TFS Online Newsletter

What was Benjamin Franklin thinking as he signed the DECLARATION of INDEPENDENCE? He was a visionary - was he looking at the 20^th century? The 20^th century when the INTERNAL REVENUE SERVICE a division of the government that he helped create, would treat American Citizens as less than criminals?

The INTERNAL REVENUE SERVICE a division of a government that guarantees Americans that they are innocent until proven guilty. A government run of the people, for the people, and by the people. We send 525 people to capital hill, and elect a President to maintain our rights, BUT yet something like the INTERNAL REVENUE SERVICE has festered out of this.

What can we do about this intimidating situation? We can write, call, fax, and/or E-Mail our congressmen and senators and tell them to do away with the IRS. What good does it do? Let me show you how important your vote and/or voice are:

If every trucker, every trucker's family, everyone connected with trucking voted responsibly and together, every office from the President of the USA to the mayor of your city would be a trucker. You think I am kidding? Less than 40% of the people eligible to vote elected Bill Clinton to the highest office in the land.

Don't be fooled by the dooms day people that support the INTERNAL REVENUE SERVICE. We do not need the INTERNAL REVENUE SERVICE to collect the moneys for the US Treasury. The tax code of 1913 was started with a flat tax. That is right! A flat tax, and it evolved into a code that no one can read and/or understand.

The INTERNAL REVENUE SERVICE (by the way it is not a SERVICE, so from now on I will leave that word off) can't be audited, their records are so bad. No one knows how much it really costs to operate the INTERNAL REVENUE. Fraud amounts to more than FIVE BILLION DOLLARS, mostly due to electric filling.

Fifty percent of the people living and working in the United States do not pay income tax. We will start with our favorite people...the lumpers. Anyone that gets paid and does not receive a form 1099 is subject to neglect to pay taxes on the money they receive.

That is why I feel that a national sales tax is the only solution. Even the dope vendor and the adulterate buy things. Then it would be taxed according to how much they spend. The guy that buys a BMW would pay more tax than the guy buying a Ford Escort.

No matter what the solution, it ain't no solution as long as the INTERNAL REVENUE is in place. They ain't gonna change.

While we are waiting for our call, letter, fax or E-mail to take effect, what can we do to make life a little better? Is there something that we can do to make it easier if and when the INTERNAL REVENUE calls?

The INTERNAL REVENUE has targeted the trucking industry along with seven other occupations that they take a closer look at. WHY? Mainly because of the poor record keeping, the large amounts of deductions, and reluctance to fight them.

"You must keep records to correctly figure your taxes. Your records must be permanent, accurate, complete, and clearly establish your income, deductions, credits, and employee information. The law does not require you to keep your records in any particular way."

"Adequate records include account books, diaries, trip sheets, or similar items. Records written at or near the time you have the expenses have more value than oral statements or written records reconstructed much later."

Laundry is one of those expenses that you must write down at the time of doing it. You don't get a receipt for doing your laundry at the truck stop or Laundromat. The expense is a legitimate expense when you are away from home. It must meet the test: be ordinary and necessary and not be lavish or extravagant.

Telephone calls that you must make for business, when you use "cash" write it down. That meets the test.

DO NOT get caught up in the notion that is put out by those uniformed experts that hang around the truck stops and even write a cheap book...keep all receipts, YOU MUST HAVE RECEIPTS FOR THINGS LESS THAN $25.

Every audit is different. Each office of the INTERNAL REVENUE looks at the tax code "their way." The best advice is; keep the best records that can possibly be keep. Hire an accountant if you are an OWNER OPERATOR.

When I owned a truck, I always hired an accountant. Even though I have a degree in accounting and have a long list of impressive income tax experience. A good accountant, ones that knows the trucking industry and the tax laws as they apply to it will not only save you TIME but MONEY. If you have time to keep your records correctly then you ain't truckin.

If your tax returns have been prepared incorrectly all is not lost. 70% of truckers taxes are incorrect and they have over paid their taxes. Your tax returns can be amended up to three years after the filing date.

I will review your tax returns for FREE and tell you how much you have over paid. Then if it pays to amend them we will charge for that. Call me 1-800-328-2937.

The standard meal allowance is probably the most misunderstood deduction that you will have. It goes back to 1989, when Congress set aside a different amount for transportation workers. This amount has always been more than the standard amount for others that travel for business. The amount deducted has changed also. Up until a couple years ago they only deducted 20% now they deduct 50%. But you must use the whole amount on your tax return because the calculation will then take away the deductible.

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

RUSSELL E. FULLINGIM, CTP