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
Mark Eaton

Mark Eaton: The Four Commitments of a Winning Team

Episode Transcript of: Mark Eaton: The Four Commitments of a Winning Team Mark Eaton: I had an opportunity to play team at the highest level in the NBA and I’ve looked at what I learned on the basketball court and figured out a way to transpose that and transfer it to the business realm and…

Rikin Gandhi

Digital Green: Transforming Ag Extensions in India | Rikin Ghandi

Interview Transcript of: Digital Green: Transforming Ag Extensions in India | Rikin Ghandi Rikin Ghandi: Growing up I was inspired by astronauts and I wanted to put together my own astronaut playbook by studying computer science, aerospace engineering, getting a pilot license and was about to enlist in the US Air Force when I said college…

Kris Nielson

The Company That Let’s You Take Back Control of Your Garage | Kris Nielson

Interview Transcript of: The Company That Let’s You Take Back Control of Your Garage | Kris Nielson Kris Nielson: I came to school at BYU-Idaho up in Rexburg Idaho. I set out to go into law but decided to change course when I took some business classes and loved organizational strategy. During college I began…

Danielle DiMartino Booth; Federal Reserve

Fed Up: An Insider’s Take on Why the Federal Reserve Is Bad for America | Danielle DiMartino Booth

Interview transcript of Danielle DiMartino Booth, Federal Reserve, By Alan Olsen, Host of the American Dreams Show. Danielle DiMartino Booth: I’m a good old-fashioned product of the community college system in this country. I worked my way through school. I ended up with an MBA in finance and knocked on every door on Wall Street…