Trucking companies targeted with questionnaire

June 15, 2015

Several trucking companies have recently received a Business Activities Questionnaire from the Pennsylvania Department of Revenue. We’ve seen an overall increase in the number of other states requesting this information as well. The questionnaire is a tool used to determine the business activities that are being conducted in that state – and ultimately identifies companies for which nexus have been created. 

Nexus occurs when a trucking company does a certain amount of business in a state and as a result, is subject to their state taxes. Each state sets its own nexus standards, and many set separate nexus standards specific to trucking companies.

Specific to the trucking industry, the Pennsylvania questionnaire reads, “A truck or bus company is required to file a corporate net income tax and/or foreign franchise tax report if its activities during the taxable year exceed either of the following standards:

  1. Activity exceeds 50,000 loaded miles in Pennsylvania and the company makes at least one trip with pickups or deliveries in Pennsylvania; or
     
  2. The company has a Pennsylvania apportionment fraction of more than 5% and has more than 12 trips with pickups or deliveries in Pennsylvania.”

 

Accuracy matters

Complete the form accurately. Failing to do so could create nexus erroneously and you would be required to register in that state and file taxes. In that case, it is difficult to do damage control and reverse the effects. If you inadvertently established nexus but failed to register and determine tax effects, you could owe taxes going back to the date nexus was established – along with severe penalties and interest.

Gain peace of mind by having a Schenck SALT Team member review your questionnaire before submitting it to the state. Our SALT team is familiar with these state questionnaires and knows the best approach to answering the specific questions accurately and with optimum results. 

If you have any questions regarding this questionnaire or nexus, contact any member of the Schenck State and Local Tax team at (888) 556-5580.