Why this matters now
The Taxpayer Advocate Service (TAS) has refreshed its Credits help pages and is spotlighting disaster guidance as filing season approaches. For trucking businesses, that means two urgent opportunities: claim time-sensitive disaster relief correctly and capture often-overlooked credits tied to fuel use and heavy-vehicle excise tax. TAS, an independent organization within the IRS, aggregates this guidance and points to the IRS rules you’ll rely on when a storm, flood, or wildfire hits your equipment, shop, or records.
If you’re in a federally declared disaster area
- Know if you qualify. The IRS automatically identifies affected taxpayers by ZIP code and applies filing and payment relief. If your business or records are outside the disaster area but your preparer or essential records are in it, you can still qualify. Those outside the area can call the IRS disaster hotline to self‑identify.
- Casualty losses: choose the year that helps cash flow most. You may claim eligible disaster-related losses on your federal return for the year the disaster occurred or the prior year—whichever accelerates your tax benefit. When you file, note the disaster and FEMA declaration number with Form 4684, and use IRS Publication 547 and the workbooks in Publication 584/584‑B to substantiate business property losses (trailers, tractors, shop tools).
Two credits truckers miss—here’s how to claim them
1) Fuel Tax Credit for off-highway use (think reefers and auxiliary engines)
Fuel burned to propel a highway vehicle doesn’t qualify—but fuel used in a separate motor to run special equipment does. For trucking, that commonly means the diesel used to power a trailer refrigeration unit or other equipment driven by a separate engine. If the reefer draws from the same tank as the truck, keep reasonable, supported estimates of the gallons used by the reefer versus the tractor (for example, via hubometers, hour meters, or fleet telematics). File the claim on Form 4136 with your income tax return and keep invoices plus usage logs. Note that fuel lost or destroyed by casualty (spill, fire) isn’t eligible.
- Practical tip: Standardize a log that captures reefer hours, ambient temps, and drops. Consistent methodology is key if the IRS asks you to support your estimate.
2) Heavy Vehicle Use Tax (HVUT) credit/refund when a truck is destroyed, stolen, or sold
If an HVUT‑taxed vehicle is sold, stolen, or destroyed during the tax year (for example, lost to flooding or fire), you may claim a prorated credit on your next Form 2290 filing. If the credit exceeds your current liability, request a refund using Form 8849, Schedule 6. Keep documentation such as VIN, taxable weight category, and the date of loss.
Workflow: turn guidance into dollars
- Map your exposure and deadlines. Use TAS’s disaster relief overview to confirm whether your county is covered and which deadlines moved. If you’re outside the map but your preparer or records were impacted, call the IRS disaster number posted by TAS.
- Document losses and business interruption. Photograph damaged equipment, inventory tools and parts, and reconstruct records with bank statements, ELD data, and TMS load histories. IRS resources explain how to rebuild records after disasters.
- Separate propulsion from equipment fuel. If your reefers or other auxiliary engines share tanks with tractors, establish an auditable method now to segregate gallons. Then claim the Fuel Tax Credit on Form 4136 with your return.
- Review your HVUT roster monthly. When a unit leaves service mid‑year—especially due to a disaster—calculate your credit and either net it on the next Form 2290 or use Form 8849 for a refund.
Owner‑operator and fleet manager checklist
- Confirm disaster relief eligibility and revised due dates; self‑identify with IRS if needed.
- Decide whether to claim casualty losses on the current or prior year’s return to optimize cash flow.
- Implement reefer/auxiliary fuel tracking to support Form 4136 claims.
- Audit HVUT status for any units destroyed, sold, or stolen; prepare credit/refund documentation.
- Engage a tax pro if your operation spans multiple affected states or if records were destroyed. TAS provides navigation help if you hit IRS roadblocks.
Bottom line: TAS’s disaster and credits guidance can put real money back in trucking businesses after a bad season—and help you avoid missed credits and filing mistakes in 2025.
Sources Consulted: Taxpayer Advocate Service; IRS Publication 510 (Excise Taxes); IRS Instructions for Form 2290.
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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.
