What has the Tax Cuts and Jobs Act (TCJA) produced?
Thousands of pages of complex rules.
What the TCJA has not provided is clear guidance that definitively shows you whether or not you qualify for many valuable deductions.
This puts you in a pickle.
You may believe you’re entitled to a given deduction but worry that if you claim it on your tax return, the IRS might slap you with a huge penalty.
How should you handle this difficult problem? For starters, read my new article titled Tax Tips: Uncertain of a New TCJA rule? Do This to Avoid Penalties.
Three ways our fact-filled article can help you:
- We’ll explain the serious risks you face. In a word … penalties. You see, the tax code can assess special penalties that apply to both you and your tax preparer. You could face a 20-percent accuracy-related penalty when you understate your tax liability. Your tax preparer could face jaw-dropping penalties as well. We’ll give you all the details when you read the full article.
- We’ll tell you what your first option is. Again, in a word … disclosure. This is a proactive strategy designed to prevent the penalties we mentioned above. To avoid trouble, you’ll need to file one of two disclosure statement forms. You’ll get the whole story when you read the full article.
- We’ll also explain your second option. This involves amending your tax return. This more conservative strategy is perfect for those who want to minimize the risk of an IRS audit. Here’s what you should do. Wait until there’s more guidance or authority to support your position and then claim the position on an amended return to get a refund of your overpaid taxes. All will be explained when you read the full article.