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.
- 2018 IRS Form 1040 DRAFT: Proposed new 1040
- DRAFT Schedule 1: Additional Income and Adjustments to Income
- DRAFT Schedule 2: Tax
- DRAFT Schedule 3: Non-refundable credits
- DRAFT Schedule 4: Other Taxes
- DRAFT Schedule 5: Other Payments and Refundable Credits
- DRAFT Schedule 6: Foreign Address and Third Party Designee
– 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:
- Increased taxpayer burden
- More forms = larger burden
- What happened to the Paperwork Reduction Act?
- Paid preparers charge by the form
- More paper-filed returns = greater opportunity for theft
- Processing more paper forms with corresponding schedules?
- More forms & schedules to print
- Things get lost when you move them around
- It’s easy to forget to fill out a schedule