The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
The IRS released a copy of their draft 1040 for 2018. It has shrunk the old two page 79 line form to only 23 lines and can be folded over into a postcard size form to be mailed (however, I am pretty sure most taxpayers will still put it in an envelope for security reasons). Here are my initial thoughts on the new form:
Although Form 1040 is now smaller, it now likely requires at least 4 if not 5 more schedules to be prepared by taxpayers. Likely this will automatically be done by a computer, however, it will result in even more pages for a farmer and their preparer to review.
Certain members of Congress continue to tout that fact that taxpayers including farmers no longer need to prepare depreciation schedules. I wish they would stop saying this. We know that you will continue to prepare these schedules due to the following reasons:
The bottom line is the IRS is trying to make a "postcard" size tax return form. For those people who do not itemize and do not have any farm income, it might work. Even for those people, there will be at least one to five new additional schedules to be attached to this postcard. I think that might defeat the purpose of the postcard.
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