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
Mechanics Bank CEO | Steve Buster

Mechanics Bank CEO | Steve Buster

Episode Transcript of: Mechanics Bank CEO | Steve Buster   Alan Welcome back. I’m here today with Steve Buster. Steve is an accomplished executive here in Silicon Valley where he spent several years as a CEO of a regional bank, and then went over to a life science company. And I’d like to talk about…

Performance Management | Justin Hyde

Performance Management | Justin Hyde

Episode Transcript of: Performance Management | Justin Hyde Alan Welcome back. I’m here today with Justin Hyde. He’s a founding partner at the Hyde Norton group, a company focused on performance management. Justin, welcome to today’s show. Justin Thanks, Alan, I appreciate you having me out. Alan So Justin, can you give me some background…

The Finanseer | Megan Lathrop

Money Habits | Megan Lathrop

  Episode Transcript of: Money Habits | Megan Lathrop Alan Welcome back. We’re here today with Megan Lathrop. She’s a money coach, certified financial planner, and also an author. Megan, welcome in today’s show. Thank you. So thinking, give us some of your background. How did you get to where you are today? Megan Sure,…

Cameron Carlson; Succession Planning | Cameron Carlson

Succession Planning | Cameron Carlson

Episode Transcript of: Succession Planning | Cameron Carlson Alan Welcome back. We have with us today, Cam Carlson. He is the president of Carlson Hammann, a consulting firm specializing in succession planning and exit strategies. Ken, welcome to today’s show. Cameron Thank you, Alan. It’s good to be here. Alan So give me some background…