There are many kinds of vehicles that use American highways. While some are passenger vehicles, others are used for commercial purposes. Commercial vehicles that weigh 55,000 pounds or more and have crossed the 5000-miles limit need to file 2290 and pay the Heavy Highways Vehicle Use Tax (HVUT tax).
The IRS has made it mandatory for every trucker, trucking business or owner operator owning a heavy vehicle to file Form 2290 before the due date. This tax is known by different names like truck tax, Heavy Vehicle use tax, heavy highway use tax, etc.
It is essential for the people dealing in the truck business to file this tax. The IRS imposes hefty penalties on truckers who do not file their form 2290 and pay their HVUT tax on time. Once this tax is successfully filled the truck business owner will receive an IRS watermarked schedule 1 copy which acts as a proof of HVUT tax payment.
If you are still confused about the purpose of Form 2290, the below list will help:
- Form 2290 is used for reporting tax if a taxable commercial vehicle weighs 55,000 pounds or more during the tax period.
- Submitting inaccurate information or errors will result in the rejection of form 2290. If rejected, a new form needs to be filed with the correct information.
- You can file an amended 2290 return to report changes such as gross weight increase, mileage increase or VIN correction for a previously filed form 2290.
- The gross weight and mileage should be analyzed before paying the tax.
The truck business owner needs to file the HVUT tax tax every year. Usually, the tax period starts from 1st July of every year and ends on 30th June of the next year. There is a certain set of criteria that is to be followed while filling form 2290. Let’s take a look at them:
- If you are a truck owner, it is very important to weigh the vehicle from the approved weighing company. This will provide the most appropriate value while filing the tax form 2290.
- If you are a Limited Liable Company still you need to pay the HVUT . If there are multiple trucks registered under the business, they must file separate form 2290 for each vehicle.
- If the vehicles have crossed 5,000 miles (7,500 miles for agricultural vehicles), the owner needs to ensure that the odometer is not reset. Vehicles that have not crossed 5,000 miles are tax exempt.
Once the owner follows all these criteria, he will be able to file the tax return correctly. There are some parties that are exempted from paying tax. The list is stated as below:
- Taxable vehicles that have dual registration
- Vehicles owned by the Federal government
- Vehicles owned and operated by the district of Columbia
- Vehicles owned by the local government authorities
- Fire trucks, ambulances, and rescue vehicles or other vehicles offering emergency services
- Qualified QSub
- Vehicles used for the welfare of Indian tribes
- Vehicles designed for non-transport purposes
- Vehicles that are not used on highway transportation
In case your truck falls in any of the above categories, you need not pay tax for it. So consider all these things before paying your HVUT tax. If the truck doesn’t fall in any of the categories. There are two ways to file Form 2290:
- Electronic filing or e-filing: It is very easy to file Form 2290 electronically. For this, the truck owner needs to register with an IRS authorized e-filing service provider. Once registered, they can enter all the required details, pay the tax and receive their stamped schedule 1 copy within minutes.
- Manual filing or paper filing: You can file your form 2290 manually by visiting the IRS office, and filling out the physical copy of form 2290 and Schedule 1. Once the documents are submitted it will take around 5 to 45 days to receive the Schedule 1 copy.
It is very important to file HVUT tax and know the form 2290 due date. This tax filing will save the truck owners from penalties and additional charges. It will be easy to operate heavy vehicles on American highways without any problems.
In case the truck owner files their tax late, the person will be charged 4.5% of the total tax as a penalty along with other interests. Therefore, it is of utmost importance to file this tax on time and stay compliant. For more information about form 2290, it is great to take guidance from an approved e-filing platform i.e. 2Form2290.com. It provides with all the necessary details regarding HVUT and avails a streamlined process for clients. There is only the requirement of the correct details which further will help in paying the correct tax on time and even ensures the data of users is safe.