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Has anyone heard the news that form 1040 is undergoing another face lift? Here is the article highlighting the changes: https://www.forbes.com/sites/kellyphillipserb/2019/07/15/everything-old-is-new-again-as-irs-releases-form-1040-draft/#36f6b1f42f75

I guess the 100 million that were filed this year was a Beta test. Now, they are coming around with the finished product. Th IRS went overboard with the simplification and now they have had to backtrack and make it easier to understand for the taxpayer. Definitely looks like an improvement, though

I was thinking last week, "If only they'd go back to the old Form 1040." Fingers crossed. I apologized to a client just a few minutes ago for the 2018 forms.

Amen!

Link to IRS for all draft forms: https://apps.irs.gov/app/picklist/list/draftTaxForms.html Great, let's waste more time and money on another redesign and programming at IRS and all the vendors. The 2019 1040 draft does allow seniors to file that form with notation for those checking age or blindness to see the instructions for the proper amount of standard deduction. The only difference between the 2019 1040 and the 1040-S (senior) is that the "S" form has a chart at the bottom of page 1 for those checking age/blindness boxes. I guess there were too many mistakes in the standard deduction in 2018 for those self-prepared returns.

Nature abhors a vacuum, so that white space that still remains on the now 2/3 full page, will one day be filled up again.

The other piece is depreciation on any assets bought during the "missing" years. If the corporation is in a position to Section179 everything - or if they didn't buy anything that qualifies as an asset during those years - then if your client can confirm through the SOS's office that the corporation still exists, go for it. Many times, too, you can reinstate a corporation by filing all the back annual reports and paying the fees (plus a sweetener, frequently called a reinstatement fee). Else he has to open a new corporation, get a new EIN, and he can kiss this particular loan goodbye and try again once his paperwork is in order, in two or three years. Of course, no one is going to loan money to a brand-new corporation with zero history... You can't save some people from themselves and it's NOT our job to try.

I do like the larger print on the SR.

The IRS treats each year separately, and they're underfunded and understaffed right now. The shutdown plus the new tax law with a 1040 redesign, have put them in a serious bind.

It's rather shocking to me that sending in a return doesn't produce a letter from the IRS requesting those missed years.

To our friends in Louisiana: Stay safe with the storm, the ridiculous amounts of rain, and the storm surge!

Been talking with my friend an hour north of New Orleans near MS and he says it is a typical rainy day in LA. But then again, a typical rainy day for him is watching cop shows and eating chips and drinking Kombucha tea (I guess to offset the chips) so how would he know what's going on outside? Stay safe down there, and maybe take his rainy day advice and stay inside.

When I saw the guy in the tub with the whiskey bottle, I though I recognized him. And now I remember. His name is Duncan Disorderly.

I don't think the IRS will be a problem. The first year that penlties were applied for non-filing was 2015, so I think 2014 would have had to been filed in order to flag 2015. A larger problem, but not yours, is that your client didn't file an annual report(s) with the SOS, which is required to keep it in good standing. The SOS maintans an on-line list with each corporation's status. If the corp is not in good standing, the bank might deny the loan and/or put more honerous conditions on the loan. Ir is also possible that the corp has ben suspended. Suspended corp contracts are null and void.

About 10 years ago Oregon had a tax amnesty. I prepared 11 years of regular corporate returns . My client filed the state returns and did not file the federal returns. My client paid Oregon the corporate tax due plus 1/2 of the interest. The state waived all penalties and 1/2 of the interest. The next year I prepared and my client filed both federal and state corporate returns, which we have done every year since then. To my surprise, my client has never received any letters from the IRS about the missing 11 years of Form 1120.