Frequently Asked Questions

Employer Identification Number (EIN) – is a nine-digit number that IRS assigns in the following format: XX-XXXXXXX. It is used to identify the tax accounts of employers and certain others who have no employees. However, for employee plans, an alpha (for example, P) or the plan number (e.g., 003) may follow the EIN. The IRS uses the number to identify taxpayers that are required to file various business tax returns. EINs are used by employers, sole proprietors, corporations, partnerships, non-profit associations, trusts, estates of decedents, government agencies, certain individuals, and other business entities. Use your EIN on all of the items that you send to the IRS and the Social Security Administration (SSA). The Employer Identification Number, also known as the Federal Employer Identification Number or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number. When used for the purposes of reporting employment taxes, it is usually referred to as an EIN. These numbers are used for tax administration and must not be used for any other purpose. For example, an EIN should not be used in tax lien auction or sales, lotteries, or for any other purposes not related to tax administration

Commercial Driver’s License (CDL)- A commercial driver’s license (CDL) is a driver’s license required to operate large, heavy, or placarded hazardous material vehicles for commercial purposes in the US. The driver may also be required to obtain one or more special endorsements, such as Air Brakes, Hazardous Materials (Hazmat), Tankers, or Passenger Vehicles, to drive a vehicle equipped with air brakes, full time air brakes, a truck carrying hazardous materials, or a passenger vehicle respectively. It takes special skills, training, and aptitude to safely operate large vehicles. On February 7, 2022, the Department of Motor Vehicles (DMV) implemented federal Entry Level Driver Training (ELDT) requirements for commercial driver’s license (CDL) applicants. ELDT must be conducted by a registered training provider listed on the federal Training Provider Registry (TPR) for DMV in California. In addition to the federal requirements, when applying for an original CDL (Class A or B) in California, the applicant must complete a minimum of 15 hours of behind-the-wheel training and submit a California Commercial Driver Behind The Wheel Training Certification (DL 1236) to the DMV as proof of completion prior to the issuance of their CDL

According to FMCSA, The USDOT Number serves as a unique identifier when collecting and monitoring a company’s safety information acquired during audits, compliance reviews, crash investigations, and inspections.

Does a Mexico-domiciled motor carrier need a US DOT number and/or operating authority if they are crossing the U.S. border in a pick-up truck (small van, car or tow truck etc.) for an occasional trip to deliver goods and only traveling one or two miles into the United States? Yes. If the vehicle is transporting freight in commerce from Mexico to the U.S., every Mexico-domiciled motor carrier that enters the U.S. must have a US DOT number, FMCSA-assigned MX number, a valid FMCSA Certificate of Registration for commercial-zone operations, or long-haul Provisional or Standard Operating Authority Registration, regardless of the size/type of vehicle, distance traveled into the U.S. or frequency of trips. Regardless of the type of authority the carrier obtains, no Mexico-domiciled carrier may make conduct point-to-point operations within the U.S.

In general, companies that do the following are required to have interstate Operating Authority (MC number) in addition to a DOT number: Operate as for-hire carriers (for a fee or other compensation) Transport passengers in interstate commerce Transport federally-regulated commodities or arranging for their transport, in interstate commerce

International Fuel Tax Agreement – IFTA provides a uniform administration of motor fuel tax collection and laws on apportioned vehicles that travel in one or more of the member jurisdiction. You qualify for an IFTA license if you operate your qualified motor vehicle in California and any other U.S. state or Canadian province that is a member of the International Fuel Tax Agreement. IFTA offers several advantages to interstate motor carriers who operate in two or more member states or provinces. Under IFTA, you will choose one IFTA-member state or province as a “base jurisdiction”. Obtain a single fuel tax license for all of your qualified motor vehicles, authorizing them to travel in all IFTA jurisdictions; file only one tax return each quarter with your base jurisdiction and be reporting to all your IFTA member states and provinces. The filing for a period is considered to be filed timely if the tax form and any applicable payment are received by the CDTFA on or before the due date. If either is received after the due date, the filing is considered late Tax Returns that are not submitted by their respective due dates will be charged a late penalty of percentages and/or dollar amounts of the total tax return.

New Mexico imposes a weight-distance tax on owners, operators, and registrants of intra and interstate commercial vehicles with a declared gross vehicle weight in excess of 26,000 pounds. This tax is based on vehicle weight and miles traveled on New Mexico roads. Companies must register and apply each year for a New Mexico Weight Distance Tax Electronic Permit for each vehicle.

New York State imposes a highway use tax (HUT) on motor carriers operating certain motor vehicles on New York State public highways (excluding toll-paid portions of the New York State Thruway). The tax is based on mileage traveled on NYS public highways and is computed at a rate determined by the weight of the motor vehicle and the method that you choose to report the tax

A Federal Mandated Program enforced by participating states. UCR (Unified Carrier Registration) – any motor carrier that operates in interstate or international commerce is subject to the UCRA (Unified Carrier Registration Agreement) fees. This includes: Motor Carriers, Motor Private Carriers, Leasing Companies, Brokers, and Freight Forwarders. Unified Carrier Registration (UCR) – This is for everyone with an active USDOT# marked for interstate. UCR is biased on the USDOT# being active or not. Not if you have used it

Required for interstate carriers who operate through two or more of the member jurisdictions with a gross weight exceeding 26,000 lbs. or vehicles with 3 or more axles regardless of weight. Vehicles operating intrastate in any member jurisdiction would either have to IRP Apportion Register or purchase a Trip The International Registration Plan (IRP) is a program for licensing commercial vehicles in interstate operations among member jurisdictions. All of North America is included in the IRP, except for Alaska, Hawaii, Mexico and the Canadian provinces of Northwest Territories and Yukon. The International Registration Plan (IRP) is a registration agreement amongst the U.S 48 contiguous states, District of Columbia, and 10 of the Canadian provinces. The unique feature of the IRP is that it lets each registered carrier obtain one plate and registration cab card to travel in multiple states at specific weights. NOTE: Vehicles operating Intrastate only, do not qualify for Apportioned Registration under the IRP

The Federal Motor Carrier Safety Administration (FMCSA) under authority of the Motor Carrier Act of 1935, the Motor Carrier Safety Act of 1984, the Truck and Bus Safety and Regulatory Reform Act of 1988, the Hazardous Materials Transportation Authorization Act of 1994, and the Commercial Motor Vehicle Safety Enhancement Act of 2012 (part of Moving Ahead for Progress in the 21st Century (MAP-21)) is publishing a rule that requires use of electronic logging devices (ELDs)1 for recording hours-of-service (HOS) information. Under this rule, commercial motor vehicles (CMVs) operated in interstate commerce, by drivers required to maintain records of duty status (RODS), must be equipped with ELDs.2 The information associated with the ELD records would include personally identifiable information (PII). This Privacy Impact Assessment (PIA) is necessary to provide information regarding the program, the necessity to collect PII, and the fulfillment of specific privacy requirements in MAP-21.

Electronic Logging Devices (ELDs) is a piece of electronic hardware device (hardware) attached to the CMV (commercial motor vehicle) engine to record driving hours, or software for Iphone , ipad and andriod phones (software). The driving hours of commercial drivers are usually regulated by FMCSA. Electronic Logging Devices (ELDs) are used by drivers of commercial motor vehicles to record driving time and hours of services (HOS). ELDs can also collect data on the vehicle’s engine, movement and miles driven. It keeps drivers informed of driver status in real-time and to support them in their operations. One example is the Garmin Dezl OTR 700 Truck GPS for Andriod or the ELD One for Iphone. Most trucks have 9pin J1939 cable, 16 pin or OBDII OBD port, can attached to those like EZ-ELD device. However, there are exemptions to the rule: Motor carriers and drivers providing direct assistance in support of relief efforts related to the COVID-19 public health emergency are granted emergency relief from 49 CFR § 395.3, through October 15, 2022. On September 18, 2022, due to heavy rain, high winds, and storm surge resulting from Tropical Storm/Hurricane Fiona, the President of the United States issued an Emergency Declaration. In accordance with 49 CFR § 390.25, this Extension of the Emergency Declaration is effective immediately and shall remain in effect until the end of the emergency (as defined in 49 CFR § 390.5T) or until 11:59 P.M. (ET), November 17, 2022, whichever is earlier. Refer to FMCSA for other exemptions. Regional Emergency Declaration Under 49 CFR § 390.23 No. 2022-013. Such emergency is in response to product recall and unplanned closure of a key manufacturing facility of baby formula, an essential supply. On May 18, 2022, the President of the United States invoked the Defense Production Act to increase baby formula production and requiring suppliers to direct ingredients to baby formula manufacturers as a priority. This Emergency Declaration addresses nationwide emergency conditions creating a need for immediate transportation of baby formula, ingredients for the production of baby formula including but not limited to whey, casein, corn syrup and hydrolyzed protein, and containers and packaging for baby formula, and provides necessary relief.

“Hours of service” refers to the maximum amount of time drivers are permitted to be on duty including driving time, and specifies number and length of rest periods, to help ensure that drivers stay awake and alert. In general, all carriers and drivers operating commercial motor vehicles (CMVs) must comply with HOS regulations found in 49 CFR 395. When a driver is moving from emergency relief efforts to normal operations a 10-hour break is required when the total time a driver operates conducting emergency relief efforts, or a combination of emergency relief and normal operations, equals 14 hours. Please copy & paste website https://eld.fmcsa.dot.gov/File/open/96e34264-4ff2-e449-9f9f-e69b0c09789f Also please copy & paste website https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/2022-04/FMCSA-HOS-395-DRIVERS-GUIDE-TO-HOS%282022-04-28%29_0.pdf

Pre-Employment Screening Program (PSP) – provides carriers, individual drivers, and industry service providers access to commercial drivers’ safety records from the Federal Motor Carrier Safety Administration’s (FMCSA) Motor Carrier Management Information System (MCMIS). A PSP record contains a driver’s most recent 5 years of crash data and the most recent 3 years of roadside inspection data from the FMCSA MCMIS database. MCMIS is a federal government database, which is different from the state data sources used to generate Motor Vehicle Records (MVRs). A PSP record displays the motor carrier for which the driver was operating for at the time of the crash or inspection. It also shows the location and date that a crash or inspection occurred. Additional safety details about crashes such as injuries, fatalities, and towaways are included in a PSP record. Likewise, inspections show details like whether a vehicle was placed out of service. Following a request for data review, a PSP record may be updated to reflect a determination that a crash was not preventable, or to note that a driver was convicted of a different charge.

MVR, or motor vehicle record- is the history of your time behind the wheel as recorded by your state’s department of motor vehicles (DMV) or bureau of motor vehicles. Better known as your driving record, your MVR includes any moving violations, traffic tickets, and accidents you’ve had either within a given time period or throughout your driving history. Auto insurance companies use your MVR, along with a variety of other factors, to determine your insurance rates and coverage eligibility

Statement of information(SOI)must be filed with the state every year if you have a corporation and every two years if you have an LLC. This is required by the Secretary of State for all corporations and limited liability companies who operate in California. If SOI is NOT received by the office of the Secretary of State in a timely manner, there will be a penalty of $250 and your corporation or LLC will be suspended or cancelled.