Draft 1040 Sparks Discussion

The IRS has released a draft of a revised Form 1040 for the 2019 tax season. The revised form is about half the size of the current version and would replace the current Form 1040, 1040A and 1040EZ. The IRS describes the new form as using a “building block” approach, which can be supplemented with additional schedules as needed. Click here to view current drafts of Schedules 1-6, courtesy of NAEA.

Although the IRS has characterized the revised Form 1040 as streamlined and simple, there has been much lively discussion in the tax professional community regarding possible complications. NAEA’s June 29, 2018 E@lert provides an overview of preparer concerns:

“Does the new form really make preparing a tax return easier? What does this new form mean for states, which largely align their tax form with federal forms? Will the changes disrupt tax agency programming for the upcoming filing season? Where are alimony, business income, capital gains, student loan interest, teacher supply costs, and other income, expenses and credits reported? The answer to the last question, of course, is worksheets - many, many worksheets.”

As NAEA Executive Vice President Robert Kerr, EA noted in a recent email to Members, "Keep in mind that even for the tiny slice of taxpayers accustomed to filing paper forms, lines eliminated from the old Form 1040 will now be spread across multiple worksheets, a change likely to confuse taxpayers and increase errors."

Learn more about changes to the Form 1040 in Forbes’ June 30, 2018 article, “Here's How the New Postcard-Sized 1040 Differs from Your Current Tax Return.”

NAEA intends to provide formal comments on the revised Form 1040 and the new schedules. Please send NAEA your thoughts on these by July 13, 2018.