WHO IS RESPONSIBLE FOR IFTA & HUT??

[sidman82]

I am leased on to a company. I own my truck, but it is registered under the company name. I am running under their authority. They applied for and obtained my IFTA permit and HUT permit. The permits are under their name aslo. Do they have to pay the taxes? Do they pay them and pass them on to me?, or am I ultimitely responsible for them. I am under the impression that I will report them myself and pay quarterly, or is that only if I am running my own authority.

[GMAN]

It depends on what your lease agreement with the carrier says. The carrier is responsible for the fuel taxes. Most will deduct the taxes from the owner operator's settlement.

[sidman82]

That's what I was thinking. I will keep money to the side for reservation. I am due to speak with my accountant this week. He deals with one of the drivers at the same company I am with. But I figured I would try to find out as much as I could before I sit down with him. Thank you, GMAN

[Rev.Vassago]

I own my truck, but it is registered under the company name. I am running under their authority. They applied for and obtained my IFTA permit and HUT permit. The permits are under their name aslo.

You don't own your truck, the company you drive for owns it. Even if you are paying for it, you don't own it.

I'm guessing you are a lease purchase driver.

You are responsible for everything that your contract with the company says you are responsible for. I am shocked that, as a business owner, you don't know this.

Did you read the contract you signed, and have it looked at by a competent attorney?

[GMAN]

You are welcome, sideman.

Rev, I think sideman is talking about his SSR and IRP being the his carrier's name. At least I hope that is the case. If he is leased to a carrier the SSR and IRP will be registered to them because they are the ones with the authority. You can get your own base plates if you lease to a carrier. You will probably need to supply a copy of your lease agreement with the carrier before they will give you the base plate. Most carriers will get the IFTA stickers and handle the fuel taxes, so they can make sure they are paid and properly filed. If an owner operator is allowed to do his own fuel taxes and fails to file on time or correctly, it is the carrier who will be responsible for any fines and interest. Some carriers will do a fleet averaging for their fuel taxes and registrations, which may not be the best thing for the owner operator, depending on where he runs.

[Rev.Vassago]

The way it's worded, it sounds like a lease purchase program, where you are renting a truck from a carrier, and they continue to own it until you either fail, or buy it out on the overpriced balloon payment.

[sidman82]

No, that is not the case. Many drivers with my company do that, but I purchased the truck myself. The one you see is my truck, my name on the title. Paid $19,000 for it and pay for it myself for $700 a month. If I ever leave the company the truck comes with me. I am not someone who likes to build equity for someone else. The other drivers lease from the company and pay $1700 a month. I could have gotten my own plates, but I let the company do it and pay for it. My insurance is $18 dollars a week with bobtail. I have been driving for almost 20 years so getting insurance myself would have been $3700 a year, not to bad, but it is cheaper letting the company get it for me.

[sidman82]

Yes the IRP is in the carrier's name. 48 states. Reg. out of IL.

[Floored]

If I were you I would be on the phone with the person at your company that handles vehicle registrations, plates and IFTA (ect) and asking them how you handle this.

MCT who I was running OTR with as an O/O handles all my plates, permits, IFTA and they send out a statement to me listing what is owed on IFTA or what I'll will get back as a credit. They handle all the paperwork and figures, and all I do is pay if $$ is owed.

So best bet for you is to call your carrier and ask them how they handle this and what your responsibility is.

[Rev.Vassago]

My bad. The way it was worded in the O.P. made me believe that the carrier's name was on the title.

[sidman82]

Thanks for the input guys

[GMAN]

You can get your own base plate, even if you are leased to a carrier, unless your lease agreement states otherwise. You will probably only need to give your state licensing agency a copy and your carrier will probably need to sign a form. Most carriers will require you to use their IFTA stickers and all permits such as your HUT will probably stay in the carrier's name as well. It has to do with who has authority. There is a difference between registration and title. Title shows ownership. Registration shows authority to operate on public roadways. Some carrier's will prorate your base-plates according to the day you either leave your carrier or get your own base plates. Some may do it monthly and others do it quarterly. I don't think that they are legally obligated to return any money to you for any unused time after you leave your carrier.

[P Jug Joe]

Regardless of who "had to" pay the taxes, you'd better make sure they are getting paid- because ULTIMATELY, YOU are the one responsible. If they aren't paying them, I don't think you can get off the hook by saying "well, they were SUPPOSED to pay it" or "they TOLD me they would pay it..."

I could be wrong on that but I doubt it.

A lot of people let the company provide the base plate and they pay a monthly fee- that way they don't have to pay one big lump sum. I prefer to pay the lump sum and have my very own plate that goes with me when I leave...

Although, I don't know of any regular-Joe insurance plan that will cover you unless you are between leases... anyone help on that one?

[solo379]

Regardless of who "had to" pay the taxes, you'd better make sure they are getting paid- because ULTIMATELY, YOU are the one responsible. If they aren't paying them, I don't think you can get off the hook by saying "well, they were SUPPOSED to pay it" or "they TOLD me they would pay it..."

I could be wrong on that but I doubt it.

You are absolutely correct!
My company pays for all that staff, no charge back, but i still demand, that they provide me, with the proof of payments!

[P Jug Joe]

I knew a guy who was a brand-spankin' new O/O who didn't now about the 2290. To be honest, that's the FIRST thing I knew about when I leased on to a company with my first truck. Anyway- he didn't pay it for almost a year (whatever state he was in didn't require proof of 2290 for the first registration year). THEN he expected his accountant to pay the interest and penalties on it.

COME ON, MAN! Since when does your accountant pay your permits? The 2290 is a tax, but it's more a permit than an income tax. Dumb.

[sidman82]

I talked to someone who finally gave me an answer. The company is paying all. Some off the company dispatchers just could not give me an answer at first. I found the right person to talk to and he told me what I needed to know. Thanks for the advice given

[Scooter]

Regardless of who "had to" pay the taxes, you'd better make sure they are getting paid- because ULTIMATELY, YOU are the one responsible. If they aren't paying them, I don't think you can get off the hook by saying "well, they were SUPPOSED to pay it" or "they TOLD me they would pay it..."

I could be wrong on that but I doubt it.

A lot of people let the company provide the base plate and they pay a monthly fee- that way they don't have to pay one big lump sum. I prefer to pay the lump sum and have my very own plate that goes with me when I leave...

Although, I don't know of any regular-Joe insurance plan that will cover you unless you are between leases... anyone help on that one?

[Scooter]

Regardless of who "had to" pay the taxes, you'd better make sure they are getting paid- because ULTIMATELY, YOU are the one responsible. If they aren't paying them, I don't think you can get off the hook by saying "well, they were SUPPOSED to pay it" or "they TOLD me they would pay it..."

I could be wrong on that but I doubt it.

A lot of people let the company provide the base plate and they pay a monthly fee- that way they don't have to pay one big lump sum. I prefer to pay the lump sum and have my very own plate that goes with me when I leave...

Although, I don't know of any regular-Joe insurance plan that will cover you unless you are between leases... anyone help on that one?

The carrier whos name is on the registration is the one that's responsible.

No one else. He's also the one that has to report the miles travelled, fuel purchases etc.

[NOTR]

[/quote]The carrier whos name is on the registration is the one that's responsible.

No one else. He's also the one that has to report the miles traveled, fuel purchases etc.[/quote]

So fellow truckers do we have a final word on this topic? I'm also confused right now as IFTA is due in just under 10days. I recently became an OWNER OPERATOR and ran for 3months under the authority and plates of the company I was leased to with their name on the registration. Just few days back we split with bitter memories and are under no speaking terms whatsoever and don't seem to have it any in future. Now here comes the funny part .... they never asked for any sort of logbooks for the trips which I did under their authority. YES, no logbooks or fuel receipts(even though I didn't their fuel card so they have no idea where I fueled and stuff) or anything of that matter for the last three months. No one ever raised the questioned ever. So being a "newbie" I'm a bit nervous and afraid as to what should I do now? Were they doing that to screw me over as from the very first trip we started having differences. Are/Were they trying to "get back" to me or its just carelessness on their part? Should I wait for the "non-payment" notice to show up or should I go ahead and file IFTA-QUARTERLY? I tried calling the owner of the previous company but being an ***** he didn't answer and I'm sure anyone there would be of any help even if they decide to listen to me.

So should I file IFTA or face penalty or will I face penalty? And should I send them Log-Books? What are advantages and disadvantages of not submitting the logbooks to the company being an owner operator? Any help or suggestions fellow road-warrior? :?: :?

[Rev.Vassago]

[quote="NOTR"]So fellow truckers do we have a final word on this topic? [quote]

Generally, if you are leased to a carrier, they file your IFTA as a convenience for you. Some will even absorb the cost (which is usually next to nothing).

If your company is refusing to pay the IFTA, then the responsibility falls on your shoulders. It would be better to overpay than to underpay, imo.