Category: Uncategorized

Understanding Truck Weight Classes: A Complete Guide for Drivers

Posted on March 28, 2025 by Marcela De Vivo - Uncategorized

Whether you’re a new truck driver, an experienced owner-operator, or managing an entire fleet, understanding truck weight classes is essential for staying compliant and making informed decisions on the road. These classifications—based on a truck’s Gross Vehicle Weight Rating (GVWR)—help determine which vehicles require commercial licenses, how they’re taxed, and what regulations they must follow.

Truck weight classes aren’t just technical jargon—they directly affect vehicle registration, insurance costs, toll rates, road usage permissions, and even federal tax requirements like Form 2290 for Heavy Vehicle Use Tax (HVUT). Misunderstanding your vehicle’s weight class could lead to legal penalties, rejected filings, or costly delays.

This guide breaks down everything you need to know about truck weight classes—from how they’re structured to how they impact your operations—so you can drive smarter, file accurately, and stay compliant with state and federal laws.

What Are Truck Weight Classes?

Truck weight classes are standardized categories that group commercial and non-commercial vehicles based on their Gross Vehicle Weight Rating (GVWR)—the maximum allowable weight of a fully loaded vehicle, including the truck itself, passengers, fuel, cargo, and any attached equipment. These classifications help federal and state agencies, insurance providers, and trucking professionals determine the appropriate regulations, licensing requirements, tax obligations, and road restrictions for each vehicle type.

The main purpose of truck weight classes is to ensure road safety, vehicle compliance, and fair taxation. Different weight classes have different responsibilities and are subject to specific federal and state guidelines. For example, heavier trucks may need commercial driver’s licenses (CDLs), follow strict maintenance rules, and pay Heavy Vehicle Use Tax (HVUT).

Governing Bodies and Regulatory Relevance

Several key organizations and agencies are involved in defining and enforcing truck weight class standards:

Department of Transportation (DOT): Sets federal regulations and safety standards for vehicles operating on public roads, including weight limits and inspections.
Federal Motor Carrier Safety Administration (FMCSA): Oversees safety regulations and CDL requirements for commercial vehicles, particularly for trucks over 10,000 lbs GVWR.
Internal Revenue Service (IRS): Uses truck weight classifications to determine HVUT liability. Trucks with a GVWR of 55,000 pounds or more must file Form 2290 annually.

Understanding how these agencies apply weight classifications can help you avoid penalties, stay compliant, and file taxes correctly.

Gross Vehicle Weight Rating Explained

GVWR is the single most important number when determining a truck’s weight class. It’s not the actual weight of the vehicle at any given time but rather the maximum safe weight the manufacturer allows for the vehicle when fully loaded.

GVWR includes:

The vehicle’s base weight
Cargo and equipment
Passengers
Fuel and fluids
Any trailers attached, depending on the configuration

You can usually find the GVWR on a label located inside the driver’s side door frame or in the vehicle’s manual. Manufacturers determine GVWR based on factors like frame strength, axle load capacity, brakes, suspension, and more.

Overview of U.S. Truck Weight Classes

In the United States, trucks are categorized into eight official weight classes based on their Gross Vehicle Weight Rating—the total maximum weight a vehicle can safely carry, including cargo, passengers, and fuel. These classifications help determine what regulations apply to a specific vehicle, including licensing requirements, tax obligations, and compliance standards.

Classes 1 to 3: Light-Duty Trucks

Class 1 trucks have a GVWR of up to 6,000 pounds. These are the smallest trucks on the road and typically include compact pickups, small SUVs, and sedans that may be used for light commercial purposes or personal transportation.

Class 2 includes vehicles with a GVWR between 6,001 and 10,000 pounds. This class covers many full-size pickup trucks like the Ford F-150, cargo vans, and larger SUVs often used by contractors or small businesses.

Class 3 covers trucks with a GVWR between 10,001 and 14,000 pounds. These are considered heavy-duty pickups, such as the Ford F-350, and are often used for towing and hauling larger loads. You’ll also find small box trucks and commercial vans in this class.

Classes 4 to 6: Medium-Duty Trucks

Class 4 trucks range from 14,001 to 16,000 pounds GVWR. Vehicles in this class include step vans, small dump trucks, and medium-sized service vehicles often used for local deliveries or maintenance services.

Class 5 includes trucks weighing between 16,001 and 19,500 pounds. These are often seen as large delivery trucks, bucket trucks, and walk-in vans, frequently used by utility companies and fleet operators.

Class 6 covers trucks with a GVWR of 19,501 to 26,000 pounds. These medium-duty trucks are used for more demanding tasks such as beverage delivery, school transportation, or heavier commercial services. CDL requirements may vary by state for this class, especially when towing is involved.

Classes 7 and 8: Heavy-Duty Trucks

Class 7 trucks weigh between 26,001 and 33,000 pounds GVWR. These include city buses, refuse trucks (garbage trucks), street sweepers, and other large vocational trucks. A Commercial Driver’s License is required to operate vehicles in this class.

Class 8 includes any vehicle with a GVWR over 33,000 pounds. These are the heaviest trucks on the road, such as long-haul tractor-trailers, cement mixers, and heavy-duty dump trucks. These vehicles not only require a CDL, but also fall under additional federal regulations—including Heavy Vehicle Use Tax (HVUT) reporting with Form 2290 if the truck’s weight is 55,000 pounds or more.

Why Truck Weight Classes Matter

Truck weight classes aren’t just a technical classification—they play a critical role in how your vehicle is regulated, taxed, insured, and maintained. Whether you’re behind the wheel or managing a fleet, understanding weight classes can help you stay compliant, avoid penalties, and optimize your operations.

Legal Compliance: DOT Regulations and CDL Requirements

Truck weight classes directly determine what legal standards apply to your vehicle under Department of Transportation and Federal Motor Carrier Safety Administration guidelines. For instance, heavier trucks are required to follow stricter regulations for vehicle inspections, maintenance, and roadside safety checks.

Additionally, your truck’s weight class will dictate whether a Commercial Driver’s License is required. In most states, any truck with a GVWR over 26,000 pounds (typically Class 7 and above) requires a CDL. If you’re towing a trailer that pushes the combined weight higher, even medium-duty trucks (Class 6) might trigger CDL requirements.

Failing to comply with these regulations can result in hefty fines, vehicle impoundment, or even disqualification from driving commercially.

HVUT/Form 2290 Filing: Applies to Vehicles Over 55,000 Pounds

One of the most important tax obligations tied to truck weight classes is the Heavy Vehicle Use Tax, filed using IRS Form 2290. If your vehicle has a GVWR of 55,000 pounds or more and is expected to travel over 5,000 miles annually (or 7,500 miles for agricultural vehicles), you are required to file Form 2290 and pay the HVUT.

Filing requirements and tax amounts are based on the vehicle’s weight category, and failure to file can delay vehicle registration or renewal. With platforms like ExpressTruckTax, drivers and fleets can easily calculate the tax based on weight class, file electronically, and receive a stamped Schedule 1—proof of payment required by the IRS and most DMVs.

Toll Rates and Road Restrictions

Many toll roads, bridges, and tunnels use truck weight class as a factor when determining fees. Heavier trucks pay higher tolls because they contribute more wear and tear on infrastructure. For example, a Class 8 semi-truck may pay significantly more than a Class 3 box truck for the same stretch of highway.

Additionally, local and state authorities often restrict access to certain roads based on truck size and weight. Exceeding posted limits—even unintentionally—can lead to fines or forced detours. Knowing your weight class helps you plan legal, efficient routes and avoid restricted zones or overweight violations.

Insurance and Vehicle Registration

Your truck’s weight class plays a big role in both commercial vehicle insurance rates and registration requirements. Heavier trucks usually require more expensive insurance policies due to increased risk and repair costs. Certain weight classes may also require proof of DOT compliance or additional forms during the registration process.

For example, many states require proof of HVUT payment (Form 2290 Schedule 1) before issuing or renewing registration for vehicles over 55,000 pounds. If your weight class is misreported, you could face delays or even denials in registration.

Fleet Management and Maintenance Planning

For fleet operators, knowing the weight class of each vehicle is essential for maintenance scheduling, driver assignment, fuel management, and cost forecasting. Heavier-duty trucks require more frequent inspections, specialized parts, and different maintenance cycles compared to light-duty vehicles.

Additionally, tracking weight classes across your fleet helps with:

Assigning CDL-certified drivers to appropriate trucks
Ensuring compliance with fuel tax reporting (IFTA)
Budgeting for HVUT filings and toll expenses
Planning for future vehicle purchases or upgrades

Fleet management tools often rely on weight class data to generate accurate reports, alert you to service deadlines, and help you optimize operations across your vehicle lineup.

Understanding truck weight classes gives you the knowledge to operate legally, file taxes accurately, and avoid costly mistakes. Whether you’re filing Form 2290, renewing registration, or dispatching vehicles, knowing your class keeps your business rolling smoothly.

Penalties for Incorrect Classification or Underreporting

Misclassifying your truck’s weight—intentionally or accidentally—can lead to serious consequences. Common mistakes include:

Reporting a lower weight to reduce HVUT
Failing to file for a vehicle that exceeds the 5,000-mile limit
Omitting required vehicles in a multi-truck fleet

Penalties from the IRS can include:

Late filing fees
Interest on unpaid taxes
Rejection of your return
Delay in receiving your stamped Schedule 1
Possible issues with vehicle registration renewal at your local DMV

Using accurate GVWR data and trusted platforms like ExpressTruckTax helps ensure your filings are compliant, timely, and stress-free.

Understanding how weight classes affect your HVUT responsibilities isn’t just smart—it’s essential for staying on the road legally and efficiently.

Need help calculating your HVUT or filing Form 2290? Reach out to ExpressTruckTax’s U.S.-based bilingual support team or file easily online or via the mobile app!

Take charge today—ensure compliance, avoid costly penalties, and keep your trucks rolling efficiently with ExpressTruckTax!

Fast HVUT Refunds Start with Form 8849 – Here’s How

Posted on March 14, 2025 by Marcela De Vivo - Uncategorized

If you’ve overpaid Heavy Vehicle Use Tax (HVUT) due to selling a vehicle, having it stolen or destroyed, or simply because it wasn’t used as much as expected, you may be entitled to a refund from the IRS. Many truckers and fleet owners don’t realize that these situations qualify them for a tax credit—but that’s exactly where Form 8849 comes in.

IRS Form 8849, specifically Schedule 6, is the official form used to claim refunds or credits on HVUT previously paid using Form 2290. Whether you’re an owner-operator, a fleet manager, or a tax professional handling multiple clients, filing this form ensures that you get your money back for vehicles that didn’t meet the taxable use requirements during the tax period.

The good news? You don’t have to deal with paperwork or long waits. With ExpressTruckTax, you can file Form 8849 online in minutes, track your refund status, and avoid costly errors—making it the fastest and most convenient way to reclaim your HVUT credit.

In this guide, we’ll break down exactly how Form 8849 works, who qualifies, and how to file it quickly and correctly using ExpressTruckTax.

What is IRS Form 8849?

IRS Form 8849, officially titled the Claim for Refund of Excise Taxes, is used to request refunds or credits for certain federal excise taxes. While the form covers a variety of excise tax refund claims across different industries, it’s especially important in the trucking world for one specific reason: claiming refunds on Heavy Vehicle Use Tax (HVUT) that has already been paid via Form 2290.

When truck owners pay HVUT for the entire tax period (July 1 – June 30), they’re paying under the assumption that the vehicle will be in use the whole year. But what happens if that vehicle is sold, stolen, destroyed, or driven fewer than 5,000 miles (or 7,500 miles for agricultural vehicles)? That’s where Form 8849 – Schedule 6 comes in.

What is Schedule 6 of Form 8849?

Schedule 6 is the most commonly used part of Form 8849 for truckers and fleet operators. It allows taxpayers to claim a credit or refund for HVUT already paid on vehicles that no longer meet the taxable use requirements. This could include:

A truck that was sold partway through the year
A vehicle that was destroyed in an accident
A stolen vehicle that’s no longer in your possession
A vehicle that was used below the mileage threshold for the tax year

This schedule must include a clear explanation of the reason for the refund claim, along with supporting information like the vehicle’s VIN, taxable weight, and the date of the event (sale, destruction, theft, or mileage confirmation).

Why is Form 8849 Important?

If you’ve already filed Form 2290 and paid HVUT on a vehicle that no longer qualifies as taxable for the full period, Form 8849 is the only way to recover that money. It ensures that you don’t pay more tax than necessary and helps you stay compliant with IRS regulations while improving your bottom line.

With services like ExpressTruckTax, the process of filing Form 8849 is streamlined, allowing you to e-file in minutes and receive confirmation once the IRS has accepted your claim.

Who Can File Form 8849?

Form 8849 is available to anyone who has previously paid Heavy Vehicle Use Tax (HVUT) using Form 2290 and now qualifies for a refund or credit. Whether you’re an individual trucker, part of a large fleet, or a tax expert managing filings for clients, this form can help you recover overpaid taxes.

Owner-Operators

If you own and operate your own heavy vehicle, you’re responsible for paying HVUT—and you’re also entitled to a refund if your situation changes. For example, if your truck was sold, stolen, destroyed, or didn’t exceed the 5,000-mile limit during the tax year (7,500 miles for agricultural use), you can file Form 8849 to claim back the unused portion of the tax you paid.

Fleet Managers

Managing a fleet of vehicles means managing compliance—and costs. If one or more vehicles in your fleet were taken out of service, destroyed, or underutilized, filing Form 8849 allows you to recover the HVUT paid for those vehicles. This can lead to significant savings, especially across a large number of trucks.

Tax Professionals on Behalf of Clients

Tax preparers, CPAs, and compliance service providers who handle Form 2290 filings for clients can also file Form 8849 on their behalf. This is especially useful when managing multiple businesses, EINs, or fleets. ExpressTruckTax even offers tools like bulk upload, multi-client dashboards, and e-signature options to streamline this process.

Basic Requirements to File Form 8849

Before you file Form 8849, there are a few requirements to keep in mind:

Form 2290 must have already been filed for the vehicle during the tax year.
The claim must relate to vehicles that meet one of the following conditions:
- Sold during the tax period
- Destroyed or stolen
- Used under the mileage limit (5,000 miles for regular vehicles, 7,500 for agricultural)
You must include accurate vehicle details such as the VIN, gross weight, and date the qualifying event occurred.

Meeting these conditions ensures your claim is valid and can be processed quickly by the IRS.

Reasons to File Form 8849

There are several common situations where a taxpayer may be entitled to a refund of the Heavy Vehicle Use Tax (HVUT) after it’s already been paid using Form 2290. The IRS allows you to claim a credit or refund for these situations through Form 8849 – Schedule 6.

Here are the main reasons why you might need to file:

1. Vehicle Was Sold During the Tax Period

If you sell a truck after paying HVUT for the full year, you’re no longer responsible for the tax on that vehicle from the date of sale forward. You can claim a prorated refund for the unused portion of the tax year.

Example: You paid HVUT for the full year but sold the truck in December—you can claim a refund for the months following the sale.

2. Vehicle Was Destroyed or Stolen

Tragic events happen on the road. If your truck was destroyed in an accident or stolen and never recovered, the IRS allows you to claim a refund of the HVUT paid for the remaining months of the tax year.

Important: You’ll need to provide the exact date of the event and an explanation to support your claim.

3. Vehicle Was Used for 5,000 Miles or Less (7,500 for Agricultural Vehicles)

If your vehicle ends up being used less than the annual mileage threshold—5,000 miles for regular highway vehicles or 7,500 miles for agricultural vehicles—it is no longer considered taxable for HVUT.

What to do: You still need to file Form 2290 initially, but once the tax period ends, you can use Form 8849 to claim back the full tax amount you paid.

4. Duplicate Payment or Overpayment on Form 2290

Errors happen—especially when managing multiple vehicles or returns. If you accidentally paid HVUT more than once for the same vehicle or entered incorrect information that led to overpaying, you are entitled to a refund.

Common example: Filing twice under different VIN formats or transposing numbers during filing.

Even if you’re not sure whether your situation qualifies, it’s worth reviewing your records. ExpressTruckTax makes it easy to import past filings, identify eligible refund scenarios, and file Form 8849 quickly and accurately.

Documents & Info You’ll Need

To successfully file Form 8849 – Schedule 6 and claim your HVUT refund, it’s important to have all the necessary documents and details ready. Accurate information not only speeds up the process but also reduces the chances of delays or rejections from the IRS.

Here’s what you’ll need:

1. Copy of Your IRS-Stamped Schedule 1

This document serves as proof that HVUT was paid for the vehicle in question during the current tax year. The IRS-stamped Schedule 1 is generated after a successful Form 2290 filing, and it’s a required part of your refund claim.

Tip: If you filed Form 2290 through ExpressTruckTax, you can easily access and download your stamped Schedule 1 from your account dashboard.

2. Vehicle Identification Number (VIN)

Each refund claim must reference the correct 17-digit VIN of the vehicle for which you’re requesting a refund. VIN errors are a common cause of rejected claims, so be sure to double-check that the VIN matches what’s listed on your original Form 2290 filing.

Tip: Use the free VIN checker in ExpressTruckTax to verify your VIN before submitting.

3. Gross Weight of the Vehicle

The taxable gross weight of your vehicle (usually found on the original Form 2290) is required to ensure accurate processing of the refund. This weight category determines how much HVUT was paid and how much you may be eligible to claim back.

4. Date Vehicle Was Sold, Destroyed, or Stolen

You must provide the exact date when the qualifying event occurred. This is essential for the IRS to calculate the prorated tax refund based on the number of months the vehicle was no longer in use.

Example: If a truck was sold on November 15, the IRS may grant a refund for December through June of the tax year.

5. Explanation of Why a Credit Is Being Claimed

The IRS requires a brief but clear explanation outlining why you are requesting the refund. This helps validate your claim and ensures it aligns with the IRS guidelines for HVUT credits.

Examples of acceptable explanations:

“The truck was sold on 12/01/2024.”
“The vehicle was stolen and never recovered.”
“The truck was used for only 4,800 miles during the tax period.”

Optional but Helpful:

Proof of sale (e.g., bill of sale or transfer paperwork)
Police report or insurance claim (for stolen or destroyed vehicles)
Odometer records (to support mileage-based claims)

Having all of this ready before you start the filing process makes it faster and smoother—especially if you’re e-filing with ExpressTruckTax.

How to File Form 8849 with ExpressTruckTax

Filing Form 8849 – Schedule 6 doesn’t have to be time-consuming or confusing. With ExpressTruckTax, you can complete the process in just a few simple steps—entirely online—and get your HVUT refund claim submitted to the IRS in minutes. Here’s how it works:

Step 1: Log into Your ExpressTruckTax Account or Create One

Visit ExpressTruckTax.com and sign in using your existing account credentials. If you’re a new user, you can quickly create a free account with just an email address and password.

Tip: If you’ve previously filed Form 2290 through ExpressTruckTax, your vehicle and tax data will be saved—making it even faster to file Form 8849.

Step 2: Select Form 8849 – Schedule 6

Once you’re in your dashboard, choose the Form 8849 – Schedule 6 option. This is the specific schedule used to claim a refund or credit for vehicles that were sold, destroyed, stolen, or used under the mileage threshold.

You’ll also see helpful explanations and examples to guide you through selecting the correct refund type.

Step 3: Enter Vehicle and Credit Claim Details

Next, fill in the required information for the vehicle(s) you’re claiming a refund on. This includes:

VIN (Vehicle Identification Number)
Taxable gross weight
Tax period (July–June)
Date of the qualifying event (sale, theft, destruction, or mileage confirmation)
A brief explanation of the refund reason

Helpful Feature: If you filed Form 2290 through ExpressTruckTax, you can auto-fill your vehicle data—saving time and reducing the risk of typos.

Step 4: Submit to the IRS Electronically

After entering your information, you’ll be able to review your return and fix any errors. Once everything looks good, submit your Form 8849 electronically to the IRS directly through the platform.

ExpressTruckTax is IRS-authorized, so your claim is transmitted securely and efficiently.

Step 5: Get Instant IRS Acknowledgment & Refund Processing Updates

After filing, you’ll receive instant confirmation when your Form 8849 is accepted by the IRS. You’ll also get email updates and be able to track your refund status from your dashboard.

Bonus: If your return is rejected, you can correct and retransmit it for free—as many times as needed.

With ExpressTruckTax, what once took days or weeks of paperwork can now be done in just minutes—all while keeping your business compliant and helping you get money back from the IRS faster.

Stop Leaving your Hard-earned Money with the IRS!

Whether you’ve sold a vehicle, had one destroyed or stolen, or didn’t reach the mileage limit, reclaim your HVUT payments quickly and effortlessly with ExpressTruckTax. Our powerful, IRS-authorized e-filing platform makes filing Form 8849 – Schedule 6 fast, precise, and hassle-free, ensuring you get your refund as soon as possible.

Bestpass-Fleetworthy Solutions Announces Rebrand, Changes Name to Fleetworthy

Posted on September 6, 2024 by Olivia Sauer - Uncategorized

The company reveals new name, logo, website, and strategy to unite Bestpass, Fleetworthy Solutions, Drivewyze, and ExpressTruckTax under a single parent brand.

ALBANY, N.Y., Sept. 9, 2024 – Bestpass-Fleetworthy Solutions, the only connected suite for safety, compliance, and efficiency, has completed an extensive rebranding effort to reflect the company’s strategic growth, mission, and expanded road safety and fleet technology.

As part of the rebrand, Bestpass-Fleetworthy Solutions has changed its name and parent brand to ‘Fleetworthy.’ This update unifies its portfolio of innovative solutions provided by Bestpass, Fleetworthy Solutions, Drivewyze, and ExpressTruckTax. The announcement also introduced a new company logo that better represents the combined brand.

In addition to the new name and logo, the company has launched a new website at www.fleetworthy.com, which includes information regarding its sub-brand products and company. For Fleetworthy Solutions customers, account login access will still be available through the Fleetworthy website. Customers of Bestpass, Drivewyze, and ExpressTruckTax will continue to access their services through the existing websites without any changes to their login process or user experience.

“This is an exciting time for Fleetworthy as we combine our suite of road safety and fleet offerings under one unified brand,” said Tom Fogarty, Fleetworthy CEO. “This rebrand is just the beginning in what we are planning to deliver through expanded services and product integration. Our mission is to continuously innovate and bring forth new solutions that help our fleet and agency customers run more efficiently.”

In recent years, the company has been on a mission to expand its service offerings beyond toll management through strategic partnerships and acquisitions. Since 2022, the company has expanded its offerings by acquiring ExpressTruckTax, Fleetworthy Solutions, and Drivewyze, positioning itself as a one-stop-shop for fleet safety, compliance, and efficiency.

About Fleetworthy:   
Fleetworthy is revolutionizing road safety and fleet management with a command center for safety, compliance, and efficiency. Our connected suite provides real-time insights and control, enabling customers to maximize efficiency, reduce risk, and save money.

With technology that unifies safety, compliance, toll management, weigh station bypass, and more, Fleetworthy empowers organizations to perform at their best. We simplify operations to ensure every vehicle and driver is not just compliant, but beyond compliant. Supporting millions of drivers and vehicles, Fleetworthy is leading a new era in road safety and fleet technology. For more information, visit fleetworthy.com.

Fleetworthy Media Contacts:     

Ethan Quimby 

Fleetworthy

ethan.quimby@fleetworthy.com    

608-230-8224  

Ryan Siefkes      

SiefkesPetit Communications     

ryan@siefkespetit.com      

425-392-2611 Ext. 3 

CVSA Brake Safety Week 2024

Posted on September 4, 2024 by finaoagency - Uncategorized

The CVSA’s Brake Safety Week is part of CVSA’s Operation Airbrake Program in partnership with FMCSA and the Canadian Council of Motor Transport Administrators. The goal of Brake Safety Week is to reduce the number of crashes caused or made more severe by faulty brake systems on commercial motor vehicles by conducting roadside inspections and identifying and removing unsafe commercial motor vehicles from our roadways. In addition to inspections and enforcement, outreach and awareness efforts by law enforcement agencies to educate drivers, motor carriers, mechanics, owner-operators, and others on the importance of proper brake maintenance, operation and performance are integral to the success of this safety initiative.

What are the Dates and Focus of the Brake Safety Week?

The dates for the Brake Safety Week for 2024 are August 25-31. Inspectors will be paying close attention to brake lining/pad violations. While checking these brake system components is always part of the North American Standard Inspection Program, CVSA is highlighting brake linings/pads as a reminder of their importance to vehicle mechanical fitness and safety. Brake lining and pad issues may result in vehicle violations and could affect a motor carrier’s safety rating.

Brake-related violations comprise the largest percentage of all out-of-service vehicle violations cited during roadside inspections. According to the Federal Motor Carrier Safety Administration’s 2023 vehicle violation data, six out of the top 20 vehicle violations were brake related. Last year’s CVSA International Roadcheck results showed that brake-system violations was the top vehicle violation, comprising 25.2% of all vehicle out-of-service violations during that three-day roadside inspections campaign.

Some examples of brake-related out-of-service violations that automatically place the vehicle out of service include broken brake drums, loose air tanks, corroded holes in a spring brake housing, inoperative tractor protection valves, etc.

Why is Brake Maintenance so Important?

Brake maintenance should be performed regularly — typically every time you go in for an oil change. During brake maintenance, brake parts should be replaced as needed. Your slack adjusters should be greased to ensure they don’t seize up and lead to brake failure. Your air compressor pressure gauge should be checked to ensure it reads above 60 PSI when the vehicle is off and between 100 and 125 PSI when it’s running. Your hoses and linings should also be in good condition, with no cracks or signs of leaks. They should all be at least one-fourth of an inch thick. The following link provides a flyer with 10 brake lining and pad tips – https://www.cvsa.org/wp-content/uploads/2024-BSW-Flyer-English.pdf

What Were the Results from the 2023 Brake Safety Week?

Commercial motor vehicle inspectors in Canada, Mexico and the U.S. conducted 18,875 inspections of commercial motor vehicles during the 2023 Brake Safety Week. Of the total number of the commercial motor vehicles inspected, 12.6% were placed out of service for brake-related violations. A total of 295 (12.4%) had steering axle brake violations, 1,127 (47.5%) had stand-alone brake violations and 1,394 (58.7%) failed the 20% defective brakes. For the full results from the 2023 Brake Safety Week click the following link – https://www.cvsa.org/news/2023-bsw-results/

What are Some Good Tips for Truck Drivers to Prepare for Brake Safety Week?

Do Your Homework: Your inspection will be a lot easier if you’re educated and have everything ready before you hit the road. Before Brake Safety Week, educate yourself and your drivers on FMCSA brake regulations, brake maintenance tips, and more. The CVSA website has checklists and info you can pass on to your drivers – https://www.cvsa.org/wp-content/uploads/Brake-Inspection-Check-List.pdf . Also make sure you have your drivers license, registration, and all paperwork inside your cab and ready to show the inspector.
Know What Inspectors are Looking for: Inspectors are going to be focused on your trucks’ brake-system components to find out-of-adjustment brakes and brake-system violations. Inspectors will be looking for:

Loose or missing parts
Air or hydraulic fluid leaks
Worn linings, pads, drums or rotors
Other faulty brake-system components
Anti-lock braking system (ABS) indicator lights

Check Your Truck: Every time you hit the road, do a pre-trip brake inspection to test for any leaks and examine your truck’s brake shoes. Walk around your truck and look for loose hoses and leaks and listen for any air leaks. Check for low air signals, check your air disc brake rotors for cracks, and inspect brake linings for thickness, cracks, and wear.
Make Repairs: If you find any cracks or issues during your pre-trip inspection, be sure to get them fixed. By checking and fixing your truck before Brake Safety Week, you can prevent any surprises, avoid being placed out-of-service, and get back on the road faster.

More information on Brake Safety Week can be found on the CVSA website – https://www.cvsa.org/news/2024-bsw-dates/

Sources:

CVSA Website – https://www.cvsa.org/

“CVSA Announces Dates for Annual Brake Safety Week”, June 3, 2024, Land Line.

Filing for the 2024-25 Form 2290 Season Starts Now, Truckers!

Posted on July 18, 2024 by Marcela De Vivo - Uncategorized

File ahead of the rush with ExpressTruckTax

The 2290 filing season is upon us, and our team is more ready than ever to help you get ahead of the game this year! That’s right, the 2024-25 Form 2290 is now available from ExpressTruckTax. Starting your filing process early avoids any last-minute hassles and stress. Why not take advantage of this opportunity to file accurately and on time?

A Quick Recap of Form 2290

We understand that dealing with tax forms isn’t something you do every day, even if it’s our daily bread and butter here at ExpressTruckTax.

IRS Form 2290 is crucial for owners of commercial motor vehicles that weigh 55,000 pounds or more. This form calculates and pays the annual heavy vehicle use tax (HVUT). The HVUT tax year runs from July 1 to June 30, meaning that each summer, it’s time to file Form 2290 for the upcoming tax period.

The Benefits of Filing Early

Completing your Form 2290 filing well ahead of the August 31st deadline has several significant advantages:

You can rest easy knowing this critical task has been completed. Then, you can focus on your daily operations without the stress of a looming deadline.
Millions of truckers scramble to meet the August deadline, which can lead to delays and system slowdowns. Filing early means you’ll have your Stamped Schedule 1 well before the rush.
You’ll have ample time to address and correct any issues with your filing without risking late penalties.
Forms filed early are processed as soon as the IRS accepts them, ensuring prompt confirmation of compliance.

Why Choose ExpressTruckTax?

A more fitting question might be: Why would you choose anyone else to handle your 2024-25 Form 2290 filing?

ExpressTruckTax has been a trusted name in the industry for over a decade, offering the simplest and most affordable way to file your 2290. Here’s why we stand out:

Our platform is designed to be user-friendly, guiding you through the filing process step-by-step.
We provide a cost-effective solution without compromising on quality or service.
Our customer support team is not only live and local but also bilingual. They are ready to assist you Monday through Friday from 8:30 AM EST to 5:30 PM EST via phone, email, or live chat.
With years of experience, we ensure that your filing is accurate and compliant with IRS requirements.

Are you ready to start filing now? Click the button below to get started with ExpressTruckTax today and experience the ease and reliability thousands of truckers trust yearly!

IRS Form 2290 FAQ

What is Form 2290?

Form 2290 is an IRS tax form used to calculate and pay the Heavy Vehicle Use Tax (HVUT). This tax applies to commercial vehicles that weigh 55,000 pounds or more. The tax helps fund highway infrastructure by taxing those vehicles that cause the most wear and tear on the roads.

Who Needs to File Form 2290?

Anyone who owns a heavy highway motor vehicle with a taxable gross weight of 55,000 pounds or more must file Form 2290. This includes:

Individual Owners: If you own and operate a qualifying vehicle.
Businesses: Companies that own fleets of heavy vehicles.
Agricultural Operators: Farmers who use heavy vehicles primarily for agricultural purposes may be subject to this tax but might qualify for reduced rates.

When is the Deadline to File Form 2290?

The deadline to file Form 2290 is August 31st each year for the tax period that runs from July 1st to June 30th. If you acquire a vehicle after the start of the tax period, you must file Form 2290 by the last day of the month following the month of first use.

What is a Stamped Schedule 1?

A Stamped Schedule 1 is proof of payment for the Heavy Vehicle Use Tax. This document is required to register your vehicle with your state’s Department of Motor Vehicles (DMV). Once you file Form 2290 and pay any taxes due, the IRS will send you a stamped Schedule 1.

Are There Any Penalties for Late Filing?

Yes, if you do not file Form 2290 by the deadline, you may be subject to penalties and interest. The penalty for failing to file the form is generally 4.5% of the total tax due, assessed on a monthly basis up to five months. Late payment penalties are usually 0.5% of the total tax due per month, plus interest.

Can I File Form 2290 Electronically?

Yes, the IRS allows electronic filing (e-filing) of Form 2290. E-filing is faster and more efficient than paper filing. ExpressTruckTax provides an easy-to-use platform for e-filing, ensuring that your form is submitted accurately and promptly.

How Do I Calculate the HVUT?

The Heavy Vehicle Use Tax is calculated based on the vehicle’s taxable gross weight. Vehicles weighing between 55,000 and 75,000 pounds are taxed at a rate of $100 plus $22 per 1,000 pounds over 55,000 pounds. Vehicles over 75,000 pounds are taxed at a maximum rate of $550 per year.

Are There Any Exemptions to Filing Form 2290?

Certain vehicles are exempt from the HVUT, including:

Logging Vehicles: Trucks used exclusively for transporting logs are taxed at a reduced rate.
Agricultural Vehicles: Trucks used primarily for farming and driving less than 7,500 miles per year (5,000 miles for non-agricultural vehicles) are exempt.
State and Local Government Vehicles: Vehicles owned and operated by state or local governments are exempt from the HVUT.
Charity Exemption: Some nonprofit charities may be exempt from the HVUT. An organization must be recognized as a nonprofit under Section 501(c)(3) of the Internal Revenue Code. The vehicle must be used primarily for providing charitable services.

What Should I Do If I Sell My Vehicle During the Tax Period?

If you sell your vehicle during the tax period, you may be eligible for a partial refund of the HVUT paid. You need to file Form 8849 to report the sale and claim the refund for the remaining months of the tax period.

How Do I Correct a Mistake on My Form 2290?

If you make a mistake on your Form 2290, you can file an amended return to correct the error. Common corrections include changes to the vehicle identification number (VIN) or the gross taxable weight of the vehicle. ExpressTruckTax can help you file amendments quickly and accurately.

What Records Do I Need to Keep?

The IRS requires you to keep records of your Form 2290 filings for at least three years after the date the tax was due or paid, whichever is later. These records should include:

Copies of Filed Forms: Keep copies of Form 2290 and Schedule 1.
Proof of Payment: Maintain evidence of tax payment.
Vehicle Records: Keep records of vehicle purchases, sales, and mileage.

How Can I Pay the HVUT?

The HVUT can be paid electronically using the Electronic Federal Tax Payment System (EFTPS), by credit or debit card, or by check or money order. ExpressTruckTax offers guidance on making electronic payments to streamline the process.

A Guide to FMCSA Driver Qualification File Management

Posted on June 26, 2024 by finaoagency - Uncategorized

Ensuring accurate management of FMCSA driver qualification files (DQF) is a major component of demonstrating your operation’s compliance to strict federal standards. Maintaining these records will ensure your files remain audit-ready and your fleet is compliant.

Similar to how telematics have revolutionized fleet management, DQF management has evolved with new technologies and regulatory updates. These advancements have streamlined compliance, enhanced driver safety, and improved operational efficiency. As the industry continues to progress, staying ahead of these changes is vital. Companies that proactively adapt to emerging trends and regulatory shifts will be best positioned for success.

Understanding FMCSA Driver Qualification Files

A DQF is a comprehensive record mandated by the Federal Motor Carrier Safety Administration (FMCSA) for each commercial motor vehicle (CMV) driver. Established under 49 CFR Part 391, a DQF verifies drivers’ compliance with federal requirements so they can operate commercial vehicles safely and legally.

Key Components of a Driver Qualification File

The key DQF components are outlined below. Maintaining these elements can help ensure compliance with FMCSA regulations and support the safe and legal operation of your commercial vehicle fleet.

Medical Certificates

A Medical Examiner’s Certificate, required under 49 CFR 391.41, verifies the driver’s physical fitness to operate a CMV. They’re expected to update it every two years, unless otherwise specified by the examiner. Conditions such as vision or hearing impairments, diabetes, and cardiovascular issues must be assessed so you can make sure the driver meets the health and safety standards required to perform their duties.

For commercial driver’s license (CDL) holders, you can obtain the CDLIS motor vehicle record (MVR) to verify the driver’s medical status. Drivers with physical impairments affecting CMV operation may need a Skill Performance Evaluation (SPE) certificate to prove the driver can safely operate CMVs despite their impairments.

Driving Records

Per 49 CFR 391.23(a)(1), every year, motor carriers must request and retain an MVR from every state for three years. Continuous assessment of the driver’s compliance with safe driving standards is the best way to keep the roads safe and your business’s reputation squeaky clean.

Carrier’s Annual Review of Record

An annual review of each driver’s MVR is mandated under 49 CFR 391.25(c)(2) to show they still meet the minimum safe driving requirements and are free of disqualifying offenses. Elements to review and record include any new violations, accidents, or suspensions.

Employment History

Required under 49 CFR 391.21, the driver’s application for employment captures detailed information about their background, qualifications, and work history relevant to operating CMVs. It should cover the past three years for non-CDL drivers, and the last ten years for CDL drivers.

Contacting previous employers is necessary to gather information on the driver’s accident history and any violations of alcohol and controlled substances regulations. Thorough documentation of these inquiries can protect you against litigation in case of a legal claim.

Best Practices for Maintaining Driver Qualification Files

Achieving consistent compliance can be challenging, but fleet managers can take proactive steps to ensure DQFs remain audit-ready. By following best practices and staying organized, the process can be streamlined and maintain high standards.

Regular Audits and Updates

Motor carriers should conduct quarterly audits to thoroughly review each DQF, including medical certificates, driving records, and employment histories. Detailed documentation of audit findings and corrective actions help you maintain regulatory compliance and uphold exacting safety standards within the fleet. Fleetworthy Solutions™ can assist with compliance consulting and audit support services.

Digital Management Systems

Digital management systems significantly streamline DQF maintenance and provide centralized and automated solutions to help you keep documents consistently up-to-date. For example, with a DMS, you get automated alerts. They inform fleet managers of expiring documents and upcoming renewals, helping you avoid lapses in compliance and reducing the risk of penalties.

Employee Training and Awareness

An informed team is better equipped to manage and update records correctly. Training should cover critical areas such as driver qualification requirements, hours-of-service (HOS) regulations, and vehicle maintenance standards. Utilizing resources like the FMCSA’s Safety Planner can help structure these sessions effectively.

Consequences of Noncompliance

The consequences of neglecting to properly manage DQFs can include legal, financial, and operational repercussions. These penalties can include the following.

Legal and Financial Penalties

Noncompliance with FMCSA regulations can lead to severe financial penalties and legal actions. While specific amounts vary, the overall impact is substantial. For example, companies can face fines up to $10,000 for not maintaining complete and accurate records.

If an accident occurs involving a driver with a noncompliant DQF, the legal ramifications can be significant. Lawsuits from injured parties can target your company and allege negligence in driver qualification. If you’re implicated in a lawsuit like this, well-maintained DQFs can serve as strong evidence in your defense.

Impact on Safety and Operations

Noncompliance poses significant safety risks and operational disruptions that have a knock-on effect on your fleet’s profitability and reputation.

Increased Risk of Accidents

Incomplete or outdated driver qualification files mean that unqualified or medically unfit drivers may be operating CMVs, leading to a higher risk of accidents. This endangers lives and increases the likelihood of higher insurance premiums, reputational damage, and potential lawsuits.

Noncompliance with Hours of Service (HOS) Regulations

Noncompliance with HOS regulations, such as failing to accurately log driving hours, can lead to driver fatigue – one of the primary causes of CMV accidents. Regularly reviewing ELDs and paper RODs helps prevent fatigue-related incidents and enhances overall road safety.

High CSA Score

Noncompliance with FMCSA regulations can severely damage a company’s Compliance, Safety, Accountability (CSA) score. High CSA scores result from various violations, including failing to maintain accurate DQFs.

A high CSA score triggers increased scrutiny from the FMCSA, leading to more frequent inspections and audits, which disrupt operations and result in escalating fines and penalties. Additionally, companies with high CSA scores may face higher insurance premiums, as insurers view them as higher risk, directly impacting the bottom line.

Out-of-Service Orders

Noncompliance can lead to out-of-service (OOS) orders, grinding your fleet’s operations to a halt until all issues are rectified. Beyond operational chaos, downtime can tarnish your reputation and make it difficult to attract and retain business. Financially, OOS orders cause lost revenue, costs to address compliance issues, and potential penalties from clients due to interrupted service.

Protect Your Fleet

Conduct regular audits, leverage digital management systems, and invest in comprehensive training programs so your DQFs remain accurate and up-to-date. At Fleetworthy, we understand the time and effort this takes, and have the tools and expertise necessary to take the stress of compliance off your hands.

Learn how Fleetworthy’s fleet management solutions can bolster your fleet’s compliance firsthand by requesting a demo.

What is Operation Safe Driver? (2024 Update)

Posted on June 13, 2024 by finaoagency - Uncategorized

What is Operation Safe Driver and its Purpose?

The CVSA’s Operation Safe Driver program was created in 2007 to help reduce the number of crashes, deaths, and injuries involving large trucks, buses, and passenger vehicles due to unsafe driving behaviors. This program is sponsored by the CVSA, in partnership with FMCSA and with support from industry and transportation safety organizations. The initiative aims to help improve the behavior of all drivers operating in an unsafe manner, either in or around commercial motor vehicles, through educational and traffic enforcement strategies to address individuals exhibiting high-risk driving behaviors.

What are the 2024 Dates and Emphasis of the Operation Safe Driver Week?

The dates for the Operation Safe Driver Week for 2024 are July 7-13. This year’s event will focus on reckless, careless or dangerous driving. Any person who drives a vehicle in willful or wanton disregard for the safety of persons or property is guilty of reckless driving. Careless/dangerous driving is defined as operating a vehicle without due care and attention or reasonable consideration for other motorists or people on the road.

What Were the Results from the 2023 Operation Safe Driver Week?

Speeding accounts for nearly one-third of all fatalities on roadways. According to the U.S. National Highway Traffic Safety Administration, speeding-related fatalities increased 8% from 2020 to 2021, with 12,330 people killed in 2021 in speeding-related crashes, representing 29% of all traffic fatalities in 2021. Speeding, which was the focus of last year’s Operation Safe Driver Week, was the top driver-behavior violation for both types of drivers. Officers pulled over more than 11,448 commercial motor vehicles and passenger vehicles during last year’s event and issued 26,164 warnings and citations. Commercial motor vehicle drivers received 1,575 warnings and 715 tickets/citations, and passenger vehicle drivers received 625 warnings and 1,293 citations/tickets for speed-related infractions.

For the full results from the 2023 Operation Safe Driver Week click on the following link – https://www.cvsa.org/news/2023-osd-week-results/

Is Operation Safe Driver 2024 Strictly About Traffic Enforcement?

The Operation Safe Driver program also offers materials and resources to educate the following drivers:

Commercial Motor Vehicle Drivers – The Operation Safe Driver program created materials designed to educate commercial motor vehicle drivers about the dangers and challenges they may encounter on roadways, such as distracted driving, aggressive driving, passenger vehicle drivers cutting off commercial motor vehicles, etc. There are videos, audio PSAs and printable flyers, all available for free.

Teens and New or Inexperienced Drivers – These materials, which include videos, audio PSAs and printable flyers, were designed to teach teen and new or inexperienced drivers how to safely share the roads with large trucks and buses. This information can be used by driver’s education instructors, parent-teacher organizations, community groups, parents, or any other interested individuals or organizations, all available at no cost.

What are Some Suggestions to Prepare for Operation Safe Driver?

In order to prepare for Operation Safe Driver Week, and to reduce your drivers’ overall risk of being the target of law enforcement, now is a great time to start monitoring driver behaviors. There are many ways to achieve positive results, such as using ELD reporting, management road observations, and even check rides with drivers.

As you prepare for Operation Safe Driver Week, be sure to discuss the following considerations with management/staff:

Correcting risky behaviors now to avoid being targets for law enforcement, but also reduce the risk of severe crashes and large claims.
Safety meetings with topics focused on driver behaviors falling under the Federal Motor Carrier Safety Administration BASICs categories.
Extra rewards/incentives for drivers who receive a clean inspection during this timeframe.
Daily reminders from management, dispatchers, and peer leaders referencing unsafe driving issues.
Paperwork audits for all permits, insurance, etc., required in the trucks.

The primary focus will be on unsafe driving, but any other defects discovered during the inspection may be listed on the inspection along with the reason for being stopped. It is crucial that proper pre-trip and post-trip inspections are completed daily.

What are Some Good Tips to Remember During the 2024 Operation Safe Driver Week?

5 Quick Tips:

No Phones While Driving
Leave Room and Move Over
Stop the Tailgating
Don’t Forget the Signal
Get Organized with All of Your Paperwork (License, Registration, Logbook, etc…)

Being aware of the most common violations (brakes, lights, tires, cargo load securement) can help truck drivers focus on crucial features and help them stay on the road. Regardless of why a driver is initially put in a roadside inspection, they should go through and understand each level of inspection and make sure all items within each level are ready for a close examination. Check out the different levels of inspections in more detail.

More Information on Operation Safe Driver can be Found on the CVSA website – https://www.cvsa.org/

Sources:

CVSA Website – https://cvsa.org/

“Operation Safe Driver Week 2024: Fostering a Culture of Safety and Responsibility on the Roads”, Dynamic Freight Haulers, April 12, 2024.

What is the CVSA’s International Roadcheck?

Posted on April 9, 2024 by finaoagency - Uncategorized

Important Information Regarding the International Roadcheck (2024 Update)

Roadside inspections are a critical part of the trucking industry. They help ensure that truck drivers are compliant with the laws and are operating safely on the road. It is important that you are ready for the possibility of a roadcheck each time you get on the road. Safety officials noted that while the roadcheck program raises the profile of truck inspections, the actual safety standards are consistent throughout the year. The program aims to reduce truck crashes by alerting truck drivers and the industry to unsafe vehicles on the road. The following information provides some great guidance regarding the 2024 International Roadcheck.

What is the purpose of the International Roadcheck?

The International Roadcheck is an annual three-day event when CVSA-certified inspectors conduct compliance, enforcement, and educational initiatives targeted at various elements of motor carrier, vehicle, and driver safety. Since its inception in 1988, roadside inspections conducted have numbered more than 1.8 million. It is a CVSA program with participation by the FMCSA, the Canadian Council of Motor Transport Administrators, Transport Canada, and the Ministry of Communications and Transportation of Mexico. The Roadcheck really provides a great opportunity to educate the industry and public about the importance of safe commercial vehicle operations and the roadside inspection program.

What are the dates and emphasis of the International Roadcheck?

The Roadcheck will be taking place May 14-16. Each year, the CVSA emphasizes a category of violations and this year the group will focus on two areas – tractor protection systems and alcohol and controlled substance possession. By focusing on the tractor protection systems, the International Roadcheck aims to increase awareness for drivers, motor carriers, technicians and enforcement personnel of these critically important vehicle components; specifically, the tractor protection valve, trailer supply valve and anti-bleed back valve, which may be overlooked during trip and roadside inspections. To assist drivers and motor carriers in the proactive assessment and maintenance of those components, CVSA has provided an inspection bulletin outlining the steps on how to properly check tractor protection systems.

Commercial motor vehicle drivers must adhere to their company’s policies and to not possess, use or be under the influence of alcohol or controlled substances while on duty. This year’s International Roadcheck will serve as a reminder to motor carriers to establish and strictly enforce clear policies to prevent controlled substance and alcohol possession or use in the workplace. In addition, U.S. motor carriers should regularly query the Drug & Alcohol Clearinghouse to ensure their drivers are not in prohibited status. Click the following link for more information regarding the focus areas for 2024 – https://www.cvsa.org/programs/international-roadcheck/focus-area/

The most common violations on vehicles inspected during Roadcheck 2023 were for brake systems, tires, defective service brakes, cargo securement and lights. Hours of service violations put more than 2,169 drivers out of service, while another 1,392 were cited for false logs. Other violations, canceled/revoked license and no medical card rounded out the top five reasons that drivers were cited during the event last May. Vehicle out-of-service rates hovered around 19%, according to results from that event, which were released in September. Roadcheck 2023 saw a 5.8% driver out-of-service rate.

What will be inspected during the International Roadcheck?

CVSA-certified inspectors will primarily conduct the North American Standard Level 1 Inspection, a 37-step procedure that includes an examination of driver operating requirements and vehicle mechanical fitness, click the following link for details on what each step entails – https://medalliontrans.com/wp-content/uploads/2019/03/CVSA-Inspection-Schematics.pdf.

Inspectors may choose to conduct the Level II Walk Around/Driver/Vehicle Inspection, Level III Driver/Credential/Administrative Inspection or Level V Vehicle-Only Inspection.

What else will drivers need to provide during the inspection?

Driver’s License (Operating Credentials)
Medical Examiner’s Certificate and Skill Performance Evaluation Certificate (If Applicable)
Driver’s record of duty status and vehicle inspection reports (If Applicable)
Inspectors will also check drivers for seat belt usage, sickness, fatigue and apparent alcohol and/or drug impairment.

A CVSA decal will be applied to vehicles if no critical vehicle inspection items are found during Level 1 or 5 inspections. No decals will be issued if a rear impact guard is required and violations are found. Equipment will be placed out-of-service if conditions fail to meet the North American Standard out-of-service criteria.

What are some good tips to survive the International Roadcheck?

Get Organized – If you have paperwork then keep it all organized in a binder.
Clean Up Your Truck – Clean both the inside and out of the truck, particularly the cab and sleeper.
Fill Out Your HOS Every Day – Track this every day and fill in your report before you quit for the day.
Clear The Air – Manually drain the air tanks periodically, based on your truck’s air usage.
Break to Check Your Brakes – During your next vehicle inspection, spend a little more time on the brakes. Check the brake pads as well as the drums and rotors.
Secure Your Load – Pay attention to tiedowns and other cargo securement methods.
Maintain Pressure – Monitoring tire pressure is quite likely the one thing drivers can do that can have the greatest impact not only on improving safety, but also in reducing operating costs.
Keep the Tail & Running Lights Operational – Running lights and tail lights must be installed on certain parts of a truck or trailer and in certain locations to maximize visibility and to ensure secure mounting.

Some other helpful information can be found in the following Roadside Inspection Cheat Sheet – https://www.cvsa.org/wp-content/uploads/International-Roadcheck-Vehicle-Inspection-Cheatsheet.pdf

What was the focus area and results from the 2023 International Roadcheck?

The 2023 CVSA International Roadcheck took place May 16-18 and the focus was on anti-lock braking systems and cargo securement.

CVSA-certified inspectors conducted 59,429 inspections and placed 15,932 commercial motor vehicles and 5,020 commercial motor vehicle drivers out of service. Brake systems and tires were the top vehicle out-of-service violations issued. The top driver out-of-service violations were hours of service and false logs. The following are the complete results of the 2023 International Roadcheck – https://www.cvsa.org/news/2023-roadcheck-results/

The annual International Roadcheck is designed to bring attention to driver and vehicle safety requirements that must be followed every day in order to keep our roads safe. If all drivers can create a routine of focusing on road safety and what is required of them, it will go a long way in reducing accidents and saving lives.

SOURCES:

CVSA Website – https://www.cvsa.org/news/2024-international-roadcheck/

CVSA Website – https://www.cvsa.org/news/2023-roadcheck-results/

“What is CVSA Focusing on in 2024 Roadcheck Truck Inspection Blitz?”, Heavy Duty Trucking, February 12, 2024.

Tax Implications of Leasing vs. Owning Trucks

Posted on February 15, 2024 by Marcela De Vivo - 2290 tax, Uncategorized

Understanding the tax implications of leasing versus purchasing a truck is crucial for business owners and independent contractors in the transportation sector. This decision not only affects your company’s cash flow but also has significant consequences for your tax liabilities and financial planning.

Buying and leasing vehicles, equipment, or properties each have their distinct advantages and disadvantages, depending on your financial situation, needs, and preferences. Here’s a breakdown of the pros and cons associated with buying versus leasing:

Buying

Purchased trucks can be depreciated over their useful life, offering tax deductions over several years. The IRS allows for accelerated depreciation methods, such as Section 179 or Bonus Depreciation, enabling larger deductions in the early years of ownership. Also, if you finance the truck purchase, the interest portion of your loan payments may be tax-deductible. Finally, if you sell the truck for more than its book value, you may be subject to capital gains tax.

Leasing

For a leased truck, the entire lease payment can often be deducted as a business expense in the year it is paid, potentially providing a more immediate tax benefit than depreciation. Some high-value leases might have deduction limits under the IRS rules. It’s important to consult with a tax professional to understand the specific limits.

Exploring Truck Lease Tax Deductions

Leasing a truck can provide considerable tax benefits, primarily through truck lease tax deductions. This term is vital to understand and account for when deciding how to acquire a new vehicle for your business. When you lease a truck, you can generally deduct the following costs:

Lease Payments: A substantial portion of each lease payment can be written off on your taxes, which may reduce your taxable income.

Maintenance and Repairs: Typically, the costs associated with maintaining and repairing a leased truck are deductible.

Insurance Premiums: The insurance you pay for the leased truck can often be deducted as a business expense.

Licenses and Fees: Any licenses, registration fees, and taxes that are part of the lease agreement could potentially be deducted.

These deductions can be made annually for the duration of the lease, offering a predictable and immediate tax benefit. Unlike purchasing, where the upfront costs are higher and the depreciation deductions spread out over multiple years, leasing provides a more immediate return on investment through these deductions.

Truck lease tax deductions offer a compelling incentive for businesses to consider leasing over purchasing. The financial and tax benefits, combined with the flexibility of updating the fleet without sizable initial expenditures, make leasing an attractive option for many businesses in the transportation industry.

Tax Benefit of Purchasing a Truck vs. Lease

Purchasing a truck for your business comes with its set of tax benefits, primarily through truck purchase tax deductions. Understanding these deductions is crucial when deciding between buying and leasing a vehicle for your business operations. When you purchase a truck, you can take advantage of several tax deductions:

Depreciation

Immediate Expensing: Under Section 179 of the IRS code, businesses can immediately expense the cost of a truck up to a certain limit in the year of purchase, subject to phase-out limits based on the total amount of qualifying equipment purchased during the tax year.
Bonus Depreciation: This allows businesses to deduct a significant portion of the purchase price of the truck in the first year, with the percentage varying depending on the current tax law.
Standard Depreciation: For the truck’s cost not covered by Section 179 or Bonus Depreciation, you can depreciate the truck over its IRS-designated useful life (typically over a 5-year period), spreading out the tax benefits.

Loan Interest

If you finance the truck purchase, the interest portion of your loan payments is typically deductible as a business expense, reducing your taxable income.

Operating Expenses

Maintenance and Repairs: Costs incurred for the maintenance and repairs of the truck are tax-deductible.
Insurance Premiums: Premiums paid for insuring the truck can be deducted as a business expense.
Fuel: Fuel costs for business use of the truck are deductible.
Licenses and Fees: The costs for licensing, registration, and taxes related to the truck can be deducted.
Upgrades and Improvements: Costs for upgrades or improvements made to the truck can often be depreciated over their useful life, offering additional deductions.

These deductions can significantly offset the cost of purchasing a truck by reducing the taxable income of your business over the life of the truck. Unlike leasing, where deductions are primarily focused on lease payments and related expenses, purchasing allows for a broader range of deductions over time. The initial tax benefits through Section 179 and Bonus Depreciation can be particularly advantageous for reducing taxable income in the year of purchase.

Choosing to purchase a truck may involve higher upfront costs compared to leasing, but the long-term tax deductions and the benefit of owning the asset outright can make it a financially sound decision for many businesses. It’s essential to consider your business’s financial situation, how long you plan to use the truck, and the tax implications of purchasing versus leasing when making your decision. Consulting with a tax professional can provide personalized advice tailored to your specific circumstances, ensuring that you maximize your tax benefits.

Navigating taxes as an owner-operator, whether leased to a company or under a lease purchase agreement, can be challenging. However, understanding the intricacies of your tax obligations and benefits can lead to substantial tax savings and a healthier financial status for your trucking business. Always consider hiring a tax expert to ensure you comply with current tax rules and optimize your tax position.

FAQ’s

Can truck lease payments be deducted from my business’s taxable income?

Yes, truck lease payments are typically deductible from your business’s taxable income as they are considered a business expense. The IRS allows the deduction of lease payments for trucks used in business operations, proportionate to their business use.

Are the lease payments for my company’s commercial trucks tax deductible?

For commercial trucks, lease payments are often fully deductible as a part of business expenses. However, if the truck is used for both business and personal reasons, the payments must be apportioned accordingly.

Do leased trucks incur federal excise tax?

Leased trucks do not usually result in federal excise tax liabilities for the lessee because the lessor typically shoulders this responsibility. The federal excise tax is applicable at the sale of certain heavy vehicles and is paid by the manufacturer or importer.

What are the tax strategy considerations when deciding to lease or buy fleet trucks?

When considering the tax strategy for fleet trucks, leasing can offer immediate tax deductions and financial flexibility, while purchasing provides depreciation benefits over time. Businesses should evaluate their specific financial needs and consult with tax professionals to devise an optimal tax strategy.

The Future of Fleet Telematics and Driver Safety

Posted on February 5, 2024 by finaoagency - Uncategorized

Telematics have transformed fleet management over the past 50 years. Electronic logging devices help owners visualize vehicle movement and driver behavior, leading to improvements in compliance, driver safety, operational efficiency, and vehicle health.

Fleet telematics have rapidly evolved in the years since the pandemic. Emerging technologies and shifting industry dynamics are reshaping the way businesses approach vehicle and driver management. Meanwhile, lawmakers are adjusting regulations to keep pace with progress. In this ever-changing technological and regulatory landscape, companies that can anticipate and adapt to new developments will have the highest chances of success.

Prediction 1: Advanced Integration of AI and Machine Learning

As transportation companies face an increasing demand for road safety and operational efficiency, AI and machine learning are poised to revolutionize fleet management. These technologies can gather and analyze massive amounts of historic and real-time data about vehicle health, traffic patterns, driver behavior, weather, and road conditions. Critically, they can then return deeper insights than human analysis alone.

Used efficiently, AI-driven tools can reduce the cost of fleet ownership by:

Optimizing routes to reduce delays and improve delivery speed
Predicting maintenance schedules to prevent breakdowns and costly repairs
Defining safety protocols to protect drivers, identify training needs, and reduce accidents

While AI and machine learning have the potential to streamline and optimize operations, integrating them successfully will require a significant investment in both technology and training.

Prediction 2: Stringent Emission Regulations and Eco-Friendly Fleet Management

Countries across the globe are doubling down on environmental sustainability, which means stricter emissions regulations are on the horizon. Heavy-duty vehicles are a natural target — they’re responsible for a disproportionate 25% of transportation-related carbon dioxide emissions in the United States. In 2023, the U.S. Environmental Protection Agency (EPA) proposed strict measures to reduce emissions in this sector.

As laws change, fleet owners will shift toward a more eco-friendly system to maintain compliance. Some companies will start by adopting environmentally friendly fuels or advanced diesel engines; others will begin replacing older trucks with hybrid or electric vehicles (EVs).

Achieving the EPA’s emissions targets will be both expensive and time-consuming. The agency estimates that vehicle manufacturers will need to spend $6 billion (after tax credits) to comply; purchasers can expect to pay about $17,000 more upfront for a zero-emissions day cab tractor. In return, the industry could save $250 billion in repair and fuel costs and eliminate about 1.8 billion metric tons of emissions by 2055.

Prediction 3: Enhanced Driver Safety Protocols and Training

Lawmakers, law-enforcement professionals, and trucking companies are becoming increasingly aware of the need for greater driver safety. In fact, the American Transportation Research Institute found that driver distraction is one of the top industry concerns. To mitigate risk, fleet managers are likely to implement stricter safety protocols and comprehensive training in the coming years.

This is another area where technology will play a crucial role. Expect more companies to implement advanced driver-assistance systems (ADAS) that use a combination of cameras and sensors to power features, including:

Lane-departure warnings
Lane-keep assistance
Blind-spot monitoring
Traffic sign recognition
Automatic emergency braking

Real-time feedback and corrective actions can help stop risky behavior before it causes an accident. According to a report from the National Highway Traffic Safety Administration, ADAS could help reduce crashes by 62%. These systems also generate a great deal of useful data; AI tools will help businesses analyze the information to identify red flags and recommend targeted training for individual drivers.

While enhanced monitoring and analysis have the potential to increase safety, employers must be prepared to address privacy concerns and find room in the budget for both technology implementation and continuing education.

Prediction 4: Greater Emphasis on Data Security and Privacy

As fleet owners become more reliant on data-driven solutions, data security and privacy will become mission-critical. Telematics technologies that transmit and store data are vulnerable to data breaches and cyberattacks. Hackers could hold companies’ data hostage, expose proprietary information, or disrupt supply chains. And any time software intersects with physical systems, as it does with ADAS, there’s a risk that unauthorized parties could interfere with vehicle operation.

To avoid these threats — and protect company and client privacy — fleet owners must invest in robust security measures for individual devices and the system as a whole. It’s also critical to monitor compliance requirements; increasingly connected vehicles are almost certain to prompt new regulations and privacy laws that will impact fleet operations.

Prediction 5: Collaborative Efforts Between Government and Private Sectors

Industry players must be prepared to collaborate with governmental bodies as new technologies continue to transform fleet telematics. By educating legislators and participating actively in the process, it will be easier to achieve standardized regulations that benefit everyone on the road — without sacrificing security or innovation.

Greater collaboration could lead to exciting joint ventures, including:

Third-party data access to boost compliance
New technologies to increase security
Uniform safety and operational standards

Government participation inevitably comes with bureaucratic challenges and opposing goals. However, change is coming, regardless of whether private parties participate. By getting involved, companies can benefit from fair, informed regulations and accelerated growth.

Preparing for Upcoming Changes in Fleet Telematics

Expanding technologies, new driver safety protocols, and evolving regulations are almost certain to impact the majority of fleet managers and owners in the next 3 to 5 years. During this period of change, it’s more important than ever to stay informed and adaptable — that way, you can adjust quickly to shifts in the industry.

Fleetworthy’s Intelligent Compliance Platform can help; our user-friendly system provides actionable data that boosts compliance, increases safety, and helps you make better decisions. Ready to get started? Learn more about the Intelligent Compliance Platform today.