Trucking and transport
Accounting for Chicago Truckers and Small Fleets
Highway use tax, fuel tax and per diem tracking.
Common mistakes in this industry
- Settlement statements net out advances, escrow, insurance and fuel before the deposit lands, so the bank figure understates both revenue and expense.
- The per diem meal allowance for drivers under hours-of-service rules is deductible at a higher share than an ordinary meal, and most drivers never claim it.
- A truck bought on a note is a depreciable asset and only the interest is an expense. Deducting the whole payment is the most expensive mistake in this trade.
- The quarterly fuel tax return needs mileage by state. Reconstructing a quarter from memory in month four costs more than logging it did.
Truck or fleet
Frequently asked questions
Do I file the highway use tax return every year?
Yes, for every taxable vehicle at 55,000 lbs and above, for a tax year running July through June. Proof of payment comes back after filing and the Secretary of State asks for it at plate renewal, so a late return stops the plate rather than only costing a penalty.
What share of meals on the road is deductible?
Drivers subject to Department of Transportation hours-of-service rules deduct a higher share of the daily meal allowance than other taxpayers. Claiming it needs days away from home on record, which is why we build the log into the monthly work rather than reconstructing it in April.
Should a driver with their own truck be an LLC or an S corporation?
An LLC is the usual starting point and changes nothing about the tax. The S corporation election starts saving self-employment tax once net profit clears roughly $60,000 to $70,000 a year, and below it the payroll cost eats the saving. We run both against your last full year.
I have not filed for two years. What happens?
We file the oldest year first and work forward, because penalties compound and the IRS applies payments to the earliest balance. Filing voluntarily before a notice arrives is what keeps failure-to-file penalties negotiable.
