Photo Courtesty of J. J. Keller & Associates, Inc.
If your vehicle weighs 55,000 pounds or more, you may need to file a Form 2290 and pay heavy vehicle use taxes (HVUT) to the Internal Revenue Service (IRS). And this needs to happen before you can register the vehicle and drive it on public roads. While the annual tax is due soon, additional filings might be necessary, so be sure to understand your obligations.
What is HVUT and 2290?
The heavy vehicle use tax is a federal tax program for certain heavy vehicles, including trucks, truck tractors, and buses. The program includes requirements for:
- Filing taxes,
- Recordkeeping, and
- Reporting.
The tax is payable to the IRS on Form 2290, Heavy Highway Vehicle Use Tax Return.
Essentially, HVUT is the federal program, and Form 2290 is the tax return used to comply with the filing requirements under the program.
Anyone who registers (or is required to register) a heavy highway motor vehicle with a taxable gross weight of 55,000 pounds or more and uses it on a public roadway must file a Form 2290 annually with the IRS.
The tax year is July 1 – June 30, with annual tax returns typically due by August 31 each year. But other circumstances may make additional filings necessary.
No receipt = no registration
You need proof that you paid this tax to register your vehicle in any jurisdiction, both initially and at renewal time. The IRS sends proof of payment – a receipted Schedule 1 of Form 2290 – after you pay the tax on the vehicle.
When should I file a Form 2290?
Use Form 2290 to file in the following circumstances:
- Figure and pay tax due on vehicles used during the reporting period with a taxable gross weight of 55,000 pounds or more.
- Claim suspension from the tax when a vehicle will be used 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the reporting period.
- Figure and pay tax due on a vehicle if:
- You completed the suspension statement on a previous Form 2290, and
- That vehicle later exceeded the mileage limit during the reporting period.
- Figure and pay tax due if, during the reporting period, the taxable gross weight of a vehicle increases and the vehicle falls into a new category.
- Claim a credit for tax paid on vehicles that were destroyed, stolen, sold, or used 5,000 miles or less (7,500 miles or less for agricultural vehicles).
- Report acquisition of a used taxable vehicle for which the tax has been suspended.
- Figure and pay the tax due on a used taxable vehicle bought and used during the reporting period.
Where do I file the 2290 form?
Electronic filing is required when reporting 25 or more vehicles on Form 2290, and it is encouraged for all filings. Processing is faster electronically. You can receive your watermarked Schedule 1 quickly, and get your trucks registered and on the road.
If you are reporting fewer than 25 vehicles, you may complete and mail a Form 2290. With this option, you can expect to receive your stamped Schedule 1 within six weeks after the IRS receives your Form 2290.
Many third-party services offer 2290 filing assistance. Be sure to choose a trustworthy compliance partner. J. J. Keller is a well-known industry leader and an authorized IRS e-file provider. With J. J. Keller’s 2290online.com service, you can complete and e-file your Form 2290 in minutes and have your Schedule 1, showing proof of tax paid, in as little as 24 hours.
What if I buy a truck between annual filings?
If you buy one or more additional vehicles after filing your annual 2290, you must file a new Form 2290 listing only the new vehicles. You can e-file any time before the last day of the month following the month the new vehicle was first used on public highways. For example, if you first use the new truck during September, you should file the 2290 and pay the tax by October 31.
Are there any exemptions? What about low mileage?
Anyone who registers a heavy highway motor vehicle in their name with a taxable gross weight of 55,000 pounds or more must file Form 2290 and pay the tax.
For vehicles used for 5,000 miles or less (7,500 for farm vehicles), you must file a return to claim suspension of the tax, and then are excluded from paying the tax. In your records, include the date the vehicle was acquired and the name and address of the person from whom it was acquired.
Stay in compliance to keep your trucks on the road
Since states may deny registration or renewal without the receipted Schedule 1, be sure to stay current with changing regulations, understand the required forms and filings, and file on time to keep your trucks on the road.
Credit: Source link
