Need Tax Advice on "Renting" Truck

Sure it could be legal . You just send him a 1099 for the 60% you paid him . I doubt he'd go for that though.
But it goes beyond that . If the checks are paid to you for the haul you'll be in big trouble if you don't have MC authority . If you are getting 100% of the freight charge and operating the truck you are the carrier . You will also be employing yourself as a driver and need a complete driver's file with copies of MVR , D.O.T. long form physical , inquiries to past employers , etc. as well as proof of participating in a random drug pool . There's more but that should give you an idea of what is involved .

 

What happens if you are hurt?
Does he tell you what and where to work?
Can you take days off?

You are basically an employee and such arrangements are not in compliance with the IRS regulations.

 

Yeah , like I said . Open a business account . Put the check from the company directly in the account . Pay everything out of that account with a check or debit card for the account . This includes his 60% . Write truck rental on the check where it says purpose . Be best to have him right out a rental agreement saying rental is 60% of gross revenue and that rental includes fuel , repairs , etc. . Always have something in writing .

 

Don't Do IT! This guy is a LIAR and a Cheat!
The exact samething happened to my son..... He drove a guys truck and made about 400 dollars a week.
My son got a 1099 for the FULL Amount.
NOW MY SON IS PAYING THIS GUYS TAXES. MY SON OWES 15,000 TO IRS FOR TAXES, WHEN HE ONLY MADE ABOUT 6,OOO FOR THE YEAR.!!! WE ALL TRIED TO FIGHT THIS BUT THE GUY GOT AWAY WITH IT.
DO NOT TAKE ON THAT MANS RESPONSIBILITY. IT HAS NOTHING TO DO WITH THE EXCUSE OF BEING AN EMPLOYEE.

THIS GUY DOESN'T WANT THE RESPONSIBILITY OF THE 1099. THEN IT'S UPON YOUR SHOULDER TO FILE FOR THAT FULL AMOUNT FOR BOTH OF YOU.
THAT'S WRONG! THAT GUY IS WRONG. , A CROOK.

THE GUY PAYS YOU THE 40% AND "HE" GIVES YOU A 1099 FOR WHAT HE PAID YOU. THAT'S IT. DON'T GO BEYOND THAT.

 

Contact the IRS, your son may be able to have this corrected to show where it should be.

 

We did contact the IRS. I had an agent work with us filing a business form. I told the agent what had happened.
The Agent gave us the number to contact the Fraud Tax Dept.

After we contacted that dept,,,, and told them my son only worked for this guy and only recieved a portion of the settlement.,, IRS agents went out to this guys home.
Do you know what the guy did????
He played dumb, like he had Alzeheimers, and told the IRS Agents, he doesn't know what they were talking about because he was only a "Gardener".
The guy didn't have "his" truck at his residence.

So IRS beleived this guy and left it at that and placed the taxes due on my son. We even tried calling a few Attorneys.
Every year now when my son files his taxes, a refund is suppose to be due to him because of having dependants,but is withheld by the government for past due amount., of 15,000 dollars.
That doesn't include, the late charges and interest charges.that keeps adding up each year.

Why take on someone else's responsibility??????????
This guy Leased on his Truck with Brisk Transportation and was buddy with the Recruiter there. They somehow made up a lease that made my son responsible for this guys truck, though he new nothing about., Except that he was getting a job driving for this man. Yet they put the lease in my son's name. That makes him responsible. And Brisk transportation was behind it all knowing that the truck didn't belong to my son.
Brisk has a parent company out in Texas and I tried to contact this company but got no reply. I sent them letters and everything I could possibly think of. This has been at least 5 years now and my son is still paying IRS for this guys truck.

What a Freakn Nightmare this has become for my son who was just starting out in life after the Marines,, with a job, home and family.

 

Does your son have copies of the logs?
Do you know where the truck is located?
Does it have dot number?
License plate?
Take a picture of the truck and recontact the IRS. The Fraud Dept goes ballistic when they have been lied to. This info will allow them to pursue it futher.

 

Thanks that's an idea taking pictures. Now if I can find the truck and if it's still around.

But this happened 5 years ago. I heard the guy died recently.
Last year while the state dept of revenue , motor fuel tax division agent was here, I gave him the name and address of this fellow.
Asked the agent to give me some proof that the truck is registered to this guy, so we can show the IRS. But never heard back from the Revenue Agent.

So we had just about threw the towel in and giving up.