Sailor Tax

[skycowboy]

Well my 40 day delivery trip to Vietnam turned out to be 140 days. Three hurricanes, one Cyclone, a couple of run in's with possible pirates ( thanks Coalition Warships) and 5 changes in personnel. ( Deep Sea people really need to stay out of the Oilfield). So now that I made a boat load of cash, the job now is to keep as much as possible. One of my shipmates recommended Sailortax.com . Has anybody used them before. I searched the forum and found no other posts so I would be interested in hearing from anybody that has used them before.

[Shellback]

Bout time you showed up..Figured you stopped off and got lost in the Phillipines for awhile..

Can't help you on the sailor tax..I use an accountant from my trucking days that has done real well by me so far, not in jail yet anyway..

[captblighe]

Just out of curiosity was that delivery for EMAS???

[Greatlakesmate]

I used Martin Kapp @ Sailortax for 3 years. Always got a nice tax return. Then he sent me a letter along with three forms to amend ( and send IRS money) for last three years due to what he claimed was a retroactive IRS policy change.

I had to pony up a couple thousand dollars and then entered into a 2 year struggle with the IRS. Martin Kapps office told me they couldn't advise me. No help there at all.

My advice...Don't even think of using Sailortax... find a good local tax preparer who is familiar with transportation worker tax law.

[seadog6608]

I too would stay away from Martin Kapp and Sailortax. Too much controversy. I got a guy in Maine who does good by me and he knows transportation tax policies. Icon Tax Service 207 623 4142
I've used them for the past 4-5 years without any headaches, audits etc...and with a nice return. As long as you have receipts and such he'll do the rest.

[Seaman]

I used Martin Kapp @ Sailortax for 3 years. Always got a nice tax return. Then he sent me a letter along with three forms to amend ( and send IRS money) for last three years due to what he claimed was a retroactive IRS policy change.

I had to pony up a couple thousand dollars and then entered into a 2 year struggle with the IRS. Martin Kapps office told me they couldn't advise me. No help there at all.

My advice...Don't even think of using Sailortax... find a good local tax preparer who is familiar with transportation worker tax law.

Same happened to me. It cost me thousands in the long run. I would stay clear.

[CaptRob1]

There is an outfit out of Maryland, TWTS. I think it stands for Transportation Workers Tax Service. I have used them the past 3-4 years and do not have any complaints. They only prepare taxes for Mariners and airline pilots. I plan to keep on using them and I think they charge about $400, maybe $480 or something like that.

[Ea$y Money]

Since YOU are ultimately responsible for your tax liability, no matter who or what army prepares it... CPA, MBA, or crazy uncle, I would suggest getting information on where in the tax code one might look to review these "deductions". This has always stopped the discussion cold as no one will divulge the source of their magical knowledge. Buyer beware.

[seadog!]

Go to Sailortax.com and read!!

I have used Kapp for more than 10 years with no complaint.

[Cal]

Go to Sailortax.com and read!!

I have used Kapp for more than 10 years with no complaint.

Martin Kapp and his Sailortax.com had their butts in a sling back in August of 2007. The IRS has also been challenging a host of the items that Mr Kapp has based his practice on, it all comes down to interpretation of the CFR's (something we all unwillingly have experience with). Particular IRS targets are the meals deductions and I have a co-worker that is in year three of his battle with the IRS over his "Tax Home". There is a significant number of Louisiana tax preparers that have been barred from filing tax returns for doing the same things, in a slightly different way. To read the injunction against Mr Kapp, go here: http://www.justice.gov/tax/txdv07641.htm.

Since YOU are ultimately responsible for your tax liability, no matter who or what army prepares it... CPA, MBA, or crazy uncle, I would suggest getting information on where in the tax code one might look to review these "deductions". This has always stopped the discussion cold as no one will divulge the source of their magical knowledge. Buyer beware.

Absolutely true. If it sounds too good to be true it probably is. If you push the packet, expect to be scrutinized closer. For example, workers subject to Department of Transportation hours of service limits deduction is not 50%, but 80%. Mr Kapp interpreted the CFR's differently and deducted 100% (I'm not sure if he still does). If you're ready, willing, and able to pay for a potential legal battle, and the consequences should you lose that battle, then by all means, go ahead. On a personal note, I believe Mr Kapp has done a lot for mariners and I admire and respect the work he has done. I, however, am unwilling to live that close to the edge.

The "magical knowledge" can be found in IRS Publication 463. There is also a new Revenue Procedure out concerning this particular subject http://www.irs.gov/pub/irs-drop/rp-10-39.pdf. I'm certain this is due to the legal battles over the last couple of years. If you have the time, and a bottle of Ibuprofen, you can get down to the nitty gritty of it and review CFR Title 26, Volume 3, Sections 1.270-1 through 1.270-5T http://www.access.gpo.gov/nara/cfr/w...6cfr1c_09.html.

How? Before I became "Boat Trash" I was an accountant....

By the way, I WILL be using the new revenue procedure when preparing my taxes this year, has a lot of clarification on the CFR's!

[cmjeff]

For those with short memories or new to the forum gCaptain spent many months dealing with BS spam messages from TWTS and also read gCaptain's articles on Martin Kapp.

I know James Maguire has been the longest running advertiser on gCaptain and I think John knows him personally. Plus I think he is the only one with a higher degree in taxation.

[cappy208]

Kapp (AKA Sailortax.com) was ABSOLUTELY no help to me when I got audited. I had to fight through the appeals process, and eventually got my case dismissed. However several others who maybe took too much in deductions (as purported from Kapp that is was OK to deduct trips to the barber for example) got their ass handed to them to the tune of a couple thousand between 2000 and 8000 bucks to clear it all up.

What I found out from my experience is that indeed Kapp is correct in his interpretation of the law, but he goes WAY overboard in deductions, thus he earned the IRS scrutiny. I understand that he does not encourage these outlandish deductions, but some guys want to try and shoot the moon anyway.

The previous post about Irs pub 463 is the key and holds all the answers.

To put it simply, when you discuss this with the IRS and you mention "Meals" you lose the argument. We are not allowed to deduct "Meals." We are allowed to deduct food costs. Thus the per diem deduction (less what the company gives us.) But if you once refer to this as "Meals" they will disallow it, and your done. Then the interest and penalty make any gains you made dry up.