The 1040PC provided a paper-saving method for filing tax returns, by presenting a scannable tax return prepared on a computer. The method didn’t quite catch on, and with the momentum that electronic filing has gained, the IRS feels the time is right for dropping the 1040PC format altogether.

The 1040PC format will not exist in the spring of 2001, and will therefore not appear as an option on computer programs that prepare tax returns. Instead, the IRS is recommending that taxpayers switch over to the e-file format.

President Clinton earlier this year promoted a $10 tax credit for taxpayers who file electronically. This credit has not come to pass, but may yet become law, thus providing another incenetive for taxpayers to use the electronic filing process.