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Trucking Industry Overview - Alternative Issue Resolution Considerations and Industry Resources

Affected IRM: X.XX.X

"This document is not an official pronouncement of the law or the position of the Service and cannot be used, or cited, or relied upon as such."

Alternative Issue Resolution Considerations


Prepaid Expenses

Expenses paid in the current year that are applicable to the subsequent year, are deductible in the year paid.
U.S. Freightways Corp. v. Commissioner, 270 F.3d 1137 (7th Cir. 2001)

Meals Expense - 50 percent reduction

IRC Sec. 274(n). Rev. Proc. 96-64, 1996-2 C.B. 427; Rev. Proc. 97-59, 1997-2 C.B. 594; Rev. Proc., 2000-9, 2001-1 C.B. 280; Rev. Proc. 2000-39, 2000-2 C.B. 340; Rev. Proc. 2001-47, 2001-2 C.B. 332; Rev. Proc. 2002-63, 2002-2 C.B. 691; Rev. Proc. 2003-80, 2003-2 C.B. 1037; Rev. Proc. 2004-60, 2004-42 I.R.B. 682; Rev. Proc. 2005-10, 2005-3 I.R.B. 341.


Where tires on newly purchased trucks, tractors, and trailers last longer than one year; they should be capitalized and depreciated over the life of the vehicle.
See Rev. Proc. 2002-27, 2002-1 C.B. 802 & CCA 200307087.


Penalties should be listed as non-deductible on Schedule M-1. IRC Sec. 162 (f).

Industry Resources

A. WEB Sites


Name of Site

Summary and Available Information

ATA Truck Line

American Trucking Associations.
Lists current tax legislation changes secured by ATA lobbyists. Current affairs affecting the trucking industry.

Bureau of Transportation Statistics

Statistical reports on operating costs, revenue, miles driven, gallons of fuel consumed etc.

Federal Motor Carrier Safety Administration

Specific operating, safety, insurance and etc. information on specific motor carriers.

Owner-Operator Independent Drivers Association

OOIDA advocates the views of professional truckers through its interaction with state, provincial and federal government agencies, legislatures, the courts, other associations, and private businesses to advance an equitable environment for commercial drivers.

Trucking Associations

Directory of trucking associations. Gateway to a very large trucking directory and talk room.

B. Trade Associations




Purpose, Goals, Objectives, etc.

American Trucking Associations

2200 Mill Road
Alexandria, VA.

Lobbies Congress for benefits to the trucking industry. This is the largest trucking organization. Dues are not deductible.

American Moving and Storage Assn.

1611 Duke St.
Alexandria, VA. 22314

Membership consists of 3000 household goods forwarders.

Air Transport Association

1301 Pennsylvania Ave. N.W.
Suite 1100
Washington, D.C.

Trade association of the principal U.S. air lines. Supports and assists members by promoting safety, technology and advocates industry position on issues before Federal, state and local governments.

International Air Transport

Association Route de l' Aeroport 33 P.O. Box 416
1215 Geneva 15 -
Airport SwitzerlandA

Governs and standardizes the industry of airfreight forwarding. Establish maximum standard airfreight rates and set minimum financial standards and reporting requirements.

Intermodal Association of North America

Suite 720
7501 Greenway Drive
Greenbelt, MD.

Organized to benefit members e.g. railroads, intermodal truckers and highway carriers, intermodal- marketing companies, water carriers and stacktrain operators.

Owner/operators Independent Drivers Assn.

1 NW OOIDA Drive
Grain Valley, MO. 64029

Works for the benefit of its members who are mostly independent owner/operators of their own tractors.

C. Other IRS Training Courses/Videotapes


Name of Course

Course Number

Delivery Method

Developer of Course and Procedures to Secure Material

LMSB Trucking Industry Overview



By: Robert Everitt, Trucking Technical Advisor
Available on the LMSB Technical Advisor web site.

Trucking Industry



Audit Techniques Guide based on a study of audits.

HMT Trucking 5-22-2002


Video and power point slides

Meals, Tires and Equipment Leasing (slides)
Presenters: Robert Adams, Robert Everitt, Robin Herrell.
Formatted to print 3 slides per page, with space for notes (54 pages).
Contact: C&L Office of Communications - Corporate Television

Independent Contractor or Employee

3320-102 (Rev. 10/96)

Self Study

Available on the IRS Home Page

Employment Tax Procedures



Self Study

Classification of van operators within the moving

D. Trade Magazines and Newsletters  



Frequency of Publishing

Summary of Purpose/Information Included/Availability

Air Cargo World


For freight forwarders

American Shipper


For shippers, brokers and forwarders

American Truck
Dealer (ATD)


Keeps ATD members informed of current trucking events and legislation. Many issues with truck manufacturers.

Daily Commerce News


For motor carriers, freight forwarders and custom house brokers.

Global Logistics & Supply Chain Strategies


Best practices and case studies in supply chain strategies, techniques and technology.

Global Trade Talk 


U.S. Customs service journal for the international trade community.

Transportation Equipment news


New equipment and job Advertising. Current fuel prices across the U.S. Articles of interest to trucking companies.

Transport Topics


The National newspaper of the trucking Industry

E. Industry Books


Date of Latest Edition


Summary of Contents


IRS Audit Protection and Survival Guide

Trucking Industry What to do to survive an audit of a trucking company.
By: Baran, Daniel J. and Bernard, Gerald F. New York, John Wiley, C 1997 244 pages


American Trucking Trends

By: American Trucking Association - Statistics Dept
2003 ed. Alexandria, VA. 2003 65 pages

May 1998

U.S. Freight 1998 Economy in Motion

A report by the Department of Transportation on the history and future of transportation logistics, technology and intermodal partnerships.

Nov 1993

Freight Matters

Trucking Industry Guide to Freight and Intermodal Planning under ISTEA,
By: Trucking Research Institute  

Dec. 1995

Characteristics of Urban Freight Systems

Characteristics of modern freight transport systems in large cities.
By:Transportation Center , University of Tennessee, Knoxville


NAFTA TRADE: Past Present and Future

History and future of Nafta trade between U.S., Canada and Mexico.
By: Dean International, Inc. 1996

F. Internal Revenue Manual Citations


IRM Section


Summary of Information Included


Technical Advisor program

Technical Advisor program explained.


Employment Tax Handbook

Instructions for all operating divisions in the examination of employment tax returns.


Excise Tax Handbook

Excise Tax examination procedures.

G. AICPA Auditing Standards and Publications


Date of Issuance


Summary of Information Included


Trucking Companies: Special Tax & Accounting Considerations

By: Nichols Education Corp. 2002 ed. 1011 Sandusky St., Suite G, Perrysburg, OH 43551 125 pages
Federal and State Tax issues in the trucking industry.
Overview of the trucking industry.

H. Market Segment Specialization Program (MSSP-SBSE) 


SBSE /MSSP Coordinator

Jill El-Bendary

Lanham, MD

Chapter 9 | Table of Contents | Appendix

Page Last Reviewed or Updated: 05-Mar-2015