If you own a trucking company, or are an independent trucker, you have undoubtedly noticed that truckers have to pay quite a few different taxes, and the way you must go about paying those taxes is complex.
Unless your trucking company has a large accounting department, It is a good idea to hire a professional tax preparer to handle everything for you. According to the website simplexgroup.net/tax-preparation-filing, there are a few things you should look for when you are hiring a tax preparer for trucks.
Make sure that the company you hire has been in business for at least a few years and that they have handled accounts like yours before. They should have references, good reviews, and a good reputation with the state board of insurance.
If you hire a small company to handle your account, you should make sure that they have enough time to take care of all of your needs. You should have one accountant that is assigned to handle your account personally. They should be available to answer your calls when you need them, so their schedule should cater to you and not the other way around.
You may already know a great CPA, and they might be honest, accurate, and diligent in their work. They might also know absolutely nothing about the trucking industry. It may seem that any trained CPA can prepare taxes for a business, but this is not true. Trucking companies pay more taxes than other kinds of businesses. Your tax preparer must be familiar with the taxes and the laws associated with them.
Truck drivers must pay taxes on the fuel that they use. They must also pay taxes on the roads over which they drive. It used to be that a driver needed a fuel permit for every state into which they drove, and this was very time-consuming for the drivers and the state. It was also rather unfair to the states because the tax was strictly on fuel. If a driver traveled through a state without buying any fuel, the state would not receive the taxes that it was entitled to.
The International Fuel Tax Agreement simplified the process of trucking companies paying taxes by creating an office dedicated to the collection and distribution of fuel tax money. Instead of registering with each state, a trucking company simply registers each qualifying vehicle in its fleet with the IFTA.
The agreement mandates that interstate commercial trucks must document all of their fuel purchases. They must also document the miles they have traveled through each state. A trucking company is expected to make quarterly reports and payments to the IFTA office. If you do not file in time, there will be heavy penalties.
Weight Distance Taxes (KY, NY, NM & OR)
Some states charge you extra taxes for the weight and distance that your truck travels. An accountant who understands trucking will understand how to get you the very lowest taxes on your hauls.
2290 Road Taxes
IR Form 2290, is used by companies who have a vehicle over 55,000 pounds or more. You must report this asset to the IRS if you own such a vehicle whether you have driven it or not.
If you know a bit about taxes and you ask the right questions, you can find the perfect tax preparer to help your company succeed.