Tax help

[BobbyDigi]

I got a little tax problem from when I was a 1099 driver and the IRS says I owe money. I have a lien against me for 19,000 and been getting letters from businesses saying they can help me. one said they specialized in working with truckers. They seemed like they know what to do. But has anybody ever had this problem?

[Admin]

Your lucky it is lien and not a levy (they just take your property). If you can afford the 18K, chances are they will not settle. Why should they if they know they will get their money. If you are facing financial hardship, a lawyer can help you negotiate a deal. They usually charge a fair amount because they want a chunk of what they save you and you usually have to pay that up front.

Those who claim to be able to help you are like cockroaches. They come out of the woodwork when they smell the blood. Some can do a good job and some just want the money and may or may not be able to do you any good. So using caution is a good move on your part. If it were me, I would talk to a local CPA or tax attorney. They usually do not charge you for a consultation.

These things are always more complex than a brief description on a forum. Usually what happens is you screw up on your taxes and do not file. The IRS audits you and they are only interested in your income. The 1099s you are talking about are sent to both you and the IRS and they show income that was paid to you. It is up to you to show receipts for any deduction that you have coming. If you do not have those receipts, you get screwed and what was supposed to be a deduction, magically turns into taxable income.

Lesson learned: Save every receipt for everything.

p.s. I am not an accountant, nor am I an attorney, but truckers, especially Owner Operators need to look at their job as a business, because that is exactly what it is. Keep good records and consult with a Tax professional to make sure you protect yourself.

Good Luck..