The Internal Revenue Service (IRS) has recently clarified (via IRS Notice 2011-72) the tax treatment of employer-provided cell phones or other similar telecommunications equipment that was originally enacted (changed) last fall in the Small Business Jobs Act of 2010.  Before the Small Business Jobs Act of 2010 employer-provided cell phones were considered listed property that required additional recordkeeping by taxpayers regarding the business use of each cell phone and many people felt it was an administrative burden.  Now the employer-provided cell phones are considered an excludible working condition fringe benefit (IRS Code Section 132) subject to some qualifications.  IRS Notice 2011-72 provides that when an employer provides an employee with a cell phone primarily for noncompensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee.  The IRS will not require recordkeeping of the business use of the cell phone in order to receive this tax-free treatment.  Likewise, employer reimbursements to employees who use their personal cell phones for business will not be taxable.

However, a cell phone provided to promote the morale or good will of an employee, to attract a prospective employee or as a means of furnishing additional compensation to an employee is not provided primarily for noncompensatory business purposes.  Cell phones in those instances will not qualify as an excludable working condition fringe benefit. 

An employer will be considered to have provided an employee with a cell phone primarily for noncompensatory business purposes if there are substantial reasons relating to the employer’s business for providing the employee with a cell phone.  For example, the employer’s need to contact the employee at all times for work-related emergencies, the employer’s requirement that the employee be available to speak with clients at times when the employee is away from the office, and the employee’s need to speak with clients located in other time zones at times outside of the employee’s normal work day are possible substantial noncompensatory business reasons.

Generally, the IRS has three years to assess additional tax if it determines that a taxpayer’s return has understated the amount of tax owed.  For most business that were audited by the IRS in recent years, the IRS would propose a reduction in the business cell phone expense due to the alleged non deductible personal use of those cell phones.  That expense adjustment could be 25% to 50% or more of the total actual cell phone expenses.  The result would be additional tax due to the United States Treasury (via the IRS) from the business, plus a penalty and interest on the additional taxes.  The only way to protest that IRS tax adjustment would be to provide the IRS with detail substantiation of the business use of each cell phone.

 With this clarification in IRS Notice 2011-72 there is welcome relief for small business regarding cell phone expenses.  The IRS did a very good job of addressing the tools of everyday work life.  One issue not addressed by the IRS in this notice is the treatment of cell phones by self-employed individuals.  Those individuals may consider allocating their cell phone cost between business and personal use so they would better positioned for a challenge during an IRS audit.

 Tax Scams Update

The Internal Revenue Service (IRS) recently reported an increase in tax scams, especially schemes involving return filing.  The IRS cautioned that unscrupulous promoters are targeting the lower-income individuals and senior citizens.  The IRS discovered that some con artists are persuading individuals to file returns even though they have no filing requirement.  Unsuspecting individuals are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled.  Victims typically discover their claims are rejected or the refund barely exceeds what they paid the promoter.  Meanwhile, their money and the promoters are long gone.  With the 2012 income tax filing season (for 2011 returns) only a few months away, now may be a good time to remind your friends and relatives of the issues below.

The IRS cautioned taxpayers to be alert for:

1. A.     Fictitious claims for refunds or rebates based on excess or withheld social security benefits
2. B.    Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS
3. C.    Unfamiliar for-profit tax services teaming up with local churches
4. D.    Home-made flyers and brochures implying credits or refunds are available without proof of eligibility
5. E.    Offers of free money with no documentation required
6. F.    Promises of refunds for “Low Income-No Documents Tax Returns”
7. G.    Claims for expired Economic Recovery Credit Program or Recovery Rebate Credit
8. H.    Advice on using the earned income tax credit (EITC) based on exaggerated reports of self-employment income

The IRS also reminded taxpayers to look carefully at the fees charged for tax return preparation.  Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS or IRS-sponsored Volunteer Income Tax Assistance partners.

Please consult with your tax advisor before acting on these topics.  Your tax advisor can ensure you receive the maximum tax benefits considering your company structure, income tax rates, etc.  You can also visit the Internal Revenue Service web site http://www.irs.gov/ for more information on these issues.

 Thomas L. Broderick, C. P. A. is the Treasurer of Pickens-Kane Moving & Storage Co. in Chicago, Illinois.  He has served as Chairman of the Board of Trustees of the Illinois Movers’ and Warehousemen’s Risk Management Trust since 1996.  He has also served as president of the West Central Association Chamber of Commerce in Chicago for the years 2007 thru 2009. Many individuals, small businesses and non-profit organizations consult him for various accounting, investment, insurance and tax issues.

Revised: October 20, 2011

With the cost of equipment, fuel and materials constantly going up, you cannot afford to run another job without a Green Packer on board. If you cannot afford to waste $5,000 to $15,000 or more, per year, per truck, you need a Green Packer on all of your trucks.

As every business knows the public and companies are being pushed toward green options to cut down on the use and waste of natural resources. The owner at Pack All, has designed the Green Packer to help the moving industry do their part to save trees and resources. The Green Packer gives your company the ability to truly be a Green Company and capitalize on this worldwide trend.  This will probably be the future trend of packing pictures, tvs, marble tops, etc without the use of cardboard.

For more information, check out http://www.pack-allllc.net

One of the biggest areas that moving customers complain about is “the move cost more than it was quoted” and one of the biggest areas of frustration for moving companies (and movers) is “the customer changed the amount of service needed and doesn’t want to pay for it”.  These are situations that probably can’t be eliminated completely but there are the 2 “D’s” that can help, details and documentation.

First, we’ll cover details.  Moving companies, don’t assume anything, write it down.  One thing you can do on an on-site estimate is use the right side of a cube sheet for items to be moved and the left side for items that are not going to be moved.  Make a copy for the customer and illustrate the columns for “to be moved” and “not to be moved”.  This type of detail will help in the case of a dispute.  With most quotes, only one person is present so more detail can help, anyone who is not present understand the services required and charges due.  Removing assumptions and gray areas are key.  Note things right on the face of the estimate like “only 20 boxes to be moved, shipper to handle the rest” “ only large items to be moved”, “ no garage or outside items”, “ all items to be removed from attic and crawl space and placed in garage”, even “ all boxes to be packed by shipper prior to movers arrival”.  Basically, anything that could affect the move should be noted.  The more detail the better because too many times a shipper can fall back on.  “ I told the estimator about it”, and it becomes a he said/she said situation. 

If the dynamics of the move (and price) change, it’s a good idea to have the driver or crew leader update the quote and have the customer initial any and all changes to confirm acceptance.  Remember the more detail the less problems. 

Much of what we just covered is both details and documentation but another area of documentation is our trusty email.  Phone quotes, time restrictions, services, pricing, payment methods and terms, etc., should always be emailed along with the quote to the shipper with a mandatory confirmation and acceptance email required.  I’ve seen many situations where a driver who can produce an email confirmation from a shipper can diffuse a possible confrontation.  It takes a little more time to follow the 2 “D”s but it makes for a more peaceful moving experience for shipper, moving company, and movers too.

The National Truck and Trailer Services Breakdown Directory or NTTSbreakdown.com, is a comprehensive network of service providers in the U.S, and Canada providing information like repair facilities, towing services, pricing, and hours of operation in a free search that drivers and dispatchers for long distance movers can tailor to fit their specific needs.

For instance, the search starts with country, U.S.A, or Canada; then proceeds to state or province.  After the general area is chosen, the type of service desired is determined.  Categories include truck repair, towing, tires, refrigeration, truck stops with repair, pallets, truck wash, glass repair, locksmiths, fuel stops, motels and upcoming scales; just about anything a road driver may need.  Once the type of service is determined even more information is gathered like type of repair needed like Allison, Caterpillar, Detroit Diesel, etc, or Peterbilt, Freightliner, International, etc.

The proximity of the service provider is then chosen from, < 50 miles, < 100 miles, <150 miles, to <200 miles.  You can also search by zip code or latitude/longitude.

Once all the search information is entered a list of all service providers that meet the criteria is listed with phone numbers, addresses, and approximate distance from your location.

The wealth of information provided makes the site very valuable for anyone who runs the road.  To visit the sight, go to www.NTTSBreakdown.com, or www.OTRrepair.com, to access.  Once you are there, you can order the same information in a 800-page phone book style directory, as an internet back up, or if you don’t have internet access, the directory, however, unlike the website has a cost around $30 plus shipping and handling.

If you are going to move yourself there are tools, equipment, and ideas to make yourself much more prepared.  Follow these tips and you’ll make your move much smoother on moving day.

Choosing your rental truck is an important part of your move so read “Rental Truck Tips” to make the right choice.  Things like a ramp vs. lift gate can be really important depending on what you have to move.

Boxes are another important part of your move.  Make sure you get boxes in uniform sizes if you can.  All sorts of odd sizes can make the loading and handling of the boxes more difficult.  Read “Packing Tips From an Expert” for guidance on how to pack.  On where to find boxes, many large home improvement stores, truck rental locations, self storage locations, moving companies and dozens of internet sites (like on our home page) can provide boxes suited for moving.  Wardrobe boxes are 11/2 to 2’ and 3’to4’ high with a rod in them for transporting hanging clothes.  Most places don’t rent these so they have to be purchased. 

Now comes the meat and potatoes of the article in regards to moving equipment.  All of these can be purchased (and usually rented) from truck rental and self storage locations.

Moving pads are usually “72×80” and are the best option for wrapping your wood, metal, stone and glass furniture.   They are made of thick quilted cotton and should be wrapped around and taped with carton sealing tape (available at the same type of locations) to keep the pads secure.  They are inexpensive to rent and are way better than sheets, blankets, comforters, etc. Upholstered items are best wrapped in stretch film sold in 18” rolls at the same type of locations pads are supplied. 

A 2 wheel hand truck is a great tool to transport multiple boxes or furniture pieces like chests or dressers by yourself.  There are a variety of styles to choose from and this is an item that isn’t bad to own and keep in your storage area or garage.  A hand truck is more valuable the further you have to wheel the furniture (long haul ways or distances from your moving truck to your residence).

A refrigerator dolly or reefer dolly is the same concept as a 2 wheeler but it’s generally higher, wider, and has a ratchet strap to secure larger items to it.  Like the name says it’s often used for appliances and larger heavier items.  Many have rollers on the back so you can walk the piece down or up stairs easier.

A 4 wheeler or furniture dolly is a carpet (for lighter) or rubber (for heavier) capped 4 wheel “platform” to stack boxes or furniture on. These are very helpful but can be a little trickier to load and balance as they have no back for support.

A speed pack is a corrugated collapsible bin that’s excellent for moves in elevator buildings, because you can transport boxes, end tables, lamps (all sorts of stuff) at once making yourself more efficient.  The speed pack pops together from its flat origin and is ready to set on a 4 wheel dolly to give you a 21/2’x31/2’ open topped bin.

There are other carrying aides like burlap “hump straps” or forearm forklifts that can be helpful but require a little bit of guidance before you use.

If you follow these tips and utilize this moving equipment for your self-move, you’ll be glad you did, and so will your back.

Like with any other trucking company, moving companies spend a lot of money on tires so understanding tire wear can help correct problems and add life to moving truck tires.  Tire wear can be researched in great detail at the American Trucking Association Technology and Maintenance Councils RP219B” Radial tire Wear Condition and Causes:  A guide to Wear Pattern Analysis. 

In this article, however, we’ll cover some of the most common moving truck tire wear issues and some possible remedies.

First of all, alignment is key.  We briefly touched on this in Moving truck tire tips, but now we focus on the specifics.  If you have a tire that has one-sided wear it’s generally because of crooked axles or wheels being out of alignment.  “Toe In” is like a person being pigeon-toed with the tire pointing slightly in, “Toe out” is like being duck footed with the tire pointing slightly out.  When these conditions occur, feathered or scale like wear occurs on the shoulder of the tire.  So if you see a tire and the outside seems to be worn down much more than the inside don’t just change the tire, get the truck aligned.  Experts have suggested a potential savings of 33% on tire costs and an extension of steer tire life from 75,000 miles on the low-end to 145,000 potentially on the high-end (with a proper alignment program).  Even for smaller moving companies that’s a great deal of money.

If abnormal wear is on both shoulders of the tire he tire is probably under inflated and or fast covering is the culprit.  A high center of gravity can be the cause but on a moving truck the low inflation problem is most likely.  If the tire is worn abnormally in the center the tire is probably overinflated. Some drivers feel that overinflating a tire will increase fuel mileage and it will for the short-term.  However, tire wear issues negate the fuel savings in the long run.

Tramline wear only happens with non drive tires (steer or trailer tires) and is the result of the tires trying to follow the grooves, etc in the road like a trolley or “tram”,  Switching non drive tires to drive times can help even out wear if you consistently go across the same rough or grooved road.

Circumferential damage occurs when something is cutting into the tire like part of the trucks frames, mudflap, hanger, etc.  This is probably the easiest wear to see and fix.  Not that the tire can be reversed, but the cause of the cutting can be removed. 

If you have two different size tires or two tires of dramatically different inflations next to each other as duals on your moving truck, the wear pattern can be inconsistent because the smaller tire makes less contact with the road.  Tires should always be the same size and inflation.  Finally, flat spots in tires can occur by either excessive hard braking (“hitting the hooks”)or a wheel that is locked up due to the brakes not releasing or being frozen.  This can’t be cured after the fact but can be prevented by a proper pre trip inspection. With all of these moving truck tire wear situations early diagnosis and correction is key.  A good idea is to check alignment ever time an oil change/service is performed just to be safe and perform a “thorough” pretrip inspection (including tire inflation check) before each time the truck/trailer goes out on the road. The savings and convenience of not having to switch out tires far outweigh the little bit of work it takes to monitor the situation.  These tips should help you spot moving truck tire wear so you can take corrective action before it’s too late.

 Whether you are moving your own 1 bedroom apartment or you are a professional mover, there are definite advantages to fueling your body properly.  Similar to a biker, hiker, or other athlete that expends energy for a long period of time a mover (novice or professional) should use these mover nutrition tips.

There are 2 different components of moving nutrition:  Timing and Type of Food

Timing

When it comes to timing, when you eat before (or during) your move affects what you should eat.  If you have 3-4 hours before you move, you can eat a large meal of 1000-1500 calories because it takes 3-4 hours to convert that much fuel into energy.  A smaller meal of 600-800 calorie can be processed in 2-3 hours and a small meal or snack of 300 calories can be processed in ½ hour to 1 hour.  When it comes to processing time, fats take the longest to digest, then proteins, then complex carbohydrates.  Therefore, the closer you get to your ‘moving workout” the fewer fats and the more complex carbs you should eat.  Since carbs are digested in the small intestine and proteins and fats are digested in the stomach a pre-move meal too high in proteins (especially fats) can lead to indigestion, cramping, gas and other unpleasant side effects.

Type of Food

When it comes to “what to eat” before or during your move you should again mimic your moving nutrition to athletic nutrition.  Hours before you move some protein and a little fat are good to ingest with your carbs.  Foods like lean steak, lean pork, salmon, tuna, chicken, turkey, eggs (especially egg whites), tofu, lentils and low-fat cheese are good sources of protein.  Some good fats are olive oil, canola oil, flaxseed oil, peanut butter, almonds and walnuts. These proteins and fats sustain you longer given the “endurance” nature of the moving exercise.  Complex carbohydrates, by far, are most appropriate to eat when it comes to fueling up (before and during) your move and there are a variety of ways to get them.  Foods like whole grain breads, pasta, rice and cereals like oatmeal are great sources of energy before your move as they covert to energy slowly.  This helps you maintain healthy blood sugar levels and helps avoid the insulin spike and later “crash” caused by simple sugars like sugary pop, candy or donuts.  Fruits and vegetables are good options before and during your move  because they can give a quick energy boost.  Bananas, apples, grapes and fresh berries (fresh or dried)work well AND PROCESS QUICKLY TO KEEP YOU GOING.  Bananas also have potassium that can help you prevent cramping on a long and taxing day.

Alcohol, although popular, is a big no-no during moving both for safety and physiological reasons as it is a diuretic and actually dehydrates rather than hydrates the body.  Plenty of water, before, during, and after your move is very important.

Coming soon we will be posting some healthy and delicious recipes for moving day (or any other day) and welcome any contributions from one and all.  Feel free to submit healthy recipes that may be eaten for moving day, to support@emovingstorage.com.

Here are some moving truck tire tips to help extend the life your truck tires and help them operate at their best.

This may seem like a “master of the obvious” type comment, but check your tire pressure and condition of your tires often at least at the start of every trip or day.  By CHECK TIRE PRESSURE, I mean use a tire gauge, not just a hammer, tire billy or bat.  “Thumping” tires can tell if they are completely flat, but it won’t tell if they are underinflated.  Also check all the tires, not just the easy to get to outside tires of a tandem.  I’ve seen dozens of times where the inside tire runs low, goes flat, is ruined, and then affects the outside tire.  Remember,  if you are purchasing tires from a tandem, the preferred method is to purchase them in pairs so they wear evenly.  Save both tires by checking the inside tire of a tandem every time.  For moving companies with company drivers and equipment, it’s not a bad idea to do a random test on vehicles after they have been pretripped, but before they hit the road to ensure the checking is being done.  Have the drivers record an actual pressure reading for each tire on their pretrip, not just a check mark that the procedure was done.  This makes sure the test is actually being performed and that the driver is getting an accurate reading. 

It’s probably ever more important for household movers to perform the tire checks than other truckers because of the tricky residential areas that moving trucks have to go into.  Scuffing a curb, marker post, culvert, decorative stone, etc can dent a rim or break a tire seal so it’s critical for movers to check their tires condition often.

PREPARING MOVING TRUCK TIRES

Remember, when getting tire readings; make sure the tires are neither under inflated which will reduce fuel mileage or overinflated which can create accelerated wear issues.  Check the tires when they are cold and make sure they are at the manufacturer’s suggested PSI.

Make sure you rotate your tires since right and left turns are different and make tires wear differently. Left hand turns are usually taken at higher speeds and are wider while right hand turns are usually taken at slower speeds and are tighter.  If you rotate your tires when you change your oil, this can help even out your tire wear and extend the life of your tires.

Make sure you keep your moving trucks in alignment because an out of alignment vehicle not only wears the tires out faster, it reduces fuel mileage, too.  Any signs of uneven wear should spark a trip to your truck shop or service provider to check the trucks alignment. 

It doesn’t seem like a big deal but make sure the value stems on your moving truck(s) tires have a cap on them.  No, your tire won’t immediately go flat without a cap but some value stems can leak slowly and things like dirt, snow and ice can wedge themselves in the stem tip causing air loss.

When shopping for tires, check with tire manufacturers on load recommendations and other tire specs and properties.  Since moving trucks usually carry more bulk than weight things like tread depth and load range are things to look at when purchasing tires.  Tires aren’t just tires, do some research on which tires fit your moving truck application the best.

Understanding workers compensation is a four part series written by Bill Stankevitz, senior vice-president of St. Charles, IL based Wine Sergi & Co. LLC.  He has been involved with the insurance industry in many capacities for the last 45 years and invites people to visit his blog “insurance answers for business” at www.mysweethaven.com/blog.

In the final installment of the 4 part series on Workers Compensation, Bill investigates how you as a moving company (or other business) can conduct a self analysis of your policy.

The first option is do it yourself and although it’s important to understand your policy conducting a self analysis with no other help from any professionals can be risky.

Option two is to hire a risk manager to handle this part of your business.  This isn’t an option for medium to small moving companies but option three of hiring an independent consultant can be.  The beauty of option three is reduced cost from option two, and an objective analysis of your moving company’s workers compensation policy.  Option four is have your current workers compensation insurance provider do the study, but since workers compensation commissions are generally low its harder to entice your agent to agree to lots of work for little money.  Another potential problem with option four is its subjectivity. What company is going to steer you away from their own workers compensation insurance products? Option 5 is to have another workers compensation provider (or two) conduct the study as part of the bid process.  Since the carrot of earning your business is their motivation this is a much easier sell.  Also, by getting a couple other quotes you can validate your decision by comparing rates and services.

As we’ve stated before, learn all you can about your options when it comes to moving company workers compensation.  To review the article in its entirety read Understanding Workers compensation (Part IV).  The subject of workers compensation and Moving companies should be understood and reviewed often as the potential costs (or savings) can be significant.

 Understanding workers compensation is a four part series written by Bill Stankevitz, senior vice-president of St. Charles, IL based Wine Sergi & Co. LLC.  He has been involved with the insurance industry in many capacities for the last 45 years and invites people to visit his blog “insurance answers for business” at www.mysweethaven.com/blog.

In part three, the six components of how premiums are set is covered.  It references the regulations specific to Illinois so check with your state to see if these rules apply to you.  In any case, these are areas that can potentially help moving companies or other businesses in other states save money on premiums as well.

A contractor’s credit can affect the policy in certain cases and the premium “discount” amount can change between different insurance companies and different states by as much as 7%.  Excess limits charges as related to umbrella liability coverage is covered as well as the terrorism catastrophe components of premium calculation.

Overall the message in this article, I feel, is find out the specifics from your workers compensation insurance agent on what components make the premium calculation process.  Don’t blindly give payroll information and accept whatever premium you get without understanding how the process works.  As with everything else, the more you know the better decisions you can make and the more money you can save.  How workers compensation affects a moving company can be managed and adjusted with some homework and proper decision making.  Always consult a professional.  To read this article Understanding Workers Compensation Part III.