— Are you a truck driver with tax debt?
— Has the IRS sent you a large tax bill and you have no idea how you’re going to pay it?
— Have you been avoiding filing your taxes in hopes of “staying off of the IRS’ radar”?
— How much do you know about the write-offs that could greatly reduce your taxable income?
The following is detailed information about some of the government programs that we can use to reduce or eliminate your back tax debt and what to expect when dealing with an IRS tax debt.
So, you started your job driving and soon realized that filing your tax returns is rather scary. So you did what most people do and went to a tax preparation service for help. But because your tax preparer wasn’t too familiar with how taxes work for truck drivers, they gave you a bleak outlook of what you will likely owe the IRS and state when you file. Just thinking about the tax amount you will supposedly owe is a large enough deterrent to make you skip filing your tax returns.
And so some time went by and you didn’t file so that you could “stay off of the IRS’ radar”. But, unfortunately each passing year that you did not file raised more and more red flags with the IRS. And, instead of keeping yourself off the IRS’ radar, you ended up making your presence quite noticeable by not filing.
So, as a result, a few years later the IRS sends you a Substitute Filed Return or SFR. Hitting you with an SFR immediately puts you at the highest tax bracket. It also means that the IRS is not willing to take into account any of your itemized or standard deductions.
So, now you have a large tax bill in your hands which increases your level of fear even more. Given that most truck drivers get a large gross 1099 MISC, the tax amount you are being called to pay now is enormous. And since the IRS was not aware of your expenses during that time, your tax bill is for the full amount of your 1099 without any tax deductions accounted for.
Most truck drivers then do one of two things: They either continue to hide from the IRS for as long as they can, or they rush into unfavorable payment plans with the IRS just to try to get the huge debt off of their shoulders. Neither option is pleasant–or even necessary!
It’s time to stop hiding from the IRS. We specialize in helping truck drivers eliminate their tax problems.
Believe it or not, your situation is incredibly fixable! We can help you get out of the tax mess you are in and help you to never get yourself into that situation again. Basically, it consists of helping you through four carefully structured and highly effective steps:
Step #1: Conduct a Tax Investigation
The focus is to find out key information, such as the reported wage and income (1099 MISC), the years the IRS claims you owe for, and how many of those years you can remedy through the Reconsideration request. This is basically pretty much like filing an amended tax return but with all of your proper expenses and deductions reported this time.
Step #2: Tax Preparation
This is the first critical step toward reducing your debt. How do we help you achieve that? By preparing your income tax return for all the years you did not file a tax return. Additionally, we will also work on filing amended returns (aka Reconsiderations). Even if we do nothing else, this step in and of itself will be able to get your tax debt reduced significantly.
Step #3: Tax Negotiation & Resolution
Our team of experienced tax relief professionals will negotiate a suitable payment plan with the IRS for you so that you can pay back the remaining tax debt on the most favorable terms possible for you. The end goal is to get you back on track with your taxes while enabling you to breathe a sigh of relief, released from the burden of that huge initial tax debt.
Step #4: Tax Planning
This last step will allow you to focus on what you love doing–driving! Our tax professionals will help reconcile your income and expenses and set up estimated tax payments for the future so you never fall behind on taxes again. At the same time, we will dive deep into your needs and requirements, evaluate your particular case, and emerge with key suggestions such as which business structure would benefit you the most (LLC, C-Corp, S-Corp, etc.) and whether or not you should be incorporated.
We know our stuff and we’ve helped countless truck drivers with their tax issues, so we’re confident we can help you too.
The Tax Cuts and Job Act, job-related expenses (IRS Form 2106), such as mileage and travel, are no longer deductible on tax returns for truck drivers that receive their wages reported on a W-2.
BUT you can still claim business expenses and a significant variety of tax deductions if you are classified as an Independent Contractor or owner-operator. Among these are:
Because we’ve helped so many truck drivers with their tax issues, we know about all of the available tax deductions that will help you lower your tax liability and recoup some of your travel-related expenses during the year.
Contact us for a free tax consultation and let’s get you headed in the right direction today.