Home > Message Boards > Archived Message Boards

Truckinfo.net's General Trucking Forum

Just a Little Trucking-Tax Entertainment

From: Frank M, Gruber, CPA
Remote Name: 66.27.19.245
Date: 16 Dec 2003
Time: 11:04:09

Comments

Meet Bill McNeil, an OTR driver who happened to be ‘on the road’ for most of 1998 and 1999. Bill’s story is a true one, but lacks a happy ending. You see in March of 2003, he was pick-pocketed by the IRS, cheated out of $15,000 in trucker-related travel deductions, and forced to hand over $4,000 in cash of HIS hard-earned money to the IRS! Why? Well, I quote The Honorable Judge Thornton as he handed down the verdict to this helpless defendant…saying ‘Son, you gotta Home alright, but not a Tax Home!’ Then, as if to add insult to injury, the venerable Judge peered down over his nose, through his glasses and across the courtroom. He looked Bill McNeil dead-in-the-eyes and firmly stated ‘Why son, You don’t even have a Principal Place of Business’. As Judge Thornton slammed the gavel down, the IRS agents in the courtroom reeled in laughter because, after all to them, there was something unjustly poetic about “Rail-Roading” another Trucker… For-Hire and Owner Operator drivers alike should know that with a little more technical Tax assistance here, Bill McNeil could have sent the IRS running from the Courthouse with their tales between their legs while he, himself, strolled casually from the Courthouse comfortably counting his cash, all the while shaking his head in disbelief at the IRS’s audacity.This Year Get The Deductions – All of Them – To Which You are Legally EntitledNot Sure How? …Consider this example…Jim Westling operated a Tug-Boat off the waters of Juneau, Alaska. He had a home in Washington, but was piloting his Boat 300+ days a year on the waters of Southeast Alaska. The IRS tried denying him the similar Travel tax breaks that Truckers are entitled to, so he turned around and sued the IRS and Won! The IRS ain’t buggin’ Tug-Boat Pilots much these days, if ya know what I mean.Q: So why does someone sitting behind the wheel of a Boat get a bigger tax refund than someone who is sitting behind the wheel of a Truck? A: They shouldn’t!! Truckers should be getting the same Tax breaks! Bill McNeil, our helpless Trucker above sure wishes he would have read this Article before signing his Tax Returns!Q: Why can Boat Captains get extra travel deductions for their “Ancillary-Traveling” expenses, even though they may have lost some receipts and even though they have a reimbursement plan, but when members of the Trucking Industry try to claim their legal tax breaks some IRS auditors think Truckers make an “easy mark” and proceed to bully them around year, after year?A: Sadly, the Trucking Industry has gained a reputation, at least among some IRS Auditors, for not being too technically “Tax Wise” … Therefore, “how on earth can they defend themselves?” IRS Auditors ask. My office is unique in that we defend our trucking-clients all the way up to the U.S. Tax Court if we have to, in order to preserve their legal deductions. Please consult your tax advisor on this issue. For all Truckers: Review these commonly over-looked areas with your Tax-preparer BEFORE signing your tax returns this Year!Owner Operators – Get help maximizing Per Diem and Additional Traveling expenses without taking any unnecessary chances! Compare the Three per Diem Substantiation Methods to make sure you CHOOSE the method that gives you the highest deductions. After all, the IRS allows YOU TO CHOOSE (this tax tip alone can save you Hundreds of Dollars!).Trucking Companies of all sizes – Review your reimbursement plan with your accountant. If your plan is set up right, new changes will allow you to deduct 100% of your reimbursements WITHOUT paying more in wages! Talk about attracting drivers AND minimizing Payroll Taxes! Hey Uncle Sam! The Trucking Industry is here to stay!Happy HolidaysFrank M. Gruber, CPA 5482 Wilshire Boulevard Los Angeles, CA 90036 Toll Free (866) 607-5600 Phone (310) 675-4340 Fax (310) 246-1532 E-Mail: FrankGruberCPA@socal.rr.com

Last changed: February 26, 2004