TFS Online Newsletter

The income tax as we know it today was passed in 1913. It was a FLAT TAX. Today with the 800 plus pages added to the already existing 9000 plus pages give us something that will cause a hernia. This week the Senate of the United States is taking a look at the INTERNAL REVENUE SERVICE. For the first time in history. I personally can match or exceed every testimony that was given. How did the IRS get to be this disgrace in our government?

Isn't it ironic that even the Senate, Congress, nor the powers at be in the IRS will not take responsibility for their actions or disactions! While it is still on their minds' call, write, fax or E-mail your Senators, and representative. Tell them you are tired, yes, sick and tired of being treated like a criminal. Yes, the IRS has targeted the truckers. They even printed a booklet for their agents to read, (35 pages on how to "understand truckers" and the industry) just so they can put the screws to you. Much more on this later.

A COMPULSORY CONTRIBUTION LEVIED UPON PERSONS, PROPERTY, OR BUSINESS FOR THE SUPPORT OF GOVERNMENT IS A...TAX.

The next time you see someone getting a ticket, thank them. They are paying their taxes! Unless of course you see them paying a ticket to some unscrupulous sort with a large hip pocket bank.

A compulsory contribution? What wonderful thoughtful person thought up that phrase? I think that he should be a comedian. A contribution is what I give to my church, or to that fellow running for president from Indiana. (Then someone called to question my motives!) A contribution to the United States Treasury, I think not!

Most taxes are deducted as a business expense. Not fines, nor penalties. Have you noticed that as states need more money, the higher the fines are? BUT, they are not deductible. So much for the politics of government.

Do you ever wonder why? I get so upset sometimes? Why I get so angry at the IRS, CPAs, tax preparers, wives and girl friends that do taxes? Truckers that do not keep good records? I will tell you why.

This ain't no trucker's story. It ain't even no fairy tale. It is a nightmare that plays every minute of every day in the lives of most truckers. I hear this story almost every day. Only the names and the locations change. I will not tell you his name, only the facts, just the facts, ma'am.

July 31, 1996 an Owner Operator called me. His taxes were being done by a CPA, but that an extension had to be filed because the CPA was too busy to get them done. My answer - go get your papers, send them to me and I will get them done. October 9, 1996 he again called, his taxes were still not finished. The CPA told him that he owed more than $11,000, $11,932 to be exact.

In addition, penalties and interest! An extension does you no good unless you pay your tax liability with it. In this case almost $12,000.

The first extension was filed April 17, 1996, and stated that the tax liability was going to be $4,000. It was signed by the CPA, but no money was sent. The second extension was filed August 15, 1996, signed by the CPA stating he needed more time to complete the return.

My answer to him...I can't second guess the CPA. Go get the return and the papers that the CPA used, and FedX them to me. He did I received the package and went through it. Right off I saw some obvious things that were wrong. So we processed all the settlement sheets and receipts that the CPA had. There was $10,000 difference between what I found on the settlement sheets and receipts that the CPA had.

Yesterday I had to go to confession, to get forgiven for what I thought and called that CPA. I am not even a Catholic!

On the tax return there was only $600 for insurance. There was less than $2,000 for repairs and maintenance. The standard meal allowance was only $26 a day. The trucker has an 89 Freightliner. There was only one receipt for a lub and oil change, only one truck wash. No lumpers, tolls, scales, or Form 2290. There were no check or card charges, motels, laundry, showers, or claims which I found on the settlement sheets.

His revenue figures at about $.70 a mile. Did he know that? NO! His fuel mileage was 5.9 miles per gallon. Did he know that? He thought so. Does he keep good records? Well not really. He did try to keep some records on a computer, but it died. Why didn't he take all the receipts to the CPA? He tried to tell the CPA about his expenses, but the CPA said it didn't matter. IT DIDN'T MATTER!

Why was I able to look at the tax return and be able to know that it was wrong? Why didn't the CPA know that? Do you know how much Mr. Trucker was fixing to pay the IRS? There would have been a penalty for late filing, a penalty for not paying estimated taxes, interest compounded every day. So his tax liability would have been in the vicinity of $18,000. Do you even care?

This is happening to 70% of the truckers out there. That's right 70% of truckers over pay their taxes. That includes drivers too.

I have spent my whole adult life studying accounting, taxes, and spent 20 years in an 18 wheeler

Mr. Trucker asked me if he could get the $500 he paid the CPA back? I told him he could ask for it. Then he wanted to know if he could sue for it? THERE IS A GOD. I said of course, and in small claims court. I guarantee he will win. If I can, I will be there just to testify against the CPA and a tax system that lets this happen to the greatest occupation in the nation.

If you are a driver and your company is taking out state income taxes for any state except the one in which you live, that company is breaking the law. That means that your company can only take out state income tax for your home state. Not the state that the company is in.

TITLE 49 of the UNITED STATES CIVIL CODE section 11504 states in part: (2) a MOTOR CARRIER PROVIDING TRANSPORTATION SUBJECT TO THE JURISDICTION OF THE COMMISSION UNDER SUBCHAPTER ii OF CHAPTER 105 OF THIS TITLE [49 USCS *10521 ET SEQ.] AND A MOTOR PRIVATE CARRIER SHALL WITHHOLD FROM THE PAY OF AN EMPLOYEE HAVING REGULARLY ASSIGNED DUTIES ON A MOTOR VEHICLE IN AT LEAST 2 STATES, ONLY INCOME TAX REQUIRED TO BE WITHHELD BY THE LAWS OF A STATE, OR SUBDIVISION OF THAT STATE THAT IS THE RESIDENCE OF THE EMPLOYEE (AS SHOWN ON THE EMPLOYMENT RECORDS OF THE CARRIER).......

That my friend is the LAW.

If you are having tax, accounting, or trucking problems, the best and safest way to get help is to call an accountant that knows trucking.

HAPPY MOTORING AND I WILL...SEE YOU AT THE TOP.

RUSSELL E. FULLINGIM, CTP