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.
Your Chances of Being Audited Continue to Decline
What’s the scariest possible outcome of filing your taxes? Almost anyone would answer that question with “being audited.” Being audited by the IRS is never fun. Fortunately, it’s something that most people will never have to experience. The fact is the IRS actually audits very few returns all things considered. Furthermore, the IRS also…
How Will Tax Changes Affect Upper Middle Class?
How Will Tax Changes Affect Upper Middle Class? The 2019 tax season is almost here. It officially starts next week. And the Tax Cut and Jobs Act figures to play a huge role in how this year’s tax season plays out. With so many changes, there are sure to be many questions and surprises for…
How to Retire as a Millionaire
How to Retire as a Millionaire “If I had a million dollars” is a popular song by the group Barenaked Ladies. For most people it’s simply a dream. Becoming a millionaire remains an “if” forever. But what if you could really become a millionaire? Is it really out of the realm of possibility? The fact…
Should I Invest or Pay off My Debt?
Should I Invest or Pay off My Debt? When was the last time you had a significant amount of disposable income? Maybe when you were 12 and you got a nice check from your grandparents for your birthday. Or maybe it was the last time you got a fat tax refund. For most people, disposable…