05/10/2022 02:17
There are
many things to think about when becoming a truck driver, including what forms
you need to fill out and when and what tags to get for your truck, among
others. The dates and names may seem a bit confusing, so the purpose of this
guide is to explain the purposes of each form and when each one is due.
The trucking association believes that taxes are best used to raise revenue for essential government services with the least detrimental effects on taxpayers and on economic activity. It encourages simplicity and neutrality in the tax system and urges a federal approach to excessive and discriminatory taxation of the transportation industry by states and localities.
1. Form 2290
What is it?
The Heavy
Vehicle Use Tax (HUVT).
Who has to file?
If a vehicle
is more than 55,000 pounds and travels more than 5,000 miles in a year, then
Form 2290 must be filed. If the vehicle has traveled fewer than 5,000 miles per
year, it is considered suspended. If the vehicle only transports agricultural
products and travels less than 7500 miles per year, it is considered suspended
as well. Even if the vehicle has been suspended, Form 2290 must still be filed.
When is the deadline?
You must
file your Form 2290 by August 31st each year, unless it falls on a Saturday,
Sunday, or federal holiday, in which case it is moved to the next business
date, but you can start profiling for the form in May. Depending on when your
2290 needs to be replaced, the date you put your truck on public roads will
vary. If you put your vehicle on the road in October, you must file your Form
2290 before the end of November.
Why is HVUT important?
The Federal
Highway Trust Fund (HTF) finances the federal highway program through fuel and
other highway-use taxes. The funds are invested in our nation's transportation
infrastructure.
In 2008,
Federal HTF receipts topped $38.7 billion, with $33.5 billion specifically
dedicated to the HTF’s Highway Account. As motor fuel prices have topped
$4 per gallon in the U.S., consumption of motor fuels, and consequently
receipts from motor fuel taxes, have declined. In July 2008, the Office
of Management and Budget (OMB) projected a $3.1 billion shortfall in
receipts into the Federal HTF’s Highway Account
for 2009.
Due to the
way that highway funds are allocated, every $1 of shortfall translates into a
$4 dollar
drop in spending. If the shortfall is not addressed, federal highway aid
to states would be slashed by approximately $12 billion in 2009. The
severity of the problem is apparent when noting that total federal highway aid
to states was expected to be $41 billion in 2009.
As
conditions of our roads and bridges continue to deteriorate, congestion will
grow, the U.S. economy will lose billions in productivity, and fuel consumption
will increase.
Substandard
highway infrastructure also reduces roadway safety, increases vehicle
maintenance costs, damages the environment due to pollution caused by vehicle
emissions, expands energy consumption, and increases emergency response time.
The HVUT is
a significant source of transportation funding in the U.S. In 2008 alone,
the HVUT generated more than $1.0 billion in Federal HTF revenue.
The need for
road surface maintenance is greatly attributable to the heaviest vehicles.
The U.S. Department of Transportation in its most recent Highway Cost
Allocation Study estimated that light single-unit trucks, operating at less
than 25,000 pounds, pay 150 percent of their road costs while the heaviest
tractor-trailer combination trucks, weighing over 100,000 pounds, pay only 50
percent of their road costs.
Where to File?
Labworks USA partnered with Simple Truck Tax to help you to file your Form 2290 in just a few easy steps!
2. IRP
What is it?
The
International Registration Plan (IRP), is the plates on a truck.
Who has to File?
If a truck
crosses state lines, weighs over 27,000 pounds, and/or has three or more axels,
they qualify for an IRP.
Why the IRP is important?
The main
purpose of the International Registration Plan is to promote interstate
commerce. It encourages the fullest possible use of the highway system. It
allows registered motor carriers to travel through all IRP member
jurisdictions. The main benefit is consolidated licensing and reporting
requirements.
When is the Deadline?
It depends
on the State/base jurisdiction. Some states have set dates and in others, the
date is the same each year based on the month when you first registered.
Where do you Renew your IRP?
You should go to your local IRS office in your base jurisdiction to file your return.
3. IFTA
What is it?
International
Fuel Tax Agreement
Who has to File?
Vehicles
that travel through two or more jurisdictions and purchase fuel in each
jurisdiction are required to file an ITF.
What is the Timeframe?
The IFTA is
actually filed on a quarterly basis. The quarters are as follows:
Quarter 1:
January 1 – March 31
Quarter 2:
April 1 – June 30
Quarter 3:
July 1 – September 30
Quarter 4:
October 1 – December 31
Why is IFTA is Important?
IFTA allows
US states and Canadian provinces, known as jurisdictions, to get their fair
share of fuel use taxes. Drivers report mileage to their base state only, which
in turn takes care of distributing the taxes among the jurisdictions on that
driver's route.
When is the deadline?
Quarter 1:
April 30 (May 2, 22)
Quarter 2:
July 31
Quarter 3:
October 31
Quarter 1:
January 31
(This also depends on if the deadlines fall on a weekend or holiday it will be moved to the next business day)
4. UCR
What is it?
UCRP stands
for Unified Carrier Registration Program
Who has to File?
Commercial
vehicles carrying cargo across state or international lines must file.
Why is UCR Important?
The UCR
Program's primary objective is to generate reliable information for use in law
enforcement administration, operation, and management.
When is the Deadline?
December
31st
In Conclusion
Make sure
you learn the different types of forms you need to fill out as a truck driver
by writing them down on your calendar or putting them on your phone.
They are
important and not having them could lead to penalties and fines for not
following the rules.
If you need support on your trucking needs, feel free to reach out to us at Labworks USA.
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