What do truckers need to know about IRS Form 2290?

What do truckers need to know about IRS Form 2290? Are you an owner of a trucking industry or truck driver? Do you know about Form 2290? If your answer is “No”, then you need to know about IRS Form 2290. Form 2290 is a Heavy Vehicle Use Tax Form filed by the truckers who operate a business using taxable vehicles.

Getting tensed? Don’t worry! We will let you know what the truckers need to know about IRS Form 2290. Additionally, we provide you information about who is required to file, key dates to file, and when to file 2290 returns online.

What do truckers need to know about IRS Form 2290

When is my heavy vehicle subjected to 2290 HVUT?

Generally, Heavy Vehicle Use Tax applies to both interstate and intrastate drivers. If your vehicle meets anyone among the below circumstances, then you are subjected to 2290 Heavy Vehicle Use Tax:

Registering a vehicle in your name

You need to pay 2290 tax when you are registering a vehicle in your name as an owner, operator, or self-employed driver under the State DMV.

Gross weight of the vehicle exceeds 55,000 pounds

If you purchase a heavy vehicle like a truck, tractor, agricultural machinery weighing more than 55,000 pounds, then you may subject to 2290 road tax.

Using public roads for more than 5,000 miles

When you use commercial vehicles more than 5,000 miles and agricultural vehicles more than7,500 miles on public highways, you need to pay excise tax to the IRS.

What are the key dates to file Form 2290?

According to the IRS, the tax period to file 2290 Forms and pay road taxes begins in July of the current year and ends in June of the following year. If your vehicle’s first use month is during the reporting period, then file IRS Form 2290 by the last of the following month. For instance, if you’re vehicle’s FUM is July, then the key date to file 2290 returns is by August 31st.

If your vehicle’s FUM is after the reporting period, file Form 2290 and pay truck taxes to the IRS. For example, if you purchased a vehicle in December 2020 and started using it on public roads. The FUM of the vehicle is “December”. In this case, you need to file Form 2290 and pay road taxes by January 31st, 2021. As mentioned earlier, the tax amount will be reduced for partial year filing.

When you are required to file Form 2290 online?

As per the IRS instructions, if you are reporting 25 or more vehicles in a tax period, you need to file Form 2290 electronically. However, the IRS encourages every trucker to file 2290 returns online for a single tax return.  Compared to paper filing, e-filing is more convenient and saves time, money, and effort. In addition to filing, paying 2290 taxes electronically is secure. As we know, payments made through checks or money orders can get lost. Electronic payments are safe with an IRS-authorized e-file provider. IRS certifies e-file providers which provide bank-level security encryption software.

Can I suspend my 2290 Heavy Vehicle Use Tax?

You can suspend 2290 Heavy vehicle Use Tax if:

Commercial Vehicle travels less than 5,000 miles

If you operate a business using commercial vehicles on public roads for less than 5,000 miles in a tax period, then you can suspend road tax.

An agricultural vehicle travels less than 7,500 miles

If you expect to drive agricultural vehicles less than 7,500 during the tax year, you can apply for a suspension of 2290 tax.

Moreover, you are still required to file Form 2290 and report the vehicle under the suspension category. Make sure that you cannot claim mileage suspension in the middle of the tax period. The IRS instructs the truckers to apply for suspension at the end of the tax period.

How to claim a credit on IRS Form 2290?

Credits can be claimed for the below circumstances:

Vehicle sold/stolen/damaged

Heavy vehicles which are sold/stolen/destroyed are considered credit vehicles. The owners of credit vehicles can claim the HVUT paid in the prior year before transferring/stolen/destroyed by filing Form 8849.

Taxable vehicle falls under suspension category

If you end up driving a taxable vehicle less than 5,000 miles, you can claim the credit by filing Form 2290 amendment return.

Does the HVUT apply if an individual based in Canada or Mexico?

Yes, the Heavy Vehicle Use Tax is applied if an individual is based in Canada or Mexico. As per the IRS guidelines, if you drive your taxable vehicle on public roads within the United States you need to pay HVUT and report it on Form 2290. Furthermore, you need to carry proof of HVUT payment when entering your heavy vehicle in United State on a course of business.

Ready to file Form 2290? Tax season to file IRS Form 2290 for 2021-22 is open now! HVUT is due to the IRS on August 31st. Hurry up! File 2290 tax returns with Form 2290 filing.com. We guide the filers step-by-step to eliminate errors and avoid penalties.

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