New 1040

Technical topics regarding tax preparation.
#1
philly  
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Does anyone like the new redesigned 1040 ?
 

#2
makbo  
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The folks who legislated it, maybe?
 

#3
LW25  
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makbo wrote:The folks who legislated it, maybe?


Here’s the press release from last year:

Treasury, IRS Announce Development of Postcard-Size Form 1040 for 2019

June 29, 2018

Washington— Delivering on the promise to simplify taxes for the American people, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) today announced that Americans will be able to fill out their individual income tax returns on a single postcard-size form for the 2019 tax season.

The 2018 IRS Form 1040 will replace the current Form 1040, as well as the Form 1040A and the Form 1040EZ. The IRS circulated a copy of the new form and will work with the tax community to finalize the streamlined Form 1040 over the summer.

“As part of the historic Tax Cuts and Jobs Act, this Administration committed to making taxes simple and fair for American families. We are delivering on this promise,” said Secretary Steven T. Mnuchin. “The new, postcard-size Form1040 is designed to simplify and expedite filing tax returns, providing much-needed relief to hardworking taxpayers.”

This simplified Form 1040 will streamline tax returns so that all 150 million taxpayers can use the same form. The new form consolidates the three versions of the 1040 into one simple form. The IRS will still obtain the information from each taxpayer needed to determine their tax liability or refund.


https://home.treasury.gov/news/press-releases/sm421

Here’s the additional verbiage that should have been included in this press release:

Of course, to assist your elected members of Congress in trying to fool the average taxpayer into thinking that this is somehow a simplification, we at the Treasury Department have taken many of the lines that were on the two page long form 1040 for 2017 and we have put them on new schedules, numbered one through 6, so that what was a two page form is really now an eight page form. We realize that your elected representatives are trying to pull a fast one on the average person, but we’ve done the best we can under the circumstances.
 

#4
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philly wrote:Does anyone like the new redesigned 1040 ?


Probably about as much as anyone likes someone coming into their kitchen and mixing up the pieces of a half completed puzzle.
 

#5
makbo  
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It's worth remembering that most DIYers never see the actual IRS forms as filled out, they only see the summary results, usually spread across several screens on their device. Not much will change for them from last year in terms of display. And for pros, anyone really know how many clients actually look at the 1040, let alone other schedules/forms, unless you sit them down and make them?
 

#6
LW25  
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makbo wrote:[ . . . ] And for pros, anyone really know how many clients actually look at the 1040, let alone other schedules/forms, unless you sit them down and make them?


Yeah, who knows how many clients actually study every page of a manual return before signing it and mailing it?

I'm guessing that the people who will be most affected by the "chopped up" 2018 Form 1040 will be individuals who prepare their own returns manually -- without a computer, using just the paper forms and the instructions. However, these days, I guess folks like that are becoming a smaller minority.
 

#7
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Who you callin' a "smaller minority"?

I am just as big as I ever was!

And just to make it clear: in addition to the paper forms and instructions, I also use a slightly dull number two pencil to prepare my returns. In flagrant disregard, likely, of any IRS instructions to use a black or blue ball-point pen, right? And then I sign and submit a *photocopy* of the pencil originals. No complaints yet, and I've been doin' it this way for years and years.
 

#8
LW25  
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Harry Boscoe wrote:[ . . . ] I also use a slightly dull number two pencil to prepare my returns. In flagrant disregard, likely, of any IRS instructions to use a black or blue ball-point pen, right? And then I sign and submit a *photocopy* of the pencil originals. No complaints yet, and I've been doin' it this way for years and years.


Yep, that's the way we prepared many returns back when I started in public accounting, nearly 40 years ago: Fill out the actual paper forms with a number 2 soft lead pencil, photocopy them, and send the photocopy to the client for signature.

At that time, we used the pencil process mainly on 1041, 1065, 1120 and 1120S returns. Even 40 years ago, many of our 1040 returns were being done on a computer -- except that there were no personal computers. We filled out dorky computer input sheets, and the input sheets had to be sent -- by bus -- to New Orleans, for processing. In a few days, we received the "final" Form 1040. Sometimes there were further changes, and it went back to New Orleans, etc.

Some of our 1120 and 1065 returns were done in a similar way -- I think we used "Fasttax" (spelling?), based in Dallas I think. I always hated the Fasttax imput sheets, They did not bear much similarity to the actual IRS forms.

I started at a fairly large local firm and, even though I was officially in the audit department, I (like almost everyone else in the firm) prepared tax returns. I think I counted about a hundred returns that I prepared in my first tax season, from the beginning of February to April 15.

One great thing about doing so many returns manually, with pencil, was that you really, really learned the nitty gritty of how all the numbers flowed and inter-related.
 

#9
CrowCPA  
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Yes, folks. I can attest to the fact that we did it that way. I worked for a local firm when I started at this 40 years ago. We used the pencil then photo copy method for all returns. And back then copiers were not as good as they are today. You had to have special paper. And they smelled bad.

LW's comment in boldface above is right on target. This is not simplification for most. Except for the fact that most taxpayer will no longer have itemized deductions it is all smoke and mirrors. And in some states parts of the itemized deductions still impact the state returns.
 

#10
Dennis2  
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50 years ago, before the photocopier, we used carbon paper...♫. 40 years ago we had a computer {Commodore 64) for 1040,w..
and a photocopier.
 

#11
EADave  
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Oh yes, I too remember the old days when kids “played outside” instead of on their devices for 8 hours a day; adults too.

But that soft #2 pencil just got to me. Almost like nails on a chalk board; I just couldn’t bare it in school. I just had to be the nerd with the Bic .007 lead, even though the teacher would give me scowls for doing so. And you also had to sharpen the #2 just to have a freshly sharpened pencil break as you applied pressure to the paper; INSANITY! Always go against the grain folks, but respectfully.
 

#12
Bob A  
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philly wrote:Does anyone like the new redesigned 1040 ?




Actually, I couldn't care less. Makes no diff to me...
 

#13
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I bared it in second grade and got spanked.
 

#14
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To take two pages and make it into seven pages - total waste of time and effort on who's ever dumb idea that was.

But let me guess - they probably never prepared a single tax return in their life and gave the directions to a programmer~
 

#15
EZTAX  
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I'm thinking it might be a learning curve to do the double checking. We will have to see how it goes this season and do what we need to do.
 

#16
makbo  
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Michaelstar wrote:gave the directions to a programmer~

Hey! Programmers don't design paper forms! Don't put any blame on them!

Michaelstar wrote:total waste of time and effort on who's ever dumb idea that was.

Probably Putin's idea. :lol:
 

#17
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Hey! Programmers don't design paper forms! Don't put any blame on them!

It is that kind of programmers mentality - change it even if it's not broke / just to get a different look - that seems to be behind the thought process in changing the previous page 1 & 2 of the 1040 as I see it.

Have not been around as long as Dennis but I remember the computax input forms that where just plain horrible. They were formatted/set up in a way that had absolutely nothing to do with the tax forms.

To bifurcate 2 pages into 7 is just a really dumb idea. That is my story and I'm sticking to it.
 

#18
CathysTaxes  
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Michaelstar wrote:To take two pages and make it into seven pages - total waste of time and effort on who's ever dumb idea that was.

But let me guess - they probably never prepared a single tax return in their life and gave the directions to a programmer~

No way a programmer thought this up. Successful programmers are detail oriented, meticulous, and organized.
Cathy
CathysTaxes
 

#19
makbo  
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Michaelstar wrote:It is that kind of programmers mentality - change it even if it's not broke / just to get a different look - that seems to be behind the thought process in changing the previous page 1 & 2 of the 1040 as I see it.

You are completely wrong about this. Can you truly be so astoundingly unaware of how the change came to be? What's sad is to think you might be spreading this gross misinformation to your clients. :cry:
 

#20
jon  
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At the Ultra review last week the suggestion was made that whatever presentation the federal wants is not what we want for client and preparer copies. It was requested for those two copies combine the pages. The instructor thought that was a good idea and was going to forward it.
 

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