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Abstract:The Republican tax postcard — a selling point for the 2017 tax reforms — is dead after a year, and a tax expert believes its demise was "inevitable."
It was a selling point for the Republican tax overhaul in late 2017: A promise that the new law would simplify the nation's confusing tax code to the point people would be able to file their returns on a postcard, saving people time and making taxes more understandable.
It was unveiled last summer, but after a single, messy year of use, the tax “postcard” is dead.
The Internal Revenue Service abandoned the smaller 1040 form after one filing season after receiving complaints from tax professionals and interest groups that it was more complicated than it needed to be, Bloomberg Tax first reported.
Ryan Ellis, a conservative tax lobbyist and tax preparation service owner in Washington DC, told INSIDER he believed its demise was “inevitable.” —
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It was a selling point for the Republican tax overhaul in late 2017: A promise that the new law would simplify the nation's confusing tax code to the point people would be able to file their returns on “a postcard,” saving people time and making it easier for Americans to fill out tax forms.
President Donald Trump once boasted in the White House that families would “be able to file their taxes on a beautiful, little sheet of paper.” The initiative was unveiled last summer.
But after a single, messy year of use, the tax “postcard” is dead.
The Internal Revenue Service abandoned the smaller 1040 form after one filing season after receiving complaints from tax professionals and interest groups that it was more complicated than it needed to be, Bloomberg Tax first reported.
The three-page 1040 form was shrunk to a double-sided postcard, but it compelled taxpayers to fill out additional forms and six supplementary schedules, meaning there was more paperwork involved with claiming deductions or reporting expenses.
Read more: Republicans want to make filing taxes as easy as mailing a postcard — but there's a flaw in the plan
Ryan Ellis, a conservative tax lobbyist and tax preparation service owner in Washington, D.C., told INSIDER he believed its demise was “inevitable.” He pointed out that 90% of taxpayers already e-file their tax returns and don't commonly use the mail.
“It was a mess trying to explain this to people,” Ellis says of the shorter 1040 form. “I don't know a single tax practitioner that thought it was an improvement.”
He added: “It was like a New Coke thing that tried fixing something that was fine and then you ended screwing it up.”
There were warning signs as early as last year. In a July 2018 comment letter, the National Association of Tax Professionals told the IRS it had received “overwhelmingly unfavorable” feedback from hundreds of members.
Read more: Ivanka Trump says most Americans will now be able to file taxes on a 'postcard' — experts disagree
Other tax experts had criticized the idea of the “postcard,” saying it overly simplified a complex payment system.
“I do not envision a scenario where our society is so simple and so standardized that ... 100 million plus Americans will pay a fair amount of tax and be equitably treated with nine lines,” Mark Steber, chief tax officer at tax preparation company at Jackson Hewitt Tax Service, told NBC News in 2017.
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