Video: Disclosure of Tax Positions

In this lesson, Nick Palazzolo, CPA, takes a deep dive into the nuanced world of tax position disclosures. He provides an engaging explanation of the spectrum of tax positions, from frivolous returns with no basis in law to strong positions that have a greater than 50% chance of being upheld upon IRS examination. Nick makes this complex topic approachable by using clear examples and offering real-life scenarios, such as the case study of James Marsh, to illustrate the implications of different levels of tax position defense. Through this lesson, Nick elucidates how proper due diligence and consulting with a professional can help avoid unnecessary penalties, and how the disclosure of these positions plays out in real-world tax reporting. It’s a content-rich presentation that blends theory with practical advice, ensuring that one leaves with a clear understanding of how to navigate tax positions and their potential consequences.