Truck drivers are one of the most misunderstood types of independent contractors. They are among the highest group of individuals to have a substitute for return (SFR) filed on their behalf by the IRS. When the IRS does this, the IRS files the return without allowing for any expenses. The IRS will base their calculations solely on the amount of income reported on any 1099 to the truck driver. This results in an excessive amount of tax due.
All truck drivers know the amount reported on the 1099 is not an accurate representation of the true amount they actually bring home at the end of each year. Your trucking expenses are substantial, and they include gas, miles, parts, maintenance, repairs, insurance, tires, tolls, parking fees, registration fees, and so much more.
Whether you are a truck driver who has not filed a return in many years and wants to avoid having an SFR filed or you had SFR(s) filed on your behalf, our tax lawyers in Jacksonville, FL are experienced in handling your situation. We will evaluate your situation and create a strategy to represent you against Federal and State tax agencies.
How We Help Truck Drivers Get Tax Debt Relief
Tax Debt Case Study #1 – Mr. J
Mr. J reached out to J. David Tax Law for assistance in resolving his tax debt for two years, due to SFR’s, in the amount of $180,000. By the time Mr. J had contacted J David Tax Law, the IRS had begun sending notices with bank levies imminent for the older balances. For the two years with balances, tax liens had already been filed. With unfiled tax returns for the last 3 years, Mr. J also feared there would be more SFR’s prepared. The IRS allows for original returns over any SFR’s they have prepared on your behalf, however, the IRS does have a statute of limitations on how far back a tax preparer can file an original to replace the 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.
Tax Debt Relief Case Study #2 – Ms. V
Ms. V reached out to J. David Tax Law for assistance in resolving her debt for the previous 5 years, due to SFR’s, in the amount of $275,000. Since her health had deteriorated and she was not driving the long routes that she once did, her income had been cut in more than half and she had fallen on hard times. The IRS had started collection actions and they had levied her bank account on more than one occasion. Fearing that she could not survive on what the IRS was leaving her, she reached out to J David Tax Law to help her address the issues with her returns and the levies. Ms. V had two issues: her balances were assessed incorrectly, and she was in a position where she could not afford to make any payments, as currently, her expenses exceeded her income.
Our Customized Solution for Ms. V:
Within a few hours of speaking to J David Tax Law, we were able to get a collections hold placed on Ms. V’s account with the IRS, which stopped any additional levies. Even though she had receipts, Ms. V had trouble understanding what expenses she could use when she filed her returns. Our tax experts were patient and took the time to explain what expenses were allowed and how to complete a profit and loss statement. Once she had this understanding, Ms. V was able to gather the documents we needed, and she prepared the profit and losses for the missing years. Once we had the profit and losses for all five years, we prepared the original returns. The true liability for all five years of $22,000 was reflected in our accurately prepared returns. After the returns were submitted and her balance owed corrected, we moved on to her current situation. We went through a complete financial analysis and submitted to the IRS the proper documentation to show that Ms. V was in a hardship. Now that the prior returns were correctly filed and a hardship was established for the debt, this allowed Ms. V to not have to make payments. Ms. V could finally sleep at night now that she did not have to worry about the IRS and their aggressive collection attempts.
Customized Tax Debt Relief Solutions for Truck Drivers
When you receive 1099 income, taxing agencies are more likely to file a substitute return that is excessive to the true tax debt you owe. The longer you go without filing your tax returns, the more likely SFR’s will be prepared and the IRS will begin collection activity. Their collection activities can be aggressive, and they can include levies or garnishments of bank accounts, social security, wages, and other tactics. They may also assess penalties and interest, which further increases the amount you owe. If you are a trucker driver who needs assistance with Federal or any State liabilities, or unfiled tax returns, our tax lawyers in Jacksonville, FL are here to help.
He is the founder and Managing Partner of J. David Tax Law®. He is the winner of the 2019 Ultimate Tax Attorney awarded by the Jacksonville Business Journal. This award recognizes law firms and attorneys who show exemplary professional talent and skill while demonstrating superior client care, leadership, charitable concern, and civic engagement. Jonathan graduated from Chapman University School of Law. He has practiced law since 2011.
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.
7077 Bonneval Rd Suite 200, Jacksonville, FL 32216