Question For Any O/O's Who Just Started This Year

A friend of mine who just started up as an O/O (for the second time - first time was in 2004) under his own authority as an LLC just recently discovered that the IRS won't recognize him as a company until he renews his IFTA. He did some investigating on all this and learned from his accountant that evidently the Obama Administration has changed some kind of law to make this legal. I don't remember much more that he said about this situation, so I thought I'd see if anyone on here (i.e. PharmPhail, Jason, etc.) who just this year started with their own authority had any problems being recognized by the feds.

I forgot to mention that this new law evidently only applies to small businesses such as single truck O/O's.

 

He's already got his IFTA. He's been running his truck under his own authority since April. He bought the truck in December, but ran under his uncle's farm authority. This is my buddy from Iowa that was gonna have me drive this truck for him.

 

If the FEIN is his tax ID number, then yeah that's what he can't get.

He told his accountant, "I guess that means I don't have to pay any taxes."

 

I would like to know where a guy could find out about this law.

I've tried Google before to find specifics about laws and ended up in a sea of legal jargon that almost made me drown of discontent.

 

My friends don't pass along "Ch 19 tales".

This wasn't just some random driver, but a guy I've known for 6 years now.