Category: 2290 Schedule 1
Choosing an IRS-Authorized e-file Provider for Form 2290 (HVUT)
IRS Form 2290 Amendments
1.Additional Tax From Increase in Taxable Gross Weight
2.Suspended vehicles exceeding the mileage use limit
3.VIN Correction
Organizing IFTA(International Fuel Tax Agreement)
IFTA requires a report for each vehicle of how many miles were travelled as well as the amount of fuel that was purchased in each state or province. This helps accurately allocate how the payments collected through IFTA are distributed. For example, if a vehicle drove through a state, but did not purchase any fuel in that state, part of the vehicle’s IFTA payment would be distributed to the state without any fuel purchases because it used the roads of the state, but payed no taxes for the fuel consumed within that state.
These reports can be very difficult to keep a record of, but fortunately, ExpressTruckTax.com has built a tool that can help drivers accurately keep a record of their Fuel Use. It is even possible to generate state IFTA returns online with this program. This program also has some built-in auditing features that can check for common mistakes made on these returns. This will therefore, limit your risk of being audited because of IFTA. Some of the features include, but are not limited to: State Adjacency Check, Abnormal MPG Audit, and Free Online Trip Sheets!
What is HVUT- IRS Form 2290?
The Heavy Vehicle Use Tax, or HVUT as it is commonly referred to as, is the fee imposed by the IRS annually on heavy vehicles that operate on public highways at registered gross weights equal to or exceeding 55,000 pounds.
The taxable gross weight of a vehicle is determined by adding the following:
- The actual unloaded weight of the vehicle, when it is fully equipped for service
- The actual unloaded weight of any trailers or semitrailers fully equipped for service normally used in addition to the vehicle
- The weight of the maximum load that can be carried on the vehicle and on any trailers or semitrailers typically used with the vehicle
- For Buses, The taxable gross weight is its actual unloaded weight fully equipped for service in addition to 150 pounds for each seat provided for passengers and driver.
The Tax Calculations:
The tax year for Form 2290 starts in July and ends in June of the next year. If the gross taxable weight is from 55,000 to 75,000 pounds, the HVUT is $100, plus $22 per thousand pounds over 55,000 pounds. For over 75,000 pound vehicles, the maximum HVUT is $550/ year. The taxes are lower for logging vehicles. Logging Vehicles are vehicles which are primarily used for transporting products harvested from the forest and is registered with a state agency as such.
Taxes are prorated for any vehicles placed into service after the month of July.
HVUT Exemptions:
There are a number of groups that receive exemptions from HVUT. Such as:
- Federal Government
- State & Local governments, including the District of Columbia
- The American Red Cross
- Nonprofit volunteer fire departments, ambulance associations or rescue squads
- Indian tribal governments (for vehicles used in essential tribal functions)
- Mass transportation authorities
There are also a number of vehicles exempted from the HVUT:
- Any vehicle not considered to be a highway motor vehicle — e.g., mobile machinery for non-transportation functions, vehicles specifically designed for off-highway use, and non-transportation trailers and semi-trailers
- Qualified blood collecting vehicles used by qualified blood collector organizations
- Mobile machinery that is used for non-transportation purposes
Exempt carriers may be required to file tax forms with the IRS or notify the local department of motor vehicles (DMV) of their exempt status
There are other vehicles that are exempt based on the number of miles it is driven:
- Commercial Vehicles traveling less than 5,000 miles annually
- Agriculture Vehicles traveling less than 7,500 miles annually
The above vehicles are called Suspended Vehicles, but must be reported to the IRS.
What is the Purpose of HVUT?
The HVUT is a significant source of transportation funding in the U.S. In 2006 alone, the HVUT generated more than $1.4 Billion in Federal Highway Trust Fund (HTF) revenue.
The Federal HTF protects America’s investment in its transportation infrastructure. In 2007 alone, Federal HTF receipts were $39.9 Billion, with $34.9 Billion dedicated to the HTF’s Highway Account. The Federal HTF finances a wide spectrum of transportation investments which include:
- Highway improvements (e.g., land acquisition, other right-of-way costs, preliminary and construction engineering, construction and reconstruction, resurfacing and restoration costs of roadways and bridges)
- Highway and bridge maintenance
- Highway law enforcement
- Safety programs (e.g., driver education and training, vehicle inspection programs, enforcement of vehicle size and weight limits)
- Congestion relief projects
- Administrative costs (e.g., research, engineering)
Investment in our nation’s highway infrastructure helps:
- Save money, time, & lives
- Reduce the amount and severity of crashes for all kinds of vehicles
- Enhance the ability of emergency responders
- Lower fuel and insurance costs
- Decrease energy consumption
- Ease congestion
- Boost air quality
- Increase mobility
- Improve the efficiency of the movement of goods
- Raise business productivity
- Strengthen the nation’s economic productivity
Since the vast majority of all funds contributed by states to the Federal HTF are returned through highway improvements, this is a direct incentive for state agencies to take necessary measures to enhance HVUT compliance.
The Hassle of Filing an IRS Form 2290
This IRS Form contains a Schedule 1 that must be stamped by the IRS before the vehicle can be registered. This form can be mailed to the IRS, which can take up to several weeks to process. It could also be taken directly to the IRS office, which can take several hours of your day. This must be accompanied by a proof of EFTPS payment.
This form must be filed annually, for each taxable vehicle that is used on public highways during the current period. The Current Period begins on July 1st and ends on June 30th. A Form 2290 must also be filed once a vehicle is placed in service. The due date for each month is the last day of the following month. For example: if a vehicle is placed in service on October 3rd, the Form 2290 will be due on November 30th.
Even though there are thousands, if not millions, of Heavy Vehicles that are required to file HVUT the IRS still requires everyone to either mail the Form 2290 to the IRS or actually come to the IRS office. Fortunately there is an easier way that has recently become available.
www.ExpressTruckTax.com allows you to fill out your IRS Form 2290 online and send it to the IRS electronically! This way you can get a stamped schedule 1 in about 10 minutes. Express Truck Tax is authorized by the IRS to file Form 2290. The taxpayer will then receive the schedule 1 via email or fax as soon as the IRS processes the form. The form will then be watermarked by the IRS instead of an actual physical stamp.
What is VIN Correction?
IRS Form 2290 and IFTA(International Fuel Tax Agreement)
IRS Form 2290 is what is used by the government to collect what is referred to as the Heavy Vehicle Use Tax or HVUT Tax. It is a fee that the IRS requires all vehicles with registered gross weights equal to or exceeding 55,000 pounds to pay annually on heavy vehicles operating on public highways. The tax collected is a significant source of transportation funding in the U.S. In 2006 alone, the HVUT generated more than $1.4 billion in Federal Highway Trust Fund (HTF) revenue.
The International Fuel Tax Agreement (IFTA) is an agreement between jurisdictions to simplify the reporting of motor fuel taxes. Under this agreement, one quarterly fuel use tax report is filed representing miles traveled, fuel purchased and used, and taxes/credits due in each member jurisdiction. The base jurisdiction then distributes the funds to each affected jurisdiction according to information contained in the quarterly fuel use tax reports. An interstate motor carrier operating “qualified motor vehicles” between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an International Fuel Tax Agreement (IFTA) license and decals issued by their base jurisdiction. If you have the IFTA license, you must file the Quarterly IFTA Return to your base jurisdiction.
How do they Work?
Besides the fact that they are both fees imposed on heavy vehicles, these are both similar in that they are both very complicated. The complications with IRS Form 2290 come from the difficulty of actually filing one. The trouble with IFTA is that it is an incredibly detailed system.
The IRS Form 2290 includes a Schedule 1 which must be stamped by the IRS. This can either be mailed to the IRS, which can take up to several weeks to process. It can also be taken directly to the IRS office, which can take several hours of your day. This must be accompanied by the proof of EFTPS payment.
IFTA requires drivers of Heavy Vehicles to keep trip logs of miles traveled as well as how much fuel was purchased in each state or province. IFTA must be filed quarterly and the filing date is the 30th of the following month. These trip logs are difficult to keep up because they require very detailed information. As mentioned earlier, these forms are then filed with their base jurisdiction. Most states do not provide E-Filing as of yet. Therefore, most of the time these forms are mailed to the state.
A simple solution for both of these is to use an online E-File Provider. The most advanced of the available services is www.expresstrucktax.com. Express Truck Tax acts as a one stop shop for all truck tax needs. Through them, you can E-File your Form 2290 with the IRS. It also provides a way to keep online records of your mileage and fuel purchases for IFTA reporting. This can make the IFTA process much easier.
What Happens If I Forgot to File My Form 2290 to the IRS?
A 2290 can be filed with the IRS at any time after the deadline has passed but the tax due may be subject to penalties and interest. The penalties for filing late will not be imposed if you can show reasonable cause for not filing on time.
The penalty for failing to file IRS Form 2290 in a timely manner is equal to 4.5 percent of the total tax due, assessed on a monthly basis up to five months. Late filers not making an HVUT payment also face an additional monthly penalty equal to 0.5 percent of total tax due. Additional interest charges of 0.54 percent per month accrue as well.
As you can see, the penalties for failing to file can add up quickly. HVUT for an 80,000 lbs vehicle would typically cost about $550. However, for every month that passes without filing, penalties and interest add more than $30 to the total tax due. If you fail to file for 5 months, the total HVUT tax due to the IRS for that vehicle would be more than $700.
Additionally, many states won’t permit the vehicle to be registered without proof of payment for the HVUT. Needless to say, it’s important to file your Form 2290 on time!
If you would like more information about heavy vehicle use taxes and penalties and interest, please visit the IRS or DOT websites.
How Do We Keep Our 2290 Prices So Low?
We get asked this question all the time and we love it! We can’t say why the other companies charge so much but we can certainly explain why we keep our prices so low. The short answer is value and customer loyalty.
As a single vehicle owner-operator, we understand how important it is to manage your time and money. We’re here to help. We believe very strongly in solid, long-term customer relationships. Our business model is founded on providing more features and better services for less than the other guys – a lot less. For just $9.90, you can e-file your IRS Form 2290 and still get all the great services and features that we provide to every one of our Express2290 customers.
We believe that this approach helps establish long term customer relationships, repeat business, and customer referrals. We’re in this for the long haul and we hope you are too.
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