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 compensation.

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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