Top 5 things to know about 2290 Heavy Vehicle Use Tax

Top 5 things to know about 2290 Heavy Vehicle Use Tax: Are you an owner of the trucking industry? Do you operate a business using heavy vehicles on public highways? Then you need to pay 2290 truck tax for carrying out heavy loads on public highways. The IRS uses the taxes paid for maintaining and reconstructing public highways.

Doesn’t know much about 2290 taxes? We provide information about the most common things you need to know about 2290 HVUT. Additionally, we will let you know who needs to pay highway tax and the calculation of 2290 taxes.

2290 heavy vehicle use tax

Who needs to pay 2290 HVUT?

The organizations or individuals who operate business/trade using heavy vehicles are required to pay 2290 tax annually to the IRS. Additionally, the tax is imposed on heavy vehicles when the taxable gross weight exceeds 55,000 pounds and travels more than 5,000 miles on public highways. Furthermore, ensure to calculate gross weight by considering the unloaded weight of the vehicle, the weight of the trailers, and the weight of the maximum load carried on the vehicle.

For example, Michael operates a business on public highways using trucks. The gross weight of the truck is 65,000 pounds and travels nearly 6,000 miles in a calendar year using public roads. Then Michael is responsible to pay 2290 road tax for the heavy vehicles to operate on public highways annually.

Calculation of 2290 Tax Rates

The tax rates are calculates based on the gross weight of the vehicle. This means, the highway tax increases when there is an increase in the gross weight of the vehicle in a tax period. The calculation of 2290 taxes are given below:

  • There is no HVUT imposed on heavy vehicles whose taxable gross weight is less than 55,000 pounds and travels less than 5,000 miles.
  • For the vehicles whose taxable gross weight is 55,000 pounds, the 2290 tax is nearly $100 per vehicle.
  • If the gross weight of the vehicles is from 55,000 pounds to 75,000 pounds, the tax is $100 plus $22 per 1,000 pounds over 55,000 pounds.
  • For vehicles over 75,000 pounds, the tax is $550 per year.

How do you Pay 2290 Taxes Accurately?

The Heavy Vehicle Use tax is paid using Form 2290. The truck owners are responsible to file Form 2290 for heavy vehicles and pay truck tax on time. Furthermore, the truck owner must calculate truck taxes accurately to minimize Form 2290 rejections. Furthermore, the vehicles which fall under the suspension category are exempted from paying Heavy Vehicle Use Tax. Ensure to fill out Form 2290 manually or electronically without any errors. Use the updated payment methods like EFW, EFTPS, check or money order, credit/debit methods to pay truck taxes securely.

Before submitting the 2290 Tax Form to the IRS recheck the information like EIN, VIN, the bank routing number is correct. After submitting 2290 returns and paying the taxes owed, the trucker will receive a “Stamped Schedule 1”. When you file 2290 electronically, the IRS provides a digital watermark which acts a proof of HVUT payment.

When are 2290 Road Taxes due to the IRS?

As per the IRS guidelines, the tax year begins in the month of July 1st of the current year and ends on June 30th of the following year.2290 taxes are due to the IRS annually by August 31st every tax year. This means the Heavy Vehicle Use Tax is pre-paid for the coming year. For instance, Michael operates a business using heavy vehicles, then he must pay truck taxes and file Form 2290 by August 31st every calendar.

Furthermore, the individual who purchases a new vehicle must pay truck taxes and file Form 2290 by the last date of the following month of purchase. For example, Michael purchases a new truck in the month of February and starts using it on the public highways. Then Michael is responsible to pay road tax and file 2290 Form by March 31st, 2021.

What happens if you don’t Pay 2290 Tax and File 2290 Form?

When the truckers fail to pay highway tax and file 2290 Tax Form, the IRS may impose penalties. In addition to this, the vehicle will be suspended to use on public highways. This is because the vehicle is considered illegal without Schedule 1 proof. Moreover, without the proof of HVUT payment, the truck will be unable to renew tags at DMV.

Furthermore, when you fail to file 2290 returns to the IRS, you may face the penalty of 4.5% on total tax due. This will accrue on a monthly basis for up to five months.

What is the use of 2290 Form Schedule 1?

Form 2290 Schedule 1 acts as proof of payment for the Heavy Vehicle Use Tax which the truckers pay to the IRS. Schedule 1 plays a major role when renewing tags and registering vehicles at the Department of Motor Vehicles. In general, the individuals require IRS Stamped Schedule 1 when using public roads with heavy vehicles for transportation. The individual who fails to provide proof of the 2290 tax payment may face the risk of suspending the vehicle registration under the state.

Finally! Are you ready to file 2290 tax return forms? then choose e-filing for better convenience with Form 2290 filing. We are IRS trusted e-file provider where 2290 returns are submitted to the IRS safe and secure.

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