Tax help for trucking companies is completely different from what you get for almost any other business type. There are highway use taxes, fuel tax credits, interstate travel, and the unique challenge of depreciating a very high-cost asset over time. The risk here is that the assistance you receive does not understand these unique aspects, leading to missed deductions or compliance issues that cause problems later on.
Finding the right kind of tax help goes beyond getting someone to file your taxes. You need to find professionals who understand the trucking industry and can make the process as painless as possible.
Truck Tax Help is Different
The taxes that truckers must address are more complicated than even the requirements that exist for a small business owner. Owner-operators need to deal with per diem expenses, IFTA, depreciation of high-cost items like their trucks and trailers, interstate business operations, and so much more. This is all before you even get into quarterly estimates and the ever-evolving nature of tax law.
A tax preparer that usually works with retail business owners or freelancers has probably never heard of Form 2290 or interstate fuel tax credits. They might know a fair bit about the general principles of taxation as they apply to most businesses. However, trucking has unique needs. Getting professional trucker tax help from people in the know makes a massive difference in preventing deductions from being missed or errors being made that cost you money later.
Services to Consider in a Provider
The best type of tax help for trucking companies involves more than just once-a-year preparation and filing. Many of the best services offer year-round support, not just when tax season rolls around. You want a provider who can help you track down deductions throughout the year, prepare your quarterly tax obligations, and provide insight on systems to track these deductions and maybe even help you with equipment purchases.
When choosing a provider, ensure that they understand heavy vehicle use taxes, as this is one of the most unique forms of taxation that truckers must address concerning vehicles over 55,000 lbs. The fuel tax is another area in which most truckers need assistance, especially if they travel across state lines. If you could ask questions when you’re unsure if an expense qualifies for deduction, that alone is worth its weight in gold.
Deductions That Are Unique to Truckers
One of the most significant benefits to working with an informed tax preparer is ensuring that you know about all the deductions available to truckers. There are some sizeable deductions that owner-operators can make, but they will require tracking to ensure that they don’t get missed.
Per diem expenses will add up over the year if you are correctly calculating them based on your time away from home. Deductions can be made for maintenance of the vehicle and repairs performed on it, as well as fuel costs, insurance premiums, and equipment purchases. Depreciation on the truck itself and the trailer may also be deducted using unique accelerated schedules that apply to these types of deductions.
Most people do not realize how many small expenses can be deducted. Deductible truck expenses can include everything from washes and scales to parking fees and even some expenses related to communications. Having someone who understands what to look for means ensuring that you at least see these write-offs, rather than risk missing them entirely.
Why Year-Round Help Matters
If you have great assistance throughout the year, tax season does not have to be a hassle. The best providers will not only give you guidance at the end of the tax year but can assist trucking companies throughout the year by helping them manage their expenses, prepare their quarterly estimates, and even prepare for future purchases with equipment.
When tax time rolls around, you should not be scrambling to find documents or information because everything should already be orderly and prepared. This saves time when it comes to processing tax forms, reduces anxiety surrounding tax time, and leads to far more accurate results than trying to remember information in that last-minute rush to have returns prepared and submitted.
Finding Someone You Can Trust
When searching for a provider, ensure to ask them questions about their experience providing tax help for trucking companies. Ask them about their experience working with transportation companies, the types of clients they have, and how they keep up to date with shifting regulations that apply to truckers.
Make sure to verify availability with the tax help provider you are considering. Tax questions can arise day or night, and it matters if you have access to assistance. Ask how you can get in touch with someone if you have questions or concerns. Whether that’s by email, text message, or a messaging app – all of these options can be of value.
Price models differ among tax providers. Some charge a flat fee based on your size as a business, while others charge hourly. There’s nothing wrong with either method, as long as you are clear about what you are going to pay before anything is done.
The right kind of tax help is not something that you want to skimp on. Getting assistance with managing your expenses and filing your taxes will more than pay for itself when it comes to avoiding IRS penalties and denials. More importantly, you gain something even more valuable than money: peace of mind that someone is keeping track of your tax obligations.
It’s a challenging world in the trucking industry, but feeling stressed about your taxes should not be one of your burdens. Getting assistance from someone who understands the industry makes every aspect of your obligations smoother and easier to manage.
