IRS Seeks Comments on Plans to Change Tax Forms

The Internal Revenue Service Friday proposed several changes to 1989 individual income tax forms and announced new forms for the reporting of additional capital gains and children’s investment income.

This is the third year the IRS has sought comments from the public with the release of proposals for new forms.

One of the new forms, No. 8814, would allow parents to report on their own tax returns the investment income of dependent children under 14. Last year, children who received investment income of more than $1,000 were required to file their own returns and were taxed at their parents’ rate.

The IRS is also proposing a Schedule D-1, a new continuation sheet for Schedule D to list additional capital gains and losses.

Among the changes proposed for existing forms:

- The name and address areas on Forms 1040 and 1040A would be redesigned so that spouses filing a joint return can enter their names on separate lines. The IRS says this change will help keep people’s names and Social Security numbers from being mismatched.

- A line would be added to Forms 1040 and 1040A for taxpayers liable for the new supplemental Medicare premium to enter its amount.

- A line would be added to Schedule 1 of Form 1040A and to Form 2441 for taxpayers to enter the names and Social Security numbers of their children and dependent care providers, as required by law.

- The line for reimbursed employee business expenses would be removed. Revisions are also proposed for Form 2106 to reflect changes in the law covering the reporting of reimbursements and other expense allowance arrangements.

Copies of the forms may be obtained from the Internal Revenue Service, P.O. Box 25866, Richmond, Va. 23289.

The IRS said taxpayers who have other suggestions for improving the forms should send them by July 30 addressed to: Tax Forms Committee, Attn: Early Release, Internal Revenue Service, Room 5577, 1111 Constitution Ave. NW, Washington, D.C. 20224.