Why this matters to owner-operators and fleets

A new post from the Kim & Rosado Tax Law Blog highlights how experienced tax attorneys in San Jose and Walnut Creek are navigating IRS disputes, asset protection and complex reporting for clients—including small businesses common in trucking. Recent posts flag developments in international reporting penalties and beneficial ownership rules—areas that can trip up closely held carriers. For truckers, the big takeaway is that 2025 brings both relief and renewed scrutiny, depending on the issue.

BOI reporting: what changed in 2025

Big shift: FinCEN issued an interim final rule in March 2025 removing BOI reporting requirements for entities created in the United States (the “domestic reporting companies” that captured most small carriers structured as LLCs or corporations). Only certain foreign entities registered to do business in the U.S. remain subject to BOI, with new 30‑day filing windows after registration; those registered before March 26, 2025 had until April 25, 2025 to file. For most trucking companies formed domestically, this significantly reduces administrative risk tied to the Corporate Transparency Act. Keep documentation showing why you’re exempt.

Audit hot spots for truckers

S‑corporation reasonable compensation: TIGTA found widespread underreporting of shareholder‑officer wages among single‑owner S corps (profits over $100,000 with no officer pay reported), estimating roughly $25 billion in unreported compensation and about $3.3 billion in unpaid FICA across 2016–2018. Expect continued attention here. If you operate as an S corp, set and document market‑based wages for owner‑drivers and dispatch/management roles.
Heavy Vehicle Use Tax (Form 2290): The 2025–2026 period runs July 1, 2025 through June 30, 2026. You must file by the last day of the month after first highway use; Schedule 1 is your proof of payment for registration. Example: first use in July 2025 → file by Sept. 2, 2025. Repeat for each month of first use on additional vehicles.
Per‑diem and mileage: For tax years beginning after September 30, 2025, the transportation industry special meals & incidental expenses (M&IE) per diem rises to $80 CONUS and $86 OCONUS. Meanwhile, for 2025 the IRS standard mileage rate is 70¢/mile. Align your reimbursement policies and retain contemporaneous logs (ELD, trip sheets) to substantiate.
Foreign gifts/trust reporting (Form 3520): If you personally received a large foreign gift or distribution, late‑filing penalties are no longer automatically assessed for foreign gifts; the IRS now reviews reasonable‑cause statements before determining penalties. This is a procedural shift—not amnesty—so quality explanations and documentation remain essential.

Faster ways to resolve disputes

If an audit lands on your desk, know your options. The IRS launched a two‑year pilot expanding Fast Track Settlement (FTS) and post‑Appeals mediation access across operating divisions, including SB/SE. FTS can bring Exam and Appeals to the table sooner to resolve issues while the case is still in Examination—useful for disputes over driver per‑diem policies, depreciation, or S‑corp wages.

Action steps for the road ahead

Document why your trucking entity is exempt from BOI reporting (most U.S.-formed companies are), and train admins to spot any future rule changes.
Review owner‑operator S‑corp wages now; build a file with comparable pay data, duties, and hours to defend “reasonable compensation.”
Calendar Form 2290 by month of first highway use for each vehicle; ensure your stamped Schedule 1 is on hand for renewals and roadside compliance checks.
Update driver handbooks for 2025 mileage and new per‑diem rates; sync payroll/settlement systems and retain mileage and M&IE records.
If you missed a Form 3520 filing for a personal foreign gift, file promptly with a robust reasonable‑cause statement; penalties are no longer automatic for that category but can still apply.

The bottom line: 2025 brings relief on BOI, higher allowable per‑diem, and sharper attention on S‑corp pay. A knowledgeable tax attorney—like those highlighted by Kim & Rosado—can help owner‑operators and fleets turn these changes into cleaner books, fewer notices, and faster resolutions when the IRS calls.

Sources Consulted: Kim & Rosado Tax Law Blog; Financial Crimes Enforcement Network (FinCEN); Internal Revenue Service (Newsroom, Internal Revenue Bulletin, Forms and Publications); Treasury Inspector General for Tax Administration.

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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.