Tag: heavy vehicle use tax

What Every Truck Driver Should Know About The Heavy Vehicle Use Tax

Posted on August 7, 2023 by - Heavy highway Vehicle use tax

Every year, truck drivers across the country pay the Heavy Vehicle Use Tax (HVUT). But what exactly is the HVUT, and how does it work?

We answer these questions and more in our detailed look at highway use tax. Read on to learn more about what every truck driver should know before paying their HVUT.

What is Heavy Vehicle Use Tax?

The Heavy Vehicle Use Tax is an IRS tax based on the weight of your vehicle. It specifies that if you have a vehicle with a gross weight of 55,000 pounds or more and you drive it on public roadways, you must pay the HVUT. This is done by filing Form 2290 annually.

But what’s the point of highway use tax anyway? Essentially, it’s a way for owner-operators to pay a bit more for the upkeep of the national highway system. It evens the playing field since heavy trucks add more wear and tear to the roadways than other vehicles.

Calculating Heavy Vehicle Use Tax 

To calculate your HVUT, you must first determine your taxable gross weight.

What is Taxable Gross Weight?

Your taxable gross weight is the combination of:

  • The actual unloaded weight of your motor vehicle fully equipped for service
  • The actual unloaded weight of trailers or semi-trailers fully equipped for service that are typically used with the vehicle
  • The weight of the maximum load typically carried on the vehicle and on the trailers or semi-trailers

Taxable gross weight categories

The HVUT varies based on your taxable gross weight category. For example, the HVUT payment for a vehicle with a gross weight between 55,000 to 75,000 pounds is $100. If your truck is over 55,000 pounds, you’ll need to add $22 for every 1,000 pounds that your vehicle weighs (with a cap at 75,000 pounds).

However, if your vehicle has a gross weight of over 75,000 pounds, the maximum HVUT payment you’ll make is $550.

A breakdown of tax rates

Vehicles below 55,000 poundsNo tax
Vehicles 55,000 pounds$100
Vehicles over 75,000 pounds$550
Vehicles between 55,000 and 75,000 pounds$100 plus $22 for every1,000 pounds over 55,000

Penalties for non-compliance 

If you miss filing Form 2290 and making your HVUT payment on time, you could be penalized 4.5% of the total HVUT taxes due — this penalty can accrue for up to five months.

If you fail to pay the full amount of HVUT taxes due, you could also face a penalty of 0.5% of the unpaid tax per month, with a maximum penalty of 25%.

Tax Compliance for Heavy Vehicle Use Tax

To avoid IRS penalties, file Form 2290 and pay your taxes on time. You can do this by either e-filing or mailing Form 2290.

When to file Form 2290

The deadline to file Form 2290 and pay your HVUT is the last day of the month following the “first used month” of the vehicle. (For example, if you get a new truck in December and put it on the road, you must file your 2290 tax form by January 31st).

However, if you  continue to operate your truck on public highways, you’ll file following the fiscal year. Since the tax year begins on July 1st and ends on June 30th, the deadline to file Form 2290 for most truckers is August 31st.

How to e-file Form 2290

E-filing is the easiest way to pay your HVUT. It’s also the only method the IRS will allow if you’re filing 2290 forms for more than 24 vehicles.

When you e-file, your return will be processed quickly, you’ll get your stamped Schedule 1 in a matter of minutes, and you’ll get your refund faster — usually within three weeks of the IRS receiving your tax return.

To e-file Form 2290 and pay your HVUT, you’ll need to do the following:

How to paper file Form 2290

If you paper file your Form 2290, you’ll need to print the return, fill it out, and mail it to the IRS, along with your check. This usually takes the IRS four to six weeks to accept your return.

If you’re sending Form 2290 with a full payment that is not drawn from an international financial institution, mail it to the Internal Revenue Service, P.O. Box 932500, Louisville, KY 40293-2500.

Amendments and Corrections to Form 2290

Form 2290 amendments should be filed when the information for the filed vehicle changes in these three ways:

  • There’s an increase in taxable gross weight
  • The mileage use has exceeded its limit
  • The VIN is incorrect

With ExpressTruckTax, we make it easy to file your 2290 amendments by accurately calculating the taxes due to the IRS so that you can get your updated Schedule 1 within minutes.

ExpressTruckTax can quickly file the increase in taxable gross weight and report the tax due for vehicles that exceed the mileage use limit. We also offer free VIN corrections to anyone who filed their original 2290 with us. Get started today with ExpressTruckTax.

Related Questions

Q: How does HVUT work? 

A: The HVUT is an IRS tax that’s based on the weight of your vehicle. It’s paid by filing Form 2290 each year.

Q: What is the minimum weight requirement for HVUT?

A: If you have a vehicle with a gross weight of 55,000 pounds or more and you drive it on public roadways, you must pay the HVUT.

Q: Is HVUT the same as IFTA? 

A: No, the International Fuel Tax Agreement (IFTA) is separate and is not related to HVUT and Form 2290. 

Q: What happens if I don’t pay HVUT? 

A: If you miss the deadline to file your Form 2290 returns or don’t pay your HVUT taxes, you could face significant IRS penalties and interest charges.

Q: Who is exempt from paying HVUT? 

A: Vehicles exempt from paying the HVUT include commercial vehicles that drive fewer than 5,000 miles a year, agricultural vehicles that drive fewer than 7,500 miles a year, vehicles not considered highway motor vehicles, and vehicles used for the collection of blood.

E-Filing your 2023-24 Form 2290 with ExpressTruckTax is Faster, Easier, and More Secure Than Ever

Posted on August 3, 2023 by - efile form 2290

It’s time again for all truck owners and operators to file their 2023-24 Form 2290. This annual requirement might seem like a daunting task for many, but fear not! With ExpressTruckTax, e-filing has become the go-to method for millions of truckers. ExpressTruckTax is leading the way in making the process faster, easier, and more secure than ever before.

What is Form 2290?

Before we dive into the benefits of e-filing with ExpressTruckTax, let’s quickly recap what Form 2290 is all about. Form 2290 is a federal tax form used to report and pay Heavy Highway Vehicle Use Tax (HVUT). This tax is imposed on heavy vehicles with a gross weight of 55,000 pounds or more, and it helps fund and maintain the nation’s highway infrastructure.

The Evolution of E-Filing

Gone are the days of paper forms and long waits at the IRS office. Thanks to ExpressTruckTax, truck owners can now electronically file Form 2290, making the process much smoother and more efficient. E-filing has gained immense popularity over the years due to its numerous advantages, such as:

1. Speed and Efficiency: E-filing with ExpressTruckTax allows you to submit your Form 2290 within minutes. Traditional paper filing could take weeks, but with the click of a few buttons, your tax return is transmitted to the IRS instantly.

2. Accurate Tax Calculations: Manual calculations can lead to errors, which might result in penalties. ExpressTruckTax’s e-filing platform comes equipped with built-in calculators, ensuring that you provide accurate information and pay the correct amount of tax.

3. Time and Money Savings: E-filing eliminates the need for postage and reduces the chances of costly mistakes. It also saves you valuable time, which you can invest back into your trucking business.

4. Instant Proof of Filing: Once your Form 2290 is successfully transmitted, ExpressTruckTax provides you with a stamped Schedule 1, the proof of payment, within minutes.

5. Enhanced Security Measures: One of the main concerns with electronic filing is data security. However, ExpressTruckTax prioritizes data protection and employs advanced security protocols to safeguard your sensitive information.

Why Choose ExpressTruckTax?

Among the numerous e-filing service providers, ExpressTruckTax stands out as a reliable and user-friendly platform that caters specifically to truck owners and operators. Here are some compelling reasons to choose ExpressTruckTax for your Form 2290 e-filing:

1. US-Based Dedicated Customer Support: Should you encounter any issues during the e-filing process, ExpressTruckTax’s customer support team is readily available to assist you through phone, email, or chat in English and Spanish! 

2. Pay your IRS tax with a Credit or Debit Card during the filing process:  No need to re-enter your credit card information! Pay your filing fee and IRS tax payment in ONE easy transaction. 

3. Multi-Platform Accessibility: Whether you’re using a computer, tablet, or smartphone, you can access ExpressTruckTax from anywhere, at any time, and complete your filing with ease.

4. Affordable Pricing Options: ExpressTruckTax offers competitive pricing, ensuring that you only pay for the features you need.

Conclusion

In conclusion, e-filing your 2023-24 Form 2290 with ExpressTruckTax is undeniably the only way to go. The advantages of speed, accuracy, convenience, and enhanced security make it the smart choice for truck owners and operators. Embrace the digital revolution, save time and money, and rest assured that your tax filing is in capable hands with ExpressTruckTax.

Streamlined Steps to File Form 2290 Quickly with ExpressTruckTax

Posted on July 27, 2023 by - e-fiile form 2290

As a responsible truck owner-operator, it is essential to stay compliant with the IRS regulations by filing your Heavy Vehicle Use Tax (HVUT) Form 2290 accurately and promptly. However, this task can be daunting and time-consuming. Fortunately, with the assistance of ExpressTruckTax, the number one IRS-authorized e-filing solution, the process becomes incredibly efficient. In this blog, we’ll walk you through the streamlined steps to file your Form 2290 quickly and hassle-free with ExpressTruckTax.

Step 1: Register or Log in to your ExpressTruckTax Account

Begin by creating an account with ExpressTruckTax if you’re a first-time client or log in if you already have an existing account. We offer a simple and intuitive registration process, requiring only basic information to set up your account.

Step 2: Choose your Filing Period and Enter Vehicle Information

Select the tax year and the appropriate tax period for which you need to file your Form 2290. Typically, the tax year for Heavy Vehicle Use Tax runs from July 1st to June 30th of the following year. Choose whether you are filing for the current tax year or a previous tax year.  You’ll also need to enter the required details about the vehicles you report on Form 2290. You’ll need information like the Vehicle Identification Number (VIN), taxable gross weight, and the first-used month of each vehicle during the tax period.

Step 3: Calculate Your HVUT and Choose Your IRS Payment Method

Once you have entered all the necessary vehicle details, ExpressTruckTax will automatically calculate the Heavy Vehicle Use Tax for each vehicle based on the provided information. We ensure accurate calculations, minimizing the risk of errors and potential IRS penalties. Next, select your preferred payment method to pay the calculated HVUT amount to the IRS. ExpressTruckTax, drivers and fleet managers can simplify the HVUT payment process and streamline their tax compliance responsibilities by choosing to pay the IRS tax due via credit card.

Step 4: Transmit to the IRS

After verifying all the information, review your Form 2290 for accuracy. Once you are confident that everything is correct, transmit your form directly to the IRS using our secure e-filing system. ExpressTruckTax will provide an IRS stamped Schedule 1 as proof of filing your Form 2290, which will be sent to your registered email within minutes.

Step 5: Receive your Stamped Schedule 1

Within minutes of filing your Form 2290, you will receive the IRS stamped Schedule 1 in your email, confirming your successful HVUT filing. You can also access your stamped Schedule 1 anytime by logging into your ExpressTruckTax account.

Filing your annual Form 2290 does not have to be a cumbersome and time-consuming process. With ExpressTruckTax, you can efficiently file your Heavy Vehicle Use Tax, saving both time and effort. The user-friendly platform guides you through each step, ensuring accurate calculations and prompt transmission of your form to the IRS.

Stay compliant and worry-free with ExpressTruckTax, the trusted e-filing solution for truck owners and operators. Get started today and experience the ease of electronic filing with ExpressTruckTax!

Rev Up Your Savings: The Ultimate Guide to Heavy Vehicle Tax Deduction

Posted on July 24, 2023 by - Taxable Heavy Vehicle

As an owner-operator, it’s essential to consider all the tax implications of your truck, including heavy vehicle tax deductions. Understanding the ins and outs of tax deductions, benefits, and credits for your heavy vehicle can save you and your business considerable money.

From Section 179 Deductions and Bonus Depreciation to writing off maintenance and repair deductions, here’s everything you need to know about heavy vehicle tax deductions.

Tax Credits and Benefits for Heavy Vehicles and Equipment: Section 179

The Tax Cuts and Jobs Act (TCJA) of 2017 changed how depreciation can be deducted. With the new tax law, truck drivers now have two options for heavy vehicle tax deductions: Section 179 or Bonus Depreciation.

What’s the difference between Section 179 and Bonus Depreciation? Let’s explore the differences:

How does Section 179 work?

The Section 179 deduction is a small business tax deduction used for capital assets — typically vehicles and equipment. It lets you write off the entire cost of your item immediately instead of depreciating it over time.

For example, if you spent $50,000 on a piece of heavy equipment, you can write off the entire purchase price for the current tax year instead of deducting it for five years at $10,000 a year, for example.

The whole point of Section 179 is to encourage small business owners to make more expensive purchases and, in turn, help stimulate the economy.

Qualifying for Section 179

To qualify for Section 179, you must purchase your heavy vehicle or equipment and put it into service on the year you are filing for. This means if you bought your truck in late 2023 but didn’t start using it for your business until 2024, you’ll have to wait to claim the Section 179 deduction for your 2024 tax returns.

Other stipulations include the following:

  • The heavy vehicle must be purchased (not leased).
  • The vehicle can’t be bought from someone related to you. 
  • If using the vehicle for both personal and business use, you must use the vehicle for more than 50% of your business.

While Section 179 has a complicated set of exceptions for vehicles, non-personal heavy-weight vehicles intended for business are eligible for a full deduction. These vehicles include:

  • Semi-trucks, tractor-trailers, and dump trucks
  • Heavy construction equipment like forklifts
  • Vehicles with a fully enclosed compartment and no seating behind the driver’s seat (like a cargo van)
  • Vans that seat nine or more passengers (i.e., an airport shuttle)

To claim the Section 179 deduction on your tax returns, you must include a description of your heavy vehicle, its cost for business use, and the amount of Section 179 you’re claiming. This deduction is made on Part 1 of Form 4562.

Limits to Section 179

Section 179 has important limits, such as a cap to the total amount that can be written off. For example, in the 2022 tax year, you can expense up to $1,080,000 of eligible property. For 2023, this deduction limit will increase to $1,160,000.

There’s also a cap on the total amount of equipment that can be purchased. For 2022, this limit is $2,700,000. And for 2023, the cap is $2,890,000. This means the deduction begins to be reduced on a dollar-for-dollar basis after the total amount is spent.

You also can’t deduct more money than you make in a year. So, if you have a net income of $100,000 (before taking the Section 179 deduction into consideration) and you purchased $110,000 worth of deductible property, your deduction will be limited to $100,000.

At this point, you can take regular depreciation on the remainder of your assets.

Tax Credits and Benefits for Heavy Vehicles and Equipment: Bonus Depreciation

Bonus Depreciation is usually taken after the cap for the Section 179 deduction is met. Available for new and used vehicles and equipment, bonus depreciation lets you write off an additional first-year depreciation on eligible property.

After the TCJA was passed, the potential value of Bonus Depreciation increased significantly — but only for a limited time. The Bonus Depreciation rate was expanded to 100% for qualified property in service through 2022. After that, the amount dropped by 20% for 2023 and will continue to drop at 20% until 2027, when the program will close.

That means the Bonus Depreciation rate is 80% for 2023, 60% for 2024, and so on, until 2027, unless Congress extends it.

What’s the Difference Between Section 179 and Bonus Depreciation?

While both Section 179 and Bonus Depreciation allow for serious deductions for a heavy vehicle in service, they also differ in the following ways:

  • The Section 179 deduction is capped by the IRS ($1,160,000 in 2023) and is reduced by the dollar amount if it exceeds the IRS threshold ($2,890,000 in 2023). However, there is no annual deduction limit for Bonus Depreciation.
  • Section 179 is typically more flexible than Bonus Depreciation. With Section 179 depreciation, you can deduct any amount you want as long as it’s within the IRS threshold set that year. You can also allocate which assets/vehicles get the deduction. Bonus Depreciation, however, requires that you write off all vehicles and take the entire tax break at once. You don’t get to pick and choose which assets/vehicles you want to deduct.
  • Section 179 is limited to the amount of taxable income, but Bonus Depreciation can exceed taxable income and create a net loss to be carried forward.
  • While qualifications, deduction limits, and investment limits change yearly, Section 179 is an indefinite part of the IRS tax code. Bonus Depreciation, on the other hand, is set to end on Dec. 31, 2026.

Keeping records for Section 179 deductions and Bonus Depreciation

You must keep detailed records of your vehicle usage — like mileage logs, receipts, invoices, etc. — to qualify for the Section 179 deduction or Bonus Depreciation.

These records will back up your business use claims of your vehicles in the event you’re ever audited by the IRS.

Claiming Heavy Vehicle Tax Deduction: Maintenance and Repair Expenses

Since your truck is not a personal-use vehicle, you can deduct all the expenses you’ve made to maintain or repair it throughout the tax year. For example, you can make deductions for the following costs:

  • Oil changes 
  • Regular checkups
  • New tires
  • Routine and emergency maintenance
  • Truck parts
  • Cleaning supplies
  • Loan interest (if you financed the purchase of your truck and trailer) 

The deductions for the maintenance and repair of your vehicle will be made on your Schedule C, which you will file along with Form 1040 in April every year.

Other vehicle maintenance deductions for Schedule C

In addition to the costs it takes to maintain and repair your truck, you’ll also come across other vehicle-related expenses that you can deduct from your Schedule C, including the following:

  • Load-related tools – Deduct any equipment needed for your trucking business, like bungee cords, chains, ratchet straps, duct tape, tarps, and locks. 
  • GPS systems – Write off any navigation system you use while driving your truck for work. 
  • Association dues – If you’re part of a union or other trucking association, you can deduct any required fees you’ve made to belong to that group. 
  • Liability insurance – While your health insurance will be deducted on a separate form (Form 1040), Schedule C is where you’ll count your premiums for auto/cargo liability and property damage insurance you’re required to have on your truck. 
  • Parking and toll fees – If you encounter any parking or toll fees while driving your truck for work, you can also count these as a deduction on Schedule C.

Claiming the IRS Commercial Clean Vehicle Credit

Beginning in 2023, the Commercial Clean Vehicle Credit will be available for qualified heavy-duty electric vehicles. According to the IRS, this credit will equal the lesser of:

  • 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
  • The incremental cost of the vehicle

The maximum credit is $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) under 14,000 pounds and $40,000 for all other vehicles.

While the IRS has not yet released information on how to claim the Commercial Clean Vehicle Credit (as of Tax Day 2023), it will apply to vehicles purchased on or after Jan. 1, 2023. Keep checking the IRS website for the latest details.

Claiming Additional Heavy Vehicle Tax Deductions

There are also additional heavy vehicle tax deductions, credits, and benefits you can take following IRS guidelines for other tax forms.

Heavy vehicle tax deductions: Form 1040

If you’re an independent contractor or owner-operator and pay for your own health, dental, and vision insurance, you can count this as a deductible — just not as a business expense. Instead, you’ll deduct your health insurance separately (for you and your dependents) on Schedule 1 Form 1040.

Heavy vehicle tax deductions: IFTA

If you have a qualified motor vehicle and travel between two or more of the member jurisdictions (48 of the United States and 10 Canadian provinces), you must have an International Fuel Tax Agreement (IFTA) license and decals. IFTA reports are filed quarterly and are separate from your annual taxes.

You can count the fuel taxes and costs you pay on the road toward IFTA as part of your tax deductions.

Heavy vehicle tax credits: Form 2290

In certain circumstances, you can also claim a tax credit for heavy vehicles on your Form 2290.

For example, if your truck is registered as a Heavy Highway Motor Vehicle and it was stolen, destroyed, sold, or did not exceed mileage credit, you can count it as a tax credit.

Similarly, if your truck is registered as a heavy vehicle and you use it for 5,000 miles or less (7,500 miles or less for agricultural purposes), it will also qualify as a tax credit.

Form 8849 Schedule 6 is the IRS form used to claim a refund of excise taxes. There is no deadline to file this return. You can also claim credits using this return if you’ve overpaid in taxes.

Filing Form 8849 Schedule 6 with ExpressTruckTax

E-filing Form 8849 is easy with ExpressTruckTax. Here’s how you can easily claim your excise taxes with our help:

  • Create or sign in to the ExpressTruckTax account
  • Choose Form 8849 and fill in the necessary information
  • Pay for our services and transmit your return to the IRS

The IRS will issue a refund via check and send it to the address mentioned on the return. It can take up to six weeks to receive a refund.

When using ExpressTruckTax to file your 2290 forms, we automatically generate your Form 8849 when the credits on your Form 2290 exceed the tax you owe. We also offer bundle pricing so that you can E-File both Form 2290 and Form 8849 for one low price.

Why wait? Start e-filing with ExpressTruckTax today!

Adding a Truck to Form 2290: A Step-by-Step Guide

Posted on July 11, 2023 by - E-file form 2290

Truck owners and companies must often add another truck to their Form 2290 filing. Whether you’ve expanded your fleet, acquired a new vehicle, or replaced an existing one, it’s essential to understand how to add a truck to your Form 2290 to ensure compliance with the Heavy Vehicle Use Tax (HVUT) regulations. In this blog post, we will guide you through the steps involved in adding another truck to your Form 2290.

1. Determine the Taxable Period for the New Truck

The FUM or first used month is determined by when you put the new truck on the road. The HVUT tax period typically runs from July 1st to June 30th of the following year. If the new truck is in use or placed on the road anytime during the tax period, you must file Form 2290 for that period.

2. Gather Required Information

Collect all the necessary information for the new truck, including its Vehicle Identification Number (VIN), taxable gross weight, and the date it was first used on public highways. This information is crucial for accurately completing Form 2290 and calculating the applicable tax amount.

3. Create or Login To Your Account with ExpressTruckTax.com

You must start a new Form 2290 and provide the required information for the new vehicle. Ensure that all information is accurate and current to avoid potential errors or delays in the filing process.

4. Calculate and Pay the Tax

ExpressTruckTax will automatically calculate the tax due using the taxable gross weight and the first used month of the new truck. Verify and choose the IRS payment method that makes the most sense for your business.

5. Obtain Stamped Schedule 1

After the IRS processes your Form 2290 and payment, you will receive a copy of your stamped Schedule 1 as proof of tax filing for this new vehicle. 

By following these steps, you can successfully add another truck to your Form 2290 and ensure compliance with HVUT regulations. Remember to keep copies of your filed Form 2290, stamped Schedule 1, and any relevant documentation for your records.

Disclaimer: The information provided in this blog post is for general informational purposes only and should not be considered as legal, tax, or financial advice. For specific guidance related to your individual situation, it is recommended to consult with a professional tax advisor or the IRS directly.

What is a Schedule 1 and Why is it Important for Truckers?

Posted on July 6, 2023 by - 2290 Schedule 1

When it comes to heavy vehicle use taxes with the Internal Revenue Service (IRS), one crucial document that truck owners and operators must be familiar with is the stamped Schedule 1.

This document serves as proof of filing the Heavy Vehicle Use Tax (HVUT) and is an essential part of staying compliant with tax regulations. In this blog post, we will dive into the importance of the stamped Schedule 1 and its significance for trucking businesses.

What is a Stamped Schedule 1?

The stamped Schedule 1, also known as IRS Form 2290 Schedule 1, is a document issued by the IRS to confirm that the Heavy Vehicle Use Tax has been filed for a particular business and vehicle. It indicates that the vehicle’s owner has fulfilled their tax obligations for the tax period specified on the document.

The Schedule 1 is stamped by the IRS upon successfully processing Form 2290, which is filed annually by truck owners operating vehicles with a gross weight of 55,000 pounds or more. When you e-file your Form 2290, the stamp is an electronic stamp. Whether you have a red manual stamp or a gray electronic stamp, your IRP office must accept that document. 

Why is the Stamped Schedule 1 Important?

The stamped Schedule 1 holds significant importance for several reasons:

Proof of Filing: The stamped Schedule 1 proves that the HVUT has been filed (and paid) for the specified tax period. It acts as a receipt and confirmation that the vehicle owner is in compliance with tax regulations. Many authorities, including state DMVs and law enforcement agencies, may request a copy of the stamped Schedule 1 as evidence of tax payment.

Vehicle Registration and Renewal: The stamped Schedule 1 is required when registering or renewing the registration of a heavy vehicle. DMVs typically ask for this document to ensure that the vehicle’s owner has met their tax obligations. Without a valid stamped Schedule 1, the registration process may be delayed or denied.

Operating Authority: For commercial trucking businesses, obtaining operating authority from agencies like the Federal Motor Carrier Safety Administration (FMCSA) may require a valid stamped Schedule 1 as part of the application process. It demonstrates that the business complies with HVUT requirements and has paid the necessary taxes.

Proof of Compliance: In addition to serving as proof of filing, the stamped Schedule 1 demonstrates a truck owner’s commitment to compliance with tax regulations. It reflects their adherence to their tax obligations and helps build a reputation for reliability and professionalism within the trucking industry.

Obtaining the Stamped Schedule 1

To obtain a stamped Schedule 1, truck owners and fleet managers must first file Form 2290 with the IRS and pay the applicable Heavy Vehicle Use Tax. This can be done electronically through authorized IRS e-file provider like ExpresTruckTax, which offers a convenient and efficient way to file and receive the stamped Schedule 1 in a timely manner.

Electronic filing saves time, eliminates the need for paper forms, and expedites the processing of tax returns. You will receive your stamped Schedule 1 in minutes instead of weeks. 

In conclusion, the stamped Schedule 1 is a critical document for truck owners and operators. It serves as proof of filing for the Heavy Vehicle Use Tax and is vital to compliance with tax regulations. Truck owners should ensure that they file Form 2290 and obtain the stamped Schedule 1 promptly to avoid any delays in vehicle registration or operating authority. 

Please note that the information provided in this blog post is for general informational purposes only and should not be considered as legal, tax, or financial advice. For specific guidance related to your individual situation, it is recommended to consult with a professional tax advisor or the IRS directly.

Get A Sweet Deal With HVUT 2290 When You File Now And Pay Later

Posted on May 11, 2021 by - 2021 Form 2290

Did you know there’s a better way to file your Form 2290 for 2021-2022 Tax Period?

The 2021-22 Form 2290 season kicks off July 1st, but truckers who use ExpressTruckTax can now begin e-filing Form 2290 as early as Friday, May 14, 2021!

Many truckers wait until the last minute to e-file, often causing them to miss the Form 2290 due date. Missing the 2290 due date can lead to a hefty Form 2290 penalty on top of your HVUT 2290 annual fee.

The HVUT 2290 annual fee is calculated by adding:

  • The actual unloaded vehicle weight, fully equipped for service.
  • The unloaded weight of the semi-trailer or trailers, fully equipped in combination with the commercial vehicle.
  • The maximum load weight usually carried on the vehicle, and any semi-trailer(s) used.

What is Form 2290 Filing Like with ExpressTruckTax?

ExpressTruckTax customers can complete their 2290 Form 2021-22 before the start of the regular season. ExpressTruckTax gives customers the chance to file now and pay later.

A huge benefit of this is learning how much is owed in taxes and being able to save up until the HVUT 2290 due date, August 31, 2021! All you have to do to file now and pay later is choose our Pre-File option and pay your HVUT amount by check, money order, or EFTPS.

After completing the Form 2290 process online, customers have the opportunity to opt-in and receive HVUT 2290 due date reminders via email, text, and fax.

Benefits of Filing Your 2021-22 HVUT Form 2290 Now

When you file early, you are being proactive in making sure you are in the front of the line to receive your Stamped Schedule 1! We will transmit all returns filed early to the IRS as soon as they start processing returns on July 1. That means you’ll get your Schedule 1 as soon as possible.
You will also be able to make you HVUT payment any time before August 31, giving you time to save up your funds.
Additionally, by beating the busy season, our 100% US-based customer support team will be able to answer all of your questions instantly! That means no lines and no wait time.

The Most Common IRS Form 2290 Mistakes to Avoid

Posted on March 16, 2021 by - Form 2290

 

There’s nothing worse than having to file your annual truck taxes twice. 

Avoid IRS Form 2290 mistakes this year when you e-file 2290 with ExpressTruckTax.

We’ve got a few tips to make the process as painless as possible and save you from any unnecessary corrections.

Filing IRS Form 2290 before the deadline will save you tons of money, but mistakes could keep you from meeting the Form 2290 due date and cost you a sweet penny.

Avoid frustration and confusion by double-checking some information that commonly delays IRS Form 2290 approval.

The Most Common IRS Form 2290 Mistakes to Avoid

5 Common IRS Form 2290 Mistakes

 Here are some things to be extra cautious about when filing your 2290 Form.

How to Check These Areas For Error

  • 1) EIN (Employer Identification Number) or VIN (Vehicle Identification Number)

A unique EIN is assigned to each company operating in the US as a form of identification for tax purposes. Your EIN should be a string of 9 numbers, presented in this format: 12-3456789.

Since this number looks similar to a social security number, filers often confuse the two, causing the IRS to reject the 2290 Tax Form.

Keep in mind that it takes 10 business days for the IRS to update its database with a new EIN. If you’re applying for a new EIN, do so at least a month before you e-file IRS 2290 to avoid delays.

Your VIN should be 17 characters long and include both numbers and letters. Check your VIN before submitting your 2290 Tax Form. If incorrect, your IRS Form 2290 will be rejected.

The best online tax filing is quick. Don’t waste unnecessary time with mistakes. When you e-file 2290, double-check your Form 2290 and ensure that your EIN and VIN are correct.

  • 2) First Used Month or Filing Year

When filing IRS Form 2290, make sure you use the correct filing year.

Note: If you’ve used an online filing service before, the drop-down menu could be set to a previous 2290 Tax Form file year. Double-check!

Secondly, choose an accurate first used month.

The first used month is the month you first used the truck on the highway during the tax period, which runs from July 1 to June 30 of the next year. Your Truck Tax form is due on the last day of the month after your first used month.

This means if you first used your vehicle in July, as most drivers do during the tax season, then you will need to file your IRS 2290 Tax Form by August 31.

  • 3) Gross Taxable Weight

IRS Form 2290 tax calculations can be tricky, but don’t sweat it. At ExpressTruckTax, our system automatically calculates your owed tax amount. Leave all 2290 tax form math to us.

It’s important to find the best online tax filing service to save yourself time and money. ExpressTruckTax can help!

  • 4) Authorized Signatory Details

It’s super easy to sign your IRS 2290 online. All you need is a 5-digit authorized signature code. Still, no matter how simple it sounds, please just… double-check. 

  • 5) Business Name & Address

You’d be surprised at how many returns are rejected for this information being incorrect!

The wrong business name and address is the most common error on the heavy vehicle use tax form 2290. Don’t let it happen to you!

Double-check your business name and address before submitting your IRS Form 2290.

Why is it so Important to Avoid IRS 2290 Mistakes?

Even the simplest mistake on your IRS Form 2290 can cause serious problems. For starters, your 2290 Tax Form will definitely be rejected by the IRS.

This is a huge time waster and may cause you to miss the HVUT 2290 Tax Form Deadline.

If this happens and you miss the deadline, you’ll need to correct your Form 2290 and file again, attaching an explanation to show reasonable cause for the delay of your heavy vehicle use tax.

There’s no guaranteeing that your statement will be accepted by the IRS, and if it’s not, you’ll face heavy IRS 2290 Tax Form penalties.

The penalty for failing to file IRS Form 2290 by August 31st is 4.5% of the total tax amount owed. Plus, you still have to pay the base HVUT 2290 amount you owe.

In addition, this penalty will increase monthly for up to 5 months, with an additional .54% interest added for each month that it remains unpaid.

Save yourself while you can and double-check your Form 2290 before you e-file 2290 online.

The Best Online Tax Filing Service to Use

ExpressTruckTax makes filing easy. When it comes down to it, we simply don’t believe that filing IRS Form 2290 should be so difficult.

We include an instant error check to help catch any mistakes hidden in your 2290 Tax Form. We also have a 100% US-based customer support team ready to help you every step of the way.

With features like bulk upload, free VIN corrections, and a mobile app, we’re committed to hosting your best filing experience yet.

Sign up for a free account today and you’ll agree that ExpressTruckTax is the best online tax filing option for Form 2290.

10 Things Truckers Need To Know About IRS Form 2290

Posted on November 11, 2020 by - IRS form 2290

 
Time and time again truckers filing their 2290 online tend to ask the same questions and make the same mistakes when it comes to their heavy vehicle use taxes. So let’s go over the most common questions, so they are fresh in your mind when you e-file your 2290.

1. Is my vehicle subject to the HVUT/Form 2290?

You are subject to HVUT/Form 2290 if you are registering a vehicle in your name as an owner-operator or self-employed driver, it weighs more than 55,000 pounds, and you are using it on public roads. The Heavy Vehicle Use Tax applies to both interstate and intrastate drivers.

2. If I am based in Canada or Mexico, does the HVUT apply?

Yes, if you drive your vehicle in the United States. You will need to file a 2290 Form and pay any owed taxes. You will also need to carry proof of tax compliance when entering the U.S. as well.

3. When is the Form 2290 deadline?

IRS Form 2290 returns are due on the last day of the month following your vehicle’s first month of use during the reporting period. That means if your vehicle was on the road last July the deadline for filing is August 31.

If a new vehicle goes into service during the reporting period, you will need to file an additional Form 2290 and pay the tax amount. For example, if you purchased a vehicle in November, you are required to put the vehicle in your name making its first month of use December. In this case, you will need to file an additional Form 2290, and pay owed taxes on or before December 31. This is a partial year filing and will be a reduced tax amount.

4. Can I suspend my Heavy Vehicle Use Tax?

You can apply for a suspension of the Heavy Vehicle Use Tax if you expect to drive your vehicle less than 5,000 miles during the year (7,500 miles for agricultural vehicles).

However, you are still required to file IRS Form 2290 even though you do not have a tax payment. If you do end up driving more than expected, you must file an amendment to your original 2290 and pay taxes.

5. Am I required to file my 2290 Form online?

Only if you have 25 or more qualified vehicles. If you do, the IRS does not require you to file 2290 online. However, the IRS highly encourages all taxpayers to file and pay online with an IRS-authorized e-file provider, like ExpressTruckTax.

6. How can I claim a credit?

Now is the time for you to claim any credits you earned last year. Credits can be claimed using a couple of different methods.

If you ended up driving your vehicle less than 5,000 miles (or 7,500 for agricultural vehicles) you can claim a credit. Or if your vehicle was stolen or destroyed last year, you can also claim a credit. For more information, check out this page.

7. Can I claim a refund on my IRS Form 2290?

Yes, if your credit exceeds your taxes owed on your filing, you will need to file a refund. This can be done by filing IRS Form 8849, Claim for Refund Excise Taxes.

8. What do I need to register my vehicle?

Proof of your HVUT payment is required before you register your vehicles. You will not be registered unless you can provide your stamped Schedule 1.

9. How do I pay 2990 online?

When you file 2290 online with ExpressTruckTax, you can pay via the Electronic Federal Tax Payment System (EFTPS), or by check/money order.

10. Where can I find more information about IRS Form 2290?

You can check out our blog page for more information concerning pre-filing and the upcoming 2290 season. Check out our FAQ page which answers more questions you might have about Form 2290. Or you can find more information via the IRS publication “Instructions for Form 2290.”

We Got Your Back

We understand that we are coming up on a very stressful time for the trucking industry, but we will be there every step of the way. We will continue to supply you with up-to-date information about the IRS Form 2290 deadline.

ExpressTruckTax is a trusted IRS-authorized e-file provider with a simplified step-by-step filing process. We also offer 24/7 support in both English and Spanish to answer any of your questions.

Everything You Need to Know About Form 2290 Taxable Vehicles

Posted on October 13, 2020 by - Taxable Heavy Vehicle

Every commercial motor vehicle with a taxable gross weight of 55,000 pounds or more must file a Form 2290 every year.

However, while everyone must file a Form 2290, not everyone must pay the Heavy Vehicle Use Tax (HVUT).

Some vehicles are Form 2290 tax-exempt and do not need to pay taxes to the IRS.

Taxable Vehicles

Most commercial motor vehicles will be subject to HVUT. Every vehicle that has a taxable gross weight of 55,000 pounds or more and drives more than 5,000 miles (7,500 for agricultural vehicles) must file Form 2290 and pay heavy vehicles use taxes.

The taxable gross weight of your vehicle is a sum of the following:

1. The actual unloaded weight of a fully equipped vehicle.

2. The actual unloaded weight of any trailers or semi-trailers that is fully equipped and is generally used in combination with the vehicle. 

3. The weight of the maximum load usually carried on the vehicle and the trailers or semi-trailers. 

HVUT Exempt Vehicles

Low mileage

If you do not drive a vehicle more than 5,000 miles in a tax year, that vehicle is considered tax-exempt! You will need to file a Form 2290 to stay up-to-date with the IRS, but you will not need to pay HVUT.

Agricultural

An agricultural vehicle is defined as a vehicle used exclusively for farming purposes and registered as a highway motor vehicle that is used for farming purposes. 

Agricultural vehicles will also be tax-exempt if they are driven less than 7,500 miles on public roads.

File your Form 2290 today

If you have a commercial motor vehicle you will need to file a Form 2290! There’s no easier way to file than with ExpressTruckTax! The e-filing process is easy to understand and only takes a few minutes.