Understanding Form 2290: Essential IRS Tax Filing Information
Are you a truck driver who falls under the Heavy Vehicle Use Tax (HVUT) bracket? If yes, then here are 9 things that you need to know about Form 2290, Heavy Vehicle Use Tax.
You are required to file Form 2290 and pay HVUT if:
- You own a heavy vehicle with a gross weight of 55,000 pounds or more
- Used your vehicle for 5000 miles and above (7500 miles and above for agricultural vehicles)
- You operate your vehicle on public highways
1. What is Gross Weight & How do You Calculate it?
Your tax amount varies depending on the gross weight of your heavy vehicle. You can calculate your vehicle’s gross weight by adding:
- The actual unloaded weight of your vehicle when it’s fully equipped for service
- The actual unloaded weight of your trailers or semi trailers fully equipped for service customarily used in combination with the vehicle, and
- The weight of the maximum load customarily carried on the vehicle and on any trailers or semi trailers customarily used in combination with the vehicle
2. Calculating Your Tax Amount
Your tax amount varies depending on the gross weight of your heavy vehicle, any unpaid dues and the status of your vehicle. And yet, tax calculations can be confusing, frustrating, and overwhelming to say the least. Save yourself time and trouble with our HVUT Tax calculator.
3. What is the last date to pay HVUT?
The 2290 tax year begins from July 1st to June 30th of the next year.
You must file your Form 2290 latest by the last day of the month after your vehicle’s first used month during the tax period. For example, let’s say John purchased a truck and drove it home from the dealership in July 2022. Then July becomes John’s First Used Month and so he must file his Form 2290 latest by August 31, 2022.
4. What Happens if Your Vehicle is Suspended?
Now let’s say you expect to drive less than 5000 miles during the year (7500 miles or less in case of agricultural vehicles); in this case, you can apply for a credit claim. But this does not exempt you from filing Form 2290.
You must file your Form 2290 irrespective of your vehicle status. In case you do cross 5000 miles limit, you must file an amended return and pay your updated tax amount. You can also apply for credit if your vehicle is suspended due to any reason.
5. Claiming Credits on your Form 2290
If your credit amount is more than the tax amount you owe, you can file for a 2290 tax refund by filing Form 8849. You can claim credits if:
- You ended up driving your vehicle less than 5000 miles (less than 7500 miles for agricultural vehicles)
- Your vehicle was destroyed or stolen during the tax period
6. Does HVUT Apply Even if you are Based out of Canada or Mexico?
Yes. HVUT applies to all truck drivers who operate on the United States national highways and meet the gross weight and mileage criteria. If you are based out of the States, make sure you carry your proof of tax compliance when you enter the U.S.
7. What Happens When you Delay your HVUT Payment?
The IRS(1) imposes hefty penalties for late or non filers. You will be imposed a penalty of 4.5% of the tax total amount up to 5 months. If you don’t make the payment within 5 months, an additional monthly fee will be imposed on top of the late payment fee.
Additionally, you also will face an interest charge of 0.54%.
8. What if you don’t Pay your HVUT?
Evading taxes is a serious crime. If you fail to pay your HVUT, you won’t get a Proof of Payment, which means you will not be able to renew your DMV tags or registration for IFTA, IRP, or UCR. It is illegal to operate a vehicle whose tax is unpaid. If found guilty, your registration will be suspended.
9. How to file your Form 2290 Electronically?
Filing Form 2290 can be a confusing process. More so if you are a first-timer. That’s why we recommend e-filing your form online through an IRS approved service provider like eForm2290.com, which saves you so much effort and time. Furthermore, when you e-file your form, you will receive a stamped form 2290 Schedule 1 copy within minutes.
If you’re still confused or need more details regarding pre-filing and e-filing your Form2290, refer to our FAQ section. You can also reach out to our customer support and get step by step assistance and answers to all your HVUT related queries.
Final Thoughts
Lastly, we always got you covered. 2020 has been a stressful year for all of us and the trucking industry has faced the brunt too. But the show has to go on and 2022 is going to be a great year. Tax filing only adds to this stress especially in physical filing.
But, worry not. Switch to e-Filing and get rid of any long queues and also avoid all those pesky mistakes. And all along the way, eForm2290.com shall provide you with all the assistance, information, and motivation you need.