Getting Ready for Tax Season: New IRS Forms and Compliance Requirements (RTAX)

Each year the IRS makes changes to its forms that tax practitioners must understand so as to be able to prepare tax returns for the current year and explain the resulting tax return to an inquiring client. The new tax forms for 2019 are particularly important because they reflect the legislative changes enacted in the Tax Cuts and Jobs Act and also the IRS’s methodology for determining a taxpayer’s tax liability now that those new changes are fully implemented. The IRS has revised Form 1040 for greater clarity, while reducing the number of associated schedules from six to three.  Also, new Form 1040-SR for taxpayers age 65 or older will be rolled out for the first time for 2019.

• • Form 1040 for 2019, including differences from the 2018 Form 1040
  • Form 1120S and Form 1065 changes for 2019
  • Form 1040-SR—the new tax return for senior taxpayers
  • Calculating the 20% QBI deduction—Forms 8995 and 8995-A
  • The new Form W-4 for 2020
  • Form 461—calculating the new excess business loss limitation
  • Negative Tax Basis Capital Account Reporting Requirements
  • S corporation shareholder tax basis reporting
  • Form 8990: Limitation on Business Interest Expense Under Section 163(j)
  • Form 8996 Opportunity Zones

Advise clients regarding changes in IRS tax forms for 2019