- Trucking companies can face multiple federal and state tax obligations depending on their vehicles, jurisdictions and operating structure, including IFTA, Form 2290 and state-specific weight-distance taxes.
- Simplex Group provides tax preparation and filing assistance specifically for carriers and owner-operators, combining tax and permitting support with broader trucking compliance expertise.
- Carriers should determine which filings actually apply to their operation rather than assuming every trucking tax or permit applies universally.
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Trucker Tax Services
Staying on top of your taxes is necessary if you want to stay out of trouble and in business. If you run a trucking business, taxes can be confusing and time-consuming as there are several tax reports that you need to complete at the end of each year. It is important to know how to manage your taxes to keep your business running.
Simplex Group employs tax experts that are here to help you through the difficult process of reporting your tax services. We will ensure that all of your tax services are filled perfectly and that all of your taxes are paid on time. Our objective is to make sure you are compliant with the state and federal laws so you can keep growing your business. We consider the success of your business to be our success!
Other Related Services
U.S. Truckers’ Tax Payment Deadlines
| Tax or payment | Who it generally applies to | Usual due date |
|---|---|---|
| Heavy Vehicle Use Tax (Form 2290) | Trucks with a taxable gross weight of 55,000 pounds or more | August 31 if the truck is first used on a public highway in July. If first used in another month, payment is due by the last day of the following month. |
| Federal income tax balance | Owner operators filing as sole proprietors | April 15 of the following year |
| Estimated federal income and self-employment tax | Owner operators who must make estimated payments | April 15, June 15, September 15, and January 15 of the following year |
| IFTA fuel tax | Carriers required to file IFTA returns | April 30, July 31, October 31, and January 31 for the preceding quarter |
EIN and Registration Process for Truckers in the U.S.
If you are starting a trucking company or operating as an owner-operator in the United States, here is the correct, step-by-step process:
Step 1: Choose Your Business Structure
You must decide whether to operate as a Sole Proprietorship, a Limited Liability Company (LLC), or a Corporation. If you choose to form an LLC or a Corporation, you must first register your business entity with your state’s Secretary of State before applying for an EIN
Step 2: Apply for an EIN (Free via the IRS)
An EIN is a 9-digit number that identifies your business for federal tax purposes.
- You can get an EIN directly from the IRS in minutes for free by using the online application tool
- The IRS explicitly warns taxpayers: “Don’t pay for an EIN”. Many third-party websites charge fees for this, but the official IRS service is completely free.
- The application requires basic information about the business and the “responsible party” (usually the owner).
Step 3: Why Truckers Specifically Need an EIN
While a sole proprietor without employees can technically use their Social Security Number (SSN) for some basic taxes, an EIN is practically mandatory for truckers for several critical reasons:
- Form 2290 (Heavy Highway Vehicle Use Tax)
- FMCSA Operating Authority
- Business Banking
- Hiring Drivers
Step 4: State and Local Compliance
- If you formed an LLC or Corporation, ensure you maintain “good standing” with the Secretary of State by filing annual reports and paying state fees
- If your trucking company operates across state lines, you may also need to register as a “foreign entity” with the Secretary of State in other states where you regularly conduct business to avoid costly penalties
What kind of taxes do truckers have to pay?
Like all businesses with a tax liability, all carriers must fill out a tax return with the IRS. They must also pay taxes to the state where they have their business registered. Trucking companies pay more taxes than any other type of businesses because they must pay taxes to every state they drive through.
Road Taxes or 2290
An IRS Form used to calculate the taxes to be paid for vehicles with a gross weight of 55,000 pounds or more. Taxes on such vehicles usually are very high.
You must file Form 2290 and Schedule 1 for the tax period beginning on July 1, 2026, and ending on June 30, 2027, if a taxable highway motor vehicle is registered or required to be registered in your name.
Our tax experts are well trained in tax preparation and the trucking industry to ensure you complete confidentiality.
As carriers, you will not only get a good tax preparer but a team of trucking compliance experts! We help small trucking companies and independent contractors with their tax returns. Give us a call today to speak to a tax & permitting expert. Preparer availability is limited.
What is IFTA?
In 1982, Congress passed the International Fuel Tax Agreement. It was designed to simplify fuel taxes in the lower 48 states and ten provinces in Canada. IFTA is a reciprocal agreement, meaning that an IFTA license issued by the jurisdiction where the motor carrier is based, is valid in all the other IFTA member jurisdictions.
Fuel taxes are set by states and provinces and paid upon purchase. Carriers have permits that specify a tax rate on fuel. The fuel costs are recorded, and the taxable total is calculated and adjusted quarterly. In the past, carriers had to obtain a fuel permit in every state they entered. This was time-consuming, and as you know, time is money in the trucking industry!
IFTA allows truckers to buy one permit and report their taxes quarterly to their local IFTA office. Simplex Group makes the process even easier by putting together this report and filling it with each state office for you and backing up your fuel purchase records! We want to support you in being fully prepared before heading out on the road!
Fuel Taxes
All trucking businesses running an interstate operating authority must pay fuel taxes. The International Fuel Tax Agreement simplifies the accounting and payment of fuel taxes and relieves trucking companies from doing paperwork.
You must file the IFTA quarterly fuel use tax return for the following periods.
| Reporting quarter | Due date |
| January through March | April 30 |
| April through June | July 31 |
| July through September | October 31 |
| October through December | January 31 |
What is an IRP plate?
The International Registration Plan is an agreement among states of the US and it is similar to IFTA. The apportioned licensing fees are based on the total distance operated in all member jurisdictions. The benefit of this plan is that a carrier may be registered in only their home state. Trip permits will be required for truck drivers traveling outside their base jurisdiction if the motor vehicle doesn’t have a valid interstate license.
KYU License
If a truck has a gross vehicle weight rating of 10,001 pounds or more, it is considered a commercial motor vehicle (CMV) by the Department of Transportation.
Truckers with vehicles over 59,999 pounds must register for a KYU license if they drive through the state of Kentucky. A trucking business must have a USDOT number and a Unified Carrier Registration number to obtain a KYU license.
You must pay around $0.0285 per mile if you drive through Kentucky. Companies must report their miles quarterly or your business will face harsh fines. We want to ensure that you are never fined by any state and that your business’ operations are spot on.
New Mexico Permits
Vehicles weighing over 26,000 pounds must pay a weight Distance tax in New Mexico. Trucking companies are required to get a Weight Distance Tax Electronic Permit in the state and must apply and renew it once a year.
Even companies titled in New Mexico must pay this tax. If they operate intrastate, they will be issued a weight-distance plate. If they are traveling interstate, they will be issued an IRP plate.
Oregon Permits
Oregon has the highest weight and mileage taxes in the country. However, it does not impose a fuel tax on truckers. The process used to be very difficult, but it has recently been simplified.
You must file for trip permits everytime you run through the state of Oregon or file for an Oregon Bond if you will operate within the Oregon state, you can file these permits online. It is important to mention that all trucks in your fleet will be required to register if they will be traveling through the state.
You must file a monthly fuel tax report in Oregon including miles driven, even if you did not travel in the state.
Filing these reports can be confusing and extremely time-consuming. However, you do not want to miss out on jobs because you could not be bothered to fill out a permit. We can handle your permits for you. We want to do everything we can to afford you time to run your business and make it a success.
Our intuitive dashboard, Simplex Hub, and our mobile application, Simplex 2GO, will guide your business toward success and help you with all your safety compliance and permit needs.
FAQs
Do owner-operators have to pay quarterly estimated taxes?
Many do. The IRS says sole proprietors, partners and S corporation shareholders generally need to make estimated tax payments when they expect to owe at least $1,000 when filing their return. Self-employed taxpayers commonly use estimated payments because taxes generally are not withheld from their business income.
What tax forms does a 1099 owner-operator typically file?
An independent contractor operating a business generally reports business income and expenses on Schedule C (Form 1040). If net earnings from self-employment are $400 or more, Schedule SE is generally used to calculate Social Security and Medicare self-employment taxes. Estimated tax payments may also apply.
Can truck drivers claim a per diem meal deduction?
Certain interstate truck operators subject to DOT hours-of-service limits can qualify for the special transportation-worker treatment of business meal expenses. IRS Schedule C instructions state that the deductible percentage can increase to 80% for qualifying individuals subject to DOT hours-of-service limits. Eligibility still depends on the applicable tax and travel rules.
How long should a trucking company keep tax records?
There is no single retention period for every document. The IRS generally says records supporting income, deductions or credits should be retained until the applicable period of limitations expires. In many ordinary situations that period is three years, but other circumstances require longer retention; employment tax records, for example, generally need to be kept for at least four years. Records connected with property may need to be retained longer.