We have consistently held that Form 1040 and its instructions "cannot affect the operation of the tax statutes or [a taxpayer's] obligations thereunder." Weiss v. Commissioner, 129 T.C. 175, 177 (2007) (citing Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990)). Likewise, Schedule D and its instructions cannot
"[T]he sources of authoritative law in the tax field are the statute and regulations and not government publications," including guidance documents. Casa De La Jolla Park, Inc. v. Comm'r , 94 T.C. 384, 396 (1990). If Plaintiff's expert intends to insinuate that no Form 1099s should have been filed at all because Austin Marketing is an LLC, that is not an argument that Austin Marketing presses in its response to the motion for summary judgment.
See e.g., Roberts v. Commissioner, 62 T.C. 834, 837 (1974). Moreover, even though we are not bound by IRS Publications, see e.g., Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990), in response to their attempted geography lesson, we direct petitioners to the Form 8949 Instructions, which explain the reporting rules for line 8b columns (e)-(g) of Schedule D. In column (e) a taxpayer must report cost or other basis and adjustments to basis, and in column (g) a taxpayer must report adjustments to capital gain or loss (that is, any adjustments to proceeds and/or basis).
Whatever ambiguity might be found in those instructions cannot affect the operation of the tax statutes or petitioner's obligations thereunder. See Weiss v. Commissioner, 129 T.C. 175, 177 (2007) (citing Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990)) (explaining that tax form instructions cannot be relied upon as authoritative sources of law). To reflect the foregoing,
The sources of authoritative law in the tax field are the statutes and regulations, not Government publications. Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990); Green v. Commissioner, 59 T.C. 456, 458 (1972). Section 6656(e) allows a taxpayer to direct the application of past due deposits only during the 90-day period following its receipt of a failure to deposit penalty notice.
I do not suggest that IRS forms and instructions are generally precedential. Cf. Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396, 1990 WL 25740 (1990) (“The sources of authoritative law in the tax field are the statute and regulations and not government publications”). But here the statutory definition of “underpayment” utterly depends on and incorporates the “return”.
While it's understandably frustrating to Brombach that the guidelines weren't followed in his case, instructions and other IRS publications are not authoritative sources of federal tax law. Casa de La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990). Taxpayers must look to authoritative sources of Federal tax law such as statutes, regulations, and judicial decisions and not to informal publications provided by the IRS. Zimmerman v. Commissioner, 71 T.C. 367, 371 (1978), aff'd, 614 F.2d 1294 (2d Cir. 1979).
The Court notes that Internal Revenue Service tax form instructions cannot be relied upon as authoritative sources of law. See Weiss v. Commissioner, 129 T.C. 175, 177 (2007); Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990). The statement from the Form 4684 instructions is included because it is directly contrary to what petitioner argues is his understanding of the instructions.
Although the instructions do not support petitioners' contentions, even if they did, Internal Revenue Service tax form instructions cannot be relied upon as authoritative sources of law. See Weiss v. Commissioner, 129 T.C. 175, 177 (2007); Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396 (1990). Petitioners further contend that Publication 544, Sales and Other Dispositions of Assets, defines "ownership" for purposes of determining whether an individual is eligible to claim the first-time homebuyer credit.
Whatever ambiguity might be found in Form 1040 and its instructions in this regard, however, cannot affect the operation of the tax statutes or petitioners' obligations thereunder. See Casa De La Jolla Park, Inc. v. Commissioner, 94 T.C. 384, 396, 1990 WL 25740 (1990) (tax form instructions cannot be relied upon as authoritative sources of law).Form 1040 calls for “Ordinary dividends” to be reported on line 9a, to be tallied in the calculation of adjusted gross income; the form calls for “Qualified dividends” to be reported on line 9b, which does not extend into the calculations column.