- Ag Docket
IRS unveiled many new draft forms this month. Although these forms are not final, several are worth reviewing.
Although opinions about tax reform vary among tax practitioners, there is one 2018 change that was nearly universally chided. The 2018 Form 1040—while created to showcase a new, “simplified” approach to individual income tax returns—actually led to more attachments, a more cumbersome review process, and numerous tax practitioner complaints.
It appears IRS listened (and likely had its own struggles with the form), revealing this month a draft 2019 Form 1040 restoring many features from the past. Even so, the draft is a composite of old and new. We’ll still have numbered schedules and the two pages don’t quite fill the page. And notice:
Schedule A is for Specified Service Trades or Businesses
Schedule B is for Aggregation of Business Operations
Schedule C is for Loss Netting and Carryforward
Schedule D provides Special Rules for Patrons of Agricultural or Horticultural Cooperatives
On July 24, 2019, IRS published a draft 2020 Form 1099-NEC, a new form that would again remove nonemployee compensation from the 1099-MISC. As it currently stands, 1099-MISC with Box 7 non-employee compensation must be submitted by January 31, 2020, but other 1099-MISC forms are due March 31, 2020 (if filed electronically). A separate form would presumably make these filings more efficient.
Once proposed regulations were issued for cooperatives and their patrons, IRS went to work to create a 2020 draft Form 1099-PATR, incorporating the new reporting requirements under the rules. The new form was revealed on August 1.
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