2290 Heavy Use Tax Extended

IRS Gives Truckers Three-Month Extension; Highway Use Tax Return Due Nov. 30

WASHINGTON — The Internal Revenue Service today advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011.

Because the highway use tax is currently scheduled to expire on Sept. 30, 2011, this extension is designed to alleviate any confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date. Under  temporary and proposed regulations filed today in the Federal Register, the Nov. 30  filing deadline for Form 2290, Heavy Highway Vehicle Use Tax Return, for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. Returns should not be filed and payments should not be made prior to Nov. 1.

To aid truckers applying for state vehicle registration on or before Nov. 30, the new regulations require states to accept as proof of payment the stamped Schedule 1 of the Form 2290 issued by the IRS for the prior tax year, ending on June 30, 2011.  Under federal law, state governments are required to receive proof of payment of the federal highway use tax as a condition of vehicle registration. Normally, after a taxpayer files the return and pays the tax, the Schedule 1 is stamped by the IRS and returned to filers for this purpose.  A state normally may accept a prior year’s stamped Schedule 1 as a substitute proof of payment only through Sept. 30.

For those acquiring and registering a new or used vehicle during the July-to-November period, the new regulations require a state to register the vehicle, without proof that the highway use tax was paid, if the person registering the vehicle presents a copy of the bill of sale or similar document showing that the owner purchased the vehicle within the previous 150 days.

In general, the highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more. Ordinarily, vans, pick-ups and panel trucks are not taxable because they fall below the 55,000-pound threshold.

For trucks and other taxable vehicles in use during July, the Form 2290 and payment are, under normal circumstances, due on Aug. 31. The tax of up to $550 per vehicle is based on weight, and a variety of special rules apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the year and those first used on the road after July.

Last year, the IRS received about 650,000 Forms 2290 and highway use tax payments totaling $886 million.

Fuel and Mileage audits

We have just settled 5 outstanding Fuel and Mileage Audits and they were not all in our favor! Some of the biggest problems are the State’s can use the “Letter of the Law” on their side and that can create instant penalties!
One of the biggest problems we have when we go to Fuel and Mileage tax audits is the trip sheet. Incomplete, not compatible, not enough information, etc. TAPS has been fighting for years on these matters, and it sometimes feels we are beginning to lose the battle. I feel more so than ever now, and that could be because the States are looking for revenue.
When filling out your trip information, they are looking for where you start and finish each trip. City and State and odometer reading for same. Original documents has been real big recently, no photocopies!!!
I will continue to fight, but I am just saying!

FMCSA is officially sending out warning letters

FMCSA has officially started sending out warning letters to motor carriers across the United States.

Here is what you need to know:

CSA is here, and it is happening right now.

1) If you receive a letter, don’t panic. It’s a warning to let you know about an area that needs improvement. Just take the steps needed to improve the BASIC area noted.

2) Not all letters for each state are being sent at once. If you haven’t received a letter, that doesn’t necessarily mean you won’t receive one in the future.

3) Carriers receiving warning letters will be subjected to an increase in roadside inspections.

4) If you receive a letter, and your performance doesn’t improve, the next step can be an off-site or on-site investigation.

Don’t wait for a warning letter from the FMCSA to take action.

More Business Package Mailings End Following Growth of e-File

Business taxpayers will no longer receive additional tax packages in the mail from the IRS. Most importantly, the Form 941, Employer’s Quarterly Federal Tax Return (PDF), will no longer be mailed.Businesses may go to IRS.gov, then click on Forms and Publications and follow the directions for getting this form. The IRS took these steps due to the continued growth in electronic filing as well as to help reduce costs. Additionally, most business forms are available through tax professionals and tax software. In addition to the Form 941 (PDF), the IRS will no longer mail the following forms and publications: Products Titles Form 940 (PDF) Employer’s Annual Federal Unemployment (FUTA) Tax Return Form 943 (PDF) Employer’s Annual Federal Return for Agricultural Employees Form 944 (PDF) Employer’s Annual Federal Tax Return Form 945 (PDF) Annual Return of Withheld Federal Income Tax Form 720 (PDF) Quarterly Federal Excise Tax Return Form 730 (PDF) Monthly Tax Return for Wagers Form 2290 (PDF) Heavy Highway Vehicle Use Tax Return Form 5500 (PDF) Annual Return/Report of Employee Benefit Plan Form 8027 (PDF) Employer’s Annual Information Return of Tip Income and Allocated Tips Form 8160-T (PDF) Tax Product Availability for Exempt Organization Filers Form 11-C (PDF) Occupational Tax and Registration Return for Wagering Form CT-1 (PDF) Employer’s Annual Railroad Retirement Tax Return Publication 51 (Circular A) Agricultural Employer’s Tax Guide Publication 80 (PDF) (Circular SS) Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands Publication 179 (Circular PR) Guía Contributiva Federal para Patronos Puertorriqueños Package 1120-H (PDF) U.S. Income Tax Return for Homeowners Associations In October 2010, the IRS sent postcards to many businesses that normally received their tax forms and publications in the mail from the IRS. These postcards stated the forms listed below would no longer be mailed: Products Titles Package 1065 (PDF) Return of Partnership Income Package Package 1120 (PDF) U.S. Corporation Income Tax Package Package 1120S (PDF) S Corporation Income Tax Package Publication 393 (PDF) Federal Employment Tax Forms Information Form 5227 (PDF) Split-Interest Trust Information Return All IRS forms, schedules and related instructions continue to be available at IRS.gov.

IFTA GRACE PERIOD

R655.200 Carriers renewing their IFTA license and decals have a two-month grace period

(January and February) to display the renewal IFTA license and decals. To operate

in IFTA jurisdictions during this grace period, carriers must display either valid current or prior year IFTA license and decals from the jurisdiction in which they were operating or a valid single-trip permit from the IFTA jurisdiction in which they are operating.

UCR Fees to Nearly Double

The Federal Motor Carrier Safety Administration released the 2010 fees for the UCR program Monday, more than doubling the levy across the board but setting it slightly lower than the agency had proposed last year.

The fees, which are used by states to fund various commercial vehicle enforcement activities. The increase is the result of a change in the law that changes how FMCSA determines fleet size for purposes of collecting the fees.

TAPS will start getting UCR for all client that have already paid as soon as they let us log in. This should start May 3^rd but we will see!

General Insurance Information

1. Primary Liability Insurance

Primary liability insurance is the type of insurance needed for a driver in the United States to stay legal while on the road. Drivers with these types of policies have coverage for others’ injuries and damage to others’ vehicles as a result of an accident. For truck drivers to drive legally, they must have $750,000 worth of coverage if they are looking to have Common or Contract Authority and transport interstate. This means that their insurance will cover up to $750,000 of damage or injury to the other party in an accident. If the accident is determined to be your fault, and more than this amount of damage is caused, then the injured party’s lawyers may seek further compensation from your personal wages and savings. For this reason, some truckers choose to purchase more than the minimum primary liability insurance. Truckers can also purchase greater degrees of liability insurance if that is required by law for example in the case of the auto carriers you must have $1,000,000 auto liability coverage. This Insurance Coverage is required at the time of registration and in order to get your plates.

2. General Liability Insurance

Accidents don’t just happen when truckers are on the highway. Truckers spend a great deal of time loading and unloading and if you have a terminal you want insurance to cover damages in these conditions so you should consider General Liability Insurance, which covers Protection for injuries or property damage sustained while on your premises, using your products or services, or because of a breach of contract is a customary type of risk this coverage is intended for.

3. Motor Truck Cargo Insurance

This type of insurance does not cover your vehicle, but instead the cargo that you’re carrying. This offers both the transportation company and the client the assurance that the items will get to where they need to be, or their loss will be compensated. This policy can typically be endorsed to provide coverage that will meet your individual needs such as reefer breakdown, loading & unloading or wet steel coverage, Pollution and Clean Up, Debris Removal etc.

Usually Reefer Breakdown coverage is required when you are carrying loads that required certain temperature to avoid that the load gets spoiled for example Frozen food and produce in other words Reefer Breakdown provides coverage for cargo loss caused by the mechanical or electrical breakdown or malfunction of a temperature control system.

4. Non-Trucking Liability Insurance

Also called Bobtail coverage, this type of insurance covers your vehicle when you’re not working. Typically, the company that you’re working for covers your vehicle when you’re on the job and provide you with cargo insurance, but if the truck is parked in your driveway, getting it repaired, or otherwise not working. You might want to pick up this insurance to protect your investment in all circumstances. Usually this type of Insurance is required along with Physical Damage Coverage when you are an Owner Operator leased to a Motor Carrier Company.

5. Physical Damage

-Provides coverage for repair or replacement for damage resulting from (collision, fire, theft, hail, windstorm, earthquake, flood, mischief, or vandalism) to owned vehicles. Basically you are protecting your investment with this policy if you are financing your truck you definitely must cover truck for the amount owe to the bank. You must tell to the insurance agent the actual cash value of the truck in the market in other words you should insure your truck for the current market value of the truck in the market including the depreciation. For example if you insured your truck for $30,000 but the truck is only worth $20,000 in the market the maximum that the Insurance Company is going to pay in the event of total loss will be $20,000 so you must actualize your tuck’s value every year to make sure that you are not over insured your property.

6. Trailer Interchange covers damage to any non owned trailer while in the care, custody or controls the insured. A written Trailer Interchange agreement between the Company that owns the trailers and the trucker is required and may be requested in the event of claim.

7. Hired & Non Owned Auto

Non owned auto provides liability coverage for any auto owned, hired, rented, borrowed, leased or used occasionally for the insured’s business Most of the Insurance Companies determine if the coverage will provide upon of the acceptable number of employees at the insured’s business. Usually this coverage is required only for truckers that have contract with UIIA.

8. On-Hook provides coverage for damage an insured is legally liable to pay for property damage to vehicles, watercraft and property while being towed by or in the custody of the insured. Coverage will not apply to owned vehicles or premises. This coverage is usually requested by Towing business.

9. Workers’ compensation coverage.

If you employ drivers and other workers, a Workers’ Compensation policy is required by most states. This insurance protects you against your liability to your workers for injuries sustained while on the job. In other words Workers Compensation will pay to your employees for all reasonable and necessary medical care, if an employee becomes injured or develops an occupational disease because of conditions on the job. The policy also provides payment to the employee for part of the wages he or she loses if the injury or illness disables the employee for more than time determines in the policy. Please note that this policy is required by the state law or you can be exempt but you will have to consult your state regulations. Your responsibility is to ensure your owner/operators and their workers are covered by workers compensation sometimes could be kind of expensive and difficult to insure owner operator that is way the industry has develop a different option call Occupational Accident Insurance

10. What is Occupational Accident?

Occupational Accident insurance is designed specifically for the trucking industry. This coverage typically provides medical payments and disability payments due to on-the-job injuries. Most plans will also include a small amount for off-the-job accidental injuries as well. Leased Owner-Operators are typically those who buy this insurance due to requirements of the Motor Carrier they are leased to. However, anyone who has their own authority or is a contract driver can also purchase Occupational Accident in most cases.

There are basically two differences between Workers Compensation and Occupational Accident Policies:

Occupational Accident policies will pay medical benefits for up to 2 years from date of covered injury subject to the policy limits, whereas a Work Compensation policy will continue to pay without limits until a settlement is made or the person returns to health. This could be 6 months or 6 years! The benefits paid to survivors under Workers’ Compensation are also more extensive in most states when compared to Occupational Accident. There are some other more subtle differences, but those are probably the biggest differences–other than the price.

LEGAL REQUIREMENTS:

Like any other job, truckers are not only tasked with meeting the requirements of their employers, but also they are required to meet legal requirements in order to stay on the road. Because driving can be a hazardous activity that causes death, injury, and damage, motorists must meet speed limits, safety equipment standards, and registration requirements. Like these legal conditions, insurance is mandated by all 50 states. This requirement is not devised simply to charge truckers more money. Instead, it is a way of protecting drivers who are involved in an accident that is not their fault. In addition, it also protects the driver of the vehicle that caused the accident by protecting personal property and funds from going to pay for accident damages.

But how can you find out what kinds of insurance requirements are necessary for your type of commercial vehicle, and if you’re a fleet or company owner, how do you ensure that each of your drivers is properly insured and that you comply all the legal requirements?

Well there is different resource that you can consult such as……..Fred’s Resources

, just remember that different types of vehicles require different types of truck insurance and regulations. Make sure you’re getting the right type for all your needs, including weight, your cargo, and your company. The following are certain key points that can help you to understand all the legal requirements:

The above information written by:

Saida Barrios

Account Manager

Insurance/ Seguros of America, Inc

2050 Ashley Oaks Cir., Suite 102

Wesley Chapel, Fl 33543

P: 813-907-1555 F: 813-907-2094

Email address:SaidaB@isofamerica.com

Fred’s other Resources

• Truck Insurance Mart 800-255-0416 Ext 121, Pete Pomerenke

• Benton & Parker – (800) 849-6600  Cindy

• CONCORD COMMERCIAL/ PUNTA GORDA – 941-575-0800

• Caputo Ins. 800-635-9961 Carl Libertore

COBURN AGENCY, INC./ VERMONT – 800-787-8251

CAMPBELLS OF LARGO – 727-536-1997 or  800-938-7825

KIRBY SOAR/PLANT CITY – 813-752-1680 or 800-636-6070

MIKE MONROE/OCALA – 888-724-6453

2010 Unified Carrier Registration “UCR”

As most of you know the 2010 UCR is still not in place. There is an “Enforcement Moratorium” in place for 2010 registration year. please go to the link below to read this.

It shall be in effect until further notice.

It says that if you operated as a carrier prior to 1/1/2010 you must have the 2009 UCR paid for.

UCR Enforcement Link!!!

4th Quarter 2009 Tax Rates

To see the current 4th Quarter 2009 Tax rates please click link.

4Q 2009 Tax Rates

Text Messaging & Cell Phone use while DRIVING

Check out the current state cell phone driving law highlights at this web site. Even though it is very dangerous many people still text message while driving.
This web site shows all the current information as of December 2009. I would think it will be in all states before long.

Cell Phone Driving Laws