Navigating Trucking Acquisitions: Unpacking the Risks of IRP, IFTA, FMCSA Authority, and Equipment Permits

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Acquiring a trucking company can be a powerful growth move—enabling market expansion, route consolidation, and increased freight capacity. But beneath the surface of every deal lies a web of regulatory obligations that can dramatically affect the success and timeline of the acquisition.

The most critical (and often overlooked) components include the International Registration Plan (IRP), International Fuel Tax Agreement (IFTA), Federal Motor Carrier Safety Administration (FMCSA) operating authority, and a variety of state and local equipment permits. Failing to properly assess or transfer these obligations can result in costly delays, compliance breaches, and inherited liabilities.

This article breaks down each of these areas, outlining their role in due diligence and post-acquisition integration.


1. IRP (International Registration Plan) Risk

The IRP is a cooperative agreement among U.S. states and Canadian provinces that allows commercial vehicles to operate across jurisdictions under a single registration.


Risk Factors:

  • Unpaid Fees or Back Taxes: Outstanding balances with a base jurisdiction (e.g., the home state of the seller) can block future registration or renewal.
  • Incorrect Mileage Reports: If historical trip/mileage data is inaccurate or poorly documented, the buyer may inherit audit exposure.
  • Jurisdictional Discrepancies: If a carrier has operated in states not reported under IRP, it could trigger compliance reviews and penalties.


Best Practice:

Ensure the seller has filed accurate mileage reports and is in good standing with its base state. Consider transferring the fleet’s registration after verifying clear title and audit status.


2. IFTA (International Fuel Tax Agreement) Risk

IFTA simplifies fuel tax reporting for carriers operating across state lines, requiring quarterly reports and tax payments based on miles driven and fuel consumed per jurisdiction.


Risk Factors:

  • Outstanding Tax Liabilities: Sellers may have underreported mileage, resulting in unpaid taxes, interest, and penalties.
  • Inaccurate or Missing Records: Lack of GPS data, fuel receipts, or mileage logs can compromise audit defense.
  • Audit Exposure: Buyers may unknowingly inherit an entity already flagged for an IFTA audit, which can occur even post-acquisition.


Best Practice:

Perform an IFTA audit readiness review, examining fuel purchases, mileage logs, and reporting processes. Ensure the seller’s IFTA license is in good standing and that records meet retention requirements.


3. FMCSA Operating Authority Risk

The FMCSA regulates interstate trucking companies through operating authority (MC numbers), safety ratings, and compliance programs like the CSA (Compliance, Safety, Accountability) system.


Risk Factors:

  • Suspended or Revoked Authority: If the seller’s MC or USDOT number is inactive or revoked, operations may not legally continue post-acquisition.
  • Poor CSA Scores: Buyers may inherit high BASIC scores, which can trigger FMCSA audits or higher insurance premiums.
  • Name or Ownership Changes: The FMCSA prohibits unauthorized transfer of operating authority. A new entity may need to apply for fresh credentials if the deal structure changes control or branding.


Best Practice:

Check the FMCSA's SAFER database and Licensing and Insurance system to verify the seller’s active status, safety record, and authority type. Engage counsel early to structure the transaction for seamless authority transition or re-application if needed.


4. Equipment Permits and State-Level Compliance

Commercial fleets often carry oversize/overweight permits, HVUT (Heavy Vehicle Use Tax) filings, apportioned plate registrations, and state-specific credentials (e.g., New York HUT, New Mexico WDT, Kentucky KYU).


Risk Factors:

  • Lapsed or Invalid Permits: Vehicles may be operating illegally, exposing buyers to impoundment, fines, or halted operations.
  • Non-transferable Credentials: Many state permits are tied to the original entity and are not transferrable without reapplication.
  • Unpaid 2290 HVUT: If Form 2290 is unpaid or unfiled, the IRS may deny tags or renewal, and penalties could accrue.


Best Practice:

Request a full equipment and permit audit. Validate VINs, cab cards, 2290 filings, and permit statuses across all operating states. Be prepared to apply for new permits where transfer isn’t allowed.


Conclusion: Mitigate Risk with Regulatory Due Diligence

Trucking acquisitions don’t fail because of the trucks—they fail because of the hidden regulatory burdens attached to them. Whether it’s an unfiled IFTA return or a revoked FMCSA number, these pitfalls can sideline a transaction or disrupt service post-close.

To protect your investment:

  • Conduct comprehensive regulatory and compliance due diligence.
  • Plan for license transfers or reapplications where required.
  • Integrate regulatory risk into valuation models and indemnification language.


At National Fleet Services LLC, we specialize in due diligence for trucking M&A, including audits of IRP, IFTA, FMCSA, and state permitting compliance. Our team ensures that buyers avoid post-transaction surprises and sellers present a clean bill of operational health.


Need an expert eye on your next acquisition?
Let us help you navigate compliance risks and keep your deal—and your fleet—moving forward.

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fleet insights

By Matthew Bowles October 21, 2025
In today’s fast-moving transportation landscape, every minute and every dollar counts. Freight markets have grown increasingly competitive, margins are tightening, and compliance requirements seem to multiply each year. For many carriers, the administrative workload of titling , licensing, registration , and permitting has become a hidden drag on productivity. As a result, more fleets are turning to outsourcing partners like National Fleet Services LLC — experts in fleet compliance and documentation — to streamline operations, reduce costs, and eliminate downtime. 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They maintain direct communication with state agencies nationwide — resolving issues that could otherwise delay your operations. You’re not just outsourcing paperwork — you’re gaining a dedicated compliance department. Strategic Advantage: Focus on Core Operations Administrative tasks don’t differentiate your business — operational performance does. By partnering with National Fleet Services LLC , motor carriers can redirect focus to: Driver recruitment and retention Customer service and delivery metrics Route optimization and profitability Safety and maintenance programs Every minute your operations team spends managing paperwork is a minute not spent improving fleet performance. Outsourcing turns administrative burden into a competitive edge. Choosing the Right Outsourcing Partner When selecting an outsourcing provider, prioritize experience, transparency, and scalability. Key Qualities to Look For: Transportation Specialization: Choose a partner dedicated to trucking compliance, not a general business service. Multi-State Capability: Ensure they manage titling and permitting across all 48 contiguous states and Canada. Technology Integration: Look for partners that integrate with fleet management systems and provide real-time dashboards. Transparent Reporting: Ask for detailed renewal tracking, cost breakdowns, and expiration alerts. Audit Support: The best firms, like National Fleet Services LLC , provide full audit preparation and response services. Dedicated Account Management: Your provider should act as an extension of your internal team — not a faceless vendor. Implementation: A Smooth Transition to Outsourcing Moving compliance functions to an outsourced partner is most effective when phased strategically. 1. Conduct an Internal Audit Review your current titling, permitting, and renewal processes. Identify inefficiencies, late filings, or data gaps. 2. Partner Onboarding Work with National Fleet Services LLC to transfer existing records and set communication protocols. 3. Pilot Program Start with one region or a group of new assets to measure performance and turnaround time. 4. Full Rollout Once systems are aligned, expand the partnership fleetwide. Your internal staff can then focus on oversight and reporting while the outsourcing partner handles execution. 5. Continuous Improvement Schedule quarterly reviews to evaluate performance metrics, cost savings, and new compliance opportunities (such as electronic recordkeeping or advanced IFTA analytics). Fleet Insight Carriers partnering with National Fleet Services LLC report measurable improvements in compliance turnaround, fleet uptime, and cost predictability. Their national-scale expertise in vehicle titling, registration, and permitting allows trucking companies to operate more efficiently across multiple jurisdictions — without the administrative bottleneck. The Competitive Edge of Outsourced Compliance Leading fleets recognize that administrative excellence drives operational performance . Outsourcing fleet compliance tasks offers: Faster turnaround times Reduced paperwork errors Lower overhead costs Real-time tracking and visibility Improved driver satisfaction and fleet uptime Carriers who outsource these functions with trusted providers like National Fleet Services LLC are free to focus on what they do best — moving freight safely, efficiently, and profitably. Conclusion: Efficiency Is the New Differentiator In today’s market, carriers can’t afford inefficiency. Streamlining every non-core process — especially administrative compliance — is critical to maintaining profit margins and competitive agility. Outsourcing titling, licensing, registration, and permitting is more than a time-saver; it’s a business strategy. By choosing National Fleet Services LLC , carriers gain a trusted compliance partner dedicated to accuracy, speed, and simplicity. Keep your trucks on the road, your paperwork in order, and your business moving forward — with National Fleet Services LLC. About National Fleet Services LLC National Fleet Services LLC is a leading provider of titling, registration, permitting, and compliance solutions for motor carriers across North America. With decades of experience and nationwide reach, NFS helps fleets simplify administration, maintain compliance, and maximize operational uptime.
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