What Is IRP in Trucking, and When Is It Necessary?

You might know about the International Registration Plan if you use interstate infrastructure. However, some carrier supervisors aren’t sure about whether or how it pertains to them.

What is IRP in trucking? Do you qualify for it?

Federal Motor Carrier Authority Filings specializes in streamlining UCR filing and other carrier compliance processes. We break down IRP basics below. 

What Is IRP in Trucking?

If you have fleet vehicles operating in multiple states, you must pay fees to each state based on the distance your vehicles traveled on state roads. For example, your trucking company operates in Georgia and transports goods to and from Alabama and Tennessee. You would pay each state based on the total mileage you travel within that state. 

Therefore, you have three separate states for which you must record mileage and manage payments. IRP streamlines the process and saves carriers money by allowing you to report your mileage to Georgia.

Georgia’s transportation services will then disperse your payment to the other two states according to mileage rather than flat fee rates. You submit mileage data and fees to your home state rather than file and pay each separately. 

When Is IRP Necessary?

You might benefit from IRP under the following circumstances:

• Your trucking company operates in two states besides your home state.
• Your fleet crosses Canadian borders.
• Your fleet vehicles transport people or goods for hire.
• Your vehicles have two axles with over 26,000 pounds in gross vehicle weight.
• Your vehicles have three axles. 

Certain jurisdictions require IRP participation from commercial vehicle operators. Therefore, your IRP application might prove both beneficial and necessary. 

How Does IRP Registration Work?

The registration process requires setting up an IRP account in your home state. While all participating jurisdictions report participation from July 1st through June 30th, their application acceptance periods may vary. Learn more about your state’s deadlines to submit your registration. 

Your application requires detailed information about your carrier. Have the following data ready as you fill out the forms:

• Your business’s physical address
• Proof of the physical address, like a utility bill or another piece of official mail
• USDOT number
• Schedule B and A/E forms allotted to new participant accounts
• Funds to pay for the registration fees
• Proof of identification 

Note that your state requirements may differ slightly from this list or another state’s process. Learn more about application variations from your state’s Department of Transportation. After processing your application, find out where your home state distributes plate and cab card sets to trucking companies. 

You must renew your IRP membership annually. Your IRP card should have information regarding renewal deadlines. Use a Schedule C form to complete the renewal process. You can also complete a Schedule F if you need to add new jurisdictions to your route or territory.  

Do You Have To Participate in IRP?

What is IRP in trucking and its participation requirements? Your carrier company must participate in IRP if your drivers:

• Operate or travel in multiple states 
• Engage in interstate commerce
• Have already established a physical business location
• Operate vehicles identified as apportionable 
• Are self-employed and use personally owned vehicle assets to transport goods or passengers
• Use rental trucking equipment

Failing to apply, renew, and update your IRP status may result in a few consequences. 

Consequences for Failing To Adhere To IRP Requirements 

Your home state may outline various consequences for failing to apply or adhere to IRP requirements. They often include increasing interest added to delinquent payments. This interest grows over time. 

For example, California imposes 40% interest on late payments within the first year. The interest doubles to 80% by the second year. It increases to 160% after two years. If you owe an estimated $1,000, you’ll pay an additional $1,600 with a total of $2,600.

Therefore, timely application and prompt payments prevent your carrier from hemorrhaging money. The monetary penalties may vary by state.   

How You Benefit From IRP Participation 

IRP participation isn’t just another compliance formality. It benefits trucking companies and transportation administrations alike. You would pay separate interstate fees in full to each state your fleet travels in. 

Therefore, you’d likely pay more money to use a different state’s infrastructure, regardless of how little you use it. IRP allows your drivers to log their mileage per state instead. Once the IRP payment period arrives, your fees will only account for your company’s total mileage within each state. 

IRP also eliminates the amount of paperwork needed from you annually. Simply report your mileage and pay the associated fees to your home state. The state’s transportation administration handles the rest. 

Learn More About IRPs and Other Compliance Requirements From FMCA Filings

What is IRP in trucking? IRP allows trucking companies to streamline and minimize their interstate fees by state. Find answers to more trucking questions, including: “When is a DOT number required on a vehicle?”

Discover more ways to streamline compliance permits with FMCA Filings’ services or reach out to one of our professionals via Live Chat today.