Less than a year after restructuring tax Form 1040, the Internal Revenue Service (IRS) is changing the document again.
The agency is in the process of making significant changes to the form ahead of the 2019 tax season. In recent weeks, the IRS released an early draft of the proposed new form.
Last year, the IRS changed the 1040 for the 2018 income-tax filing period. The document saw a significant reduction in line items from 79 to 23. The IRS also added several new, separate schedules to the filing process.
While the latest version intended for the upcoming tax season is similar in terms of number of lines (24), here are a couple of examples of how the form changes:
- The signature page has been moved to the end of the second page, which is more in line with the “old” 1040
The summary of income as well as the reporting of the standard deduction have been moved to the first page
- The document is in draft form and is subject to comment and additional changes. The IRS announced a 30-day comment period for the draft. Comments need to be submitted no later than August 15, 2019. Anticipating additional changes, the agency noted that it plans to post a new draft by the end of the summer. Draft forms are posted to the IRS website.
The form requires approval from the Office of Management and Budget before being finalized. As the form moves through the process, advisors may want to reach out to clients to talk about the new form and conduct a review of their tax planning.
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