IRS Instructions as Clear as Mud, Even to the IRS

Tax time is just around the corner and that means it will be time once again to comb through all the jargon that is IRS tax forms. Many taxpayers have long bemoaned tax forms and instructions as just plain confusing and in some cases, downright sinister. However, even though filing taxes on your own accord can be a risky proposition, as long as you stick to the code and follow the IRS’s instructions carefully and exactly, you should be OK, right? Well, not necessarily.

What? How could that possibly be true? The fact is tax instructions don’t actually fall under the tax law. So, in reality, you could even follow the instructions on a tax form with exactness and still end up with an error. Of course, the IRS would understand if that happened to you, right? Well, not exactly. Many taxpayers have used this argument to no avail. In most instances, the courts side with the IRS and rarely hold the agency to what is written in its forms and instructions.

That’s because, unfortunately, according to legal precedence, the only things that hold up in court as tax law are regulations, official statutes and judicial decisions. That means even if you fill out your tax forms incorrectly and it’s the IRS’s fault, you will still be held accountable for those mistakes. It doesn’t seem fair that the IRS is ultimately not responsible to write correct instructions, but nevertheless when it comes to the IRS there isn’t too much that does seem fair.

Posted in
Are You Practicing These Important Leadership Skills?

Are You Practicing These Important Leadership Skills?

Are You Practicing These Important Leadership Skills? Imagine if you had the greatest tool in the world but you never used it. What good would that do you? Obviously, the tool would be useless. Now imagine you’re in a very important leadership position, with many significant responsibilities. You worked hard and learned several valuable leadership…

How to Invest for Your Grandkids

How to Invest for Your Grandkids

How to Invest for Your Grandkids Have you reached that pinnacle of life yet? Do you know the one where you’re a grandparent? Having grandkids is an amazing experience and opportunity. But with all of the fun, comes more responsibility. Now you have even more people to worry about. In fact, for some grandparents, taking…

How Has the Tax Reform Affected the Real Estate Market?

How Has the Tax Reform Affected the Real Estate Market?

How Has the Tax Reform Affected the Real Estate Market? One of the doom and gloom theories regarding the federal tax reform, also known as the Tax Cut and Jobs Act, was that it would put a heavy burden on the real estate market. The theory was that because the reform placed a $10,000 cap…

How to Lower Your Tax Bill in Retirement

How to Lower Your Tax Bill in Retirement

How to Lower Your Tax Bill in Retirement How far away are you from retirement? Are you getting closer to those so-called “golden years?” If you are then you hopefully you’ve already started preparing for your retirement with a sound plan. Retirement is supposed to be a glorious time in life. But unfortunately, for many,…