IRS made things this year?

Whatever, the reason, a tax underground exists, an underground of cheap masochists fighting a rear-guard action against the advance of the digital age. Form 1040, prepare to meet thy master.