HVUT - Heavy Vehicle Use Tax
All taxable motor vehicles weighing exactly or above 55,000 pounds must pay heavy vehicle use tax (HVUT) every year. The federal HVUT tax will be calculated based on the gross weight of the vehicle- at loaded and unloaded state. The department of motor vehicle (DMV) mandates truckers of all the US states to provide the proof of payment of HVUT to obtain a license for transportation and renewals.
Who Must File Form 2290?
Truckers must file form 2290 for every tax year. Either you own a taxable vehicle or tax suspended vehicle with a gross weight of approximately 55,000 pounds or more should be registered with IRS. Without providing Schedule 1 to DMV, no trucker is allowed to use public highways. Truckers already owning a vehicle and those who are yet to register their vehicle are required to pay annual tax at the start of each taxable period (between July and June).
What is required to file Form 2290?
To file IRS form 2290, truckers must provide details about business and vehicle. For those who own more than 25 trucks or other taxable vehicles, IRS registration becomes mandatory. It is advised to check the information, especially VIN before you submit them to directories.
- Employer details:
New business name ( can use any of your legal names), business type, employer identification number (EIN), details of signatories (along with their title and contact details) etc. - Vehicle details:
Vehicle identification number (VIN) and taxable gross weight.
While filling the vehicle details make sure to enter only the taxable vehicle ( i.e. vehicles that exceed 5,000 miles only). However, for tax-suspended vehicles, you must file a new form.
When to file Form 2290?
To register a new vehicle or to pay the annual tax for your existing vehicle, choose the current taxable period which commences on July 1st and ends on June 31st of the succeeding year. Truckers planning to renew their annual tax for new tax period must pay the tax rates before the due date (August 31st).
New truckers who purchase the truck at the start or end of the year must file form 2290 to IRS by the end of the following month (i.e. if you purchase the truck on January 1st, you must file it by the end of February 31st).
How to file Form 2290?
To file form 2290 under IRS, there are two ways: Electronic and Paper Filing.
In the electronic filing (e-filing), you must provide complete details about the business, vehicles and its mileage, logging, credit details, etc. to an e-file service provider or an intermediate service provider. Thereafter, these providers will process the form 2290 to the IRS to get your proof of payment (stamped schedule 1). Selecting an e-file service provider, like expresstrucktax.com, will make these processes fast and secure.
Paper filing is done when you agree to pay the tax by check or through money order. The individual must file the form and enclose the payment voucher 2290 along with the check to the below-given mail address,
Click here to learn more about E-File 2290https://www.expresstrucktax.com/hvut/e-file-form-2290-online/
Penalties
The penalty will be 4.5% of the total tax due if someone fails to file form 2290 at the right time of the year (August 31st). For late filers, the penalty will be charged on a monthly basis with extra tax rates.
Know more about IRS HVUT penalties by visiting
https://www.expresstrucktax.com/hvut/form-2290-penalties/
