July 19, 2018: Prosperity Now Webinar– New 1040 DRAFT

Reporting source: Taxpayer Opportunity Network (Prosperity Now)

In case you missed it, here are our notes from Taxpayer Opportunity Network’s webinar about the new 1040 draft!

If you are not yet part of the Taxpayer Opportunity Network, we encourage you join their email list here.

 

Attachments:

  1. 2018 IRS Form 1040 DRAFT: Proposed new 1040
  2. 2018 IRS Form 1040 Draft Schedules PDF – Document that combines Schedules 1 through 6
  3. 2018 IRS Form 1040 Crosswalk PDF – This document describes the differences line-by-line between the old 2017 F1040 and the newly proposed one
  4. 2018 IRS Form 1040 One-Pager PDF – TON’s concerns about the proposed 1040

 

Notes

– The draft form 1040 and supplemental schedules can be found at: IRS.gov/DraftForms

– The IRS is NOT developing Forms 1040A and 1040EZ for the 2018 tax year. ALL filers will use the new Form 1040.

– If you wish, you can submit your comments about the draft Form 1040 and its impact on Form 1040A or Form 1040EZ to WI.1040.Comments@IRS.gov

– The new Schedules 1 through 6 are not replacing other schedules. These schedules are IN ADDITION to Schedule A, B, C, and so on that we had before.

– TaxSlayer is aiming for minimal disruption on how we input data but the final output on the forms will be different (because the forms are different).

– Not much should change training-wise, except for where things go on the final form. IRS is still figuring out what all the calculations will be on the back-end.

– There will be delays to the Pub. 4012 printed product (printed by end of January). Therefore, training classes before that point will need to use the Pub. 4012 online.

– Filing status will be shown in the upper right hand corner of proposed 1040. “Married filing joint” and “single” are not listed in that corner though (perhaps the assumption is that two people listed on a return automatically mean MFJ and one person only automatically means Single)

 

TON’s Comments from the Webinar

This form does not make filing returns less complicated, but rather the opposite.

Requiring all tax filers to use this form will result in the following:

  1. Increased taxpayer burden
    • More forms = larger burden
    • What happened to the Paperwork Reduction Act?

  2. Increased financial hardship
    • Paid preparers charge by the form

  3. Increased identity theft and other potential security concerns
    • More paper-filed returns = greater opportunity for theft

  4. Increased cost to the government
    • Processing more paper forms with corresponding schedules?
    • More forms & schedules to print

  5. Increase in the number of errors and omissions
    • Things get lost when you move them around
    • It’s easy to forget to fill out a schedule
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