Due to the current health crisis, taxpayers who filed a paper Form 2290 to report and pay the highway use tax for the taxable period July 1, 2020, through June 30, 2021, can expect a significant delay in receiving their IRS-stamped Form 2290 Schedule 1 receipt. This communication summarizes alternative documentation that meets the proof of payment requirement in the Treasury Regulations and, accordingly, the requirement of 23 U.S.C. § 141(c) that State Departments of Motor Vehicles (DMVs) secure proof of payment of the highway use tax in order to avoid a potential reduction in Federal-aid highway funds apportioned under 23 U.S.C. 104(b). The acceptable forms of alternative documentation are described below and in Treasury Regulation § 41.6001-2.
Certain taxpayers must file Form 2290 and Schedule 1 for the tax period beginning on July 1, 2020, and ending on June 30, 2021, if a taxable highway motor vehicle is registered, or required to be registered, in the taxpayer’s name under state or District of Columbia law at the time of its first use during the tax period and the vehicle has a taxable gross weight of 55,000 pounds or more. This generally includes large trucks, truck tractors and buses. Vans, pickup trucks, panel trucks, and similar trucks generally aren’t subject to this tax. The tax is based on the taxable gross weight of the vehicle. See the Instructions for Form 2290 for additional information on the highway use tax. Note that this communication does not address vehicles registered or required to be registered under Canadian or Mexican law, to which different rules apply.
Upon processing a taxpayer’s Form 2290 and highway use tax payment, the IRS stamps the Form 2290 Schedule 1 and returns the Schedule 1 to the taxpayer, as proof that the taxpayer paid the tax with respect to the vehicle or vehicles listed on the stamped Schedule 1. A taxpayer then presents the Schedule 1 as proof of payment of the tax when registering the vehicle(s) with a state’s DMV. Such proof of payment is required in order to register vehicles the use of which is subject to the tax.
Generally, taxpayers must file Form 2290 and pay the tax by August 31, 2020, for vehicles used on the road during July 2020.
Depending on a taxpayer’s circumstances, a taxpayer may have one or more alternatives available if they have not received their current year IRS-stamped Schedule 1 when they seek to register a highway motor vehicle subject to the tax.
• If a state receives an application for registration for a highway motor vehicle during the months of July, August or September, a state may accept from the taxpayer, as proof of payment for the current taxable period, the stamped Schedule 1 that was originally provided by IRS as proof of taxpayer’s payment of tax for the immediately preceding taxable period. The preceding period’s Schedule 1, however, must include the VIN number of the vehicle that the taxpayer seeks to register in the current period.
Taxpayers must still file Form 2290 for the current period by the due date of the return. See Excise Tax on Use of Certain Highway Motor Vehicles Treasury Regulation § 41.6001-2(b)(4).
• A state must accept as proof of payment a photocopy of the Form 2290 (with the Schedule 1 attached) that was filed with the IRS for the vehicle being registered, along with sufficient documentation that the taxpayer paid the tax due at the time the Form 2290 was filed. For example, this documentation may consist of (i) if a taxpayer has paid by paper check, a photocopy of both sides of a cancelled check; (ii) if a taxpayer has paid using the Electronic Federal Tax Payment System, a copy of the acknowledgment of payment; or (iii) if the taxpayer has paid using an Electronic Funds Withdrawal, a copy of the taxpayer’s monthly bank statement indicating “IRS USA Tax Payment,” “IRS USA Tax Pymt,” or similar language.
This substitute proof of payment may be used to register a vehicle when, for example, the receipted Schedule 1 has been lost, or when at the time required for registration of a vehicle, a stamped Schedule 1 has not been received by a taxpayer who has filed a Form 2290 with respect to such vehicle. See Treasury Regulation § 41.6001-2(c)(2)
• A state may register a highway motor vehicle without proof of payment of the tax if the taxpayer registering the vehicle presents the original or a photocopy of a bill of sale (or other document evidencing transfer) indicating that the vehicle was purchased by the owner either as a new or used vehicle during the preceding 60 days before the date that the state receives the application for registration of the vehicle. However, taxpayers must file Form 2290 and submit any tax due (if applicable) by the due date. See Treasury Regulation § 41.6001-2(b)(1).
IRS e-file for convenience, fast Schedule 1
The IRS encourages all owners to take advantage of the speed and convenience of efile and paying any tax due electronically. Some taxpayers have the option of filing Form 2290 on paper, but for those with 25 or more taxed vehicles they must e-file Form 2290.
There is no need to visit an IRS office because the form can be e-filed, and any required tax payment can be made online. Visit IRS.gov for a list of IRS-approved e-file providers and to find an approved provider for Form 2290 on the 2290 e-file partner’s page.
For more information about the highway use tax, visit the Trucking Tax Center at IRS.gov/trucker.
The U.S. Tire Manufacturers Association (USTMA) has kicked off its annual tire safety awareness campaign.
National Tire Safety Week will run from Aug. 31 through Sept. 6. The event was originally due to be held in late May, but was postponed due to Covid-19.
The association said the overarching message of the campaign is “Check your tires”, and it applies to all drivers, including truckers.
“National Tire Safety Week is an initiative that educates drivers about the critical role they play in maintaining tire safety, and ensures they have the information they need to successfully prioritize safety on the road,” said Anne Forristall Luke, president and CEO of USTMA.
A number of member companies, including Bridgestone, Continental Tire, Cooper Tire, Michelin, Pirelli Tire and Yokohama Tire, have developed their own initiatives focused on the safety campaign.
As the week begins, consider the following tips that apply where the rubber literally meets the road.
Tire tips for commercial vehicles
Goodyear experts point out maintaining proper inflation pressure is the “single most effective practice that a fleet or driver can employ to impact tire wear, casing life and overall performance.”
But accurate readings rely on the use of a calibrated air gauge. Also, be sure to measure the inflation pressures when the tires are cold, before a trip begins.
Highway speed limits are increasing in many parts of the U.S., but your truck tires may not be rated to travel at those speeds. Remember to abide by the tire’s maximum recommended speed.
A comprehensive tire management program will track inflation, tread depths, and wear patterns alike. Consider establishing a tire manual as well, identifying key information about recap spec’s and when tires should be pulled.
Every pre-trip inspection will involve the search for under-inflated or damaged tires. Keep an eye out for cuts, cracks, blisters, bulges and other issues, including unusual wear patterns such as cupping and feathering.
A regular alignment schedule can help prevent irregular tire wear. Supplementing a traditional front-end alignment with a drive axle alignment can also help to boost fuel economy.
Dual assemblies that include tires with diameters that differ by little more than one-quarter of an inch can lead to unwanted scrubbing patterns on the smaller of the two tires, because it won’t maintain constant contact with the road.
When choosing tires for an assembly, consider the tire size, load-carrying capacity, and type of service the tires are designed for.
Today is the start of Brake Safety Week, which is Aug. 23-29. Throughout the week, law enforcement personnel will conduct roadside safety inspections to identify commercial motor vehicles with brake violations. Vehicles discovered to have critical brake violations, or other critical vehicle inspection item conditions, as outlined in the North American Standard Out-of-Service Criteria, will be removed from roadways until those violations are corrected.
Inspectors will also pay special attention to brake hoses/tubing, which must be properly attached, undamaged, without leaks and provide adequate flexibility. Brake hoses/tubing are an essential component of the braking system. If they fail, braking capability may be seriously compromised.
Brake Safety Week is part of the Commercial Vehicle Safety Alliance's (CVSA) Operation Airbrake Program, a vehicle safety initiative focused on the inspection and identification of commercial motor vehicles with brake violations. Although inspection of a vehicle's brake system and its components is always part of the roadside inspection process, Brake Safety Week aims to highlight the importance of brake systems and proper brake maintenance, operation and performance.
During Brake Safety Week, inspectors will perform the same roadside inspections conducted on any other day of the year. However, in addition, inspectors will be collecting brake-related statistics, and at the conclusion of the week, that data will be submitted to CVSA for compilation and analysis. The results will be released later in the year and will include the out-of-service rates for the week, along with data on brake hoses/tubing. Gathering, analyzing and releasing such data helps jurisdictions appropriately allocate resources, and it reminds motor carriers of the importance of proactive vehicle maintenance. Last year, 13.5% of vehicles inspected during Brake Safety Week were removed from roadways for critical brake-related violations.
According to the Federal Motor Carrier Safety Administration’s (FMCSA) latest "Large Truck and Bus Crash Facts" report, of the recorded vehicle-related causes for fatal crashes in 2017, brake systems was cited as the third most frequent vehicle-related cause, after other vehicles and tires.
CVSA created Brake Safety Week to reduce the number of crashes involving commercial motor vehicles with brake system deficiencies by conducting roadside mechanical fitness inspections and removing commercial motor vehicles with dangerous brake conditions from our roadways. Brake Safety Week is supported by CVSA member jurisdictions, FMCSA and the Canadian Council of Motor Transport Administrators.
The Heavy-Duty Low NOx Omnibus Rule, which looks to set strict emissions criteria for new engines sold in the state starting in 2024, is under consideration by CARB. The Truck Dealers Alliance of California (TDAC) has been urging California Governor Gavin Newsom to direct the CARB to align with the U.S. Environmental Protection Agency (EPA) on a single nationwide Low-NOx truck engine standard for 2027. For California-based fleets, a California-only engine standard will result in higher equipment costs, which will place those fleets and their dealer partners at a competitive disadvantage when contending with fleets and dealerships based out of state. A single, national engine standard across the United States is the only way to ensure a consistent and level playing field for all equipment operators and vendors in California. Source: TDAC
American Trucking Associations’ Intermodal Motor Carriers Conference has filed a federal lawsuit against the Ocean Carrier Equipment Management Association and 10 international ocean carriers, alleging they colluded to manipulate the intermodal chassis market at dozens of ports across the country. The lawsuit seeks $1.8 billion in damages.
Read full article at https://www.ttnews.com/articles/imcc-sues-ocema-ocean-carriers-18-billion-chassis-dispute?utm_source=breaking%20news&utm_medium=email&utm_campaign=News-Story-August-2020&mkt_tok=eyJpIjoiWXpBMFlqQmtaakEzTm1ReiIsInQiOiIwOW93bU9yS3pXMXo5TDV5YlwvUVNVeXB2QUhMTFwvbWRkVTRlM3VuSk5HRnlOSzFBZDFvYTBcL1BLc0I4K1hScWVLbzY3c3Ewd1BTT3NNcm5yMEIxa0F2dXpQWFNxeW5jalhKbVQ4SDE5RVpGUTc3dk5FNHZybkFDU1ltNklrK1MzUSJ9
In March 2020, the Commercial Vehicle Safety Alliance (CVSA) announced the postponement of International Roadcheck due to the coronavirus pandemic, with new dates to be determined. CVSA has now rescheduled International Roadcheck for Sept. 9-11.
International Roadcheck is a 72-hour high-volume, high-visibility inspection and enforcement initiative when CVSA-certified inspectors in Canada, Mexico and the U.S. conduct commercial motor vehicle and driver inspections at weigh or inspection stations, at designated fixed locations or as part of roving mobile patrols. Over that three-day time frame, law enforcement personnel will inspect commercial motor vehicles for compliance with federal regulations and utilize the North American Standard Out-of-Service Criteria to identify critical inspection item violations.
Each year, International Roadcheck places special emphasis on a category of violations. This year’s focus is on the driver requirements component of a roadside inspection. According to the U.S. Federal Motor Carrier Safety Administration’s (FMCSA) data, of the approximately 3.36 million inspections conducted in 2019, 952,938 driver violations were discovered, of which 199,722 were out-of-service conditions.
“Although the coronavirus pandemic, understandably, shifted priorities and personnel during the spring, the commercial motor vehicle law enforcement community has reasserted its focus on the roadside inspection program and enforcement duties,” said CVSA President Sgt. John Samis with the Delaware State Police. “Jurisdictions are nearly back to their pre-pandemic capacity with a strengthened concentration on identifying and removing unfit vehicles and drivers from our roadways using federal safety standards and the out-of-service criteria.”
In the U.S., commercial motor vehicle inspections are conducted to check for vehicle and driver compliance with the Federal Motor Carrier Safety Regulations, a compendium of rules and regulations applicable to the motor carrier industry. In Canada, inspectors use a combination of the National Safety Code and various provincial/territorial regulations to verify commercial motor vehicle and driver safety compliance. And in Mexico, Normas Oficiales Mexicanas are the commercial motor vehicle regulations and standards established by the Mexican government.
During International Roadcheck, CVSA-certified inspectors primarily conduct the North American Standard Level I Inspection, a 37-step procedure that includes two main inspection categories: an examination of driver operating requirements and vehicle mechanical fitness. A third category, hazardous materials/dangerous goods, may also be part of a Level I Inspection. Depending on weather conditions, available resources or personnel, or other factors, inspectors may opt to conduct the Level II Walk-Around Driver/Vehicle Inspection, Level III Driver/Credential/Administrative Inspection or Level V Vehicle-Only Inspection. Roadside inspectors will conduct vehicle and driver inspections following their department’s health and safety protocols and procedures in consideration of the challenges associated with the pandemic.
For the driver portion of an inspection, the inspector will collect and verify the driver’s documents, identify the motor carrier, examine the driver’s license, check record of duty status and review periodic inspection report(s). If applicable, the inspector will check the Medical Examiner’s Certificate, Skill Performance Evaluation Certificate and the driver’s daily vehicle inspection report. Inspectors will also check drivers for seat belt usage, illness, fatigue, and apparent alcohol or drug possession or impairment.
Drivers found to be operating without the proper driver credentials; in possession of or under the influence of drugs or alcohol; operating while ill, fatigued or showing other signs of impairment; or in violation of hours-of-service rules may be placed out of service.
The vehicle portion of an inspection includes checking critical vehicle inspection items such as: brake systems, cargo securement, coupling devices, driveline/driveshaft components, driver’s seat (missing), exhaust systems, frames, fuel systems, lighting devices, steering mechanisms, suspensions, tires, van and open-top trailer bodies, wheels, rims and hubs, and windshield wipers. Additional items for buses, motorcoaches, passenger vans or other passenger-carrying vehicles include emergency exits, electrical cables and systems in engine and battery compartments, and temporary and aisle seating.
If an inspector identifies critical inspection item violations that meet the North American Standard Out-of-Service Criteria during a vehicle inspection, the inspector will render the vehicle out of service, which means that vehicle will be restricted from traveling until those violations are corrected.
International Roadcheck is a CVSA program with participation by FMCSA, the Canadian Council of Motor Transport Administrators, Transport Canada and the Secretaría de Comunicaciones y Transportes (Ministry of Communications and Transportation) of Mexico.
The New Jersey Motor Truck Association Golf Outing & Networking Event schedule for September 10 at Forsgate Country Club is filling up fast . Get your registration in today!
A special thank you so some of our sponsors
Major Tournament Sponsor - Safeway Trucking Corporation
Player Gift/Prize Sponsor - Atlantic Utility Trailer Sales, Inc.
Cocktail Party/Lunch Sponsor - Hall's Fast Motor Freight
Cigar Roller Sponsorship - National Retails Systems, Inc.
Mega Door Prize Sponsorship - NFI
Breakfast/Beverage Cart Sponsor - Hermann Transportation Services
Golf Cart Sponsor - Bergey's Truck Centers
Halfway House Sponsors - Strick Trailers & Campbell Freightliner & FedEx
Cup Sponsor - Mack Trucks, Inc.
Putting Green Sponsor - Edge Consulting
Email firstname.lastname@example.org if you have any questions.
Driver Knowledge Testing Restarts August 3
MVC Licensing Centers to Offer Testing by Appointment Only
The New Jersey Motor Vehicle Commission announced today that driver knowledge exams, also known as “written” driver tests, will be available to all drivers, including commercial drivers, by appointment starting August 3. All Licensing Centers except Oakland and Flemington will offer the tests.
Appointments can be made up to thirty days in advance, at https://mymvc.state.nj.us/apps/schedule-knowledge-test-appointment.html. Customers are cautioned that demand will be high, so it may take time to secure an appointment.
Road tests, which re-started June 29, continue on a by-appointment basis. More information about road tests is available at the MVC website.
For more MVC news and updates, customers should visit NJMVC.gov.
On July 8, 3:30-4:30 p.m. EDT, FMCSA will host a webinar to answer questions about the new HOS final rule. We encourage attendees to watch the recorded HOS presentation, and then submit questions here.
Register for the question and answer webinar.
FMCSA's new hours-of-service rule--which provides greater flexibility for commercial drivers--goes into effect on September 29, 2020. You can learn more about the new rule here: https://www.fmcsa.dot.gov/HOSFinalRule
The Commercial Vehicle Safety Alliance’s (CVSA) 2020 Operation Safe Driver Week will go on as scheduled, July 12-18. During this week-long traffic enforcement safety initiative, law enforcement personnel throughout North America will be looking for drivers who are engaging in unsafe driving behaviors on our roadways. Identified drivers will be pulled over by law enforcement and may be issued a warning or citation.
According to the Governors Highway Safety Association, less traffic may be encouraging some drivers to ignore traffic safety laws, including speed limits. Despite there being far fewer vehicles on the road due to COVID-19 stay-at-home orders, many jurisdictions are seeing a severe spike in speeding.
As the number of vehicles on roadways decreased in March and April, average speeds measured during the first week of April increased significantly in the five largest U.S. metropolitan areas. According to recent data, the average speed on interstate highways, state highways and expressways in those areas increased by as much as 75% compared to January and February.
To address this alarming trend of increased speeding on our roadways during the pandemic, CVSA selected speeding as the focus area for this year’s Operation Safe Driver Week.
“It’s essential that this enforcement initiative, which focuses on identifying and deterring unsafe driving behaviors, such as speeding, go on as scheduled,” said CVSA President Sgt. John Samis with the Delaware State Police. “As passenger vehicle drivers are limiting their travel to necessary trips and many commercial motor vehicle drivers are busy transporting vital goods to stores, it’s more important than ever to monitor our roadways for safe transport.”
Historically, drivers’ actions have contributed to 94% of all traffic crashes, according to the National Highway Traffic Safety Administration’s (NHTSA) Traffic Safety Facts report. And although NHTSA’s 2018 highway crash fatality data showed a 2.4% decline in overall fatalities, the number of fatal crashes involving large trucks increased by 0.9%.
“While, of course, we’re pleased to see a decrease in the overall number of fatalities, it was also devastating to learn that the number of fatalities involving large trucks increased. Any increase whatsoever in roadway fatalities is unacceptable,” said Sgt. Samis.
Data shows that traffic enforcement interactions between drivers and law enforcement reduces targeted problematic behaviors. CVSA’s Operation Safe Driver Week aims to reduce high-risk driving behaviors through traffic enforcement strategies.
In addition to a focus on speeding, examples of other dangerous driver behaviors that law enforcement will track during Operation Safe Driver Week include distracted driving, failure to use a seatbelt, following too closely, improper lane change, reckless or aggressive driving, failure to obey traffic control devices, evidence of drunk or drugged driving, etc.
To find out about Operation Safe Driver Week enforcement events going on in your area, contact the agency or department responsible for overseeing commercial motor vehicle safety within your jurisdiction.
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