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sidman82
Joined: 21 Jun 2006
Posts: 395
Location: Long Island,NY
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| Posted: Mon Sep 11, 2006 5:45 pm Post subject: WHO IS RESPONSIBLE FOR IFTA & HUT?? |
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| 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. :roll: |
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GMAN
Joined: 13 Feb 2005
Posts: 9314
Location: Tennessee
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| Posted: Mon Sep 11, 2006 6:06 pm Post subject: |
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| 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. |
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sidman82
Joined: 21 Jun 2006
Posts: 395
Location: Long Island,NY
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| Posted: Mon Sep 11, 2006 6:19 pm Post subject: |
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| 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 |
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Rev.Vassago
Joined: 04 Apr 2006
Posts: 5197
Location: Green Bay, WI
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| Posted: Mon Sep 11, 2006 6:53 pm Post subject: Re: WHO IS RESPONSIBLE FOR IFTA & HUT?? |
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sidman82 wrote: 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? |
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GMAN
Joined: 13 Feb 2005
Posts: 9314
Location: Tennessee
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| Posted: Mon Sep 11, 2006 9:38 pm Post subject: |
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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. |
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Rev.Vassago
Joined: 04 Apr 2006
Posts: 5197
Location: Green Bay, WI
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| Posted: Tue Sep 12, 2006 7:43 am Post subject: |
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| 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. |
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sidman82
Joined: 21 Jun 2006
Posts: 395
Location: Long Island,NY
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| Posted: Tue Sep 12, 2006 11:20 am Post subject: |
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| 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. |
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sidman82
Joined: 21 Jun 2006
Posts: 395
Location: Long Island,NY
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| Posted: Tue Sep 12, 2006 11:30 am Post subject: |
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| Yes the IRP is in the carrier's name. 48 states. Reg. out of IL. |
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Floored
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| Posted: Tue Sep 12, 2006 3:57 pm Post subject: |
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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. |
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Rev.Vassago
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Joined: 04 Apr 2006
Posts: 5197
Location: Green Bay, WI
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| Posted: Tue Sep 12, 2006 4:01 pm Post subject: |
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| My bad. The way it was worded in the O.P. made me believe that the carrier's name was on the title. |
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sidman82
Guest
Joined: 21 Jun 2006
Posts: 395
Location: Long Island,NY
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| Posted: Tue Sep 12, 2006 4:33 pm Post subject: |
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| Thanks for the input guys |
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GMAN
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Joined: 13 Feb 2005
Posts: 9314
Location: Tennessee
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| Posted: Tue Sep 12, 2006 5:51 pm Post subject: |
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| 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. |
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P Jug Joe
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Joined: 15 Jul 2006
Posts: 59
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| Posted: Sun Sep 17, 2006 2:42 am Post subject: |
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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? |
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solo379
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Joined: 14 Feb 2004
Posts: 3133
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| Posted: Sun Sep 17, 2006 7:55 am Post subject: |
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P Jug Joe wrote: 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! |
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P Jug Joe
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Joined: 15 Jul 2006
Posts: 59
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| Posted: Sun Sep 17, 2006 9:43 am Post subject: |
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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. |
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