It would be unfair to assume that the IRS actually knows what the 1031 Exchange Worksheet is. As long as you have a copy of it, you will not be treated as if you do not have any income to report. There are so many versions of this worksheet available and the IRS seems to have little trouble changing the wording on the worksheet.
This tax form was designed specifically for taxpayers who need additional time to prepare their tax returns. The IRS does not want taxpayers being late in filing their tax returns. Any excuse is good enough for the IRS, as long as it is reasonable and the taxpayer complies with the request.
The IRS actually allows taxpayers to download the 1031 Exchange Worksheet. The only problem with this is that it is so easy to lose or delete the worksheet completely. This leaves the taxpayer without an income tax return. To make matters worse, the IRS tells taxpayers to refer to the document every year, because the information contained in the worksheet has not changed.
This is a great part of the tax code and it is useful for everyone. All taxpayers should keep copies of this tax form for reference and in case they need more time to prepare their tax returns. It is also important to make copies of the forms and the 1031 Exchange Worksheet for your own records.
Involves just one simple idea. In order to claim any taxes, you need to know exactly what you are supposed to pay. Your tax return needs to be completely accurate. The IRS cannot prove anything about your tax situation if you do not provide them with accurate information.
Let’s face it; the rules are so confusing these days that someone may claim they did not make a purchase that was included in their sales statement or invoice, only to discover later that they must pay an extra tax. It happens all the time. No one wants to file late because they were misinformed by the IRS.
The thing to remember when using the 1031 Exchange Worksheet is that you must determine whether or not you are in the same tax year as another taxpayer. For example, you may think you are in a different tax year but you are not. Even if you think you are in the same tax year, you can still claim refunds or receive tax reductions if the dates don’t match up.
A simple concept, right? The IRS does not care how difficult it may be to complete a tax return. The only thing they care about is getting your money.
