U.S. Treasury Secretary Steven Mnuchin promised that this week we'd see the new, shorter and closer-to-a-postcard Form 1040.
Well, the week's almost over and we're still waiting.
However, I'm sure Mnuchin will keep his word and sometime today officially debut the new tax return. My faith is not so much in the Administration's top money man, as it is on the fact that I'll be out of my office and offline most of the day due to some personal business I can't reschedule. I'm good at tax timing like that.
At least the proposed changes already have leaked.
The Wall Street Journal also got an early copy.
And the Association of International Certified Professional Accountants' Journal of Accountancy looked at the various new schedules that will be required to be filed with the new, shorter Form 1040.
Not impressed: Skeptics, of which I'm one, think that this rejiggering of the 1040, which reportedly will be the only return — adios 1040A and 1040EZ — for all filers under the Tax Cuts and Jobs Act (TCJA) changes, is purely political.
Republican tax writers, after all, have been touting a postcard-sized tax return for years. Now, they contend, with the new tax law, this is the smaller form that will make filing easier.
Some tax folks, however, are not buying that. And they took to social media, specifically Twitter, to share their concerns about the coming changes.
Some of the notable, and negative, social media reviews include:
Stupid tax administration tricks. 1040 replaced by a postcard-sized form plus 6 new schedules. Irrelevant for the 90% of people who file electronically. https://t.co/ZMIUcvLqtv— Len Burman (@lenburman) June 26, 2018
As a tax practitioner and an Enrolled Agent, I'm not a fan of the new "postcard plus six extra forms" tax return. It actually makes things a lot more complex, in my opinion. It's like they started with a postcard and worked backwards from there. Better to just clean up the 1040EZ https://t.co/Ai09T0kJMg— Ryan Ellis (@RyanLEllis) June 25, 2018
Well…this is just silly – and wasteful. The IRS has better things to do than shuffling deck chairs on the 1040 and moving items to separate schedules, all so someone can say there’s a postcard. https://t.co/mbkOh4RnEr— David Kamin (@davidckamin) June 26, 2018
I've been a tax preparer for 7 years. This new "postcard" tax form is more than silly. People are going to screw up their taxes because of it. Here's why… https://t.co/KkGxNY8HSx— Harry Stein (@HarrySteinDC) June 26, 2018
Virtually invisible forms via software: Of course, for most filers the changes will not be noticeable.
Why? Because, as the Tax Policy Center's Len Burman notes, around 92 percent of us use tax software. The most popular computer tax programs walk us through our annual tax filing without showing us the actual forms.
Unless we print our electronically completed and filed returns, we don't ever see the documents we send to the Internal Revenue Service.
Another sizable sector of filers turns its taxes over to paid tax preparers, most of whom also use professional versions of tax software to complete and e-file the returns. So again, we taxpayers really don't deal with old-school paper tax forms.
So maybe all us tax geeks are obsessing unnecessarily over the coming Form 1040 changes.
Or maybe the proposed tax return revision really is a classic case of politicians breaking something they desperately wanted to fix.
You also might find these items of interest:
- The many versions of Form 1099
- IRS releases draft W-4 to reflect tax law changes
- Fake IRS form + mail fraud = latest tax identity theft scam