HERE WE GO AGAIN 

 

When will we be able to start filing 2018 returns?  No one knows! Why? Let’s see.

1.       IRS has redesigned Form 1040 from two full pages to two half pages and 6 ADDITIONAL schedules.  Other forms and schedules now have to be revised to refer to the new line numbers on these new documents.  Then everything from IRS computers to tax software providers need to be redesigned and tested these changes.

2.       Congress is still contemplating a retroactive tax bill.  Will it pass? If so when? If it does pass, how long will it take the IRS to incorporate these additional changes? And again, then the software companies will have to reprogram and test their software.

3.       What are the states going to do?  Are they going to conform to some or all of the federal changes in the TCJA?  Since most states start with federal adjusted gross income, they can’t finalize their forms until the IRS finalizes their forms.  Then, again, the software companies need to program and test these changes.

4.       And last but not least, some the provisions of the tax reform law are so complicated and we have received so little guidance, that we, as professionals, are going to want to take extra time looking at some of these issues and documenting why we treated the items as we have.

 

If you live in Arizona and you have a transaction privilege tax license, you will need to renew it by January 1st.