IFTA and IRP?

My driver just got his CDL so i now need to do IRP and IFTA.

My company:

• is registered in DE using a registered agent
• I work out of NY in an office in my mothers house
• The truck/trailer is registered in NY to my mothers house

Questions:

• Because my company is registered in DE, do i have to register IRP and IFTA in DE?
• Is the right place to register for IRP and IFTA in DE State of Delaware - IAM Self Registration ? The reason i ask is because i registered for the website and when it talks about IFTA and IRP it doesnt mention registering for a first time. it only mentions renewing stuff. it says:
  • "This system was designed for our motor carriers to file their tax returns, re-print their IFTA license, order additional IFTA decals, and renew their IFTA accounts. Motor Carriers can also renew their IRP registration, add jurisdictions, print duplicate cab cards, and order duplicate plates and expiration decals."
• Can i do IFTA / IRP in DE even though i dont have a physical address there? I only have the registered agents address who forwards mail.
• Does the IRP plate replace my trailer plate? or is it in addition to?

thank you

 

IFTA needs to be based in the state that your trucks are registered in, you have operations in (miles driven) and your operational records are housed in. It does not have to be where you are registered as a corporation, it must be where your physical terminal is. With your description it sounds like NY is where your IFTA Account will be based, and since your truck is already registered there your IRP base plate will be NY as well.

As for the trailer, no it will not be an apportioned plate, your NY trailer plate is acceptable. The IRP plate replaces your truck plate, you will need to redo the truck registration when you set up an IRP account.

Log onto your OSCAR account with NY Department of Taxation (you should have one for your NY HUT) at the link below. This is where you will apply for your IFTA account, decals and convert your NY commercial truck plate into an apportioned (IRP) plate.
https://www.oscar.ny.gov/OSCR/OSCRCarrierHome

 

I have a ? When you got insurance was it in Delaware or NY? I wanted to start a LLC in another state but didn't know if the company was registered in a different state where I'm licensed and the vehicle was registered would I will be able to get commercial insurance.

 

the thing with IRP in NY according to their requirements it says on number 9 on the screenshot below "Proof of incorporation - NYS Department of state filing receipt". im assuming this means the business would have to be registered in NY to qualify? On the Delaware website i dont see a nice list of requirements like NY.

Screenshot

my insurance is based out of NY. our agent priced out my home office in NY as well as my partners in NJ. NY ended up being less expensive so we went with it.

 

Regardless of where your corporation is registered, you are a New York based business. This is why I hate the companies that sell incorporation packages and suggest Delaware because of liability or tax purposes, most don't give you the whole story. When you have a physical presence in a state, such as you do in NY, that state has the right to require you to register your Delaware based corporation with them as well. This is so they can collect their share of taxes on revenues generated by NY businesses, make sure you have proper workers compensation and unemployment insurances as well as other legal requirements.

That said, since your physical presence is within New York, you need to apply for authority to do business in NY from the NY Department of State. See the link below for more information.
Foreign corporations authorized to do business in New York State

Future lesson, until you have gross revenues in excess of several million dollars or other major assets to protect, it is not worth the hassle to incorporate. It creates layers of complexity that is unnecessary including corporate tax and payroll tax liability. By the way, since you are incorporated I hope you have filed and paid you New Jersey transportation taxes. They take a percentage of all revenue generated by trucking companies that are incorporated for any travel into, out of or through their state. They use IFTA and IRP mileage reports to audit against tax returns to determine how much is owed. Once they see IFTA/IRP miles they will likely look at the last year you were operating under the radar for taxes due.
NJ Division of Taxation - Corporation Business Tax Overview
https://www.state.nj.us/treasury/taxation/pdf/TruckingCompanyNexus.pdf

 

awesome info thanks. does it matter that im a LLC and not incorporated? we set up a LLC using a registered agent in Delaware.

 

Depends. If your LLC elected to be taxed as a corporation, no, all the same rules apply as if you were a true corporation. If your LLC elected to be taxed as a partnership or a disregarded entity then yes, it matters, as you are not concidered a corporation, however either way, New York is going to want you to register with the Department of State for your IFTA/IRP accounts.

As for New Jersey, if you are not taxed as an S or C corporation the transportation tax does not apply to your operation.

 

There usually be a 'check list' to determine your base state which you will apply for IRP & IFTA. Texas requires 3 things: physical business location in Texas, truck title in Texas, LLC filing in Texas...

It seems like your base state is NY, see if you can find a 'check list' for NY and apply there.

 

yeah the requirements list i posted up above. its Screenshot . number 9 is what tripped me up, but brian is saying i can register with NY as a DE company. Im going to call them tomorrow morning to figure it out.

 

Look like NY wants $225 from you.

+++++++++++++++++++++++++++++++++++++++++

Applying for Authority

Foreign corporations that have never done business in New York State must give DOS:

• an Application for Authority, and
• a $225 filing fee.