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My friend's story…

Michael and I grew up in the same neighborhood. His dad was in the trucking business which, with long hours and hard work, he made enough money to support a large family. As the children grew up almost all the brothers and sisters became qualified truck drivers. At one point several of the brothers and sisters were driving their own truck. And, as you might suspect, they filled in for one another in the event of illness or schedule conflicts.

My friend's successes lead to the decision to buy/lease a second truck. He used one of his relatives and sometimes a friend to drive the second truck. Further success resulted in a third truck staffed in the same manner, relatives and friends. For Mike it was a process of offering a fair price to take a load north or south. He always paid on time and he operated his three trucks with contract labor. It was the system the family used for years and years.

Suddenly, my friend was under tremendous pressure from state regulators. They claimed he had a business with employees who should be covered by workman's compensation. He should do withholding from their pay checks. But, Mike did not have accountants, tax consultants, or attorneys as part of his business plan. I cannot go into all the details because I do not know about all the meetings and pressures put upon my friend. But, I do know the pressure by state regulators and later the IRS seemed incredible from my perspective.

To make a long story short, Mike is no longer in the trucking business. His personal health is not good. He cannot drive because strokes have reduced his visual ability. I do not claim state and federal regulators were the single cause of his problems but it is my observation their pressure did nothing to help him. I hope telling his story will help others find ways to protect their businesses and their livelihood.