Trucking Compliance

MC Number (Motor Carrier Number)

A freight carrier (private or for-hire) is a business that transports various types of goods using commercial trucks. To legally operate in the United States, trucking companies must obtain the appropriate federal operating authority and comply with regulatory requirements.

There are multiple types of operating authorities; however, approximately 80% of carriers apply for one of the following two MC authorities:

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1. Motor Common Carrier of Property

(Excluding Household Goods)

This type of carrier:

• offers transportation services to the general public,
• hauls freight for multiple customers,
• operates under standard, publicly available terms.

Insurance requirements:

• mandatory public liability insurance,
• mandatory cargo insurance to cover transported goods.

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2. Motor Contract Carrier of Property

(Excluding Household Goods)

This type of carrier:

• provides transportation services under contract,
• serves specific customers based on negotiated agreements,
• does not offer services to the general public.

Insurance requirements:

cargo insurance is not federally required, though it is often required by shippers or brokers.

mandatory public liability insurance,

IFTA – International Fuel Tax Agreement

License and Decals

IFTA is an agreement among the 48 contiguous U.S. states and Canadian provinces designed to simplify fuel tax reporting for motor carriers that operate in more than one jurisdiction.

A carrier registered under IFTA receives:

• an IFTA license,
• a set of IFTA decals displayed on qualified vehicles, and
• the obligation to file a quarterly fuel tax report.

The quarterly IFTA report calculates either:

• net fuel tax owed, or
• a fuel tax refund due to the carrier.

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Our IFTA Services

We assist carriers with the preparation and filing of IFTA fuel tax reports, ensuring accuracy and compliance with state and provincial regulations.

Pricing:

• Average cost: $40 per report
• Reduced pricing available — as low as $30 for carriers operating in fewer than 6 states

Please refer to our pricing list for full details.

Obtaining License Plates (IRP Registration)

The International Registration Plan (IRP) is a cooperative agreement among the United States, the District of Columbia, and Canadian provinces. It provides for the distribution of registration fees based on the total distance traveled in all participating jurisdictions.

The primary goal of the IRP is to promote and encourage the most efficient use of the highway system by commercial motor carriers.

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Who Needs IRP Plates

If you operate a commercial vehicle in interstate commerce, you will most likely be required to obtain IRP apportioned plates.

We are licensed by the Illinois Secretary of State to issue 45-Day Temporary Apportionment Authorization Permits in the State of Illinois.

Please contact us if you have questions about state-specific requirements, as the required information and documentation may vary slightly from state to state.

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First-Time Truck Registration in Illinois – Required Documents

To register a truck in Illinois for the first time under IRP, the following documents are required:

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1. Driver’s License

• A copy of a valid Illinois driver’s license with a current address
• If you employ one or more drivers, copies of their driver’s licenses are also required

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2. Proof of Illinois Address

You must provide the most recent copies of four (4) selected documents to verify your residential or business address in Illinois. Acceptable documents include:

• Phone bill (required)
• Lease agreement or mortgage statement
• Property tax bill or assessment
• Insurance certificate (auto, life, health, etc.)
• Utility bills (gas, electric, water)
• Business or organizational formation documents
• Financing agreement for a personal or commercial vehicle
• Copy of last year’s Illinois tax return (personal or business)

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3. Proof of Ownership

Documents must include the vehicle make, year, Vehicle Identification Number (VIN), and owner information. Acceptable documents include:

• Copy of the title issued in your name
• Copy of both sides of the assigned title
• Copy of Illinois ST-556 tax form (for purchases from an Illinois dealer)
• Dealer bill of sale showing the dealer’s license number
  (in some cases, an additional state tax form may be required)

⚠️ Bills of sale between private parties are no longer accepted.

Transportation Taxes

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Heavy Vehicle Highway Use Tax (HVUT) – Form 2290

This federal tax must be filed annually by August 31 and applies to commercial vehicles weighing more than 55,000 pounds that travel over 5,000 miles per year.

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New Mexico Weight Distance Tax (WDT)

Registrants, owners, and operators of most motor vehicles with a declared gross weight or combined vehicle weight exceeding 26,000 pounds that operate on New Mexico highways are subject to a weight-distance tax.

• The tax is based on vehicle weight and miles traveled
• Quarterly filings are required

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International Fuel Tax Agreement (IFTA)

Owners of:

• 3-axle trucks, or
• vehicles weighing more than 26,000 pounds

are required to obtain an IFTA license and file quarterly fuel tax reports by:

• January 31
• April 30
• July 31
• October 31

Carriers must also maintain accurate mileage and fuel records for audit purposes.

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Kentucky Weight Distance Tax (KYU WDT)

This license is required for vehicles with a registered gross weight of 60,000 pounds or more that travel in or through the state of Kentucky.

• Tax filings are due quarterly
• The tax is based on miles traveled

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New York State Highway Use Tax (NYS HUT)

A Highway Use Tax (HUT) permit is required for any truck with a gross weight exceeding 18,000 pounds operating on New York State public highways.

• The tax is based on distance traveled
• Quarterly payments are required

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Unified Carrier Registration (UCR)

The UCR program is a mandatory annual registration for:

• motor carriers,
• freight forwarders,
• brokers, and
• passenger carriers.
• Fees are paid once per year, before the end of the calendar year
• Fees are based on the number of qualifying motor vehicles

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Kansas Motor Carrier Property Tax Rendition

This tax ensures compliance with Kansas regulations requiring the valuation and taxation of motor vehicles and rolling stock owned or operated by motor carriers doing business in Kansas.

• Required returns must be filed by May 15

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Arkansas Annual Carrier Report

All motor carriers and bus lines operating in or through the State of Arkansas are subject to assessment by the Arkansas Department of Finance and Administration.

Annual reporting deadline: March 31