Remember the new postcard tax return? Well, this shortened version of a tax return has fewer lines (seemingly to fit a certain smaller size.) So, the Form 1040 does not foot, by IRS design. In other words, you cannot add the numbers presented and arrive at the final result.

Taxpayers in North Dakota and New York are already receiving IRS notices requesting additional information on how taxable income was computed. These taxpayers claimed the new Section 199A DPAD from a cooperative. This deduction is subtracted directly from on line 10. IRS instructions do not require a worksheet attachment showing how the number is arrived at, but simply subtract the deduction from the number that would otherwise land on line 10.

As you can imagine, the IRS now wants to verify returns. This means taxpayers are writing letters to the IRS to explain how their taxable income is computed.

Thankfully, few people claim a Section 199A DPAD from a cooperative, but the fact remains – the new law has anything but simplified filing.

With over 20 years of experience in public accounting, Amanda Bechen CPA owns Bechen & Company PC located in Wagner, SD, and can be contacted at 605-384-4200 or www.bechenco.com.