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
The Biden Administration Corporate Tax Proposal

04.29.20 President Trump’s Impact Payment letter & Foreign Pension Trusts

Rev. Proc. 2020-17 on Foreign Pension Trusts and …

Rob Ryan's Sunflower model Building a Billion Dollar Company

Rob Ryan on Scaling Companies with The Sun Flower Model

Rob Ryan on Scaling Companies with The Sun Flower Model About ROB RYAN Rob Ryan founded Ascend Communications in 1989. Rob served as President, CEO, and Chairman of Ascend, taking it public Friday the thirteenth of May, 1994, at $13.00 per share. In 1995 Rob and Terry started Entrepreneur America. Rob gained his first experience…

The Biden Administration Corporate Tax Proposal

IRS Shutdown And SBA Report On Status Of Payroll Protection Loans

Small Business Administration report on status of…

We are Born to Collaborate (Even if Sheltered in Place)

We are Born to Collaborate (Even if Sheltered in Place)

We are Born to Collaborate (Even if Sheltered in Place) Every truly great business achievement is proof that humans are born to collaborate.  As nations, tribes and families, from birth we live with and are cared for by someone.  Later, we work the family farm, business or towards an education, whatever is in our best…