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
More Reasons to Be the Early Bird When it Comes to Taxes

More Reasons to Be the Early Bird When it Comes to Taxes

More Reasons to Be the Early Bird when it comes to Taxes Tax season has already been in full swing for a couple of weeks now, but if you’re still on the fence trying to decide if you should file early or late, then perhaps some of these items will encourage you to get started…

Consider These Small Business Tips for 2017

Consider These Small Business Tips for 2017

Consider These Small Business Tips for 2017 Tax time can be stressful for any taxpayer, but if you’re a small business owner, then it can really be a huge burden. However, there are some excellent tips and ideas that can help reduce your stress levels and put you at ease. First off, you should strongly…

How Will Tax Code Changes Affect High-Net-Worth Investors?

  Taxes were a huge part of President Trump’s campaign but so far the Trump administration hasn’t announced any new legislation. However, even though no big tax changes have been made to our country’s tax system they are almost certainly on the way. Depending on your financial status, the expected changes could have a huge…

Will New Corporate Tax Plans Hurt the U.S. in the End?

  The winds of change are blowing when it comes to taxes and corporate taxes are no exception. President Trump and the House are both ready to lower the corporate tax rate in an effort to create a more business friendly environment for U.S. companies here in the states. Currently, the corporate tax system is…