PUNCHED OUT TABS

A system and method are provided for creating tabs from regular cut-sheet stock after printing by partially punching out a section of a sheet and folding the punched out section back on itself at the remaining side. The location of the punched out section is such that when folded back, a portion of the punched out section sticks out beyond the border of the original paper size. Tab labels may be printed on the back side of the sheet so that when folded out, the tab label is in the correct orientation, i.e., facing front on the folded out tab. The punch head, which is used to punch out the section of the sheet, may be oriented flexibly and moved outboard or inboard. Tabs may be cut and folded to produce a readable set of tabs along any of the top, bottom, lead or trail edges of a sheet.