August 07, 1995
New Tax Forms Will Simplify Filings
WASHINGTON - More than two million taxpayers will have easier
tax filings next year, the Internal Revenue Service announced in
releasing advance proofs of 1995 tax forms for individuals.
Taxpayers with unemployment compensation will be able to use Form
1040EZ and household employers will report their employment taxes on
Forms 1040 or 1040A using new Schedule H.
The IRS estimates that an additional 1.3 million people will be
able to use 1040EZ, the simplest form. Previously, Form 1040A was
the only short form available to those with unemployment
Household employers will be able to file one form rather than
the five filings that may have been required previously. Schedule H,
"Household Employment Taxes," provides for the reporting of social
security, Medicare, and Federal unemployment taxes, along with any
Federal income taxes withheld from household workers. The IRS
expects about 720,000 users of this new form.
A 1994 tax law change raised the threshold amount for household
workers' wages subject to social security and Medicare taxes from
$50 a calendar quarter to $1,000 a year, not counting food, lodging
or other noncash items.
For several years, the IRS has issued advance proofs of the most
common tax forms for individuals to give the tax community and the
public the opportunity for comments or suggestions on how to improve
or simplify the forms. The IRS carefully considers each comment and
suggestion before finalizing the forms.
For a copy of Publication 1407, the advance forms package, write
to the IRS, P.O. Box 25866, Richmond, VA 23289-5866.
Personal computer users can get Publication 1407 through
FedWorld, a government bulletin board. The publication is provided
on FedWorld through IRIS, the Internal Revenue Information System.
To access IRIS directly, call 703-321-8020. On the Internet, telnet
to fedworld.gov or, for file transfer protocol services, connect to
ftp.fedworld.gov. Using the World Wide Web, connect to
http://www.ustreas.gov/treasury/bureaus/irs. FedWorld's help desk
offers technical assistance on accessing IRIS (not tax help) during
regular business hours at 703-487-4608.
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