Trucking tax debt: Form 2290, IFTA, excise and payroll

Form 2290 reports the federal heavy highway vehicle use tax on vehicles with a taxable gross weight of 55,000 pounds or more. Vehicles expected to travel 5,000 miles or less in the period (7,500 for agricultural vehicles) can claim suspension. States generally require proof of payment — the stamped Schedule 1 — to register a heavy vehicle, so an unpaid 2290 can stop a carrier from operating. See the IRS trucking tax center.

Interstate carriers based in a member jurisdiction file one quarterly fuel tax return with their base state under the International Fuel Tax Agreement, which redistributes tax to the states where miles were driven. Missing trip records are the usual problem: without miles by state, an audit can assess using assumptions that cost more than the real numbers would have. Unpaid IFTA can also lead to license revocation.

A 12% federal retail tax applies to the first retail sale of many heavy trucks, trailers and tractors (Publication 510), reported on quarterly Form 720. Buyers usually pay it through the dealer, but installing parts and accessories within six months of purchase can create additional tax. Diesel fuel excise is imposed at the terminal level under IRC 4081, so most carriers pay it in the pump price rather than owing it directly.

Leased owner-operators who own their trucks and control their own business may be contractors; company drivers in company trucks are typically employees. Misclassifying drivers creates payroll tax exposure — see worker misclassification and the IRS control test.

Prioritize anything that keeps trucks registered: 2290 and IFTA. Then current payroll deposits. Use the business payment plan calculator for IRS balances and the free assessment with "Trucking" selected.