Per Diem Tax Deductions & Taxes............................................. .........

[HockeyRob]

I am No Longer in the Expediting Business and I am not Sure who to ask about this Situation. During My Time in the Expediting Business. I was Away from Home a Grand Total of 717 Days from 2009 to 2011 (275 Days in 2009, 280 Days in 2010 and 162 Days in 2011). I was Told that I could Deduct $59.00 Per Day I was Away from Home; However as I was Discussing this with the IRS, I was Told that I cannot Deduct any of that From My Taxes from 2009 to 2011. Is there anybody who could give Me any advice as to whether I Can Deduct a Per Diem Expense for all of the Days I was On The Road from February of 2009 to August of 2011? Any advice would be Greatly Appreciated, because I was in way over My Head when I got into Expediting. I Never Owned any of the 4 Trucks I Drove when I was in this Line of Work. I Drove for 4 Different Fleet Owners. Please Help!

 

[Moot]

Re: Per Diem Tax Deductions & Taxes............................................. ....

I was Told that I could Deduct $59.00 Per Day I was Away from Home; However as I was Discussing this with the IRS, I was Told that I cannot Deduct any of that From My Taxes from 2009 to 2011.

It is the IRS's ball, game and field. If they say no then it doesn't matter what any of us tell you. Did you have taxable income in those years, did you make any quarterly tax payments or pay taxes at the end of any of those years. If so, you should find a tax preparer with knowledge of the trucking industry. They could fill an amended tax return for each of those years, but if you paid very little in taxes those years it probably isn't worth it.

 

[Murraycroexp]

Re: Per Diem Tax Deductions & Taxes............................................. ....

There's an accountant that lurks around here on EO some days. Per Diems exist. I think they change, depending on what state you're in. The IRS person you talked to may be right but, as we all know, they are human too and some are idiots.
Don't give up until you get the same answer from someone that KNOWS.
And no, just because they work for the IRS doesn't mean they know ALL of the tax code of the United States and how it applies to transportation. I'll look for the accountants name and repost.

 

[Murraycroexp]

Re: Per Diem Tax Deductions & Taxes............................................. ....

Ask "Fkatz". I don't know if he is well versed in transportation accounting but I'd certainly check with him also.

 

[runrunner]

Re: Per Diem Tax Deductions & Taxes............................................. ....

I am No Longer in the Expediting Business and I am not Sure who to ask about this Situation. During My Time in the Expediting Business. I was Away from Home a Grand Total of 717 Days from 2009 to 2011 (275 Days in 2009, 280 Days in 2010 and 162 Days in 2011). I was Told that I could Deduct $59.00 Per Day I was Away from Home; However as I was Discussing this with the IRS, I was Told that I cannot Deduct any of that From My Taxes from 2009 to 2011. Is there anybody who could give Me any advice as to whether I Can Deduct a Per Diem Expense for all of the Days I was On The Road from February of 2009 to August of 2011? Any advice would be Greatly Appreciated, because I was in way over My Head when I got into Expediting. I Never Owned any of the 4 Trucks I Drove when I was in this Line of Work. I Drove for 4 Different Fleet Owners. Please Help!

You must have documentation to prove how many days you were away from home,such as log books, or signed copy's of Freight bills. If you mentioned to the agent that you don't have documentation, maybe that is why they said you can not claim the deduction?

 

[ATeam]

Re: Per Diem Tax Deductions & Taxes............................................. ....

In general, if someone does not take a significant tax deduction in a previous year and later realizes the mistake, an amended tax return for that year can be filed to correct the error and claim the deduction.

The situation you describe may make it worthwhile to file amended returns for each of the years in question. It is also a situation where all the details need to be known and records must be produced to support the deductions. EO is not the place to get tax advice of the kind you need. As others have said, find an accountant with knowledge of the trucking industry.

Also, NEVER take at face value what the IRS tells you. While people there try to help, they are often times as befuddled by complex tax laws as the rest of us. They are also limited by the information you present and the way in which you ask your questions. A tax accountant who knows the trucking business is the best person to consult.

One thought is, and this is just a thought, if you asked the IRS person if you could take the deduction for years past, and he or she thought you meant, "can I take this year the deduction for all years past," a no answer may have been given for that reason. To take a deduction for years past that was not then taken, amended returns would need to be filed.

Sadly, it will cost money to have an accountant file amended returns for you. You could do it yourself but you have stated that you are in over your head so I suggest that you proceed only with an accountant's help.

A number of expediters use American Truck Business Services (ATBS). You might want to give them a call.

 

[HockeyRob]

Re: Per Diem Tax Deductions & Taxes............................................. ....

To Answer your Question, I Live in Michigan. I Drove a Cargo Van and I have to be Honest with you; I got in way Over My Head. A Majority of the Days I was On the Road; I Slept in the Truck at Various Truck Stops wherever I Parked the Truck at Night. I had been told that I could Deduct $59.00 a Day as well. If you can find the Name of said Accountant, I would be Greatly Appreciative of that.

 

[Murraycroexp]

Re: Per Diem Tax Deductions & Taxes............................................. ....

Fkatz......

 

[xiggi]

Re: Per Diem Tax Deductions & Taxes............................................. ....

The IRS often gives wrong answers. We might all like to pretend we are experts but you need to talk to a trucking tax accountant.

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[HockeyRob]

Re: Per Diem Tax Deductions & Taxes............................................. ....

To Elaborate even further; I Drove a Cargo Van and Cargo Vans were Not Required to Maintain Log Books; or anything of that Nature. However, I believe I still do have Proof of Where I had gone over that 2.5 Year Span. I have Paperwork, I.E. Bills of Lading and or I know when I was Contracted through Panther, we had these 3 Layered Billing Statements of which I was able to Retain a Copy of Each; I don't know if these could serve as Proof of a Per Diem Expense or not? Problem is I Never Filed Tax Returns for 2009, 2010 & 2011, because I don't know how to Prepare Returns of that Nature, Nor Could I Afford to Hire an Accountant, Problem is to this Day, None of that has Changed. If anybody knows of an Affordable Accountant who Knows the Trucking Business and can Refer Me, that would be Greatly Appreciated.

 

[HockeyRob]

Re: Per Diem Tax Deductions & Taxes............................................. ....

To Elaborate even further; I Drove a Cargo Van and Cargo Vans were Not Required to Maintain Log Books; or anything of that Nature. However, I believe I still do have Proof of Where I had gone over that 2.5 Year Span. I have Paperwork, I.E. Bills of Lading and or I know when I was Contracted through Panther, we had these 3 Layered Billing Statements of which I was able to Retain a Copy of Each; I don't know if these could serve as Proof of a Per Diem Expense or not? Problem is I Never Filed Tax Returns for 2009, 2010 & 2011, because I don't know how to Prepare Returns of that Nature, Nor Could I Afford to Hire an Accountant, Problem is to this Day, None of that has Changed. If anybody knows of an Affordable Accountant who Knows the Trucking Business and can Refer Me, that would be Greatly Appreciated.

To Add, I thought ATBS had Prepared & Filed My 2009 & 2010 Tax Returns only to Discover that they had not done any of that! Which is why I am in the Bind I am in!

 

[runrunner]

Re: Per Diem Tax Deductions & Taxes............................................. ....

To Add, I thought ATBS had Prepared & Filed My 2009 & 2010 Tax Returns only to Discover that they had not done any of that! Which is why I am in the Bind I am in!

In order for someone to have filed your taxes for you,you would had to have given them all of your documentation, such as fuel receipt's, 1099, proof of day's spent away from home etc. as well as signing those returns. Anyone who is self employed needs to keep records. If the IRS is after you to file those returns, and you don't have records,I'm sorry to say you are in quite a pickle. You could end up paying taxes on your gross income for those periods without any deductions.

 

[highway star]

Re: Per Diem Tax Deductions & Taxes............................................. ....

Tax preparers don't need the documentation. They'll have you sign something that states they prepared the return based on the numbers you provided and that you're saying the numbers are true.

Hockey, when you didn't get completed tax forms sent to you to be reviewed, that should have been your first clue that it wasn't done.

 

[runrunner]

Re: Per Diem Tax Deductions & Taxes............................................. ....

Tax preparers don't need the documentation. They'll have you sign something that states they prepared the return based on the numbers you provided and that you're saying the numbers are true.

Hockey, when you didn't get completed tax forms sent to you to be reviewed, that should have been your first clue that it wasn't done.

You may be right,but my point was you must keep records,and if you don't turn numbers over to someone they can't file returns.

 

[WanderngFool]

Re: Per Diem Tax Deductions & Taxes............................................. ....

The per diem deduction is 80% of $59 per day. I don't know for sure what kind of documentation they'll accept. I've always had to do log books and so I haven't paid any attention to that aspect of it.

Here's a link to the IRS pub. If you're not a masochist you might want to find an English language version by googling.

Internal Revenue Bulletin - October 17, 2011 - Rev. Proc. 2011-47

Did you have a home during your time on the road? That could be the issue. I remember reading the IRS definition of a "home for tax purposes" a few years ago. IIRC it has to include a working toilet and the ability to prepare cooked meals. In other words, you can't just rent a mailbox somewhere and head out on the road in a truck and claim the per diem tax deduction for being away from home - a mailbox doesn't constitute a home.

Edit - the phrase "sleeping, cooking, and toilet facilities" appears again and again on this google results page.

https://www.google.com/search?safe=...0....0...1c.1.27.serp..22.11.1646.zJsf4cbNS9I

 

[Moot]

Re: Per Diem Tax Deductions & Taxes............................................. ....

The per diem deduction is just that, a deduction used to reduce your taxable income. It appears the OP is looking to get money back from the IRS for his time on the road. He didn't file for taxes for the years he was in expediting and probably didn't make any estimated quarterly payments. In order to get a deduction one must file a Form 1040 with a schedule E. One also needs copies of 1099s and some proof of being on the road, like logs or BOLs and other receipts for appropriate deductions.

The OP can file forms for past years to make things right with the IRS but he shouldn't expect gobs of money in the mail. Tax evasion is a federal crime and could lead to prison time. I hear federal prison camps aren't all that bad. You can work on your golf game and pick up an accounting degree while serving your time.

Say 3 Our Fathers, 10 Hail Marys and then seek some advice from a professional tax person.

 

[HockeyRob]

Re: Per Diem Tax Deductions & Taxes............................................. ....

I don't expect Gobs of Money, not by a Long Shot! Problem is I had No Clue as to How to do this! Nor Could I Afford to Hire an Accountant. I Tried to go through ATBS for 2009 & 2010, yet they Never Prepared nor Filed My Tax Returns for Those Years. Now I have to Consult with a Tax Attorney to get the IRS to Leave Me alone!

 

[EASYTRADER]

Re: Per Diem Tax Deductions & Taxes............................................. ....

Ateams answer is most correct, operating expenses must be taken in the year they are accrued, if you have more expenses one year than income, you have a loss and that loss may be rolled either forward or backward into a year where you howed a profit. In your case I would be simplest to roll it forward. This only works if you itemise.

Basically you have to refile your taxes with the ammended info.

Perdiem rates change every year, and you can only claim 80 of the rate. Google "perdiem rates for transportation workers"


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[runrunner]

Re: Per Diem Tax Deductions & Taxes............................................. ....

I don't expect Gobs of Money, not by a Long Shot! Problem is I had No Clue as to How to do this! Nor Could I Afford to Hire an Accountant. I Tried to go through ATBS for 2009 & 2010, yet they Never Prepared nor Filed My Tax Returns for Those Years. Now I have to Consult with a Tax Attorney to get the IRS to Leave Me alone!

I sent you a PM. The information I sent you will buy you about six months,of course if you can settle it sooner you are better off.

 

[Moot]

Re: Per Diem Tax Deductions & Taxes............................................. ....

Filing an income tax form can be confusing and difficult for a small business owner. Knowing who should file should be simple. My personal belief is that if you have an income, file an income tax return. Even if your income was below the taxable limits. Not filing for every year of income could catch up with you as the OP found out.

"...but in this world nothing can be said to be certain, except death and taxes." Benjamin Franklin