Timothy J. McCormally, J.D., Washington, D.C., former chair of the IRS Advisory Council, has published his article, Tax time travel: Securing relief from unforced errors, missed elections, and other mistakes (June 1, 2019), in the AICPA Tax Advisor. It discusses ways taxpayers can sometimes correct errors in tax reporting.
The article begins as follows:
The word “oops” does not appear in the Tax Cuts and Jobs Act or the Internal Revenue Code, but the complexity, ambiguity, and rushed development of the 2017 tax law have given rise to taxpayers slapping their foreheads and saying: “What was I thinking?”; “How did I miss that?”; or “Is there any way to turn back the hands of time and fix that?”
In most respects, the Code, anchored by the annual accounting period principle, is unforgiving in dealing with slap-your-forehead moments like those spawned by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. Generally speaking, taxpayers cannot correct a costly mistake, oversight, or misjudgment.
Fortunately, there are circumstances in which taxpayers may indeed be able to “turn back the hands of time.” This item provides a quick overview of several tools available to engage in tax time travel. Given the intricacies and nuances of each, prudence requires further research and due care.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..