Treasury Secretary Steven Mnuchin. (Photo: AP) Treasury Secretary Steven Mnuchin. (Photo: AP)

The IRS and Treasury Department are busy working on a “postcard-size” individual income tax return to be used for the 2018 tax year. A draft of the new tax form contains about a page worth of information split into two pages.

The 2018 IRS Form 1040 — which is described by Treasury as “about half the size of the current version” — will replace the current Form 1040, as well as the Form 1040A and the Form 1040EZ.

The IRS will work with the tax community this summer to finalize the streamlined Form 1040.

Treasury Secretary Steven Mnuchin said the new, “postcard-size Form 1040 is designed to simplify and expedite filing tax returns, providing much-needed relief to hardworking taxpayers.”

The new Form 1040 uses a “building block” approach, in which the tax return is reduced to a simple form, and can “be supplemented with additional schedules if needed,” Treasury states.

“Taxpayers with straightforward tax situations would only need to file this new 1040 with no additional schedules,” Treasury added.

As more than nine out of 10 taxpayers use software or a tax preparer, the IRS states that it will be working with the tax community to prepare for the streamlined Form 1040. “This will also help ensure a smooth transition for people familiar with software products and the interview process used to prepare tax returns,” the IRS states.

Taxpayers who file on paper would use the new streamlined Form 1040 and supplement it with any needed schedules.

— Check out ‘Tax Reform 2.0’ Coming After July 4 Break: Brady on ThinkAdvisor.