Trucking Insights
Important information for trucking companies and truck drivers
IRP (Apportioned License plate) Registration - Safety Carrier update!!!
Did you change the company you work for?
Do you know that whenever you change the company you are leased to, you must update the safety carrier listed on your IRP registration?! Failure to do so may result in your IRP registration being suspended!!!
If the carrier you were leased to goes Out-of-Service, your IRP registration will be automatically suspended until you update the safety carrier listed on your file!!!
Have you updated your email and address with the Illinois Secretary of State (IRP Section) on your IRP registration?
It is very important that the Illinois Secretary of State (IRP Section) has your current home/business address and email!!!
If at any time, the Illinois Secretary of State sends you a letter, and the letter gets returned to them, you IRP account will be temporarily suspended until the address has been updated!
The Illinois Secretary of State no longer mails IRP license plate renewal notices. Instead, the notices are now emailed to you.
Therefore, it is very important that the Illinois Secretary of State (IRP Section) has a valid email address where they can send you the renewal notice!
Renewal notices are usually emailed in the beginning of December. Make sure your email is updated before that!
Updating your address on your corporation will NOT update your address on your IRP registration even though they are both handled by Illinois Secretary of State!
IRP & IFTA Electronic Credential Copies
IRP & IFTA Electronic credential copies - you will be allowed to carry your IRP cab card and IFTA license in an electronic image and paper IRP cab cards and IFTA licenses will no longer be required.
All US States and Canadian Provinces will be required to accept electronic images of IRP cab cards and IFTA licenses. For the first year, it is advised that you continue to carry paper credentials.
This will provide time for all involved to work out the details of this new program. When stopped by law enforcement, credentials may be shown as an electronic image on a computer, tablet, or smartphone or as a paper copy. Please understand that by choosing to provide credentials by electronic device, an officer or official may need to temporarily take possession of the device to verify the credential's validity.
Regardless of the format, the document must be accurate, accessible, and readable by law enforcement.
IFTA Registration
IFTA Registration - Every truck should have a valid IFTA (fuel taxes) registration and stickers! Stickers should be displayed on the side of the truck!
IFTA is valid January 1 through December 31, but it can be used until February 28 if the account has been renewed by December 31!
Difference between a Corporation and LLC
The first difference is the ownership of the entity. A corporation is owned by its shareholders, and its members own an LLC.
The second major difference is how each entity is taxed. An LLC has complete flexibility on how it wants to be taxed, whereas a corporation may not.
A major disadvantage to the corporate designation is its double taxation implications. A corporation's profit is taxed once, and its shareholders' dividends are taxed again.
The third major difference between the two is their legal structure.
Difference between a C Corporation & an S Corporation
C Corporations can have an unlimited number of owners, while S Corporations have a limit to the number of owners.
Owners of an S Corporation must be US citizens or residents. An individual or another business may own C Corporations, while S Corporations may be owned by individuals only.
C Corporations are subject to double taxation, taxed once at corporate level, and a second time after profits are distributed to shareholders. S Corporations are pass-through entities and are only taxed after income is allocated to shareholders.
C Corporations provide a little bit more flexibility in terms of possible growth. Both entities have limited liability protection.
Do you have a corporation or an LLC? Have you changed your address recently?
If you answered Yes to both questions above, don’t forget to update your address on your corporation file with the Secretary of State.
If you do not update it, you will not receive the letter the Secretary of State sends every year to remind you to pay your corporation's annual report. If you do not pay your corporation's annual report on time, your corporation will be in a “Not In Good Standing” status, and it will be dissolved in 6 months.
MC (Motor Carrier) Authority
MC (Motor Carrier) Authority - You can get an MC (ICC) common carrier authority in only 3 weeks! Give us a call and ask us how!
Motor Carriers – Mandatory biennial DOT Update!
Motor Carries, do you know you MUST update your DOT every 2 years? Whether you have a new address, phone, email, number of trucks, trailers, drivers or everything is the same and there is nothing to update, you must actually update your DOT every 2 years!
In accordance with FMCSA MCS-150 regulation 49 CFR Part §390.19, every two years all motor carriers are required to update their MCS-150 information with the FMCSA.
This update must be completed in the appropriate month, every even or odd year, based on your DOT#, even if none of your information has changed, and regardless of when you last updated.
Illinois INTRAstate Authority
Any person or entity engaged in for-hire transportation of property, other than household goods, over the public roads in intrastate commerce in the State of Illinois, must have an Illinois INTRAstate authority!!!
INTRAstate Equipment Lease Agreement
Please note that if you are a motor carrier and you currently have an INTRAstate authority you must have an Illinois Commerce Commission equipment lease agreement for every truck that is leased to the company.
The filing fee associated with this equipment lease agreement payable to the Illinois Commerce Commission is $15 per truck.
UCR Registration
UCR Registration - UCR (2024) registration expired on December 31, 2024. UCR 2024 registration system is now open for payments!
BOC-3 (Process Agents) Address Update
Keep in mind that if you have updated your physical address on your DOT number, you must update the address on your BOC-3 form as well. It does not update automatically!
KY Weight Distance Permits
KY weight distance permits do not need to be renewed. You only need to add the vehicle once in the beginning and delete any vehicles that are not in the company any more!
NY Hut Stickers
NY Hut stickers are to be displayed on the outside of the truck. NY permits are to be kept inside the truck at all times! NY Hut stickers are renewed once every 3 years.
NY permits will have to be renewed in 2024. You should receive a letter in the mail from the New York State Department of Taxation & Finance sometime in 2024 with instructions!
New Mexico weight distance tax permits are not required to be carried in the truck!
HAZMAT Registration
HAZMAT Registration for HAZMAT Carriers is Due June 30 If you are a hazmat carrier, your general hazmat expires on June 30, 2024, and it must be renewed before that date.
If you do not have an active hazmat registration, your company cannot transport any hazardous materials loads!
HWY Use Taxes (Form 2290)
HWY Use Taxes (Form 2290) are due by August 31! The reporting period for the HWY Use Taxes is July 1 through June 30.
HWY Use Tax (2290) Refund
Did you know that you can claim a HWY Use Tax (form 2290) fees paid refund for a vehicle that was sold, destroyed or stolen during a tax period? All you need to do is file a claim for refund with supporting documents, and IRS will refund the fees for the months that the vehicle was not in use.
Title Transfer
If you have purchased a truck or a trailer, and you have not transferred the title to your name, it is very important that you do so asap! Even though the title has been signed over to your name, your name is not listed on this title until you have properly transferred it, and Secretary of State's system does not have your name listed under that VIN #.
If you happen to lose or destroy the title, you will have to have the previous owner obtain a duplicate title and reassign it to you again, which will take extra time and money.
MVR Monitoring
The Federal Motor Carrier Safety Administration requires an annual MVR record check for CDL drivers per regulation CFR 49 391.25. Failure to comply during a DOT Audit or a compliance review will result in fines assessed to your company. Don’t forget to check your drivers' MVRs every year! You can ask drivers to obtain an MVR from the closest DMV or you can order one online.
Alcohol & Drug Consortium
The Federal Motor Carrier Safety Administration (FMCSA) mandates that all CDL drivers with a vehicle gross weight of 26,000 pounds or more, need to register with an Alcohol and Drug Consortium. In addition, drivers of 16 passenger buses or larger must also register with a Alcohol and Drug Consortium.
Clearinghouse
Did you know that Department of Transportation (DOT)’s regulation 49CFR for Federal Motor Carrier Safety Administration (FMCSA), requires the implementation of random drug and alcohol testing rules for companies with multiple employees, as well as owner-operators?
The testing rules include procedures for testing, frequency of tests, and substances tested for. The drug & alcohol policy requires that active drivers must participate in random screening of a minimum of 50% drug testing and 10% alcohol testing each calendar year.
The Drug and Alcohol Clearinghouse is now fully operational, and mandatory use is now in effect. When hiring drivers, employers are required to conduct a query of the FMCSA Drug and Alcohol Clearinghouse (Clearinghouse) to check that the driver is not prohibited from performing safety-sensitive functions, including operating a CMV, due to a drug and alcohol program violation.
If an employer becomes aware of a drug and alcohol program violation incurred by one of their employees, the employer must report the violation in the Clearinghouse; violations include positive drug or alcohol test results, refusal to take an alcohol or drug test, or actual knowledge of a violation.
Need help? Give us a call or email us today.
PA, NJ & NE Corporate Business Taxes
PA, NJ & NE Corporate Business Taxes - You might receive a letter from the following states - Pennsylvania, New Jersey and Nebraska, asking you to fill out a questionnaire to determine whether or not you owe any corporate business or income taxes.
Although a lot of facts go into consideration, for the most part, the rule is that if you just went through the state, you do NOT owe any corporate/income taxes, BUT if you made pickups/deliveries to/from the state, then you are required to file a return, and pay business income taxes.
If you do get a letter requesting you fill out a questionnaire, be very careful what you put in there. If you need help, let us know, we can help you!
In the state of New Jersey, trucking companies have also been asked to pay fines on the spot when it was determined that corporation business taxes were owed and not paid.
The corporation business tax per year is $1,000.00 plus 10% cost of collection!!!
NY Hut Stickers
NY Hut stickers are to be displayed on the outside of the truck. NY permits are to be kept inside the truck at all times! NY Hut stickers are renewed once every 3 years.
They had to be renewed in 2018. This year NY permits do NOT need to be renewed. Most likely they will need to be renewed next year. You should receive a letter in the mail from the New York State Department of Taxation & Finance sometime in 2021 with instructions!
New Mexico weight distance tax permits are not required to be carried in the truck!
IFTA Registration
IFTA Registration - Every truck should have a valid IFTA (fuel taxes) registration and stickers! Stickers should be displayed on the side of the truck!
IFTA is valid January 1 through December 31, but it can be used until February 28 if the account has been renewed by December 31!
IRP & IFTA Electronic Credential Copies
IRP & IFTA Electronic credential copies - you will be allowed to carry your IRP cab card and IFTA license in an electronic image and paper IRP cab cards and IFTA licenses will no longer be required.
All US States and Canadian Provinces will be required to accept electronic images of IRP cab cards and IFTA licenses. For the first year, it is advised that you continue to carry paper credentials.
This will provide time for all involved to work out the details of this new program. When stopped by law enforcement, credentials may be shown as an electronic image on a computer, tablet, or smartphone or as a paper copy. Please understand that by choosing to provide credentials by electronic device, an officer or official may need to temporarily take possession of the device to verify the credential's validity.
Regardless of the format, the document must be accurate, accessible and readable by law enforcement.
UCR Registration
UCR Registration - UCR (2023) registration will expire on December 31, 2023. UCR 2024 registration system is now open for payments!
MC (Motor Carrier) Authority
MC (Motor Carrier) Authority - You can get an MC (ICC) common carrier authority in only 3 weeks! Give us a call and ask us how!
HAZMAT Registration
HAZMAT Registration for HAZMAT Carriers is Due June 30 If you are a hazmat carrier, your general hazmat expires on June 30, 2024, and it must be renewed before that date.
If you do not have an active hazmat registration, your company cannot transport any hazardous materials loads!
Illinois INTRAstate Authority
Any person or entity engaged in for-hire transportation of property, other than household goods, over the public roads in intrastate commerce in the State of Illinois, must have an Illinois INTRAstate authority!!!
INTRAstate equipment lease agreement
Please note that if you are a motor carrier and you currently have an INTRAstate authority you must have an Illinois Commerce Commission equipment lease agreement for every truck that is leased to the company.
The filing fee associated with this equipment lease agreement payable to Illinois Commerce Commission is $15 per truck.
Title Transfer
If you have purchased a truck or a trailer, and you have not transferred the title to your name, it is very important that you do so asap! Even though the title has been signed over to your name, your name is not listed on this title until you have properly transferred it, and Secretary of State's system does not have your name listed under that VIN #.
If you happen to lose or destroy the title, you will have to have the previous owner obtain a duplicate title and reassign it to you again, which will take extra time and money.
IRP (Apportioned License plate) Registration - Safety Carrier update!!!
Did you change the company you work for?
Do you know that whenever you change the company you are leased to, you must update the safety carrier listed on your IRP registration?! Failure to do so may result in your IRP registration being suspended!!!
If the carrier you were leased to goes Out-of-Service, your IRP registration will be automatically suspended until you update the safety carrier listed on your file!!!
Motor Carriers – Mandatory biennial DOT Update!
Motor Carries, do you know that you MUST update your DOT every 2 years? Whether you have a new address, phone, email, number of trucks, trailers, drivers or everything is the same and there is nothing to update, you must actually update your DOT every 2 years!
In accordance with FMCSA MCS-150 regulation 49 CFR Part §390.19, every two years all motor carriers are required to update their MCS-150 information with the FMCSA.
This update must be completed in the appropriate month, every even or odd year, based on your DOT#, even if none of your information has changed, and regardless of when you last updated.
Have you updated your email and address with the Illinois Secretary of State (IRP Section) on your IRP registration?
It is very important that the Illinois Secretary of State (IRP Section) has your current home/business address and email!!!
If at any time, the Illinois Secretary of State sends you a letter, and the letter gets returned to them, you IRP account will be temporarily suspended until the address has been updated!
The Illinois Secretary of State no longer mails IRP license plate renewal notices. Instead, the notices are now emailed to you.
Therefore, it is very important that the Illinois Secretary of State (IRP Section) has a valid email address where they can send you the renewal notice!
Renewal notices are usually emailed in the beginning of December. Make sure your email is updated before that!
Updating your address on your corporation will NOT update your address on your IRP registration even though they are both handled by Illinois Secretary of State!
Difference between a Corporation and LLC
The first difference is the ownership of the entity. A corporation is owned by its shareholders, and its members own an LLC.
The second major difference is how each entity is taxed. An LLC has complete flexibility on how it wants to be taxed, whereas a corporation may not.
A major disadvantage to the corporate designation is its double taxation implications. A corporation's profit is taxed once, and its shareholders' dividends are taxed again.
The third major difference between the two is their legal structure.
Difference between a C Corporation & an S Corporation
C Corporations can have an unlimited number of owners, while S Corporations have a limit to the number of owners.
Owners of an S Corporation must be US citizens or residents. An individual or another business may own C Corporations, while S Corporations may be owned by individuals only.
C Corporations are subject to double taxation, taxed once at corporate level, and a second time after profits are distributed to shareholders. S Corporations are pass-through entities and are only taxed after income is allocated to shareholders.
C Corporations provide a little bit more flexibility in terms of possible growth. Both entities have limited liability protection.
Do you have a corporation or an LLC? Have you changed your address recently?
If you answered Yes to both questions above, don’t forget to update your address on your corporation file with the Secretary of State.
If you do not update it, you will not receive the letter the Secretary of State sends every year to remind you to pay your corporation's annual report. If you do not pay your corporation's annual report on time, your corporation will be in a “Not In Good Standing” status, and it will be dissolved in 6 months.
NY Hut stickers
NY Hut stickers are to be displayed on the outside of the truck. NY permits are to be kept inside the truck at all times! NY Hut stickers are renewed once every 3 years.
They had to be renewed in 2018. This year NY permits do NOT need to be renewed. Most likely they will need to be renewed next year. You should receive a letter in the mail from the New York State Department of Taxation & Finance some time in 2021 with instructions!
New Mexico weight distance tax permits are not required to be carried in the truck!
PA, NJ & NE Corporate Business Taxes
PA, NJ & NE Corporate Business Taxes - You might receive a letter from the following states - Pennsylvania, New Jersey and Nebraska, asking you to fill out a questionnaire to determine whether or not you owe any corporate business or income taxes.
Although a lot of facts go into consideration, for the most part, the rule is that if you just went through the state, you do NOT owe any corporate/income taxes, BUT if you made pickups/deliveries to/from the state, then you are required to file a return, and pay business income taxes.
If you do get a letter requesting you fill out a questionnaire, be very careful what you put in there. If you need help, let us know, we can help you!
In the state of New Jersey, trucking companies have also been asked to pay fines on the spot when it was determined that corporation business taxes were owed and not paid.
The corporation business tax per year is $1,000.00 plus 10% cost of collection!!!
Clearinghouse
Did you know that Department of Transportation (DOT)’s regulation 49CFR for Federal Motor Carrier Safety Administration (FMCSA), requires the implementation of random drug and alcohol testing rules for companies with multiple employees, as well as owner-operators?
The testing rules include procedures for testing, frequency of tests, and substances tested for. The drug & alcohol policy requires that active drivers must participate in random screening of a minimum of 50% drug testing and 10% alcohol testing each calendar year.
The Drug and Alcohol Clearinghouse is now fully operational, and mandatory use is now in effect. When hiring drivers, employers are required to conduct a query of the FMCSA Drug and Alcohol Clearinghouse (Clearinghouse) to check that the driver is not prohibited from performing safety-sensitive functions, including operating a CMV, due to a drug and alcohol program violation.
If an employer becomes aware of a drug and alcohol program violation incurred by one of their employees, the employer must report the violation in the Clearinghouse; violations include positive drug or alcohol test results, refusal to take an alcohol or drug test, or actual knowledge of a violation.
Need help? Give us a call or email us today.