The new Form 1040 is the size of a postcard - but, there's a catch - most people will have to complete lots of new schedules. There are SIX new schedules that will replace the remainder of the traditional Form 1040.
The new form will require lots of work for the IRS, tax software companies and tax preparers to prepare for next year's tax filing season. IRS has been busy since the new tax law passed redesigning tax forms and then preparing the necessary instructions and regulations that accompany the new forms. The next step is for tax software companies to update their programs - the sweeping changes this year will require many updates! And then the tax preparers must follow in getting familiar with all the new forms and instructions.
Many ask - why such a drastic change? Quite simply, the tax code has outgrown the traditional two-page Form 1040. While Congress has touted the new tax bill as simplification, we all know better.
Our firm is looking forward to exploring these new changes and continuing to provide quality tax services for our clients.