One of the most misunderstood types of independent contractors is truck drivers. Truck drivers, who are independent contractors, are among the highest group of individuals to have a substitute for return (SFR) filed on their behalf by the IRS. When this happens, the IRS files a return for the individual without allowing any expenses. The IRS bases their calculation solely on the amount of income reported on any 1099 to the individual. This results in an excessive amount of tax due for the person the return was filed for.
As any truck driver knows, the amount reported on the 1099 is not an accurate representation of the true amount they bring home at the end of the year. Trucking expenses are substantial and include parts and services, gas, miles, insurance, tires, tolls, parking fees, registration fees, and many others.
Whether you are a truck driver who has SFR’s filed or has not filed a return in many years and wants to avoid having one filed, our team of lawyers are experienced in handling your situation. We can help to evaluate your situation and create a strategy to represent you against Federal or State taxing agencies.
Our Tax Debt Relief Solutions for Truck Drivers
Mr. J. – Tax Debt Case Study #1
For assistance in resolving his debt for two years, due to SFR’s, in the amount of $180,000, Mr. J reached out to J. David Tax Law for aid. The IRS had already started to send notices with bank levies imminent for the older balances, by the time Mr. J contacted J. David Tax law. Liens had already been filed for the two years with balances. Mr. J also feared there would be more SFR’s prepared as he had not filed the past 3 years of tax returns. The IRS allows for the preparing of original returns over any SFR’s they have prepared. The IRS also has a statute of limitations on how far back a tax preparer can file an original to replace any SFR.
Our Customized Solution for Mr. J: Within hours of talking to our tax experts, we were successful in getting a collections hold placed on Mr. J’s account with the IRS. We wanted to ensure no levies could be placed on his account while we worked on his debt. After going over his trucking expenses with our tax experts, Mr. J sent us his profit and loss statements for the two years with SFR’s and for the three missing years. Once we had this information, we expedited the preparation of all five years of unfiled tax returns. When the tax returns were prepared, they correctly showed Mr. J’s true tax liability for all five years totaled $15,000. Upon submitting and processing the returns, we were able to get Mr. J into a small payment arrangement for less than $200 a month for the remaining balance. When all five returns were filed, Mr. J had peace of mind knowing that the IRS would not try to levy his bank accounts. Mr. J was appreciative of our help as a levy would have ultimately made it impossible for him to keep working.
Ms. V – Tax Debt Relief Case Study #2
For assistance in resolving her debt for the previous 5 years, due to SFR’s, in the amount of $275,000, Ms. V reached out to J. David Tax Law for aid. Ms. V had come onto hard times as her health had deteriorated and she was not driving the long routes that she once did, cutting her income in more than half. The IRS had already started collection actions and had levied her bank account more than once. Fearing that she would not be able to survive on what the IRS was leaving her, she reached out to our tax experts to help her address the issues with the returns and levies. Ms. V had a dual issue in that not only did she have balances assessed incorrectly, but she was not in a position that she could afford to make any payments, as her current expenses exceeded her current income.
J. David Tax Law’s Customized Solution for Ms. V: Within hours of speaking to our tax experts, there was a collections hold placed on Ms. V’s account with the IRS, stopping any additional levies. Ms. V had trouble understanding what expenses she could use, even though she had receipts. Our tax experts were patient and spent time explaining what expenses were allowed and how to complete a profit and loss. Ms. V was then able to gather the requested documents and prepare the profit and losses for the missing years. Once we received the profit and losses for all five years, we were able to prepare the original returns. The newly prepared corrected returns showed a true liability for all five years of $22,000. After submitting the returns and having a corrected balance owed, we then moved on to her current situation. After going through a complete financial analysis, we were able to submit proper documentation to the IRS to show that Ms. V was in a hardship. With the prior returns correctly filed and a hardship established for the debt, allowing Ms. V to not have to make payments, Ms. V could finally sleep at night and not have to worry about the IRS and their collection attempts.
We Offer Customized Tax Debt Relief Solutions for Truck Drivers
When an individual receives 1099 income, taxing agencies are more likely to file substitute returns that are excessive to the true tax debt owed. The longer tax returns go unfiled, the more likely that SFR’s will be prepared and collection activity will begin. These collections activities can be aggressive and include levies or garnishments of bank accounts, social security, wages, and others. This can also lead to additional penalties and interest, which increases the amount owed even more. Whether you are a trucker driver who needs assistance with Federal or any State liabilities, or missing returns, our tax lawyers are here to help.
We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.