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IRS announces change to 2018 Schedule D Tax Worksheet

The IRS has informed us that their Schedule D Tax Worksheet for Forms 1040 and 1041 were not properly taxing certain capital gains at the new lower 2018 tax rates. The IRS worksheet was taxing them at their maximum rate of 25% or 28%. Forms 1040, 1040-NR, 1041, and 990-T use these worksheets to calculate regular tax in certain instances. The IRS has released newer versions of these worksheets, which were updated in ProConnect Tax Online on our May 16, 2019 release.

The IRS will review returns filed prior to May 16 to determine any needed corrections. These taxpayers do not need to file an amended return, call the IRS, or take any other action at this time.