I don't understand why you can't deduct the mileage, even if you are an employee. Instead of putting it down as a business write-off since you can't file a Schedule C, you should be able to claim it as a personal deduction for unreimbursed vehicle expenses.
http://www.irs.gov/pub/irs-pdf/f2106ez.pdf
I think you are under the impression that since your Schedule C is disallowed that your expenses die with that Schedule. That isn't the case, employees have expenses that aren't reimbursed by their employers. You can put a lot of things on here such as mileage, uniforms, tools, even haircuts if grooming standards apply to your trade.
A CPA should be able to help you re-file so that you can offset or even eliminate most of this tax burden. Also, if you don't end up coming out even or ahead on this, I would suggest you consider getting a lawyer and suing your employer. You can allege that they should have known all along that you should have been treated as an employee and through their actions, you suffered a loss by mis-filing your tax returns. The best defense is a strong offense. Call a lawyer and schedule a consultation. Most lawyers charge $100-200 for an in-office consultation and they can tell you what they think of your potential case. If it is strong enough and worth enough, they may even take the case on contingency.
Re: IRS said cable guy Employee not Contractor WE
Member #: 40846
Registered: 9/19/2005
Posted:
1493
Name:
Duane Vick
Name:
Duane Vick
Company:
Self-Employed
Occupation:
Installer
Location:
Phoenix AZ
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