Trucking and owner-operators

Accounting for Chicago Truckers and Owner-Operators

Form 2290, IFTA quarterly, per diem tracked

Get a fixed price (872) 279-0440

What this business files

Form numbers and dates. A deadline landing on a weekend moves to the following Monday.

Form 2290Heavy highway vehicle use tax on trucks at 55,000 lbs and aboveAugust 31 for the year beginning July 1
IFTA quarterly returnFuel tax apportioned across every state the truck ran inEnd of the month after each quarter
Form 1040-ESQuarterly estimated income and self-employment taxApril 15, June 15, September 15, January 15
Form 1099-NECIssued to each owner-operator or contractor you paid $600 or moreJanuary 31
Schedule C or Form 1120-SThe business return for the operationApril 15, or March 15 for an S corporation

Where owners lose money

We watch for these on every file in this trade.

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.
IFTA needs mileage by state. Reconstructing a quarter from memory in month four costs more than logging it did.

Services this trade uses

One fixed monthly fee, agreed before the first month. Catch-up on prior periods is quoted once.

Truck or fleet

Common questions

Do I file Form 2290 every year?

Yes, for every taxable vehicle at 55,000 lbs and above, for a tax year running July through June. The stamped Schedule 1 comes back after filing and the Secretary of State asks for it at plate renewal, so a late 2290 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 an owner-operator 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.