The Heavy Highway Vehicle Use Tax is reported on the 2290 Form (HVUT). Any truck that weighs more than 55,000 pounds and drives on American highways must file form 2290 and pay this HVUT tax every year.
Once the tax is paid, you will receive an IRS watermarked Schedule 1 from your service provider as a Proof of Payment of your tax payment.
Truckers must present the IRS stamped Schedule 1 at their respective Department of Motor Vehicles (DMV) to update their tags and motor vehicle registration every year.
Both the tax return and the HVUT should be submitted before the deadline to avoid fines and penalties. This tax should also be paid if a new motor vehicle is added to your fleet for the rest of the fiscal year. The tax is due by the end of the month after the vehicle’s first use on public highways.
Deadlines for Filing
The Form 2290 filing season starts from July 1 till June 30 of the next year. The month you start using the heavy vehicle on public highways during the taxable period determines the filing deadline for Form 2290.
The period for filing form 2290 and paying HVUT tax is between July 1 and August 31. You must file the 2290 Form for vehicles you first used on a public highway before July.
For heavy motor vehicles first used after July, you must file Form 2290 on the last date of the month when you started using the heavy vehicle on a public highway.
A logging vehicle transports timber and other forestry products to and from harvest sites. Logging vehicles are taxed differently from other heavy highway vehicles, so knowing whether your vehicle falls into this category is critical.
The Forestry Industry and Vehicle Classifications
During a given tax period, a vehicle qualifies as a logging vehicle if:
- It only transports goods that have been harvested from a forest.
- It is solely responsible for transporting forestry products to and from various locations within a forest.
Under the state laws where the work is performed, the vehicle is licensed as a highway vehicle used to transport harvested forest products.
Suspension of HVUT
If a vehicle’s projected mileage is less than 5,000 miles (7,500 for agricultural vehicles), you don’t have to pay the Heavy Highway Vehicle Use Tax (HVUT).
When submitting your 2290 form, you must classify the truck as a suspended vehicle in such situations.
Suspended Vehicle Definition:
If you plan to drive less than 5,000 miles on the highway, you may suspend the HVUT for that truck. You don’t have to pay the HVUT if you don’t go over these caps.
Exceeding Suspension Limits
As soon as you cross the 5,000-miles limit, your truck is no longer suspended, and you have to pay the HVUT tax. To file your 2290 form and pay your tax, you have until the last day of the month in which the mileage was exceeded.
The tax could be prorated based on the vehicle’s first month on public highways during the taxation period.
If you decide to stop operating your truck, keep careful records of its mileage and use. If the IRS decides to inspect you, they’ll want evidence that you didn’t meet the vehicle’s mileage limit. Failure to provide this proof can result in hefty fines.
Are You Prepared To File?
Gather the Following Information:
While filing your HVUT return, you will need an EIN or Employer Identification Number. Your Social Security number can’t be used for filling the 2290 Form.
Make sure to check the following mandates to avoid any mistakes.
- On your Form 2290, use the same name as mentioned in your EIN.
- Your EIN must match and fit the name attribute on Form 2290.
- Vehicle Identification Number or the VIN of every heavy motor vehicle(s).
- The Tax Computation instruction of Form 2290 can be used to calculate your HUVT tax amount as per each motor vehicle’s taxable weight.
Online Filing or e-Filing: You need to e-file your 2290 form if you are filing for 25 or more motor vehicles. Although you can file the taxes offline, it’s recommended that you e-file for faster processing. With the right service provider, you will get the IRS watermarked Schedule 1 in just minutes after filing the return.
Offline Filing: You may fill out Form 2290 and mail it to the addresses specified in the instructions. After the IRS receives your Form 2290, you should receive your IRS-stamped Schedule 1 within the first six weeks after filing your 2290 return.