Search Results

Back on March 31st, 2023, representatives Mike Gallagher (R-Wisconsin) and Abigail Spanberger (D-Virginia) reintroduced legislation to establish a refundable income tax credit for qualified commercial drivers. First introduced in April 2022, the bipartisan Strengthening Supply Chains Through Truck Driver Incentives Act would provide short-term incentives to try and attract and retain, new drivers. The lawmakers expect the bill to do three things: Create a new refundable tax credit of up to $7,500 for truck drivers holding a valid Class A CDL who drive at least 1,900 hours in the year. This tax credit would last for two years. Create a new refundable tax credit of up to $10,000 for new truck drivers or individuals enrolled in a registered trucking apprenticeship. This tax credit would also last for two years. Allow new truck drivers to be eligible for the credit if they did not drive a commercial truck in the previous year or drive for at least 1,420 hours in the current year. They may receive a proportion of the credit if they drive less than 1,420 hours in the year, but drove at least an average of 40 hours a week upon starting to drive. The Gallagher-Spanberger legislation is endorsed by several associations including the American Trucking Association, American Loggers Council, National Grocers Association, International Foodservice Distributors Association, American Building Materials Alliance, Forest Resources Association, Hardwood Federation, Wood Machinery Manufacturers of America, Third Way, and National Pork Producers Council. Also in 2023, Reps. Dusty Johnson (R-South Dakota) and Jim Costa (D-California) introduced the Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act, a bill that, among other things, also called for a temporary $7,500 tax credit for eligible drivers. That bill puts a cap on eligibility linked to adjusted gross income for the taxable year not exceeding $135,000 for couples filing jointly; $112,500 as head of household; or $90,000 individually. New truck drivers who did not drive a truck during the preceding tax year would also be eligible for $10,000 under the same rules. Since these bills were reintroduced in the house early in 2023, there have been no further updates. So at this time truck drivers will not be eligible for any new “truck driver tax credits”. However, there are still plenty of tax credits and deductions truck drivers are eligible for. If you would like to learn more about these and make sure you’re paying as little as possible to the IRS, feel free to contact us. We will continue to keep an eye on any developments when it comes to this legislation and update this article as necessary.

No one really wants to live worrying about money from one check to the next. It takes hard work and dedication, but the cycle can be broken. If you find yourself in a similar situation then here are some tips to help you stop living paycheck to paycheck and start living on your own terms. Start Tracking Your Spending The first step that you need to take, and possibly one of the most important, is you need to track your spending. For one month, document everything that you spend money on. It should be everything from how much you paid for a small cup of coffee all the way up to your rent or mortgage payment. If you are married, make sure your spouse joins in on this process. An easy and free way to document everything is with a Google spreadsheet. It can be accessed online which means multiple people can work on the document together. After a couple of months, you will start getting a better picture of what you are spending your money on. From there you can set up a budget that you feel you can live with each month. Begin Cutting Back on Your Spending Now that you know what you are spending your money on each month, it’s time to start cutting back. Maybe you cut out expensive dinners that put you over your per diem amount, or maybe you have your spouse at home downgrade the cable plan. Are you carrying a credit card balance each month? If you are, then you’re spending extra money each month on finance charges. If you can eliminate your credit card debt quickly, then do so. If it’s going to take some time, then it’s important to come up with a plan. As a truck driver, your insurance is a big expenditure each month. Continually shop around to see if there is a lower rate elsewhere. This is a simple way to help reduce your monthly expenses. Finally, do your best to avoid any fees that are not a must. Don’t use ATMs that are not part of your bank’s network. Also if your bank charges a monthly maintenance fee, then you should look at moving to a bank that has completely free checking. Increase Your Household Income This is easier said than done and will require hard work and commitment. If you are an independent owner-operator, work to establish a great relationship with a couple of dedicated clients. By doing this, you could end up being the first call when a load needs to be delivered. Alternatively, if you are driving for a fleet, make sure you have a strong relationship with your dispatcher. Becoming a reliable driver should give you the best loads on the most desirable routes. Living paycheck to paycheck isn’t something that many people want to do. With a little budgeting, some cost-cutting, and a little extra income you can end the cycle and start living the way you really want.

When it comes to making more money or saving on taxes, providing pertinent information to your tax preparer is important. The following are examples of important events that your tax preparer should be aware of and, if not, should be provided during the tax preparation process. Are you an owner-operator that needs help with your taxes? Click here! “I bought a new (or another) truck.” This is vital to know, as the amount of your depreciation deduction may have an impact on your tax liability. “I changed carriers.” We know it is a pain to gather together all of your Form 1099’s, but it’s a red flag to potential IRS auditors if you don’t report all of your income. ATBS also uses this information to make sure we capture every available deduction. “I renegotiated or signed a new lease.” Entering into any new legal documents or renegotiating the terms of previous legal documents may impact your tax situation. It is crucial for ATBS to know this to consult with you on any tax matters that need to be considered. “I took another part-time job to supplement my trucking income.” It’s essential that ATBS is aware of this during the year to make sure your estimated tax payments are properly calculated, and all income is accurately reported to the IRS. “I made a nondeductible contribution to my traditional IRA.” Nondeductible IRA contributions don’t have an impact on your tax liability in the year they are made. However, if these contributions are not reported on your return, it is much more difficult to claim these amounts as they are not taxable when you withdraw them from your IRA years later. “I converted my IRA to a Roth IRA.” Traditional IRA distributions are not taxed until after you take them out of the account. But if you convert an IRA to a Roth IRA, this may trigger a taxable event in the year of the conversion. “I had debt forgiven by a creditor.” If you’ve negotiated with collectors to settle debts for an amount less than what you owe, that is a smart way to dig yourself out of a hole. The IRS considers debt that you incurred and do not have to pay back as income. The canceled debt must be included in your gross income unless you qualify for an exclusion or exemption. If a creditor forgives $600 or more in debt, they are required to file Form 1099-C with the IRS. If the IRS knows about this, your tax preparer needs to know about it also. “We have a new baby in the family.” If you have a new addition to your family or if your tax filing status changes due to marriage or divorce, please let your tax preparer know about these types of events. They have an impact on the calculation of your tax exemptions and rates.

Owing taxes to the Federal Government is never intended to be part of the plan, yet we can find ourselves in this position for a number of reasons. Whether a truck broke down, a mortgage needed to be paid, or an unexpected health emergency occurred, it is not uncommon to be placed in a position where you are choosing to sacrifice the funds you would have otherwise paid towards your tax bill just to stay afloat personally. In 2022, nearly 58.2 million taxpayers were in a position where they needed to interact with Internal Revenue Service (IRS) collections in some way. So, while it can feel scary, intimidating, or lonely to owe the IRS money, it is not a unique circumstance and there are a myriad of ways to tackle the problem to be sure you get back on track with them. Many people reach out to Tax Resolution Firms (or, are hounded by them in the other direction) when looking for direction on how best to address a tax debt. The same way we seek help from a doctor, lawyer, or CPA for certain and specific advice, it can be very helpful to track down help when looking to address tax debt. With that said, it is equally, if not more important, to really research, vet, and ask questions of the people you would be entrusting with this process. Choosing the wrong representative can lead to long delays with the IRS, avoidable IRS penalties, and very costly fees for work that ultimately never gets completed. Having worked for 4-different companies in my 11-year career, and knowing folks who work (or who have worked) for many other companies, I take great pride in keeping a finger on the pulse of the industry so that I can serve people in the most effective way possible. The industry has changed significantly over the years and there are many options when it comes to finding someone to help you. While I never make a point of speaking ill for the sake of it and I believe there are very good firms out there to work with, I think it is time to shine light on some of the more predatory practices I’ve seen so as to help people avoid falling into these traps themselves. I will outline here some of the more egregious practices I’ve seen and some tips and tricks to choosing a representative. The first thing to always remember is that if something sounds too good to be true, it probably is. Firms will sell you an Offer in Compromise (part of the Fresh Start Initiative) without even properly qualifying you for this type of strategy. While there are a number of IRS programs designed to help taxpayers resolve their debts in a way tailored to their specific needs, the idea of settlements (Offers in Compromise) should not be a first thought. 1 in 1,124 Offers in Compromise are accepted by the IRS. They are becoming more and more rare as the years go on. The bar to qualify for this type of resolution has become so high that unless you have a truly ironclad case, it is highly unlikely this type of resolution strategy would be effective. Firms often charge between $5,000-$20,000 to submit this type of resolution. The process can take up to two years and then when the IRS rejects the offer, the firm will charge you again to reach the payment plan you probably should have been set up on in the first place. Be sure that any company you choose to engage with is not charging you for this type of service up front without ever having talked to the IRS. Furthermore, you will want to be sure they have truly qualified you for this and have outlined clearly the reasons why they believe this would be successful for you, specifically. A second thing to pay attention to is the use of fear tactics. Is a firm attempting to scare you into letting them represent you? Firms will often try to scare folks into hiring them by threatening that the IRS can seize all of their assets and garnish all of their wages. They will make tax liens sound like they are going to ruin you financially. They will tell you that you are open to enforcement and that if you pay them today, their team of experts will put an immediate stop to this type of action just by virtue of you signing a Power of Attorney. These types of marketing tactics are misleading, unfair to the consumer, and are often factually untrue. Keep in mind that the IRS does not just seize property. It takes a long time for that to even be on the table and you would have had to neglect your debt for a long time. Even if you’ve received notices from the IRS that state, “Notice of Intent to Seize or Levy,” you typically still have time to address it with them before that action takes place. Additionally, the IRS does not just throw people in jail; they don’t freeze driver's licenses (though some States can if you owe a State Tax); and, they don’t stop you from traveling if you hold a currently valid passport (they can keep you from renewing or obtaining a new passport, but as soon as you are in a resolution with them, that action is reversed). The bottom line is, if someone is trying to scare you into letting them “help” you, they are likely not worried about your best interests. While you will not always hear what you want to hear, a good representative should always lead with providing answers to your questions and outlining all available options so you can make the best and most educated decision for yourself specifically. Instilling fear for the sake of forcing you to engage in representation has no place in that process. The last predatory type of action I’m going to address here is a newer tactic that I’ve seen arise in the last year. This is where a Tax Resolution Firm will “partner with” or “suggest” a specific lender who can issue you a loan to cover your fee with the firm and then you are paying back this lender for the work you hope the Tax Resolution Firm will complete for you. This might be the most insidious behavior I’ve seen in my experience. These firms often rely on scare tactics and over-promise you results - the two prior items discussed in this article. They quote you a fee for services without ever having talked to the IRS on your behalf and they’ve scared you so much that you feel you have no other option, but to go along with what they are selling you. They then offer a “quick and easy” solution to your problem of not having the full fee to get started with them when they set you up with this lender who can help. The lender approves the loan and issues the funds on your behalf to the Tax Resolution Firm. Now, the firm has been paid in full and you are now stuck with a bill owed to the lender who paid them for you. This makes it so much more difficult to hold your new representatives accountable to what they promised you. You can’t ask for a refund. You can’t stop payments. You are hog tied to that debt regardless of whether that firm delivers or not. If a firm is offering to set you up with a lender, my suggestion is to RUN AWAY. While there are many things to look out for when considering hiring a firm to represent you, the biggest thing is to remember that self-advocacy is the most important part of your process. You should feel like you understand the process, that you can ask questions and be heard, that you can reach someone when you need to speak with them, and that you feel you are still in the driver’s seat when it comes to the financial well being of your household and family. If you feel you have questions about any of the above or have experienced these types of tactics, feel free to reach out to our team at ATBS. Regardless of whether you are currently using us for services, it is important to us that taxpayers have access to resources that can help them navigate the complexities of the IRS collections system without falling prey to nefarious firms who over-promise, over-charge, and under-deliver.

As an owner-operator, you are responsible for paying taxes and calculating the net profit for your business. You can minimize tax liability by claiming every legal deduction and credit available. If you are a parent, you are entitled to numerous tax benefits. Having children qualifies you for some specific tax deductions that can significantly lower your liability. We have compiled a list of these deductions that will reduce the amount of taxes you owe. Here are some tax deductions specific to parents: Claiming dependents This is the most commonly known tax deduction for parents and a very important claim to significantly lower your liability. Claim your child as a dependent on your tax return, even if your child was born during the tax year. This will be shown as a certain amount and will reduce your taxable income. The dependent in question must be a US citizen and must have lived with you for more than half of the year in question. Your tax professional can help you determine if you qualify or you can use the resources on www.IRS.gov to determine your eligibility. Child Tax Credit For a child to be eligible, they must be 16 years old or younger and a relative. Also, they must not have provided more than half of their own support, and you must be claiming them as a dependent on your return. The Child Tax Credit could reduce your income up to $2,000. If you have children that are under the age of 17, you may be able to receive a $2,000 child tax credit. That means if you have two kids, you will be able to lower your tax liability by $4,000. There are income restrictions that will cause the credit to phase out. This happens when single filers earn $200,000 or more. Or if you’re filing jointly this will happen once you earn $400,000. For many people, this credit will be nonrefundable. However, for some lower income filers you might be able to get a refund if the credit is greater than your tax liability. The formula for calculating this amount is fairly complex, so it’s best to speak with a tax professional to see if you are eligible. Child and Dependent Care Credit To qualify for this credit, a child must be less than 13 years old and someone other than a spouse or a dependent is paid to care for them. Both parents must be working to qualify. If both you and your spouse are working parents, then you probably use some form of childcare. Depending on your location, this can be quite the expense each month. Luckily, you may qualify for a tax credit of 35 percent for the first $3,000 paid for one child or $6,000 when paying for two. Just like other tax credits, the amount you can claim will decrease as your income goes up. For every $2,000 above an AGI of $15,000, the credit will be reduced by one percent until it reaches 20 percent. Earned Income Tax Credit This is a tax benefit for people who make less than $63,698 a year. There are several specific qualifications, but you can easily find out if you qualify by using the EITC assistant. The amount you will receive depends on income, family size, etc. If you have qualifying children, you could get up to $7,430 extra back when you claim this credit. Be prepared to answer several questions with your tax professional for this fantastic credit that could save you thousands of dollars. Depending on your income and the number of children you have, you might qualify for the earned income credit. This was created so that lower-to-middle income families would be able to make ends meet. In order to qualify, your adjustable gross income (AGI) must fall below the following amounts. $17,640 ($24,210 when filing jointly) for zero qualifying children $46,560 ($53,120 when filing jointly) for one qualifying child $52,918 ($59,478 when filing jointly) for two qualifying children $56,838 ($63,698 when filing jointly) for three or more qualifying children Adoption Credit If you adopted a child, there are tax benefits available regarding some expenses incurred during the adoption process. The Adoption Credit includes both a credit for the adoption expenses and exclusion for employer-provided adoption assistance. For foreign adoptions, you must wait until the adoption is finalized to claim these credits. For domestic adoptions, you can claim the credit for expenses paid before the year the adoption becomes final or you can claim the credit for the tax year following the year of payment. If your family made the decision to adopt a child in 2023, you may be eligible for a tax credit of up to $15,950. If your AGI is greater than $239,230, the credit will begin to phase out. If your AGI was greater than $279,230 the credit won’t be applicable. Higher Education Credits If you paid for your child’s higher education, you may qualify for either the American Opportunity Credit or the Lifetime Learning Credit. The American Opportunity Credit can reduce tax liability up to $2,500 for each child in college as long as the adjusted gross income is less than $80,000 if single, and $160,000 if filing jointly. The Lifetime Learning Credit can also reduce the amount of tax liability by up to $2,000. Talk to your tax professional for more details on how to qualify for these credits. American Opportunity Credit If you have a child in college, then you’re nearing the end of your financial responsibility. But now is probably also the most costly time for you. College expenses are increasing each year, but with the American Opportunity credit, you’ll receive a small reprieve. You will receive a 100 percent credit on the first $2,000 paid toward qualified education expenses, and 25 percent for the next $2,000 spent per student, per year for up to four years. Plus, up to $1,000 of this credit is refundable. The American Opportunity credit will begin to phase out for anyone that has an AGI greater than $80,000 ($160,000 when filing jointly). You will no longer be eligible when above $90,000 ($180,000 when filing jointly). Lifetime Learning Credit This credit helps parents and students pay for post-secondary education (grad school and night school tuition). You may be able to claim a Lifetime Learning Credit of up to $2,000 per qualified individual on the tax return at a rate of 20% of the funds spent on qualified college tuition expenses. There is no limit on the number of years the Lifetime Learning Credit can be claimed for each student. Student Loan Interest If you are paying student loans, you may be able to deduct the interest you paid from your income. This is applicable even if you do not itemize your deductions, however, the loan must have been taken out only to pay for education costs. This deduction is available when you are paying off a student loan. You are eligible to deduct up to $2,500 of interest per tax return. The student loan interest deduction is taken as an adjustment to income. This deduction has limitations and will begin to phase out at a Modified AGI of $75,000 ($150,000 when filing jointly) and ends at $90,000 ($180,000 when filing jointly). Self-Employed Health Insurance Deduction If you are paying for your child’s health insurance under your company health care plan, generally your company can deduct the insurance costs. Ask your tax professional for more details on how to use this deduction. Child Wages Deduction Hiring your children to do easy tasks will give your business a tax deduction for their wages. Pay children with a check, issue them the appropriate tax form, and create a job description for them to claim this deduction. As an owner-operator and a parent, it is important to the success of your business and your family’s future to take advantage of these great tax credits. If you would like more information on any of these tax credits for parents, contact ATBS at 866-920-2827 (ATBS) or visit the IRS website. 529 Plans This program allows you to either prepay or contribute to an account to pay for a student’s qualified higher education expense at an eligible educational institution. Tax-free as long as they are used to pay for qualified higher education expenses. Distributions can be used for tuition, required fees, books, supplies, and room and board. There are no income limit contributions. No age limits. Open to adults and children. The contributor of the account has control, not the student. There is no federal limit on the number of changes you make if you replace the student’s account with another qualifying family member at the same time. Distributions from 529 Plans can be used to pay $10,000 of tuition per beneficiary each year. K-12 in public schools, private or religious schools. Be aware that your investment options may be limited when making changes to them. Kiddie Tax Part of a child’s 2023 unearned income more than $2,500, such as dividends and interest, may be taxed at the parent’s tax rate. This is for children under the age of 19 or a full-time student under the age of 24 who do not earn any income. As an owner-operator and a parent, it is important to the success of your business and your family’s future to take advantage of these great tax credits. If you would like more information on any of these tax credits for parents, contact ATBS at 866-920-2827 (ATBS) or visit the IRS website.

Download our complete "Tax Resolution Guide for Owner-Operators" by clicking here! Are you worried about your past-due taxes? If so, you’re not alone! IRS non-compliance is a major problem among independent contractors in the trucking industry, as well as virtually any industry where there are independent contractors. Why is it such a common problem? For truckers, there are a few reasons: No one teaches truckers about taxes before they become business owners Bookkeeping is hard and boring, so it’s easy to fall behind on the road Because drivers fall behind on bookkeeping, they tend to fall behind on paying and filing taxes too All of that adds up to drivers falling behind with the IRS and getting saddled with back taxes, which is a big problem. So, what should you do if you are behind with the IRS? You may hear all kinds of advice out there, but the reality is that much of what you hear is either incorrect, misguided, or not appropriate for owner-operators in the trucking industry. If you’re a trucker who needs help with tax resolution, then we recommend following ATBS’ Proven Path to getting out of debt with the IRS. Let us show you how! This path is deceptively simple, but trust us: The devil is in the details! The ATBS Proven Path is as follows: Become IRS Compliant Negotiate with the IRS (if needed) Manage IRS Compliance The ATBS Proven Path works because it first gets you into a position where you are in filing compliance and eligible for a resolution and then allows you to focus on achieving a successful negotiation while learning the tools to help you stay in compliance moving forward. Now let’s discuss each of these steps in more depth. Have you fallen behind on your taxes or stressed about paying off your debt to the IRS? We are happy to announce that we are now accepting new clients into our Tax Debt Pit Crew program! Become IRS Compliant So what does it mean to be “Compliant” with the IRS? It’s actually fairly simple: You need to pay your taxes on time each quarter (four times per year). You need to file your tax return on time each year and pay any remaining balance owed. It seems simple but in reality, it’s very hard to stay compliant, especially as an Owner-Operator in the trucking industry. If you can manage your compliance, then you’ll live in a world where the IRS is no more than an afterthought. Let’s identify a few situations that cause people to be non-compliant with the IRS: Drivers can’t pay the full amount of their quarterly tax amount due Drivers wait to pay their taxes until their annual tax return, and they can’t afford to pay Drivers can’t file their annual tax return on time These are all very common problems. To stay ahead of these as best you can... Don’t underestimate your quarterly taxes (also known as QTE’s) Pay as much as possible for your QTE’s if you can’t pay the full amount due File your annual tax return even if you can’t pay the full amount If there’s no chance you’re going to be able to file on time, request an extension - remember though that the extension is only an extension of time to file and NOT an extension of time to pay. So, as you can see, there are many ways we can work to strategize to stay in compliance. While not always easy, finding a good system to stay in compliance will make managing your tax obligations much more simple. If you do run into a pitfall with your tax obligations and find yourself owing back tax, then you will want to first address getting into a groove with your current tax payments and filings. Once you have your current compliance figured out, you are eligible to negotiate a resolution on the back tax you owe. This brings us to our next topic. Negotiate with the IRS (if needed) Alright, let’s talk about what happens when you aren’t able to stay ahead of Compliance problems with the IRS. This tends to be one of the least understood topics related to taxes and the IRS: What exactly happens if I don’t pay or file my taxes? First things first - it is important to understand that the IRS will NOT work with you to set up a resolution on your back tax until you are in compliance with filing and current tax payments. Why? Because until you show the IRS that you’re willing and able to get caught up on your taxes, they have no interest in negotiating the balance due. So, the first step in the ATBS Proven Path is to Become IRS Compliant, and beyond that, also prove to the IRS that you’re willing to remain in compliance so that you do not fall behind in the future. Let’s walk through a few topics to help you Become IRS Compliant and complete the 1st of the ATBS Proven Path. You need to commit to correcting practices that have landed you in trouble with the IRS You need to get caught up on filing your taxes You need to be caught up on current year Quarterly Estimated Tax Payments That being said, we find that many clients still owe significant amounts of money to the IRS by the time they obtain compliance. If that’s the case, ATBS can move on to the 2nd step of the process - Negotiating with the IRS. How to Negotiate With the IRS First, it is important to always remember that IRS Agents are human beings.The most important thing to remember as you work on negotiating with the IRS is that the person on the other side of the phone is, in fact, a person. The worst thing you could possibly do is treat that human being like something other than a human being. Second, it is important to have an understanding of what to expect when you are negotiating with the IRS. The IRS Negotiation process is different for every single person, but in general, there are really two key things that need to be done each time: Determine the total amount you owe once in filing Compliance; Obtain a payment plan with the IRS if you cannot afford to pay the total you owe. Third, it is important to be well-prepared for the negotiation you are about to embark on. You know you are in compliance, you know what to expect when talking with the IRS and you are now ready to prepare your proposal for repayment of the debt to the IRS. It is important to have your finances clearly laid out to support the requested monthly payment you are looking to achieve. The IRS has a few different financial forms that they utilize to determine how much you should pay them monthly. Should you wish to have ATBS assist in your negotiations, our team will help in gathering this financial information from you and reviewing it with you prior to the IRS ever seeing that documentation. Once the financial form is reflecting your financial situation correctly and accurately, the information is provided to the IRS and the negotiation is completed. The goal here is to obtain a payment plan that allows you to prioritize current taxes moving forward and allow you to pay your normal living expenses without impediment from the IRS. We care more about what you can afford to pay, and NOT what the IRS wants you to pay. Fourth, it is important to effectively complete the conversation with the IRS regarding your proposal to be placed in an Installment Agreement. Getting an IRS Representative on the phone is hard and requires a ton of patience! You’d be surprised how long it often takes to get an IRS agent on a live call… sometimes it takes waiting all day on hold to get one person on the line! If you don’t have the patience to wait, sometimes it’s better to have someone do this work on your behalf. When you get an agent on the line, be sure to gather their badge number for your records. Recordkeeping is a key part of your negotiation because, more often than not, you’ll end up speaking to more than one agent during your negotiation. Always be sure to gather their info and document your call! Once you get an agent on the line, it’s time to review your financial form and propose your desired monthly payment amount. Helping the agent get a good understanding of your situation is the foundation you’ll build on during your negotiation! Lastly, you will wait for acceptance of your proposal. The IRS will send notice via US Mail of their decision. That notice will let you know if they’ve accepted your proposal and will reiterate the terms of the agreement. Once you receive that by mail, you are out of active Collections. If you do not receive that notice within the 2 weeks they have to send it to you, it is important to call them back and check the status of your account. Once the negotiation ends and a plan is in place, it’s time to move on to Step 3 in the ATBS Proven Path: Managing IRS Compliance. Managing IRS Compliance What does managing IRS compliance look like? First, you need to ensure you stay current with any Installment Agreements (payment plans) that you negotiated with the IRS. Second, you need to pay your taxes on time moving forward (each quarter). Finally, you need to file your annual taxes on time each year. It’s important to remember that any missed payments, new balance, or delinquent tax return will default any existing agreement and you will need to start back at square one. While this is pretty simple and straightforward in theory, as we discussed earlier, it can be very easy to fall behind on your IRS Compliance. ATBS’ main goal in assisting clients with tax resolution is to effectively help them navigate the IRS Collections System in a way that results in lasting relief and compliance. How Can ATBS Help With Trucker Tax Resolution? Remember, ATBS can help with each step in the process. It’s part of what makes our relationship with our clients so unique. Where most companies can help with one or two aspects of the tax process, ATBS is set up to put all of the pieces together. If you aren’t familiar with ATBS, we have been in business for over 20 years, and we’ve helped over 150,000 owner-operators stay out of trouble with the IRS. We focus on saving drivers time, we help them earn (and keep) more income, and we reduce the stress of dealing with taxes so they can focus on driving their truck while keeping the IRS from being a daily burden. . We do that via bookkeeping, accounting, tax, and business consulting services - specifically designed for owner-operators. When it comes to IRS Compliance (Step 1 and Step 3), our RumbleStrip services are what our clients use to stay out of trouble with the IRS. Not only can we help clients become compliant via our tax preparation services (Step 1), but our monthly RumbleStrip services are specifically designed to keep owner-operators compliant with the IRS (Step 3). Now, the reason why most of you are reading this is because you are looking for help negotiating with the IRS (Step 2). Great news: ATBS can help with that too! ATBS Tax Debt Pit Crew ATBS’ Tax Debt Pit Crew is our team of trucking-specific tax resolution specialists who spend their days helping truckers - especially owner-operators - navigate the IRS Collections system and reach resolutions tailor-made for their specific financial aims and needs. We have several different levels of service available to help our clients, so let’s briefly highlight each one. We start with an Inspection. There is a one-time fee associated with this service. Our team of experts contacts the IRS, obtains historical and current data on a client’s account with them and uses that information to draw a roadmap of possible resolution options. Once that inspection is concluded, the client will determine if they are all set to tackle the IRS issues on their own. If they wish for ATBS’ team to assist in implementing and negotiating the appropriate resolution strategy, then they will take advantage of one of our additional services. This service allows us to find out what is going on with the IRS and provide specific and appropriate options before ever quoting a client for full representation. This keeps things fair for our clients when it comes to making an educated decision on how they’d like to address their IRS tax debt. For clients who are starting to fall behind with the IRS, are missing a few years worth of tax returns or who owe between $10,000-$50,000 - we have our “Tax Relief Tune-Up” program. For clients who have more extensive issues to address with the IRS - greater than $50,000 in liability or more complex concerns - we recommend our “Tax Relief Overhaul” program. If you are in trouble with the IRS, or if you’re just trying to get ahead of any future problems with the IRS, our Tax Relief Pit Crew will be able to help you out! Summary We sincerely hope that this has offered you some knowledge and insight into the different ways that tax debt can be effectively prevented and managed. At ATBS, we know truckers, and we know how hard it is to overcome the feeling of hopelessness that can come with being behind with the IRS. Just remember that you are NOT alone! And, always remember that you can reach out to ATBS anytime to learn more about how we can help you put the IRS in your rearview mirror for good. Thank you for everything you do to keep America moving. We wish you all the best in your trucking business, and we’d be happy to talk with you more about ATBS and our Proven Path if you decide you’d like to learn more.

With so many health problems that circulate around truck drivers, it’s hard to see the positive side in all of it. But health problems that can be reversible? Now there’s something to get excited about. Sleep apnea is a condition that not only affects a good night’s sleep, but it can also affect day-to-day activities – most importantly while driving. Many drivers are now being diagnosed with sleep apnea, and fear that a diagnosis will mean wearing a Continuous Positive Airflow Pressure (CPAP) mask at night. This mask is the most common medical treatment that provides a constant stream of air to keep breathing passages open during sleep. But luckily there are things that you can do to change your health so that if you are diagnosed, you don’t have to live with the CPAP mask forever. What is Sleep Apnea? Sleep apnea is a condition that causes shallow breathing, and pauses in breathing at night. This causes a disruption in the natural sleep cycle, and can lead to less energy and mental sharpness during the day. This condition has been linked to a number of other health risks over time, such as high blood pressure, stroke, and weight gain. The most common type is obstructive sleep apnea, which occurs when tissue in the back of your throat relaxes and blocks your airway, resulting in loud snoring. There are two other types that include central sleep apnea (involving the central nervous system), and complex sleep apnea (a combination of obstructive and central). A healthcare professional can provide an accurate diagnosis of the condition. What are the symptoms? Major signals are if pauses occur when you snore, and if choking or gasping follow the pauses. You may not notice these symptoms on your own, so ask your partner to observe your habits – or record yourself during sleep. One app that can assist you with this is Sleepbot, available on both iPhone and Android. It is important to note that snoring does not necessarily indicate that sleep apnea is present. Be sure to note your daytime behavior as well to help determine if you might be at risk. Other common signs and symptoms: Headaches in the morning Difficulty remembering things, or concentrating Irritability Depression or mood swings Dry mouth or sore throat upon waking Dozing off when driving, or stopped at a light Dozing off when not busy or active High-risk factors associated with sleep apnea include: If you have high blood pressure If you have a collar size of 17-inches or greater If you are overweight If you are a man If you are related to someone that also has sleep apnea If you are a smoker What can I do to treat my Sleep Apnea? Although weight loss takes time, it is one of the best ways to treat sleep apnea. Here is a great article about getting started with weight loss, and here are some apps you can download to help along the way. Some cases have shown that losing a significant amount of weight can cure the condition entirely, but even just losing 10% of body weight can have a big effect on symptoms. In addition to weight loss, here are some other tips: Quit smoking, as it increases fluid retention in your throat. Avoid alcohol or sedatives at bedtime. They relax throat muscles causing an interference with breathing. Try sewing a tennis ball into a pocket on the back of a t-shirt. When you sleep in the shirt, it will prevent you from rolling onto your back. It is better to sleep on your side, as gravity can cause your tongue and soft tissues to drop and obstruct your airway. Prop up your body from the waist-up during sleep by using a foam wedge or cervical pillow. Be sure to see a doctor immediately if you suspect sleep apnea, as it is a potentially serious disorder. However taking the right steps towards weight loss and lifestyle changes is the best way to move towards healing. For additional resources or questions about sleep apnea visit the American Sleep Apnea Association, or consult your healthcare professional. Sources: http://www.helpguide.org/articles/sleep/sleep-apnea.htm Image sources: Photo 1: https://www.flickr.com/photos/carbonnyc/ Photo 2: https://www.flickr.com/photos/tamakisono/

It’s currently the middle of summer and the warmest months of the year if you live north of the equator. So why are we talking about fuel costs and cold weather? The reality is that the price of diesel fuel is affected in various ways throughout each season of the year. Let’s start by talking about the two primary types of diesel that are used throughout the year -- diesel 1 and diesel 2. Diesel 1, also called kerosene and a close relative to jet fuel, is used in extreme cold to prevent fuel waxing and gelling. Diesel 1 has a higher cetane count and higher flash point, and is more efficient than diesel 2. Diesel 1 also contains less paraffin wax which causes the clouding and gelling of fuel in cold weather. It’s also significantly more expensive to refine, which is why we don’t use diesel 1 year-round. In cold weather climates, diesel 1 is blended with diesel 2 to prevent fuel gelling. Diesel 2 has adequate cetane counts and a high enough flash point combined with a lower cost to refine which makes it the most cost-effective fuel to use in normal conditions. If diesel 1 is more expensive, fuel prices must be highest in the winter...right? Wrong. The table below shows the average change month-to-month in diesel fuel prices from 2003 through 2020. November, December, and January (traditionally cold months) have the greatest average decrease in fuel prices. This is when expensive diesel 1 is blended with diesel 2 in cold weather climates to help trucks avoid fuel gelling. So if we’re consuming more expensive fuel in the winter months, why does the price go down? Supply and demand is the reason. As the holidays approach we hear about everyone traveling to see family. What we don’t hear is that once we get to our destinations, we tend to commute less. According to information from the US Energy Information Administration, we consume less motor fuels in January, September, and November. From 2003 through 2020, as a nation, we consume more fuel in each of the other nine months. Thus, higher consumption of fuel causes higher costs than does the blending with more expensive diesel 1 fuel. Source: EIA, millions of barrels per day, https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MGFUPUS2&f=M When driving in the winter months, you need to be aware of weather conditions and determine if you need to purchase more expensive blended fuels in cold climates to keep your fuel from gelling. However, you will generally experience higher fuel costs in the spring and early summer months due to increased travel and greater demand for motor fuels. In January, if you’re looking at fuel prices in Wisconsin while you’re in Texas and thinking you don’t want to fill up in Wisconsin, the cost of downtime for unthawing your gelled engine with un-blended fuel purchased in a southern state will be far more expensive than the blended fuel or a bottle of fuel additive. But in the summer months, you might find yourself paying more for fuel in a “vacation destination” region due to supply and demand. Either way, you can’t apply just one rule year-round. You have to pay attention to the weather, the markets/regions, state fuel taxes, and other variables we’ve discussed in this series to make sure you’re making the best decisions for your business and controlling your fuel-related costs.

If you haven't watched Episode 2, stop what you're doing and go watch/listen to Episode 2. Obtaining IRS Compliance is the single most important part of ATBS' proven process - go get that started before worrying about calling the IRS! In this episode of the Rearview Mirror Series, Tom and Barney explain the general process of what goes into preparing for an IRS negotiation, as well as the basics of how the IRS call goes. Specific negotiation strategies & tactics will be discussed in-depth in Episode 5! Biggest Takeaways: Obtaining IRS Compliance (Episode 2) is most important, this MUST be done before you call the IRS! Think about your story (why you're in the situation you're in with the IRS) and write it down before you call - IRS agents are human beings, and are willing to take your individual circumstances into account. Get your documentation ready! Tax notices/documents, any medical info (physician's note), etc. - that information is vital to use your time effectively on the call. Once you're on the phone with an IRS agent (which can take many hours of waiting!) the most important thing you can do is have great manners - say "please" and "thank you"! Calm yourself and treat others like you want to be treated - if you aren't willing to be kind to IRS agents, and if you aren't willing to let them "lead" the conversation, you'd be better off paying a professional to handle the call. If you have a very large balance due to the IRS, if the IRS is threatening to garnish your wages and/or put a lien on your assets, if an IRS "Revenue Officer" is assigned to your case, or if the stress of dealing with the IRS is simply making your life unnecessarily hard, we highly recommend using a trucking-specific tax relief team (like the ATBS Tax Relief Pit Crew!) to assist you. We'll be talking about Managing IRS Compliance next week so you can ensure you never fall back into trouble with the IRS again after your negotiation is finished! To check out the complete series, click here. You can also learn about ATBS’ Proven Path for owner-operator truck drivers to get caught up on taxes and out of debt with the IRS by downloading our Tax Resolution Guide for Owner-Operators! Remember, if you're in trouble with the IRS, or if you’re just trying to get ahead of any future problems with the IRS, our Tax Relief Pit Crew will be able to help you out! To learn more about our Tax Relief Pit Crew Service Packages, click here.

In this episode of the Rearview Mirror Series, Tom and Barney talk all about the first step in getting caught up on your taxes: IRS Compliance. They dive into what exactly IRS Compliance is, why it's important, and how to obtain it. Biggest takeaways: You're not alone if you are behind on your taxes, and you can - and will - get back on track! You simply have to get started with ATBS' Three-Step Process. Negotiating with the IRS CAN'T happen until you become Compliant (Step 1)! Getting caught up on your taxes and paying your taxes on time every quarter (Obtaining Compliance) will solve the majority of your back tax problems. If you still have a significant balance due to the IRS after going through Step 1, you can move onto IRS Negotiation (Step 2), which we will discuss in the next video. To check out the complete series, click here. You can also learn about ATBS’ Proven Path for owner-operator truck drivers to get caught up on taxes and out of debt with the IRS by downloading our Tax Resolution Guide for Owner-Operators! Remember, if you're in trouble with the IRS, or if you’re just trying to get ahead of any future problems with the IRS, our Tax Relief Pit Crew will be able to help you out! To learn more about our Tax Relief Pit Crew Service Packages, click here.

Historically, the Internal Revenue Service has always seemed a little bit scary, slightly out of reach, and shrouded in a sense of secrecy. It’s not been an easy system to navigate or interact with and that feeling only worsened during the COVID years and beyond. The purpose of this article is to shed some light on what the IRS has been up to and what changes to their collections process we anticipate in the coming year. Throughout 2021, 2022 & 2023, we saw a significant decrease in issuance of collections notices from the IRS. This was largely in response to the strain that the COVID pandemic put on taxpayers across the country. Further, the IRS shut down their automated collection functions in its entirety. They’ve been instructed to reopen all of those functions in 2024. This means there will be a large increase in enforcement on all cases where untended back tax exists. The IRS slowly reopened collections functions throughout 2023 and we anticipate a return to more “normal” - pre 2020 - collection efforts throughout this year and beyond. So, what does this mean for you? If you are missing tax returns for the last few years, it is important to remember: The IRS can require that we file the most recent 6-years’ worth of returns if we have not done so; The IRS can (and, will) file on our behalf if we do not file. This protects the IRS' interest in taxes that may be due for that year. When they do this, they are not taking into account any deductions you would otherwise be eligible for and this typically results in much higher balances than would be due if you filed an original return. If you owe back tax and have noticed a softening in the IRS corresponding or enforcing against those balances due, we would suggest you prepare for a reversal of those more lenient practices. If you are in a position where you owe the IRS on prior year taxes and are NOT in a payment plan with them, you should anticipate: A resurgence of collections notices in the mail; A higher likelihood of wage or income garnishments - yes, they can issue levies to 1099 income sources; A higher likelihood of bank levies; A higher likelihood of lien issuance when you owe greater than $10,000. If you do owe back tax, you should contact the IRS to discuss resolution options. If you wish for assistance in this aim, our team of experts is happy to talk to you. On the heels of a time period where the IRS was not enforcing at levels consistent prior to the year 2020, it is also understandable that you may not know, entirely, where you stand with them. If you are in this camp, and wish to get an overview of your IRS account with a roadmap of steps that should be taken to address any outstanding issues, we can help. If you are unsure of where you sit with the IRS, our team of licensed Enrolled Agents can contact the IRS for you in an effort to: Get a big picture overview of your account with the IRS; Obtain a breakdown of all balances due with an understanding of collection statutes for any balances and how long the IRS has to collect; Obtain an accounting of which returns may be missing and need to be filed; Obtain Wage and Income Transcripts for any unfiled years. These will show any income reported to your Social Security Number for any years that have not yet been filed; Obtain Account Transcripts for each year that there is a balance due to the IRS - these will show transactional detail; Outline a roadmap with all available options to reach an amicable resolution with the IRS. Our desire is to be sure you are set up for success. Understanding where you, and your business, stand with the IRS is an important component to that. If you’re a truck driver who is behind on filing multiple years of tax returns and may owe thousands of dollars to the IRS, click here to learn more about how we can help, or give us a call at (866) 920-2827.

If you find yourself waiting in line at the post office on April 15 then it’s time you make a change that will save you time. You can join the 150 million taxpayers who decided to e-file their tax returns last year. Here are five reasons why you should be e-filing your taxes this year. Accurate and Easy When you e-file your taxes you can feel confident that you are going to be getting the most accurate return. The tax software used helps to avoid mistakes and maximize your deductions. It guides you through every step of the process including the new health care law tax provisions. The bottom line is that e-filing your taxes is much easier than actually doing your taxes by hand and mailing them to the IRS. Convenient Options You can e-file your taxes by using commercial tax preparation software or a tax preparer like ATBS, which specializes in working with owner-operators. By having these options on hand you can spend more time doing what matters most to you, and that is driving. Safe and Secure When you e-file with the IRS you can rest easy knowing that they have used secure encryption technology to protect your tax return. The IRS has safely and securely processed more than 1.3 billion e-file tax returns from individuals since the program began. Faster Refund In most cases, you will get your tax refund faster when you e-file. That is because there is nothing to mail in and your return is almost always free of mistakes. The fastest way to get your refund is to combine e-file with direct deposit into your bank account. The IRS issues most refunds in less than 21 days. Payment Flexibility If you owe taxes this year then you can e-file early and set up an automatic payment on any day until the April 15 tax deadline. You can set up payment to automatically come out of your checking account. You can also pay by check, money order, debit, or credit card. Most people stress out when it comes to tax season. By hiring a tax professional and e-filing your return, you can make this year’s taxes painless. If you have not filed your taxes yet, make sure you call us at 866-920-2827.