how does IRP work? do i have to keep track of every mile I drive in every state and pay by the mile per state?

 

Again.... you should worry about the basics of truck driving first....:thumbsup:

 

once you are running, you use last year's IFTA numbers for your IRP calculations.

To get started, there are estimate charts from your DOT to use.

 

Yes, you need to keep track of all of your state miles and gallons of fuel purchased in every state you buy fuel. If you are a company driver, your company will either figure it off of a Qualcom, trip sheet or a computer in the office if you are routed. If you are an owner op leased to a company, keep your own records. I found a notebook was the easiest way to keep track, much safer than a PC after losing a hard drive or two. If need be, make up your own trip sheets to keep track of fuel and mileage. Maybe I can post one of mine, DOT liked the looks during my last audit.

If you screw up, it will cost you, as it is not worth it when it is so easy to keep track of everything.

And as far as how it works? Good question, there is a formula based on gallons of fuel purchased and miles traveled in every state. If you do not purchase fuel in a state you travel through, you pay the full tax rate. If you buy fuel in a state you pay no tax or a portion of a tax. Then we have Indiana, Kentucky, New Mexico and Oregon. They all have a different structure, where you ultimately always wind up paying something.

 

IRP has nothing to do with gallons of fuel purchased. They simply want to see the miles driven in each state break down so they know how to distribute the couple grand they are going to charge you for your license plate each year. The method assumes that states in which you have run a lot in the past you will run a lot in again. If you ran 5% of your total miles in AL, and they take $2k from you for your plate, then AL gets 5% (or $100) of that fee. If you run 20% of your miles in TX, then Texas will get 20% or $400 of the registration fee. The cost also varies depending on what state you register in as your home state. My plates in FL cost me $1400, if I remember correctly. I just re-upped my IL plates last week and it cost me $1722.42. I think OR (who used to be the cheapest) just went up to $900 a year. Also, at least for IL, the time period does not go by calendar year. For my 2010 plate, I had to use mileage figures from Q3 2008 through Q2 2009. Also, for your first year or two, you will not have any previously run miles to use to calculate your IRP filing, so they have some convoluted estimate they will make you use. It makes little or no sense... like many things in trucking, just nod your head and follow the directions. You can get a permitting company to apply for your base plates for you the first year (OOIDA will be of help there) and then renewing is much easier after that.

Justruckin is confusing the issue of IRP with IFTA, and then for some reason is bringing in the highway use taxes charged by some states (though he failed to mention that NY also charges a highway tax), which are all completely different animals. IFTA is ALL ABOUT your fuel purchases (that would be why it is the International Fuel Tax Agreement), but has nothing to do with IRP. Yes, you may use your IFTA records to calculate your IRP filing, but that is the extent the two are related.

 

Also when applying for your Base Plate (which is what you are doing with the IRP), most states will want to see a copy, or maybe even an original IRS Form 2290 Schedule A. This form is used to pay annual “Heavy Highway Vehicle” tax on each vehicle you own. That annual period runs, like IRP, from July 01 to June 30 each year and will cost you $550 each year for every tractor you own (assuming you are in business for the entire period… they do allow you to prorate if you are only in business for a portion of the tax period). Guard your original 2290 with your life, as you must have proof you paid these taxes to do a variety of other things.

 

You need to make sure to keep your 2290 in a safe place. I received a bill from the IRS about a year or two ago saying that I had not paid my 2290. Fortunately, I had my stamped copy and canceled check where it had been paid. Apparently, they somehow credited the wrong account, even though the correct FEIN was on the check and 2290 form. I would recommend that you physically go to your local IRS office to pay your 2290 so that they can stamp it paid with the date. You can mail it but it is much quicker and safer to physically go to their office. You can't get your base plates and permits without a paid 2290.

 

I pay mine on line which is even easier

 

It certainly is easier, but like GMAN, I physically go to my local IRS office to get my stamped 2290. I also had an instance when the IRS tried to say we didn’t file and pay our 2290 (I think in 2005). It took a few phone calls and a lot or time and worry, but we were able to prove we paid. I’m all about doing things on-line, but to save the worry and potential hassle, it’s worth the 20 minute drive and five minute wait to be able to walk out holding in my hand the proof I need that I paid my Heavy Use Tax.

 

I always get a confirmation that I can print out but if I lived 20 minutes from where I could pay it in person, I would, the nearest place to me is 2 hours away