In today article we are going to speak about trucker tax service and their importance. They say ‘if’ can be the most powerful word in the English language. What has become the most dreaded word in the English language? TAXES!
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It is the one word that strikes fear into the heart of the mightiest of hero. Warriors would rather enter the den of Medusa than deal with their taxes. Ever since the first person put value on something there has been a ruler who wanted to generate revenue from it. Every time you go to the grocery store, see a movie or buy gas you pay taxes. When you bought your first truck, your first house, when you got married, and even when we die… we pay taxes.
Taxes however, are important and needed to allow nations to operate, even if they are considered the proverbial wound that will never heal. Yet taxes aren’t all bad they provide the ability to have schools, roads, and other social programs. They pay the bills, just like you generate income to pay your bills, so must Uncle Sam.
Taxes are basically the government’s means for providing you a safe environment in which to operate and roads to use. Without a proper highway system how would freight get from point ‘A’ to point ‘B’? The roads must be maintained and rivers crossed.
Keeping track of your taxes is very important. Just as a private person needs to be able to account for their money, so must a business. But it is a bit trickier for a business, because they have so many other guidelines and legal requirements to follow it can be really tough, but not impossible.
Unfortunately improperly handled taxes have ruined many a small business. Not actually the tax (though some will argue that) but rather the means by which they are tracked and paid out or more correctly not paid out. That’s right, if you don’t pay it can be a huge issue, penalties, fines, interest, and even seizure of assets, or worse jail!
Here are some famous people who have fought the tax man and lost:
And of course…
Take note of this, if the rich and powerful can get in trouble with the IRS, so can you. It is estimated that once the IRS makes a case they have a 90% conviction rate! So the last thing you want is to be on their bad side. Handle your taxes properly!
But don’t worry; they are not completely heartless, no really… They review each case based on its own merits. When they come to audit they will go through all your records for a set period of time, and a make determinations based or your reporting and their findings.
This is why it is so important to handle your business taxes properly. It is almost impossible to do this by yourself. That is why you need to look at professional trucking accounting services. Sure you can track your own records but let the professionals process your taxes.
A good Certified Public Accountant (CPA) is knowledgeable, up to date on current tax codes and trends; they are able to cipher through all the volumes of tax codes. It is said that the Library of Alexandria wouldn’t hold the thousands and thousands of tax code volumes currently active in the US today.
Let that sink in…
So what are you to do? Well you have a few options, but the most obvious one is go out and get a good CPA. Not just one that knows the laws and codes, but one who actually works in the trucking industry. You can go online research CPAs, check them out on the Better Business Bureau (BBB), read the forums, and even ask colleagues. Make your selection based on the best fit for your business and your needs.
As in every industry, doing taxes is a specialty. Just like a Ford mechanic might know about Jaguars, would you trust him/her with your car? Not if there were other options available you wouldn’t. You would want someone who is trained and experienced. The same goes for your taxes.
There is a lot more at stake than getting stuck on the side of the road.
Doing your taxes is important. However, doing them right is equally, if not more, important. It doesn’t matter whether you own the carrier service or you’re an owner/operator. Everything needs to be in order. Keep all your receipts and other records that show business related expenses.
Remember keep your personal receipts separate from your business.
Finding a good CPA, especially one that specialized in the trucking industry might not be that difficult. The hard part might be finding one that will take single clients. Many of them work primarily with businesses. But you, as a driver, can use the same one that handles your company’s taxes.
Often they will work out an agreement with your carrier, or offer a special rate, since you’re already affiliated with one of their customers. Plus this way, they are familiar with all, most of, the particular details of the trucking company you work for.
Ask questions! As I overly stated earlier, taxes must be paid. But there are ways to pay less. Depending on the size of your family, your income, and other credits, you can see what the options are and always choose the best package for you. Everything that you spend money on, that is business related is a business expense. Track it!
But remember KEEP your personal expenses separate from your business expenses. Most will recommend going so far as when you buy things at the store do it separately. Meaning, as an example, you pickup windshield washer fluid, a quart of oil, and replacement batteries, they go on one receipt, while your soda, candy bar, and gum goes on another. Yes this means checking out twice.
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