Truckers who file form 2290 online, time and again, have the same concerns and make the same errors when they pay their heavy trucks use taxes. Let’s review the most commonly asked questions so that you have all the answers ready when you e-file your Form 2290.
What is Form 2290?
IRS 2290 is used to report the heavy vehicle use tax charged for heavy vehicles weighing 55,000 pounds or more used on public highways.
- To report suspended vehicles that has not crossed the 5,000-miles limit
- To submit a tax return for a vehicle that exceeded the taxable gross weight, and now belongs to is a new category (increased taxable gross weight)
- To suspend taxation on vehicles driven fewer than 5,000 miles (7,500 for agricultural vehicles)
- Inform the IRS of the purchase of a used taxable vehicle on which tax suspension has been registered
- To notify that tax was levied on a vehicle used for a certain period
Understanding HVUT Tax
Any heavy vehicle (truck, tractor, or bus) used on U.S. highways weighing more than 55,000 pounds must pay the Heavy Highway Vehicle Use Tax (HVUT) to the IRS. HVUT taxes raised are used for road construction and maintenance. For vehicles used for the first time in July, taxes are usually due by August 31 of each year.
Taxable Vehicles and Responsible Person
The tax for using the highways applies to highway vehicles that include all motorized vehicles that are designed to carry cargo on public roads. These are typically heavy transport trucks and buses used on public roads.
The tax doesn’t apply to vehicles that are not considered road or cargo vehicles, as an automotive mobile crane meets the tax status requirements. The person who is subject to the tax is the person who appears in the vehicle registration as the owner; the tax is gradual. The higher the registered weight, the more tax is owed.
Deadline for Filing HVUT Tax
The date for submitting IRS 2290 returns is the end of the month preceding your vehicle’s first month of use during the reporting cycle. If your vehicle was on the road in June last year, the threshold for filing is July 31.
You may have to submit a new Form 2290 if a new vehicle enters work during the monitoring time. For example, if you bought an automobile in September, you are expected to report the vehicle by October since it has only been used for the first month.
You must submit a separate Form 2290 and pay taxes owed by December 31 in this situation. It is a partial year filing, resulting in a lower annual tax amount.
Is Suspension of HVUT Possible?
To be eligible for a suspension from the Heavy Vehicle Use Tax, you must assume that you only drive your vehicle less than 5,000 miles per year (7,500 miles in case of agricultural vehicles). Although you don’t have to file a tax return, you are expected to file IRS 2290 form. You would need to update the initial form and pay taxes if you wind up traveling more than you planned.
Ways to Make Tax Payments
Taxpayers can pay what they owe in many different ways.
- Electronic fund withdrawal
- Electronic Federal Tax Payment System
- Via check or money order
- Debit/Credit card
Electronic Funds Withdrawal Payment (EFW)
The IRS will debit the money you owe from your bank account for you to pay off your balance due. The IRS would ask you to provide your bank account number and routing number to debt money from your account. You will find the transaction details on one of your checks. And, it’s the most prominent way to pay your dues.
According to the highway trust fund, US$1 billion is raised annually. And in 2018, 923,000 forms were filed. 71% of the forms were filed electronically, equal to 2.9 million taxable vehicles.
EFTPS or Electronic Federal Tax Payment System
Tax payments can be made via EFTPS. You may visit the EFTPS site, or you can dial their toll-free number to get a free account. The creation of an account will take up to 10 working days. You will be in charge of setting up your EFTPS payment schedule.
Check or Money Order
You should pay the full HVUT tax amount through check or money order. You must enclose the printout of your completed Form 2290 along with the check/money order and then mail it to the IRS. Please make the deposit payable to the U.S. Treasury. Write your name, address, tax identification number (EIN), “IRS Form 2290”, and date (as it appears in box 3) on your invoice.
You can pay your Heavy Vehicle Use Tax using your credit/debit card. It is a highly convenient and widely used mode of payment. When you pay using credit/debit card, you will not be charged any extra fee. but you will need to pay a service fee if you are filing through an e-filing service provider. Although card payments are highly secure and safe, always ensure that you do not save your card details anywhere.
Heavy trucks are the ones that do serious harm to public roads, so truck owners and drivers must pay the HVUT. In-vehicle splits and other pavement damages turn out to be unsafe for automobile owners who use the same highways. The government gets its tax money from the heavy vehicle owners and drivers and uses it for the highways’ construction, preservation, and upkeep.