
If you're new to trucking we encourage you to check out our list of Frequently asked questions.
Still have questions? Please contact us and we'll get it answered for you as soon as possible.
What kind of services do you offer?
Royal Trucker Taxes provides tax, accounting, bookkeeping and trucking business services for owner operators, independent carriers and trucking companies.
Our services include:
Our services are designed to help trucking businesses keep their tax, accounting and registration responsibilities organized.
The specific services needed depend on your business structure, type of trucking operation and applicable federal or state requirements.
Contact Royal Trucker Taxes to discuss which services may apply to your trucking business.
Are your services available all over the United States?
Yes. Royal Trucker Taxes provides virtual tax, bookkeeping and trucking business services to clients throughout the United States.
We work with owner operators, independent carriers and trucking companies regardless of where their business is located.
Our services can include:
Some tax, registration and trucking compliance requirements vary by state and by the type of trucking operation. We review your situation and help identify the services and filings that may apply to your business.
Contact Royal Trucker Taxes to discuss your trucking business and the services you need.
What kind of property can be depreciated for tax purposes?
You can depreciate machinery, equipment, buildings, vehicles, computers, fax machine, copy machine and furniture used in a trade or business or to produce income.
Can I just have my taxes prepared by Royal trucker taxes?
Yes. You can use Royal Trucker Taxes for tax preparation even if you do not need our other trucking business services.
We prepare tax returns for owner operators, truck drivers, trucking LLCs, S-Corp trucking businesses and other trucking-related businesses.
Depending on your situation, tax preparation may include:
You do not have to use our bookkeeping, registration or compliance services to have your taxes prepared by us.
The information and records needed depend on your business structure and tax situation.
Contact Royal Trucker Taxes to discuss your tax preparation needs and the records required for your return.
How can I report cash payments made to lumpers?
If you pay lumpers in cash for legitimate business services, keep a detailed record of each payment and include the expense in your business records.
Your records should generally include:
Cash payments should be recorded consistently in your bookkeeping records. The IRS requires businesses to maintain records that support the income and expenses reported on their tax returns.
If the lumper is an independent contractor and the payments meet the applicable reporting requirements, additional information-return requirements may apply, including Form 1099-NEC.
Royal Trucker Taxes can help trucking businesses organize lumper payments and other business expenses for bookkeeping and tax preparation.
Do you work with Owner Operators?
Yes. Royal Trucker Taxes works with owner operators and independent truck drivers throughout the United States.
We can assist owner operators with services such as:
Owner operators can have different tax and bookkeeping needs depending on whether they operate as a sole proprietor, LLC, partnership or S-Corp.
The records and tax forms required depend on your business structure and individual circumstances.
Royal Trucker Taxes can help you organize your trucking business records and prepare the applicable tax filings and business documents for your situation.
Can I take a home office deduction?
To qualify for the home office deduction, the home office must be your principle place of business. You must use the home office regularly and exclusively for administration and management of your business. And, you may not have any other fixed location where you regularly conduct administration and management activities of the business.
Can I deduct Deadhead miles?
No you cannot. Only the cost to operate the truck, i.e. fuel, insurance, repairs, and maintenance covering those deadhead miles are deductible.
What is the per diem rate?
Per diem is an allowance paid for lodging, meals, and incidental expenses incurred when travelling out of state. In order to qualify for per diem, you need to be away from your home longer than an ordinary day's work and you need to sleep or rest in order to fulfill your work duties while away from home.
Do you help with forming an LLC or S-Corp?
Yes. Royal Trucker Taxes can assist trucking business owners with the information and tax considerations involved in forming an LLC and choosing an appropriate tax structure.
An LLC is a business entity created under state law. An LLC may be taxed in different ways for federal tax purposes depending on its ownership and elections.
An S-Corp is a federal tax classification that eligible businesses can elect with the IRS. Forming an LLC does not automatically make the business an S-Corp.
Before choosing a business structure or S-Corp election, consider factors such as:
Royal Trucker Taxes can help trucking business owners understand the tax and accounting considerations and assist with applicable business formation and tax filings.
Because state business-formation rules vary, the entity should be properly established with the applicable state agency.
How do your tax and bookkeeping services work?
Our services are based on the needs of your trucking business rather than a single package that applies to everyone.
Depending on your situation, you may need tax preparation, bookkeeping, IFTA filing assistance, Form 2290 filing, UCR registration, DOT and MC services, 1099 processing or other trucking business services.
The process generally works as follows:
Provide your records — We let you know which documents and information are needed for the applicable service.
The documents, requirements and timing can vary depending on the service and your individual circumstances.
Contact Royal Trucker Taxes to discuss your trucking business and determine which services you need.
Can I cancel your packages at any time?
Yes, you can cancel it any time, we don’t have long term contracts.
What is FMCSA?
FMCSA stands for the Federal Motor Carrier Safety Administration.
FMCSA is an agency within the U.S. Department of Transportation (DOT) that regulates and provides safety oversight for commercial motor vehicles, including certain trucks and buses.
FMCSA is responsible for areas such as:
FMCSA also works with state and local agencies on commercial motor vehicle safety.
The specific FMCSA requirements that apply to a trucking business depend on the type of operation, vehicles, cargo and jurisdictions involved.
Royal Trucker Taxes can assist trucking businesses with applicable DOT registration, operating authority and related compliance services.
What is the difference between Interstate and Intrastate Operating Authority?
Interstate and intrastate operations are distinguished primarily by where the transportation takes place and whether the transportation is part of interstate commerce.
Interstate transportation generally involves transportation across state lines or transportation that is part of an interstate movement of passengers or property. Certain interstate operations may require FMCSA operating authority in addition to a USDOT Number.
Intrastate transportation generally involves transportation that takes place entirely within one state and is not part of an interstate movement. Depending on the operation, state registration, licensing, safety and other requirements may apply.
The specific requirements depend on the type of carrier, cargo, vehicle, transportation service and jurisdictions involved.
If you are unsure whether your trucking business operates interstate or intrastate, Royal Trucker Taxes can help you understand the registration requirements that may apply to your operation.
What is Operating Authority?
Operating Authority is the FMCSA registration that allows certain businesses to conduct specific types of transportation operations in interstate commerce.
Operating authority may be required for certain for-hire carriers, brokers, freight forwarders and other transportation businesses, depending on the type of operation and the cargo or passengers involved.
FMCSA may identify different types of operating authority using designations such as MC, FF or MX. A business may need more than one type of authority depending on the services it provides.
Operating authority is separate from a USDOT Number. A USDOT Number is used to identify and monitor certain entities for safety and registration purposes, while operating authority determines the types of interstate transportation operations the business is authorized to conduct.
Whether your trucking business needs operating authority depends on your specific operation and applicable federal requirements.
Royal Trucker Taxes can assist with DOT and operating authority registration services.
There are three types of Operating Authority:
For U.S.-domiciled motor carriers, FMCSA identifies three main types of operating authority:
FMCSA also has separate operating-authority categories for other transportation businesses, including brokers and freight forwarders.
The type of operating authority required depends on what your business transports and the transportation services it provides.
Having the correct type of operating authority is important. A carrier must have the appropriate active authority for the operation it conducts when operating authority is required.
Royal Trucker Taxes can assist with DOT and operating authority registration services for trucking businesses.
What happens if you operate without an authority?
Operating without the required operating authority can result in serious regulatory consequences.
FMCSA regulations provide that a carrier operating without the required authority, or beyond the scope of its authority, may be placed Out of Service. The company may also be subject to fines and other enforcement action.
Having a USDOT Number does not by itself provide operating authority. A carrier must have the appropriate active authority for the type of interstate operation it is conducting, when authority is required.
Before transporting freight, verify that your operating authority is active and that your registration, insurance and other applicable requirements are satisfied.
Royal Trucker Taxes can assist with DOT and MC registration and help you organize the information needed for your trucking business.
What is a Process Agent?
A process agent is a representative designated to receive legal documents on behalf of a motor carrier, broker or freight forwarder in certain legal proceedings.
For applicable carriers, brokers and freight forwarders, the process-agent designation is filed with FMCSA through a BOC-3 filing.
A BOC-3 filing identifies the process agent or agents who can accept service of legal documents on behalf of the transportation business.
Requirements can vary depending on the type of transportation business and its operating authority. Carriers should make sure their required process-agent information is properly filed and kept current.
Royal Trucker Taxes can assist with BOC-3 and related trucking registration services.
What is a BOC-3?
A BOC-3 is a filing with the Federal Motor Carrier Safety Administration (FMCSA) that designates process agents who can receive legal documents on behalf of a motor carrier, broker or freight forwarder.
A process agent is a representative who can accept service of legal papers in applicable legal proceedings.
For carriers, brokers and freight forwarders that are required to designate process agents, the BOC-3 filing identifies the required agents for the applicable states. A blanket BOC-3 can provide designations across the required states.
FMCSA allows only one completed BOC-3 to be on file at a time. If the process-agent designation needs to be changed, a new BOC-3 filing is required.
Royal Trucker Taxes can assist with BOC-3 filing and related trucking registration services.
Who needs a MC Number?
A MC Number is required if your company plans to:
Transport property, household goods, or passengers for a fee or other compensation in interstate commerce (across state lines or national borders);
Arrange property, household goods or passengers or store goods to be moved in interstate commerce.
A MC Number is granted by the FMCSA and is generally referred to as Operating Authority, FMCSA Authority, Interstate Authority, or Motor Carrier Authority. However, there are three main types of Motor Carrier Authority, including “MC”, “FF”, or “MX” numbers, depending on the nature or your operations and type of authority that you need.
What are different types of Motor Carrier Authorities?
When you register for an MC Number, the FMCSA is going to require you to choose a type of Motor Carrier (MC) authority. These include:
Motor Carrier of Property (Property Motor Carrier) - An authorized for-hire Motor Carrier transports regulated commodities (except household goods) for the general public in exchange for compensation.
Motor Carrier of Household Goods (Moving Companies) - An authorized for-hire Motor Carrier transports only household goods for the general public in exchange for compensation. Household goods are personal items that will be used in a home.
Motor Passenger Carrier Authority (Passenger Carrier) – An authorized for-hire Motor Carrier transports people by bus, van or limousine for compensation.
Property Broker (Freight Broker) – A person or company who arranges other people’s property transportation (excluding household goods) for compensation by using a motor carrier.
Household Goods Broker (Household Goods Broker) - A person or company who arranges other people’s household goods transportation for compensation by using a motor carrier.
All motor carriers and freight brokers providing interstate commerce will have a “MC” label prefixed to their operating authority.
How long does it take to get an MC Number?
The processing time for an operating authority application can vary depending on the application, required filings and FMCSA processing.
After an application is submitted, the carrier may also need to complete additional requirements before the authority can become active, such as applicable insurance filings and a BOC-3 process agent designation.
Because processing requirements and agency procedures can change, carriers should check the current status of their application and follow the instructions provided by FMCSA.
Royal Trucker Taxes can assist with the application process and related operating authority filings.
Can you move freight once you apply for an MC Number?
Simply submitting an application for operating authority does not by itself mean that a carrier's authority is active.
Before operating in a manner that requires FMCSA operating authority, the carrier must have the applicable authority granted and satisfy the applicable federal and state registration, insurance and other requirements.
Carriers should verify their current operating authority status before beginning operations that require authority. FMCSA provides information about operating authority and registration requirements through its official resources.
Royal Trucker Taxes can assist with DOT and MC number registration and related filings.
What are the main types of insurance?
Trucking insurance requirements depend on the type of operation, cargo, vehicle and authority involved. Carriers should determine the insurance requirements that apply to their specific operation before beginning operations.
Common types of trucking insurance and related coverage can include:
Comprehensive coverage — May cover certain losses such as theft, fire or other covered events.
FMCSA insurance requirements can vary based on the type of authority and operation. Federal minimum financial responsibility requirements should be verified with current FMCSA requirements for the specific operation.
Royal Trucker Taxes does not provide insurance policies. For insurance coverage, carriers should work with a qualified commercial trucking insurance provider.
How can you obtain the insurance forms BMC-91 or BMC-91X?
Forms BMC-91 and BMC-91X are used for certain motor carrier liability insurance filings with FMCSA.
The insurance company, rather than the motor carrier, is responsible for filing the applicable insurance form with FMCSA. Many insurance companies submit these filings electronically.
If your trucking business needs a BMC-91 or BMC-91X filing, contact your commercial trucking insurance provider. The insurer can determine which filing applies to your operation and submit it to FMCSA.
FMCSA does not provide copies of these insurance forms to carriers.
Insurance requirements vary depending on factors such as the type of operation, cargo and vehicles involved. Royal Trucker Taxes can assist with related trucking registration requirements, but insurance policies and insurance filings must be handled by the appropriate insurance provider.
What is an MCS-90 Endorsement?
An MCS-90 endorsement is a federal financial responsibility endorsement associated with certain motor carrier insurance requirements. It is generally used to demonstrate that a motor carrier has the required financial responsibility when applicable federal requirements apply.
The MCS-90 is not itself an insurance policy. It is an endorsement attached to an insurance policy and is handled through the carrier's insurance provider.
Whether an MCS-90 endorsement applies depends on the carrier's operation and applicable federal requirements. Trucking companies should confirm their specific insurance requirements with their insurance provider and review current FMCSA requirements.
Royal Trucker Taxes does not issue MCS-90 endorsements or insurance policies, but we can assist with related trucking business registration and compliance paperwork.
Can a carrier broker loads?
A motor carrier cannot broker loads without first obtaining the appropriate broker authority from FMCSA.
A motor carrier transports freight using its own operation and authority. A broker, on the other hand, arranges transportation between a shipper and an authorized motor carrier.
If a trucking company wants to provide both motor carrier and broker services, it may need the appropriate registrations and operating authorities for both activities.
Before arranging transportation for compensation, make sure your business has the authority required for the type of service you are providing.
Royal Trucker Taxes can assist with trucking registration and operating authority services.
What is an MX Number?
An MX Number is an FMCSA-assigned number associated with certain Mexico-domiciled motor carriers operating in the United States.
Mexico-domiciled carriers may need an MX Number and the applicable FMCSA operating authority or Certificate of Registration before conducting transportation operations in the United States.
The requirements depend on the type of cross-border operation, including whether the carrier operates within designated commercial zones or beyond those zones.
An MX Number is different from a USDOT Number and is generally not applicable to U.S.-domiciled trucking companies.
Royal Trucker Taxes can assist with applicable DOT and operating authority registration requirements for trucking businesses.
What is an FF Number?
An FF Number is an FMCSA operating-authority number associated with a freight forwarder.
A freight forwarder arranges transportation of goods through FMCSA-authorized carriers. Unlike a motor carrier that physically transports the freight, a freight forwarder arranges the transportation and issues bills of lading to shippers.
Businesses operating as freight forwarders in interstate or foreign commerce may need freight-forwarder operating authority from FMCSA.
An FF Number is different from a USDOT Number. The USDOT Number identifies the entity for FMCSA safety and registration purposes, while the FF designation is associated with freight-forwarder operating authority.
Whether your business needs freight-forwarder authority depends on the services and type of transportation operation you provide.
Royal Trucker Taxes can assist with applicable FMCSA registration and operating authority requirements.
What is Temporary Operating Authority?
Temporary Operating Authority is a limited FMCSA authorization available in certain emergency situations.
FMCSA may consider temporary operating authority when there is an immediate transportation need that cannot be met by existing motor carrier service. It is generally associated with natural disasters or national emergencies and is intended to support emergency relief efforts.
Temporary authority is not the same as permanent operating authority and is not a general option for carriers that are simply waiting for their regular authority application to be processed.
When temporary authority is available, the carrier must satisfy applicable FMCSA requirements, which can include insurance and a BOC-3 filing.
The temporary authority is generally valid for 120 days or until the applicable emergency declaration expires, whichever occurs first.
Because temporary authority depends on an applicable emergency declaration and specific FMCSA requirements, carriers should verify the current requirements before applying.
Royal Trucker Taxes can assist with trucking registration and operating authority filings and help you understand the applicable registration process.
How can you purchase the FMCSA Regulations?
FMCSA regulations and regulatory guidance are available online through the Federal Motor Carrier Safety Administration and the Electronic Code of Federal Regulations.
You can review federal motor carrier safety regulations, registration requirements and other applicable rules online rather than purchasing a printed copy from FMCSA.
Because trucking regulations can change, carriers should use current official sources when checking requirements that apply to their operation.
Royal Trucker Taxes can help trucking businesses understand which registration and compliance requirements may apply to their business, but regulatory requirements should always be verified with the applicable government agency.
What is a USDOT Number?
A USDOT Number is a unique identifier used by FMCSA to identify and monitor certain entities operating commercial motor vehicles. It is associated with a carrier's safety information, including information collected through inspections, investigations and compliance activities.
Whether a company is required to obtain a USDOT Number depends on its operation, vehicles, cargo and applicable federal or state requirements. Some states also require USDOT registration for certain intrastate commercial motor vehicle operations.
A USDOT Number is separate from operating authority. Having a USDOT Number does not by itself provide interstate operating authority.
Royal Trucker Taxes can assist trucking companies and owner operators with applicable DOT registration and related filings.
Who is required to get a USDOT Number?
A USDOT Number is generally required for certain carriers operating in interstate commerce. FMCSA's requirements depend on the type of operation, vehicles, passengers or cargo being transported.
In general, a USDOT Number may be required when:
Some states also require USDOT registration for certain intrastate commercial motor vehicle operations.
Whether your trucking business needs a USDOT Number depends on your specific operation and applicable federal or state requirements. Royal Trucker Taxes can help you understand the registration requirements and assist with the applicable FMCSA registration process.
How do I apply for a USDOT Number?
Companies that are required to obtain a USDOT Number must complete the applicable FMCSA registration process and provide the information required for their operation.
FMCSA's registration process and forms can change, so applicants should use the current instructions provided by FMCSA when submitting a registration application or update.
Royal Trucker Taxes can assist with applicable DOT registration paperwork and help trucking businesses organize the information needed for their registration.
Can you move freight once you get a USDOT Number?
Not necessarily. A USDOT Number by itself does not automatically give a carrier operating authority.
Depending on the type of trucking operation, you may also need interstate operating authority and must meet applicable insurance, registration and other federal or state requirements before operating.
For example, certain for-hire carriers transporting federally regulated commodities owned by others in interstate commerce generally need operating authority in addition to a USDOT Number.
Before transporting freight, verify that your required registrations and operating authority are active and that you have satisfied the applicable requirements for your operation.
Royal Trucker Taxes can assist with DOT and MC registration and help you understand the registration steps that may apply to your trucking business.
What is a biennial update?
A biennial update is a required update to a company's USDOT registration information. FMCSA generally requires entities under its jurisdiction to update their information every two years, even if the company's information has not changed. The MCS-150 series is used for applicable USDOT registration updates.
Carriers should also update their USDOT registration information when applicable company information changes rather than waiting for the next biennial update.
FMCSA announced a temporary suspension of enforcement of the biennial-update requirement for updates that were due on or after June 1, 2026 while the agency transitions to its new Motus registration system. Carriers should still keep their registration information current and monitor FMCSA for current filing requirements.
Royal Trucker Taxes can assist with applicable MCS-150 and USDOT registration updates for trucking companies and owner operators.
What is UCR?
UCR stands for Unified Carrier Registration. The UCR Plan and Agreement establishes a registration system for certain individuals and companies operating commercial motor vehicles in interstate or international commerce.
UCR registration requirements can apply to motor carriers, private carriers, brokers, freight forwarders and leasing companies, depending on their activities and the applicable rules.
UCR registration is separate from FMCSA operating authority, USDOT registration and state-specific permits or registrations.
The applicable UCR registration fee generally depends on the number of commercial motor vehicles operated by the registrant.
Royal Trucker Taxes provides UCR registration assistance for trucking businesses and can help you determine what information is needed for the applicable registration.
What are IRP and IFTA?
IRP (International Registration Plan) is a cooperative registration system for qualifying commercial motor vehicles operating in two or more member jurisdictions. It allows qualifying carriers to register through their base jurisdiction and apportion registration fees among participating jurisdictions.
IFTA (International Fuel Tax Agreement) is a cooperative fuel-tax reporting system for qualifying interstate motor carriers. It allows qualifying carriers to report fuel use and fuel taxes through their base jurisdiction rather than filing separate fuel-tax reports with every participating jurisdiction.
The specific requirements for IRP and IFTA depend on the carrier's vehicle, operation and base jurisdiction.
Royal Trucker Taxes provides assistance with applicable IRP and IFTA registrations and filings for trucking businesses.
Who is required to comply with IRP and IFTA?
IRP and IFTA requirements depend on the carrier's vehicle, weight, number of axles, jurisdictions traveled and type of operation.
Generally, qualifying commercial vehicles operating in multiple jurisdictions may be subject to IRP registration requirements. Qualifying motor vehicles traveling in multiple IFTA jurisdictions may also be subject to IFTA licensing and quarterly reporting requirements.
Because the specific requirements can vary, carriers should verify their situation with their base jurisdiction before registering.
Royal Trucker Taxes can help trucking businesses organize the information needed for applicable IRP and IFTA registrations and filings.
When do you file quarterly IFTA tax returns?
IFTA licensees generally file a quarterly IFTA fuel tax return with their base jurisdiction. The standard reporting periods are:
The applicable filing deadline and reporting requirements are determined by the IFTA jurisdiction where the carrier is based. Carriers should follow the instructions and deadlines provided by their base jurisdiction.
IFTA returns generally require information about qualifying fuel purchases and miles traveled in each IFTA jurisdiction. Keeping accurate mileage and fuel records throughout the quarter can make preparing the return easier.
Royal Trucker Taxes provides IFTA tax filing assistance for owner operators and trucking companies. We can help organize the mileage and fuel information needed for the applicable quarterly filing.
What is Form 2290 (Heavy Highway Vehicle Use Tax)?
Form 2290, Heavy Highway Vehicle Use Tax Return, is used to report and pay the federal heavy highway vehicle use tax for taxable highway motor vehicles with a taxable gross weight of 55,000 pounds or more. The vehicle generally must be registered, or required to be registered, in the taxpayer's name at the time of first use during the tax period.
The current Form 2290 tax period runs from July 1, 2026, through June 30, 2027. The filing deadline is based on the month the taxable vehicle is first used on a public highway during the tax period. Generally, the return is due by the last day of the following month. If the due date falls on a Saturday, Sunday or legal holiday, the next business day applies.
Royal Trucker Taxes provides Form 2290 filing assistance for truckers and trucking companies. We can help organize the information needed for the applicable filing and help you understand the filing requirements for your situation.
What is a SCAC Code?
SCAC stands for Standard Carrier Alpha Code.
A SCAC is a unique identification code used by transportation companies in electronic communications, shipping documents and other transportation-related systems.
SCAC codes are commonly used by motor carriers, freight carriers and other transportation companies when working with shippers, brokers, government agencies and transportation systems.
Not every trucking company is required to have a SCAC code. Whether you need one depends on your customers, freight, transportation systems and business relationships.
SCAC codes are administered by the National Motor Freight Traffic Association (NMFTA).
If a shipper, broker or customer requires your trucking company to have a SCAC code, Royal Trucker Taxes can help you understand the business and registration requirements involved.