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Issue 40132

1040 NR-EZ Inst.

Project Statement: Evaluate the Instructions for the 1040 NR-EZ Instructions – U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents. Determine if the instructions clearly communicates the appropriate guidance to public.

Goal Statement: The goal of this project is to review and make recommendations to the IRS that will enhance customer service and improve the taxpayers’ experience.

TAP RECOMMENDATION

ID 1490 Add as a new first item in this section.

Tax Rates Lowered. For 2018, Federal income tax rates have been reduced with the maximum income tax rate applicable to individuals now equal to 37%.

TAP Justification for Change
The 2017 Tax Act reduction of tax rates was a major change that is favorable to taxpayers. As a result, it seems appropriate to add it to the other listed changes, which are unfavorable, to give a balanced approach and one that may lead to a better perception of the US tax system.

Instructions to Draft Form 104-NR-EZ, Page 1, column 3, Additional Information, Second Sentence

IRS Action:Adopted

ID 1490 Adopted

TAP RECOMMENDATION

ID 1491 Pub. 519, U.S. Tax Guide for Aliens, will be the most beneficial, but the following publications also may help.

TAP Justification for Change
The addition of the name of Pub. 519 is helpful to taxpayers who may want to know what that publication addresses, and is also consistent with the style used, which gives the name of the publications next cited in this section.

IRS Action:Adopted

ID 1491 Adopted

TAP RECOMMENDATION

ID 1492 Substantial Presence Test

You are considered a U.S. resident if you meet the substantial presence test for 2018. You meet this test if you were physically present in the United States for at least:

1. 31 days during 2018; and

2. 183 Testing days during the period 2018, 2017, and 2016, using the following chart:
Consistency with fourth column (column (d)) of “the following chart” which contains the word “Testing” and which appears immediately after the quoted language.
Tax Tables, Pages 22-33

IRS Action:Adopted

ID 1492 Adopted

TAP RECOMMENDATION

ID 1493 The tax amounts for single and married filing separately, the only filing statuses allowed, are exactly the same. Combine the status labels and eliminate the second column of tax amounts

IRS Action:Not adopted

ID 1493 Reject – We are being consistent with the Instructions for Form 1040, which keep the “Single”

TAP RECOMMENDATION

ID 1494 To make this election, you must attach the statement described under Nonresident Spouse Treated as a Resident in chapter 1 of Pub. 519 to your return. Do not use Form 1040NR-EZ or 1040NR. Add text in red to provide clarity.

IRS Action:Adopted

ID 1494 Adopted

TAP RECOMMENDATION

ID 1495 If you make the election to be treated as a resident alien your worldwide income for the whole year must be included and will be taxed under U.S. tax laws. You must agree to keep the records, books, and other information needed to figure the tax. If you made the election in an earlier year, you can file a joint return or separate return for 2018. If you file a separate return, use Form 1040. You must include your worldwide income for the whole year whether (you file a joint or separate return. Add text in red to provide clarity.

IRS Action:Adopted

ID 1495 Adopted

TAP RECOMMENDATION

ID 1496 Sign Your Return

Form 1040NR-EZ is not considered a valid return unless you sign it. Be sure to date your return and enter your occupation in the United States. Mail your return to the address that corresponds with your particular filing address. See your requirements under Where to file (add hyperlink to mailing addresses listed on page 3 and 4) If you have someone prepare your return, you are still responsible for the correctness of the return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848. Most often instructions on where to file a return are found at the end after the signature. The 1040NR-EZ lists the various addresses at the beginning and they are not easy to find. Providing a hyperlink would help save taxpayers time and eliminate confusion.

IRS Action:Not adopted

ID 1496 Reject –
We believe it will be confusing to insert information on mailing in the middle of a discussion regarding signing your return. This is not done in the 1040 instructions or any other product of which we are aware. The index has a Mailing address entry and that takes readers directly to the mailing addresses.

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2019 TAP Annual Report

The 2019 TAP Annual Report highlights our key recommendations to improve IRS customer service and summarizes our key accomplishments and activities, including the 224 recommendations submitted to the IRS in 2019.

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