New 1040

Technical topics regarding tax preparation.
#21
Posts:
792
Joined:
21-Apr-2014 11:29am
Location:
California
[quoteYou 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.][/quote]

CHILL OUT!
 

#22
supdat  
Posts:
619
Joined:
25-Apr-2014 2:11pm
Location:
New York
LW25 I remember the "Fast Tax" input sheets as well. At my first job with a large accounting firm, I had to learn how to fill those out. If memory serves, they were sent to the processing center in Dallas, and then the tax returns were printed on our CPA firm printer in a few days. We could check boxes "expedite" or "super expedite" if we wanted faster service.
 

#23
supdat  
Posts:
619
Joined:
25-Apr-2014 2:11pm
Location:
New York
Michaelstar based on the link from LW25 it looks like the redesign of the form came from the top of the Administration food chain.
 

#24
lucyko  
Posts:
933
Joined:
27-Jul-2014 10:19pm
Location:
Orange County,CA
Mt tentative plan for reviewing results with clients is to use the two year summary comparison .Drake has enhanced the process by providing a separate two year summary for the state . I am generally going to stay away from reviewing the 2 page 1040 with client .
 

#25
makbo  
Posts:
6840
Joined:
23-Apr-2014 3:44pm
Location:
In The Counting House
makbo wrote:The folks who legislated it, maybe?

I did some further research and discovered I was mistaken, the new short form was not the result of legislation. (I was thinking of the new 1040-SR for >= age 65 taxpayers, which was legislated). However, it was clearly tied directly to TCJA by numerous politicians speaking about it at the time it was released.

Per IRS mid year news release, it was simply "part of a larger effort to help taxpayers". But I still don't think the idea originated with programmers.
 

#26
Joanmcq  
Posts:
492
Joined:
22-Apr-2014 9:27pm
Location:
Nevada
The administration (and some members of Congress) had been touting the idea of “you could file your taxes on a postcard” for various ‘tax simplification ‘ schemes for years, especially the flat tax people. So with this last bit, the admin told the IRS to make it so. The form designers then had to try to figure out how to do it.

IMHO, the fact that the schedules still have the same line numbers as the old 1040 leads me to believe the form designers do not expect this design to last
 

#27
Posts:
2468
Joined:
24-Apr-2014 7:54am
Location:
Wisconsin
Joanmcq wrote:The administration (and some members of Congress) had been touting the idea of “you could file your taxes on a postcard” for various ‘tax simplification ‘ schemes for years, especially the flat tax people. So with this last bit, the admin told the IRS to make it so. The form designers then had to try to figure out how to do it.

IMHO, the fact that the schedules still have the same line numbers as the old 1040 leads me to believe the form designers do not expect this design to last


That is my general feeling as well.
 

#28
CathysTaxes  
Moderator
Posts:
3557
Joined:
21-Apr-2014 9:41am
Location:
Suburb of Chicago
Joanmcq wrote:The administration (and some members of Congress) had been touting the idea of “you could file your taxes on a postcard” for various ‘tax simplification ‘ schemes for years, especially the flat tax people. So with this last bit, the admin told the IRS to make it so. The form designers then had to try to figure out how to do it.

IMHO, the fact that the schedules still have the same line numbers as the old 1040 leads me to believe the form designers do not expect this design to last

Keeping the line numbers the same simplify coding changes, training materials and manuals. Just move the code and text to the other schedules. This is what this former computer programmer would do
Cathy
CathysTaxes
 

#29
EZTAX  
Posts:
1608
Joined:
24-Apr-2014 6:48pm
Location:
California
I greatly appreciated them keeping the line numbers the same.

Ultra-tax prints out a worksheet that looks almost exactly like the old 1040. I have not had a chance to look at it closely but think we might just staple that to the front of the client copy so we can review it with them as we have done in the past.
 

#30
EADave  
Posts:
1427
Joined:
22-Apr-2014 9:25pm
Location:
Texas
Good catch Spell! I mixed up my homophones and you were on it! Good on ya mate!!

I’m getting accustomed to it, but I am still groaning when I have to go to Schedule 2 or 4 (or whatever) to find the adjustments that once were on page 1. Grrrr....

The fun part in the near future is having to explain the multiple schedules to client’s mortgage brokers. Fun times!
 

#31
lucyko  
Posts:
933
Joined:
27-Jul-2014 10:19pm
Location:
Orange County,CA
Michaelaster wrote :
" to take 2 pages and make it into seven pages- total waste of time and effort on who's ever dumb idea that was "

I think we may be overlooking a couple of factors :
1) I don't have a stat but many paper filers will only have have to use the 2 pages of the 1040 and not all 6 feed-in schedules.It is not like every taxpayer is going to have 7 pages .
2) We now have a standard 1040 for all taxpayers (no more 1040 A or 1040 EZ to deal with for paper filers )
3 ) IRS has stated that with the changes to SALT they estimate 91 % of all returns will use the standard deduction

I for one don't have any problem with the new format and think it's a step in the right direction particularly because the vast majority of tax practitioners use E- file.
 

#32
Joanmcq  
Posts:
492
Joined:
22-Apr-2014 9:27pm
Location:
Nevada
Paper filers that, for the most part are only using the 1040 with no schedules would have been able to use the EZ. File an extension? It’s on a schedule. Get the teachers deduction or student loan interest? On a schedule. Have a few bucks in FTC? Another schedule.
 

#33
Posts:
821
Joined:
22-Apr-2014 12:02am
Location:
Lower 48
I think the layout is horribly confusing. The first time I looked at it with numbers in it I didn't know what I was looking at as things didn't have the logical flow we've been used to for many decades.

I think errors on review will slip by more easily this tax season than in years gone by. I use ProSystemFX and the 2-year compare form has been helpful to ferret out errors. No doubt I will be relying on it much more this year.
 

#34
Posts:
2468
Joined:
24-Apr-2014 7:54am
Location:
Wisconsin
lucyko wrote:I think we may be overlooking a couple of factors :
1) I don't have a stat but many paper filers will only have have to use the 2 pages of the 1040 and not all 6 feed-in schedules.It is not like every taxpayer is going to have 7 pages .
2) We now have a standard 1040 for all taxpayers (no more 1040 A or 1040 EZ to deal with for paper filers )


The people who don't need to use schedules are the former 1040-EZ and some of the 1040-A crowd. So they go from 1 or 2 pages to the 2 half pages. The ones who need schedules are the rest of the 1040-A and the 1040 proper crowd. So they go from 2 pages to a 3 or more page jigsaw puzzle. That's not improvement.

For e-filers, it really matter much what the form looks like. They could even do what some states do, for example NC, where the main page of the form is just a group of line numbers and dollar amounts.

EZTAX wrote:Ultra-tax prints out a worksheet that looks almost exactly like the old 1040. I have not had a chance to look at it closely but think we might just staple that to the front of the client copy so we can review it with them as we have done in the past.


I'll be using the 1040 worksheet myself more than the new 1040, but I always use the 2 year comparisons with clients. Much easier to explain why they owe money (or have a bigger refund).
 

#35
HowardS  
Posts:
2820
Joined:
21-Apr-2014 3:12pm
Location:
Southern Pines, NC
I'll show them the new 1040 and all the schedules to justify why they still need me.
Retired, no salvage value.
 

#36
makbo  
Posts:
6840
Joined:
23-Apr-2014 3:44pm
Location:
In The Counting House
supdat wrote:Michaelstar based on the link from LW25 it looks like the redesign of the form came from the top of the Administration food chain.

Yes, please let's not defame programmers -- especially for something related to taxes, of all the un-hip things to program. :oops:
 

#37
COGS  
Posts:
256
Joined:
10-Oct-2014 3:57pm
Location:
The south
Lacerte now has page two on page one of the 1040. I like it better this way. But I did not see any news of this change. My secretary just got to one with the new format and was confused. IRS website still shows the old way.
 

#38
Posts:
8152
Joined:
4-Mar-2018 9:03pm
Location:
The Office
Drake's had it like that since the initial release. I approve. Less clicking back and forth -- only 7 potential "main" pages instead of 8.
 

Previous

Return to Taxation



Who is online

Users browsing this forum: Anderly, CaptCook, dellpaul, golfinz, JAH, JoJoCPA, KoiCPA, lckent, missingdonut, SALYstrikesagain, taxp2345 and 199 guests