Man Honten

In face of tighter enforcement measures that the IRS is expected to use to strengthen its tax collection and monitoring policies, tax problems have become, if possibly, more stressful to deal with. Among truck drivers, in particular, the need to immediately address tax problems is more pressing than it has been in previous years. However, given the present economic climate, dealing with tax problems can prove hard for truckers, truck drivers. This is where tax relief for truck drivers plays an integral role. The IRS provides tax relief for truckers, provided that they certain law mandated qualifications and criteria.

Available relief for drivers

Truck drivers have at their disposal the same kind of tax relief available to all citizens of the United States. The first of these relief services is back tax return assistance. Back taxes are taxes accumulated from years of unfiled returns, delayed filings, or missing records. If left unattended, back taxes can cause major problems for a truck driver because he or she is likely to be considered evading his or her responsibilities. If you have a good amount of unfiled returns in your hands, you can set your record straight through services offering tax relief for truckers. Our firm, Mike Habib, EA, offer such service basically helps our clients to reconstruct tax records and prepare past due tax returns.

Another tax relief for truck drivers is installment agreement, which can be especially helpful for truckers with excessive tax debts. This type of tax relief service would allow a truck driver who is indebted with the IRS to pay his or her owed taxes through small installment payments. The amount to be paid for each installment and the repayment schedule would be based on the truck driver’s current financial status. This setup, along with the amount and schedule, can be negotiated with the IRS given that the truck driver meets certain qualifications. If you are yet unfamiliar with this kind of tax relief for truck drivers, you can retain our tax professional services to help you explore it.

Truck drivers also have the option to get relief through offer in compromise or OIC. This is perhaps, the best kind of tax relief for truckers since it would allow them to pay less than what they actually owe the IRS in tax debt and back taxes. On the same note, OIC comes with the strictest qualifications, rules, and guidelines to ensure that only qualified truck drivers and tax payers in general are able to avail of it.

Related to offer in compromise is a tax problem resolution called penalty abatement. This is actually a step above OIC in that it opens the possibility of eliminating penalties on the tax debt if the taxpayer is able to present reasonable and justifiable cause explaining why he or she accumulated the tax debt in the first place. Some examples of reasonable and justifiable cause accepted by the IRS are family sickness, natural disasters, and other situations that are beyond a person’s control.

Regardless of the type of relief for truckers that you can avail of, what is important is that you try and avail of one. Tax problems are hard burdens to live with. They are among the many number of things that you cannot live normally with. By seeking tax relief, you free yourself of tons of headache and worries. More importantly, you would no longer fear the IRS tax letters coming in, the phone ringing, or the doorbell ringing.

Knowing the right one

Before you seek tax help for truck drivers, however, you must know what kind to of option is best suited for your situation. This is because every kind of financial situation requires a different approach in the same way that each kind of tax relief approach comes with requires different qualifications. It is best to present your case to a tax professional so he or she can advice you on which tax relief is most suitable to your position.

By: Mike Habib

About the Author:

tax problem

The limited liability company, better known as an LLC, is a favorite business entity among small businesses because of the incredible flexibility involved in running it and the simplicity of the tax situation that arises. Well, that is unless you are the sole owner of the membership interest in the company.

You’ve been making stained glass for years. Over that time, you’ve advanced from making works of “art” that are crimes against nature to the point where your work is church worthy. And people are telling you about it! Given this, you decide to make a business out of it and form an LLC. The first year goes well and you make a nice profit. You file taxes [complaining like a good American!]. Three months later, you get a notice from the IRS rejecting your tax returns!

Okay, so what happened? The answer is found in the fact the states failed to confer with the IRS before passing legislation allowing a single person to own all the interest in an LLC. The problem arises with the pass through nature of the LLC. It is based on the fact the LLC can choose to be taxed as an LLC. To be a partnership, however, you must have two or more persons doing business. Since there is only one, the IRS considers this form of LLC to be a “disregarded entity” for tax purposes and requires the single owner to report all the taxes on their Schedule C as though they were a sole proprietor.

The single member LLC is actually a great little entity for business purposes. The small business owner usually has to spend most of their time keeping the business up and running. The ability to avoid the corporate formalities of a corporation is definitely a positive benefit, but only if you understand what you are getting into from a tax purpose and can plan for it.

By: Mark P Warner

About the Author:

Create a video blog

If you are among those people who are filing for their tax returns early, keep in mind that identity thieves are lying in the wait; and the tax season is one time of the year that makes them go crazy! This is because tax returns have all the information the identity thieves require to mess up your life. This includes the golden key to your chest of your most valuable financial secrets: your Social Security number. So be careful with your personal information!

It is important to pay your utter most attention to the location where you drop your tax return in the mail. You should never leave it up to the mailman to handle it. Ensure that you place it inside a secured mailbox, more so, one from which the mail will be collected as soon as possible. Actually, it is best to mail your tax return directly at the post office.

If you opt to use e-file, ensure that the computer you are using is secure with a firm firewall and antivirus and anti-malware programs that are regularly updated. Do not do it using Wi-Fi connections because they are not secure.

In the event that you are due a refund, ensure that your mailbox locks. If it doesn’t, then it would be best to have your mail sent to the post office, and collect it as soon as it arrives.

Also, keep in mind that the IRS does not, under any circumstances, contact people by e-mail. Therefore, if you receive an e-mail claiming to be from the IRS, pay no heed to it – it is just an identity thief who wants to obtain your personal information. The same also goes for telephone calls. If you receive a call from someone claiming to be from the IRS, hang up and call the IRS yourself to confirm if they need to talk to you.

It is advisable to keep your tax return and other related documents for seven years. This is because the IRS has three years from your tax-filing date to audit, and another six years to handle a claim. Once the documents have served their purpose, make sure that you shred them. Use a shredder that has a diamond or cross-cut, as opposed to a strip-cut. Strip-cut shredded documents can be pasted back together easily.

If you suspect that your identity may have been stolen, you should contact the IRS Identity Specialized Unit at 800-908-4490.

Watch out for identity thieves. They can cause you major problems.

By: Robert L. Daniel

About the Author:

Caffeinated Content