The internet and a declining economy have let many Americans in do it yourself fever. After all, why pay someone to do what you can easily handle yourself with a simple google? However, there is one issue that all CPAs should reinforce with their clients: even the IRS says that their website IRS.gov should not be viewed on as an infallible source of information about their regulations and instructions.
IRS Warns of Danger in Trusting IRS.gov
The official IRS website is full of useful information for preparing taxes. Even experienced CPAs may occasionally find themselves searching the website for an answer to some complex issues. However, the IRS has warned that this is not necessarily a perfect source. Much of the content on this website, such as lists of frequently asked questions, is not law and will not hold up in courts.
Who Can We Trust for Tax Information?
The IRS is clear about where we can find tax law that is defensible in courts. They recently released a memo reminding us that the one definitive source for tax information is the Internal Revenue Bulletin. This document is also posted on the official IRS website and should be considered the answer to all of a person’s tax questions. The rest of the website is merely commentary – commentary that cannot be used as any kind of defense should a person be led astray. Experts have pointed out that there are discrepancies between the two sources of information particularly when it comes to small business and self-employment law.
What are the risks of following a website that appears to include official IRS regulations? Unfortunately, the consequences will be the same as they are for anyone who doesn’t file and pay taxes according to the letter of the law. They may face audits, liens, and high penalties. In addition, they will need expensive consulting work from both a CPA firm and a tax lawyer. In this case, doing it yourself may be the most expensive decision a person can make.
