New check box on 1040 Schedule 1

[kathyc2]

"At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

https://www.irs.gov/pub/irs-dft/f1040s1--dft.pdf

[ATSMAN]

I can foresee taxpayers completely blowing by that question in a checklist or questionnaire! I have trouble getting clients to check off the foreign account box.

[kathyc2]

I'm guessing they put it on Sch 1 rather than 1040 so they can keep the 1040 closer to "postcard". So, will only people that otherwise need to file Sch 1 need to answer?

[kathyc2]

TTB has just posted a password-protected article "Virtual Currency Guidance."
That stuff is way above my head. I will likely refer any clients with such to someone with far greater knowledge than I.

I got rid of a client last year by refusing to do his return with crypto sales. The guy couldn't keep a handful of transactions straight for a rental property, so knew his "records" would be a mess. I just flat out told him he would need to go somewhere else!

[Burke]

With over 90% of taxpayers e-filing, its almost a non-issue.

[kathyc2]

With over 90% of taxpayers e-filing, its almost a non-issue.

The "postcard" is a non-issue? By the end of the season, I was pretty close to being up to speed on entry, however, review still took significantly longer. Pretty much the same as someone moving everything around in your kitchen cabinets.

[Lion]

My data entry was about the same. My review, using the year-to-year comparison, data entry screens, and lastly the government forms was a little longer. Explaining it all to clients took longer. A little longer if they sat at my desk, because I started out with the year-to-year comparison. A lot longer if they were remote or took it home to spouse, so that I'm trying to explain over the telephone or even email without being able to point, flip a page, etc., at their end. (This year I put the year-to-year comparison as the first page in every client folder.) I do love my clients who ask questions, understand what they did, are interested in the tax consequences, and want to plan for the next year and years. But, this year, I think I loved even more my clients who just sign and pay without questioning! Well, IF they do what I tell them, such as Increase your withholding.

I was still taking classes in January and February, which slowed down my preparing returns. I got behind faster than usual, was putting more clients on extension sooner. I even have a few who dropped off in October, but I was fully booked and had to tell them that they will be prepared in November.

[Burke]

The "postcard" is a non-issue? By the end of the season, I was pretty close to being up to speed on entry, however, review still took significantly longer. Pretty much the same as someone moving everything around in your kitchen cabinets.

Well, you are quite right. I meant it was a non-issue for the TP by and large. I still have to go over the 6 schedules to the 1040 prior to printing, as I do not include the ones that have no info. Not a one of my clients questioned their returns; sometimes I wonder if they ever look at them.