A New, Simplified IRS Form 1040 COMMENTARY By Richard Olivastro


Remember the old joke about how the IRS would simplify tax forms if they had their way? In the joke - the IRS version of a simplified filing form would have just two lines: What was your income? Send it all in!

If your recollection brings a momentary smile that turns into a frown … it could be because, at times, it seems that’s where we may be headed.

Two weeks ago, I wrote “A taxpayer's Christmas fantasy” about doing away with the federal income tax. Last week, I discussed “Streamlining the IRS in two months or less.”

As promised in the streamlining piece, here’s how the NEW “Form 1040” could look.

Admittedly, it has 9 lines - not 2; but, to get there the joke would be on you… and me.

In order, on Lines 1 – 9 of the new Postcard size Form 1040 enter: Your total gross income; your number of family members; deduction for family members; other deductions; total all deductions - Line 1 (total gross income) minus Line 5 (total all deductions); adjusted gross income; total tax due on AGI; net tax due or refund due.

The header would list your name, Social Security number, EIN (Employer Identification Number) and the routing number/account number to be used for electronic transfer payment or refund. The EIN is included to identify the employer code for typical employees as well as small business owners who may have employees or 1099 contract workers. A second column would appear for joint filers.

This new Postcard 1040 Form recaps all essential tax data for almost all taxpayers. Those claiming business expenses would complete a new simplified "Schedule C." Make no mistake, IRS forms simplification is essential because, at present, the IRS tax code is purposely too complex.

Historically, both the tax code - and the IRS - have been used by government insiders, and so-called progressives, as a powerful fiscal policy tool to control consumers' behavior. Politicians sell it as “stimulating the economy.”

Next week in this column I will provide information confirming that the tax problem has been known to be insidious, and how some have tried to alert the masses.

For now,here is this week’s poll question:
Should IRS Form 1040 be Simplified and Streamlined?

Go online to  www.KeySurveys.us to provide your input.

Last week’s poll results:

Is the IRS too large (115,000+ employees) and too expensive to operate? ($13 Billion+)

YES – 99.0% 
NO – 0.4%

NOT SURE- 0.6%

Richard Olivastro is president of Olivastro Communications and founder of Citizens for Change. He can be e-mailed at RichOlivastro@gmail.com or phoned at 1-877-RichSpeaks.