Per diem question

I am in Appeals court on my audit. They did not know I was an enrolled agent till the last day of correspondence when I told them I would see them in court. At issue is tax home.

 

Good luck with appeals. Since you are an EA, you know what I mean. Is this on your personal return? Are you also a driver then? They always address the issue of tax home, necessity to be away for a period necessitating "rest" as well and will disallow expense deductions not within the criteria. I'm an EA too as well as a USTCP so I have the capacity to advance cases to litigation. US Tax Court is jurisdictional and generally will allow appeals determinations in these types of cases unless there are substantiating documentation that appeals refused to consider.

 

They changed my tax home and removed all of my per diems away from home where I get my loads. They allowed no per diem for when I am home then as well.

They ignore Revenue Ruling 73-529

 

That's a common problem often when drivers have no specified tax home. They then disallow the P/D claimed. An industry hazard of P/D, but it can be overcome with adequate supporting records. You may want to consider a request for assignment to a new appeals officer if you believe your recording will prevail.

 

I have a home. There every week. Work on truck there

Run a tax business there with monthly work.

 

Only advantage is if you have child support then I'd jump on the per diem.

 

uh ... no. Per diem is a tax code construct to represent a fixed deduction for business expenses when traveling. The entity paying the expense is entitled to the deduction.

Actually this is not unique to trucking ... it is very common in contracting. When you take a temporary position that requires you to be away from your home of record, companies will often offer to pay part of your income as non taxable per diem. Very worth it when you are being paid $55 an hour and up.

Now this is unique, as far as I can tell to the trucking industry.

 

I could see perdiem for trucking in some cases.
But to charge someone to not pay them until later...and collect interest is a whole nuther ballgame...
Mary

 

Krashdragon, I am afraid that you, along with some others here have NO REAL understanding of PD and how it is suppose to work, it has been explained ad nauseam in at least two other threads on here, I would advise the OP to read those threads, and then make your own educated decision on what to do, either that our contact a "trucking accountant" with your concerns.



Nobody here, that is not a tax person, can tell you what is right or wrong for your PERSONAL situation, sometimes this forum is a bit like staying at a Holiday Inn, it makes everyone "think" they are an expert at everything.

JMHO,

Stan

 

just sometimes?