In today’s driver-friendly market, it’s a great time to be an owner-operator in the trucking industry. And when it comes to work arrangements: you have options. On the one hand, you can stay independent, searching the open market for opportunities and scheduling your own freight. On the other hand, if you want a bit more support, you can serve as an owner operator leased to company carriers and receive access to that company’s freight.
Being leased to a company can be convenient practically, but it can be confusing from an administration perspective. Typically, as an owner operator, you are your own boss, but when you lease onto a carrier, you relinquish a bit of that autonomy; you’re not technically an employee of the company, but you’re not really your own boss either since you are now subject to the carrier’s guidelines, restrictions, and mandates.
A major question that you need to answer is: What is your responsibility in this arrangement as an owner operator leased to a company? While i2290.com can’t help you with your day-to-day job responsibilities, we can at least assist administratively, helping you understand your responsibilities for filing IRS Form 2290. Whether you’re a new or experienced owner-operator, this guide should help you navigate the Form 2290 requirements more confidently.
Truckers must file Form 2290 to pay the Heavy Vehicle Use Tax (HVUT) annually; these funds are used for maintaining and improving the roadways and infrastructure most impacted by heavy vehicle traffic. Who is responsible for filing?
Companies who have a fleet of trucks file for all the trucks they own. Individual owner operators must file for their own trucks. However, it’s not always straightforward. An owner operator leased to company, one working under a leasing agreement, is in a bit of a gray area. Who is responsible for the Form 2290 in this scenario?
To know who is responsible for the HVUT in the case of an owner operator leased to company, we need to step back and look at leasing agreements. Owner-operator leasing agreements are contracts between an owner-operator (a self-employed truck driver who owns—or is in the process of obtaining ownership of—their own vehicle) and a carrier company.
These agreements outline the terms under which the owner-operator will provide transportation services to the carrier, often defining who holds responsibility for operational costs, tax obligations, and compliance requirements. Providing a structured framework for mitigating misunderstandings, the lease agreement is the driving document that defines expectations for (and protects) both parties when there’s an owner operator leased to company.
A hammer works great when the hardware is a nail. However, a hammer doesn’t work so well on a screw. In fact, not just any screwdriver will do; it’s more nuanced due to the different types of heads: flathead, Phillips head, or even star drive (or Torx). In the same way that different tools are required for different projects, there are different types of lease agreements, all of which have their place and purpose, depending on the situation.
This agreement is similar to a lease-to-own arrangement. It can be ideal for owner operators who are just getting started, this agreement allows the driver to pay a set monthly fee to the carrier to lease their truck with the option to buy the vehicle at the end of the term.
This agreement is essentially the inverse of a lease-purchase agreement. Rather than the driver leasing the truck from the carrier, the owner operator leases the truck to the carrier. The trucking company typically handles administrative duties, such as paperwork, fuel tax filings, and finding freight opportunities. This is optimal for owner operators who already own their trucks and prefer not to manage operational logistics.
This agreement outlines the tasks the contractor (driver) must fulfill and specifies the payment terms. The contractor usually provides their own equipment, retaining full ownership and responsibility.
An advantageous agreement for those who prefer not to manage the upkeep of the vehicle, a full-service lease agreement includes maintenance and other services. The carrier typically retains significant control over the vehicle.
These are short-term lease agreements for single trips or for predetermined time periods, which work well for companies who have a need for extra capacity in intervals. This allows them to avoid hiring new drivers during the busy seasons.
Along with outlining the calculation method, deductions, and shared costs, a percentage lease sets the percentage of revenue that the owner operator will earn from each load they transport. A mileage-based agreement calculates the monthly rental payment based on the number of miles the owner operator drives.
When it comes down to it, the question is really: who owns the truck? That’s who has the tax responsibility. Let’s review the types of lease agreements listed above and identify who is usually responsible for the HVUT tax obligations.
As an owner-operator, your contract is critical. Some companies may cover taxes in specific lease-purchase or lease-on agreements, but these terms should be explicitly stated. When in doubt, consult a tax expert or legal advisor to clarify your obligations.
If you are in a situation as an owner operator leased to company and you’re not sure if you are responsible for paying the HVUT, it’s important to sort this out sooner rather than later. If you miss the filing deadline or fail to pay the HVUT tax when due, you will be liable for any penalties. Once you determine that you are responsible for paying the HVUT, the good news is that i2290.com makes it easy to fulfill your tax obligations.
Streamline your filing with i2290, where you can enjoy the convenience of e-filing your return from anywhere with internet access, saving time and money. Reap the additional benefits of easily accessible digitally maintained records for seven years, filing VIN corrections and weight increase amendments for free, as well as our world-class customer support team who are always happy to help.
Our software will guide you through a short series of questions about you and your vehicle(s), then automatically calculate your taxes for you—it’s as simple as that. Then for a small fee, you can go ahead and pay the HVUT and receive your stamped Schedule 1 in a matter of minutes!
Ready for a simpler Form 2290 e-filing process? Create an account with i2290 today!
Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re properly filing and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.
We're confident that your experience with INSTANT 2290 will be the best Form 2290 e-filing you've ever had. If for any reason you are not satisfied, just contact support for a full refund. No questions. No conditions. Create your account to get started!
