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ROUNDUP T RU C K I N G I N D U S T RY
wanted work could not find it and are thus unemployed, according to the Department of Labor’s household survey. That’s up by about 10,000 over the past year, which increased the unemployment rate from 6.5 percent a year ago to 7 percent last month. But while more Alabamians failed to find work, the numbers from businesses told a different story. Employers added nearly 20,000 jobs in July, according to the DOL, good for growth of 1 percent. Private-sector growth was even stronger, at nearly 1.7 percent, according to the latest report. Jobs numbers were especially positive with respect to Alabama’s construction industry, considering recent trends. In July, Alabama construction supported more than 82,000 jobs — the highest that number has been since December 2010. Professional and business services, another key industry, grew by about 1.5 percent over the past year. “An increase of nearly 20,000 jobs since last July is something that we are proud of,” Governor Robert Bentley said in a statement.
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IRS to allow TTINs The Internal Revenue Service has issued final regulations to the effect that those issuing information returns to taxpayers may use on those returns what IRS calls truncated taxpayer identification number (TTINs), in place of the taxpayers’ full tax ID numbers. Those full numbers are, for individuals, their Social Security numbers, and IRS has feared it might be abetting identity theft by requiring their appearance on so many documents. Interim regulations issued some time ago had allowed the use of TTINs on certain forms, such as the Forms 1099 that motor carriers issue to independent contractors. These new regulations, however, go farther, and allow their use on most payee forms, with a few exceptions. It should be noted, however, that on forms payors submit to the IRS itself, the full ID number of a payee must appear.
U.S. tax court rules on deductions The United States Tax Court has allowed some federal tax deductions for operating expenses claimed by an owner-operator, even though he had scant records to support them. For the year in question, the
taxpayer deducted $64,000 in expenses for his one truck, including fuel, maintenance, and other costs. The court believed the taxpayer’s testimony to the extent that he did in fact operate his truck during the year, and incurred expenses, but noted that he had no records at all to back them up. The court then cited Cohan v. Comm’r, 39 F.2d 540 (CA 2 1930) for the proposition that in such a case—that is, where the fact of business expenses has been established—the court may estimate, if there is some basis on which to do it. However, it also cautioned that any estimates must bear heavily against a taxpayer, lest there be “unguided largess.” The upshot was that the court allowed somewhat less than half the taxpayer’s deductions, and upheld the penalties applied by the Internal Revenue Service. Baker v. Comm’r, T.C. Memo 2014-122, decided June 18, 2014
IRS to allow HVUT credits and refunds The federal Internal Revenue Service has released a memorandum from the its Office of Chief Counsel to the effect that the owner of a vehicle that is turned in to be scrapped under a state vehicle replacement incentive program will be deemed to have
A LABAMA T RUCKER • 3 RD Q UARTER 2014