5 Common Uses of IRS Form 2290 HVUT

Did you operate a business using heavy vehicles? If “Yes”, then you need to use Form 2290 HVUT to report the Highway Tax paid for using a heavy vehicle on public roads within the US. The IRS recommends every individual report taxable and suspended vehicles using a 2290 Tax Return.

IRS Form 2290 HVUT

Doesn’t know why to use Form 2290? Don’t worry! We will let you know the common uses of IRS Form 2290 HVUT. Furthermore, you’ll able to identify the taxable vehicle, suspended vehicle, and credit vehicles.

Pay 2290 tax for taxable vehicles

Most US individuals are operating business or trade using heavy vehicles like trucks, tractors, buses, etc. So, the IRS collects truck taxes for using public highways within the United States with heavy loads. Heavy vehicles carrying heavy loads cause severe damages to public roads. So, the truckers who operate businesses using taxable vehicles pay truck taxes and report the HVUT payment using Form 2290. According to the IRS, a heavy vehicle with a gross weight of 55,000 pounds or more and travels 5,000 miles or more on public highways within the US is taxable. Without paying truck tax and filing 2290 tax Form a trucker or truck owner can’t operate business or trade using national highways within the United States. Moreover, the individual may have chances to face penalties along with fines. In some cases, the trucker may go the prison, or the vehicle registration may suspend under state DMV.

For example, if you have purchased a commercial vehicle on May 25th, 2021 to carry loads on the course of business. Then you need to pay 2290 tax according to the vehicle’s gross weight and report it by filing Form 2290 for the tax period 2021-22.

Report 2290 suspended vehicles

As per the IRS instructions, heavy vehicles which travel less than 5,000 miles in a tax period are considered suspended vehicles. This means these vehicles are exempted from paying Heavy Vehicle Use Tax. But the IRS recommends every individual report the suspended vehicles by filing HVUT Form 2290 under the suspension category. For example, you have purchased nearly 7 trucks to operate trade or business. The total weight of the vehicle is less than 55,000 pounds and you’re using the trucks in seasonal times. So, the vehicle falls under the suspension category. You need to file RS Form 2290 and report the 7 trucks as suspended vehicles.

Pay outstanding 2290 tax dues

Truckers are responsible to check and pay the tax dues when the vehicle’s gross weight changes and falls into a new category in a tax year.

Example 1

If you filed the 2290 Form to report the vehicle under the suspension category in the starting month of January 2021. By the ending month of May suddenly the category of the vehicle changes from suspended vehicles to taxable vehicles. Then pay the outstanding 2290 tax dues by filing another Form 2290 with the IRS within the last date of the following month of change i.e., June.

Example 2

If you purchased a taxable vehicle with a gross weight of 65,000 pounds and filed a 2290 return by the ending month of February 2021. Suddenly, in May the gross weight of the vehicle changed to 75,000 pounds. File another 2290 Tax Form and pay the outstanding tax due by June 30th, 2021.

Claim refund against 2290 credit vehicles

Along with paying 2290 taxes, you can claim the credit against paid HVUT. The vehicles for which the trucker can claim the refund on previously paid Highway tax are called credit vehicles. You can claim the credit by filing Form 2290 for the following tax year. Or else, you can request the previously paid HVUT by filing Form 8849 refund form. Following are the circumstances to claim a refund:

  • When your taxable vehicle travels less than 5,000 miles.
  • Agricultural vehicles use public highways within 7,500 miles in the tax period.
  • If the heavy vehicle is sold, stolen, or destroyed after paying the taxes.

Check and pay HVUT for acquired, used 2290 vehicles

Use 2290 return to check and pay excise taxes for acquired or used vehicles during the tax period. For example, if you purchased a used vehicle, you need to pay truck taxes based on the vehicle’s taxable gross weight. Additionally, you need to report the truck tax paid by filing Form 2290 with your business information. The person who sells the truck can claim the credit by providing the date of sale, buyer information when filing a refund form.

Filing for a single vehicle or fleet? Form 2290 Filing offers a bulk upload template to file numerous vehicles at once for a tax period. We provide hassle-free e-filing services with the US-based chat support team. Our services are available 24*7 to resolve queries that occur when filing 2290 Tax Form.

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