What's Due: July 31 Tax Deadlines

That’s right truckers, the deadline is upon us, and there’s only 2 days left to file your taxes before facing fees and late penalties. In addition to your IFTA returns being due, special use taxes for the states of New York, New Mexico, and Kentucky are also due before the end of the day on July 31.

If you haven’t already filed, you’re not late yet, but you will be if you don’t get a move on! If you don’t like the stress that comes with the tax deadline, give us a call today and let us take the tax-filing burden off your shoulders with a simple phone call.

Below we’ve listed all the taxes that are due before the July 31 deadline:

IFTA:

IFTA stands for International Fuel Tax Agreement, and it is necessary to file if you operate in a participating jurisdiction. All 48 contiguous states participate in IFTA (with the exception of Oregon), as well as some Canadian provinces. The 2nd quarter ended on June 30, and you have until the July 31 deadline to get that return filed.

If your vehicle weighs over 26,000 pounds, or has over three axles, you will be required to file a quarterly return. Even if you didn’t operate during the quarter, if you have an IFTA license you will need to file.

New Mexico Weight-Mile Tax:

New Mexico weight-mile tax is a special use tax for all heavy vehicles that operate in the state of New Mexico. The tax must be paid on all vehicles that weigh over 26,000 pounds. However, the tax is graduated, so the amount of tax paid increases as the weight of the vehicle increases.

In order to operate in New Mexico and pay the state’s weight mile taxes, companies must obtain a New Mexico Weight Distance tax permit for each vehicle.

Kentucky Highway Use Tax:

Kentucky highway use tax is another special tax that is determined based on the amount of mileage traveled by heavy trucks within the state of Kentucky.

All vehicles that have a taxable gross weight over 60,000 pounds must file (although buses and farm-licensed vehicles are an exception). To file, you will first need to obtain a tax license from the state, and you will be given a KYU number that you will use to file under.

New York Highway Use Tax:

New York highway use tax is a special tax for all heavy vehicles that operate in the state of New York, excluding mileage traveled on toll-paid portions of the New York State Thruway. The tax must be filed by all vehicles that have a gross taxable weight over 18,000 pounds, and by all unloaded trucks over 8,000 pounds or tractors over 4,000 pounds.

If you only travel through New York on occasion, you may obtain a temporary trip permit to avoid having to file and pay for the highway use tax. However, you can only obtain a maximum of 10 trip permits per year so be sure to use them wisely!

At TSNAmerica, we understand that with all these tax deadlines at the same time, it can be difficult to get filed on time, especially if you’re running a bit behind. That’s why we make it simple by preparing and filing quarterly returns for you. Give us a call today at 803.386.0320, or email us at support@tsnamerica.com, and let us take the paperwork out of your way!

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BOC-3: Everything You Need to Know

If you’re a trucker and you plan to operate in interstate commerce, you will be required to file a BOC-3. If you’re asking yourself what in the world a BOC-3 is, don’t fret. Stay tuned, and we’ll tell you everything you need to know about the BOC-3, and how you can get it filed today.

What is a BOC-3?

A BOC-3 is a federal form that designates legal agents upon which process may be served. It stands for “blanket of coverage,” and is often required before federal operating authorities can be granted within the United States.

A BOC-3 is typically filed after an MC# has been issued in order to obtain interstate operating authority. The BOC-3 form is submitted to the FMCSA, and is used to designate process agents in each state where your business operates.

Process service agencies are third-party companies capable of granting BOC-3 filings. All process agencies must employ or lease the services of individuals or entities in each state, and must be registered with the FMCSA in order to grant a BOC-3. Each process agent acts as your representative for that state, and accepts all legal documents or court papers that may be served to your business. The agent then forwards those documents to you, and can advise you on how to proceed according to the laws in your state.

How to File Your BOC-3:

To file your BOC-3, you can file it yourself or have a process agent file on your behalf with the FMCSA. The completed form must include all states for which agency designations are required. If you are having your form done by a process agent, that agent must be designated for each state in which the carrier, broker, or freight forwarder operates.

Once the form is finished, the original signed copy must be filed with the FMCSA, and a copy should be filed with each state where the operation is conducted. One copy must also be kept by the carrier, broker, or freight forwarder at its principal place of business. If for any reason you need to change your designation, you will need to file a new form BOC-3 with the FMCSA. When this is done, copies of the new form will only need to be sent to states affected by the change or new filing.

How We Can Help:

Filing your BOC-3 can be a little tricky, and you’re probably wondering, how am I supposed to find a processing agent? Well, we’ve got some good news for you; we are BOC-3 certified! Not only can we obtain your MC# for you, but we can take care of the BOC-3 at the same time. Or, if you already have your MC#, we can complete your BOC-3 form in less than five minutes! Don’t believe us? Well then give us a call at 803.386.0320, and start your stopwatch! If you have any questions about our services, you can call us or send us an email at support@tsnamerica.com.

We will also be hosting a webinar this week on how to file Form 2290 with us over the phone. To register for the webinar, click here and enter in your first and last name, along with your email address. The webinar will be taking place on Thursday July 23, from 4:00 p.m. to 5:00 p.m. ET.

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TSNA: Trucking News Update

It seems like just about every week this summer there’s been something monumental or groundbreaking happening in the Trucking Nation. Whether it's a new law or bill, new rig technology, or another tax deadline to remember, this summer has been quite a busy time for the trucking industry. Take a look below, and we’ll tell you about all the new and interesting additions to the trucking industry so far this summer.

Summer Trucking News Updates

Fuel Tax Increase: While for some this is more of a slight annoyance than it is news, for truckers this can be quite a costly issue. Since July 1, seven states have increased their fuel taxes, including Idaho, Georgia, Maryland, Michigan, Rhode Island, Nebraska, and most recently Washington state. If your state or a state you travel through isn’t included in the list, it could be next. Many other states and even some Canadian provinces are still considering a spike in fuel taxes.

House Announces New Short-Term Funding Bill: Just this week, the House of Representatives has unveiled a new short-term highway bill, the third bill since MAP-21’s expiration last year. The current funding is set to expire July 31, and the new bill would extend that funding to the end of the year. The funding would help the nearly bankrupt Highway Trust Fund by pumping in close to $8.5 billion from the nation’s general fund.

Samsung Announces New Smart Truck: At the end of last month, Samsung unveiled its newest addition to the tech industry, the smart truck. The smart truck was created to first be used in Argentina, where there is nearly one traffic fatality every hour, with many coming from drivers attempting to speed around semi trucks. The truck actually contains a camera on the front and a TV screen on the back, which shows the view from the front of the truck, essentially allowing drivers to “see around the truck.” While it may be some time before we see these on US highways, if they prove to limit traffic fatalities, it may be sooner rather than later.

Kentucky Emergency Exemption: On July 14th, Kentucky announced an emergency exemption for all utility vehicles operating in the state due to severe weather. This allows these vehicles an exemption from the standard hours of service requirements, mandatory stoppage at weigh stations, IRP registration, and also from obtaining oversize/overweight temporary permits. Keep in mind that these exemptions are not for all trucks, only those helping with relief efforts. The exemption is in place through the 23rd of July.

IRS Offices by Appointment Only: The IRS announced that for this Heavy Vehicle Use Tax season, 10% of its offices will be available by appointment only. So if you’re used to going up to your local IRS office and waiting in line, you may have to alter your plans a bit.

We know as a trucker with a hectic schedule, it can be hard to find time and find an IRS office to get an appointment scheduled. Luckily for you, there is another way to get your Form 2290 filed, and you can do it without even leaving the cab of your truck. Just make a 5-minute phone call to TSNAmerica, and we’ll do it for you, same day. Don’t forget Form 2290 is due by August 31, so don’t hesitate, and call us today!

Thanks for reading Trucking Nation, we hope you enjoyed the news update. Be sure to stay tuned for more updates from TSNAmerica.

And remember, if you ever have any questions about new trucking regulations or registration requirements, don’t hesitate to give us a call at 803.386.0320, or email us at support@tsnamerica.com.

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IFTA: Avoiding an Audit

We’ll start you off with a little known, yet very important fact; every base jurisdiction is required to audit 3% of its IFTA accounts per year. Doesn’t seem very fair, does it? Well it’s not, but that won’t keep you from being affected by the rule.

The policy is in place as a safety precaution to be sure that all drivers are keeping accurate fuel and mileage records. Because of this, any driver can be randomly selected for an audit at any time, often with little or no notice.

While many are random, there are also several other reasons for your base jurisdiction to decide to audit you. Below we’ve listed some of the most common reasons for an audit so you can be sure to avoid them.

Reasons for an Audit

Reporting False Information on Application: When applying for an IFTA license, be sure that all of the information you submit is correct and accurate. Even if it’s not intentional, submitting false or incorrect information is taken very seriously and is a great way to get audited by your base jurisdiction.

Gaps in Mileage: This issue occurs when the mileage on a trip log from the end of a day doesn’t match up with the mileage beginning the next day. This happens quite often on accident, as many drivers don’t realize that their personal or leased miles must also be included on trip logs. Mileage recorded should include all interstate and intrastate movement, including loaded, empty, deadhead, and/or bobtail miles.

Skewed MPG Calculations: Another great way to immediately draw a red flag with your base jurisdiction is to have a large amount of variance in your miles per gallon calculations. If that is the case, there needs to be an obvious reason for the discrepancy, such as different road conditions, varying weight loads, etc. If there is not a clear reason for the variance, it will more than likely trigger an audit.

The range of your miles per gallon should also fall within the average of 5-10 mpg. If your MPG falls outside of this range, then you have most likely made an error during your calculations. Some states will actually not even allow filings that are not within that range.

Non-continuous Jurisdictions: When completing your trip logs, they must show continuity from the starting point to the destination, including every district in between. If you have your trip logs ending in one state, and they start back with you in the middle of another state, you can bet your tail you’re going to get audited.

Decals Missing or Not Displayed Properly: Not having proper decals or not maintaining them for the proper amount of time can also be a costly issue. All decals are required to be accounted for and maintained for 4 years, and a detailed inventory list must be kept in case of an audit that includes:

• Vehicle numbers (VIN, license plate, and unit number)
• Assigned decal numbers 
• Date the decals were assigned
• Any special notes with relevant vehicle information (truck wrecked, painted, etc)

Random Selection: This is by far the most common reason for an audit. Even if you can avoid all of the above issues, there is still a chance that you can be chosen at random for an audit. So be sure that even if you’re compliant with all of the IFTA rules and regulations that you have all of the proper documentation, that way the process is as quick and painless as possible if you do ever have to deal with an audit.

If you don’t have time, or don’t want to deal with all the paperwork and calculations that accompany an IFTA return, Truck Services of North America is always here to help. We’ll not only calculate the amount owed for your return based on your trip sheets, we’ll file it for you. Just give us a call at 803.386.0320 or email us at support@tsnamerica.com, and let TSNAmerica work for you. We also offer several other trucking services, so if you need any help filing your Form 2290 or registering for your IRP, we can do that, too!

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