1099 Status BUT:

DEFINATELY consult an attorney!

 

What makes them an employee?

I am told it has to do with you telling what to do, how to do it and when to do it.

Example as a driver, I pick the route, the way I load the truck and the drive time based on my knowledge and experience. Being a professional, I am contracted for an end result of the work, and have discretion about how it gets done.

A company can't tell me to take a load that I can not make the deadlines or jeopardizes my safety, as much as they can't tell me what route to take or how many hours I'm allowed to drive.

 

You could just ask your company for a W-9 and fill it out to replace the W-2.

 

It involves more than that... one of the PRIMARY considerations is whether or not YOU bear the bulk of the costs of operation... FUEL, REPAIRS, TAGS, INSURANCE, etc... if the company you're driving for pays these costs of operation you are a company driver. PERIOD.

 

PLEASE, drivers... consult a TAX specialist/attorney.. Don't take MY word for it (just because I've had the recent audit), or ANYONE else's word... pay the $50 consultation fee, if there is one, and save yourself a ton of aggravation... the result of MY audit was the IRS going after the company that paid me 1099 for 2 years and they refunded my self-employment tax paid... good news, right??? Not so much... NOW I'm on the radar of the IRS (never good), but, just as important, since "ignorance is no defense," I could have been indicted for Tax Evasion (collusion to help the COMPANY avoid paying employee contributions), AND Conspiracy to Defraud the U.S. These carry some pretty hefty jail times/fines... And where will all these "truckstop lawyers" be when you're cooling off in the Federal can???

 

One of the many considerations on this subject is whether or not you offer your services to the general public... if the M/C # on your door is ABC Trucking, you do NOT (and cannot), offer your services to XYZ Trucking... you drive for a SINGLE company... you do NOT offer your services to the general public (like a plumber, etc)... NOW, before everyone goes ape on THIS point, Yes, O/O's run under a single M/C, BUT, they also bear the costs of insurance (that's cargo, liability, etc.. NOT Obama-care, you ''tards!), fuel, repairs, tires, tags, 2290, IFTA taxes, etc... all these factors combine when the IRS makes a determination... Believe me, if all if took was a silly waiver to "authorize" paying an employee on a 1099, McDonalds, General Motors, etc., would ALL be doing it... Sheesh!

 

It sounds like you failed to pay your taxes, got caught by the IRS and blamed the company. If you file and pay your taxes, you are not committing tax fraud or evading taxes. I have never been questioned about operating on a 1099 as long as I paid my taxes. I have only known of one person who had a problem and they caused it for themselves. They didn't pay their taxes and tried to shift the blame to the carrier.

 

I can see that you do not know what can be considered tax fraud and evading taxes.

If you take the time and read his post. He paid the taxes and the IRS refunded them to him.


An employer who is misrepresenting the employee and paying 1099 is guilty of tax fraud and evading taxes.

The "employee" who takes 1099 and tries to consider they are a self employed person is guilty of tax fraud and evading taxes.

Just because you have had a lazy agent who did not want to pursue this, does not make it legal.

One of these days you will encounter an agent who is going to take care of the issue and you will be bending over as a result of the taxes.


It is the same as the log book you use. How legal is it and if not caught you were legal if cheating?

 

My new company that I just purchased was recently called in for "tax fraud". They will not tell me who called in but instead of a 5 year audit they are only doing a 3 year. My audit will be completed Wednesday and I will post a copy of my satisfatory compliant review from the audit as soon as I can. All employees are paid via a 1099 and I have under 5 employee's. This will be the 4th audit in the 26 years the business has been in operation. Always paid employee's via a 1099.

 

You do not state the region, so it may not be an issue there.

I have seen it happen in many states.

As an enrolled agent, I am required to provide the correct information.


My audit, they went after the employee issue even though I own the truck and have a valid lease.

The agent stated that there is going to be a push toward this issue due to employee classification errors.

What is the driver being hired for?

Does the contractor have the right to set their own hours and refuse loads?

Does the contractor set the rate of pay?

Does the contractor provide equipment?

Can the contractor provide service to another at any time?



Since you think this is so legal and not a problem, why not ask your auditor?