Miles driven across state lines, nights spent away from home, and a classification question that changes everything about your taxes — we handle the accounting specific to running trucks for a living, so you can focus on the road.
Trucking, towing, and transport companies deal with a set of tax questions most other trades never touch: a per diem deduction for nights spent away from home, fuel tax reporting across multiple states under IFTA, and a foundational question — owner-operator or employee — that determines almost everything else about how your taxes work. Getting any of these wrong either costs you money or creates compliance exposure that's expensive to unwind later.
At Mercer Flanagan, we've worked with trucking, towing, and transport companies in Frederick and surrounding counties for over 50 years. We know how the per diem deduction actually works. We know IFTA reporting. And we're here year-round — not just in April.
"The owner-operators who come to us usually have the same gap: they're claiming per diem inconsistently, if at all, and their fuel records don't separate mileage by state the way IFTA actually requires. Neither of these is hard to fix — they just need to be set up correctly once."
We work with:
These are the situations we hear about most often from new trucking and transport clients.
Drivers away from home overnight for work can deduct a per diem meal allowance, but many owner-operators either don't claim it or don't document it consistently enough to support the deduction if questioned.
Quarterly IFTA reporting requires accurate mileage and fuel purchase records by state. Incomplete or estimated records create compliance risk and can result in owing more than necessary at filing time.
Whether you're an independent contractor or an employee under a carrier changes your entire tax picture, including what you can deduct. Some arrangements are misclassified in either direction, and we help confirm yours.
Many established owner-operators and small fleet owners are still operating as a sole proprietor well past the point where an S-Corp election would meaningfully reduce self-employment tax. We evaluate this for every new client.
Trucks and trailers are major capital investments, and Section 179 plus bonus depreciation rules can let you deduct much of the cost in the year of purchase if timed against your income correctly.
Company drivers paid hourly or by mile create payroll questions tied to hours of service regulations that need a clear, documented policy, not an ad hoc approach.
How you're structured has a bigger impact on your tax bill than almost any other single decision. Here's how the common options compare for owner-operators and small trucking companies.
| Structure | Self-Employment Tax | Admin Complexity | Best For |
|---|---|---|---|
| Sole Proprietor / Single-Member LLC | 15.3% on all net income | Lowest | New owner-operators just starting out |
| S-Corporation | Only on reasonable salary | Moderate | Established owner-operators earning $80K+ net |
| Partnership / Multi-Member LLC | Can be high | High | Fleet companies with multiple owners |
The right answer depends on your income level, whether you run multiple trucks, and your relationship with your carrier. We analyze this for every new client. Read our S-Corp vs. LLC guide →
We help you set up consistent tracking and documentation for nights away from home, so your per diem deduction is fully captured and holds up if your return is ever questioned.
We help set up mileage and fuel purchase tracking by state, so your quarterly IFTA filings are accurate and you're not overpaying or under-reporting across jurisdictions.
We help confirm whether your working arrangement is correctly classified as an independent contractor or employee, and structure new arrangements correctly from the start.
We evaluate your current structure, run the numbers on what an S-Corp election would save you, and handle the paperwork to make the switch if it makes sense. For many owner-operators earning over $80,000 in net income, this is the highest-return tax move available.
S-Corp vs. LLC: Which Is Right for You? →We prepare your business return — Schedule C, Form 1120-S for S-Corps, or Form 1065 for partnerships — along with your personal Form 1040, including all schedule attachments.
Small Business Tax Services →We calculate your quarterly estimated payments based on your actual income and adjust as the year unfolds. No surprise April bills.
Tax Planning Services →If you need compiled financial statements for equipment financing, a bank loan, or a business expansion, we handle that. Clean, professionally prepared statements that lenders accept.
Financial Statement Compilations →These are the deductions that trucking, towing, and transport companies most often underutilize or miss entirely. Every situation is different, and eligibility depends on your specific circumstances, but these are worth discussing with us.
Deductibility always depends on your specific facts and circumstances. The IRS has specific rules about what qualifies, how to document it, and how to calculate it. We make sure you're capturing what you're entitled to — and that it's documented properly so it holds up if questioned.
Big firms want big corporate clients. We built our practice around the owner-operators, fleet owners, and tradespeople who are the backbone of Frederick County. You won't be handed off to a junior associate. You won't wait three weeks for a call back. You get a CPA who knows your name and your situation.
Year Mercer Flanagan was founded in Frederick, MD
Years serving local professionals, businesses & nonprofits
Rated by clients across Frederick County
Access to your CPA — not just during tax season
Year-round access to your CPA. Questions get answered when you have them, not weeks later.
We understand per diem, IFTA, and owner-operator classification specifics.
We're based in Frederick, MD. We know this community and we're not going anywhere.
We don't just file your returns. We contact you when something changes that affects your tax situation.
Book a free 20-minute consultation. We'll tell you honestly whether we can help — and what it would cost. No pressure, no obligation.
Book a Free Consultation