The Coronavirus has hit the trucking industry like a locomotive and it put a major spotlight on just how important truckers are to America. While a linchpin to our supply chain, truckers are one of the most misunderstood independent contractors and like all contractors, when they don’t file or pay their Federal or State taxes, they put their economic stimulus package benefits at risk and will face an aggressive pursuit by the tax agencies if the tax debt doesn’t get settled.
During this historic event, truckers with back taxes and unfiled tax returns are advised to take action quickly so they can resolve their tax debts with the best outcomes possible. Due to the historic $2.2 trillion-dollar Stimulus Package the IRS has never been charged with collecting more tax revenue. Due to this, there are opportunities to settle tax debt available that were not possible even a few weeks ago. Our tax attorneys are experiencing more leniency with the cases we are filing, and we have been able to settle tax amounts for the lowest dollars in our firm’s history. Previous cases that were denied for programs such as Offer in Compromise are now being approved.
The following article is designed to help truckers learn more about tax relief and the tax strategies that can help during this time. If you have further questions, our expert tax professionals are available for a no-cost, no-obligation consultation.
If You Have Unfiled Tax Returns & Tax Debt – Settle It Now!
Truckers are the highest group of individuals for which the IRS files a substitute for return (SFR). When an SFR is filed for you, the IRS does not take into consideration any of the expenses. Trucking expenses are substantial and the amounts on your 1099s are rarely accurate, which are more reasons truckers do not want the IRS to file an SFR.
An SFR not only increases the amount of tax debt owed, it also impacts Stimulus Checks and loans, like the Payroll Protection Plan and Economic Injury Disaster Loan. To ensure eligibility for obtaining benefits and loans, and to prevent aggressive collection attempts by State and Federal Tax agencies, truckers are urged to file their unfiled tax returns and settle their tax debts as soon as possible. For truckers that have tax debt, while we are not a tax relief company, our tax attorneys can provide tax relief. For truckers that don’t understand all of the expenses or only have profit and loss statements, our tax attorneys can work closely with you to ensure your case achieves the best outcomes possible.
The Basics of Tax Relief & Tax Relief Programs
If you are facing a large amount of tax debt that you can’t pay, or have bank levies, wage garnishments or Federal and State tax liens, while no two truckers are the same, the majority of truckers need relief from the taxes they owe. Tax relief is just that; a reduction in what you owe the IRS or State tax agency. We diligently fight for the IRS and State tax agencies to find ways to negotiate and resolve your tax debt in the shortest amount of time possible. We are able to get IRS or State wage garnishments removed in 48 hours.
Some of the tax relief programs that we have successful negotiated our trucking clients into include:
- Installment Agreements – This is where we structure a payment plan that is on your terms (not the agency’s).
- Fresh Start Program – This is where we work with the IRS to structure a way to repay your taxes while you get back on your feet. The debt thresholds have been expanded to allow for up to $50,000 in tax debt paid back over 72-months.
- Offer in Compromise – This is where we negotiate an agreement between you and the IRS to settle your tax debt for less than you owe. This is only available for a limited number of people (roughly 11%).
- Currently Non-Collectible Hardship Status – This provision in the tax code is for people that can’t pay their tax liability. When done by our tax attorneys, we find over 68% of the people with Federal and State tax debt can be negotiated into a Currently non-collectible hardship Status.
- Penalty Abatement – This is where we negotiate with the IRS or State to secure tax relief on your penalties in various forms, including reasonable cause penalty abatement, first-time penalty abatements, and statutory exceptions. The first-time penalties include failure to file, failure to pay, and failure to deposit.
- Unreleased Programs for Coronavirus Relief – There are situations where the IRS hasn’t issued policy on tax relief options but they are giving IRS Revenue Officers broad leeway in accepting tax settlement offers that were previously unheard of prior to mid-March. Allow J. David Tax Law to use our vast knowledge and contacts at the IRS to achieve an outcome for you that will greatly reduce or eliminate your tax burden.
About J David Tax Law
J David Tax Law is an award-winning tax law firm that works with trucking industry owner-operators and fleets to resolve unpaid Federal and State tax debt nationwide. J David Tax Law has multiple offices and can represent tax debt in all 50 States. Peace of mind is only a click or call away.
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