Life Is Good, And Then The IRS Gets A Budget Cut
You’ve heard the saying, “I’m from the government, and I’m here to help you”?
Well, bend over. The IRS wants you to help them help you.
Now, it’s not as bad as it sounds. Or, is it? The IRS is seeking public comments on proposed regulations that will add a new form and new disclosures to all corporations with over$10 million in assets. If you’re in construction, that’s maybe two cranes, and small asphalt plant. Whoops, did we just say, almost every small business?
They want you to disclose your clients tax position on any questionable matter you might include in their return, and they want you to figure what their additional tax liability might be if they rule against you. Frivolous position, taxes and penalty. Large savings estimate, potential audit target. Doing the form, research, fees, and risk. What’s the upside?
Only thing I have been able to figure is showing “good faith” when you make disclosure of a position that you have a reasonable expectation of being upheld.
Don’t do it, and you’ve tacked on another penalty for lack of “good faith.”
You can read more about it at John Cummings Blog
This is where I say something sarcastic like “Have a nice day.”
See you soon
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