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.
Do You Know These Key Leadership Secrets?
Do You Know These Key Leadership Secrets? Is there a magic formula to becoming a good leader? Well, in reality no, there isn’t. However, there are some hidden secrets that you should know about if you want to lead successfully. Because most people are not just “born leaders.” They have to earn it. A Lateral…
Are You Increasing Your Chances of an Audit?
Are You Increasing Your Chances of an Audit? Audit. It’s the dreaded “A” word at tax time. The word can send chills down almost any taxpayers’ spine. Being audited by the IRS is not a pleasant experience. But if you’re ever selected for an audit, it’s not the end of the world. You can get…
Can You Transfer Bitcoin Tax-Free?
Can You Transfer Bitcoin Tax-Free? As Bitcoin and other cryptocurrencies continue to grow in popularity the number of questions about them grow, too. For example, how do cryptocurrencies work with taxes? There are all kinds of questions regarding taxes and digital currencies and the answers aren’t always plain and clear. But if you happen to own…
Is the Stock Market Headed for Another Crash?
Is the Stock Market Headed for Another Crash? Since President Trump took office a little more than a year ago, the stock market has been somewhat of a conundrum. Initially it was all good news, as the market reached high-water marks never seen before. However, lately it has been a rollercoaster ride, with big swings…