If you own or operate a truck, then Form 2290 – the Heavy Highway Vehicle Use Tax (HVUT) is probably familiar to you. Taxes are charged on gross revenue trucks weighing 55,000 pounds or more, traveling via public roads. Did you know, however, that there is a possible tax exemption for certain vehicles? More specifically, some low-mileage vehicles might be qualified for Form 2290 exemption. This blog will explain the exemption regulations, who is eligible, and how to claim your exemption.

What Is the Low Mileage Vehicle Exemption?

The low-mileage vehicle exemption is applicable to trucks that travel 5,000 miles or fewer (7,500 miles for agricultural vehicles). Because these vehicles do very little damage to public highways, the IRS makes it possible for owners to not pay the HVUT. Even though exempt vehicles do not pay tax, you must still submit Form 2290 along with the exemption to the IRS. This allows you to update your truck records and stay compliant with the law.

Eligibility Criteria for Exemption

Not everybody can qualify for the low-mileage exemption. To qualify, your truck must have these qualifiers:

• Mileage Limit: Your vehicle has to not cross either 5,000 miles (7,500 miles for agricultural vehicles) in a year, as mentioned previously.
• Classification of Heavy Vehicles: For a vehicle to fall under this classification, its gross weight must be 55,000 pounds or more.
• Correct Filing: An individual must complete Form 2290 and indicate that the vehicle is “suspended” in order to qualify for the exempt status. Not completing the form or providing incorrect mileage can lead to fines, thus everything must be precise.

Instructions for Filing Form 2290 for an Exempt Vehicle

It is quite straightforward to complete Form 2290 for the low-mileage vehicle. If you need to file electronically then that can be done instantly and if you need a stamped Schedule 1, it is done much more conveniently. When filling out the form, make sure to tick the “suspended” box that indicates you qualify for the low-mileage exemption. Upon approval of your submission by the IRS, a stamped Schedule 1 is issued, serving as an acknowledgement of the filing made. Ensure that this document is stored safely as it might be needed to renew the registration of the vehicle.

Why File Even If You’re Exempt?

You may be wondering why filing Form 2290 is necessary if the vehicle meets the exemption criteria. The answer to that question is related to compliance and record keeping. The submission of Form 2290 allows the IRS to identify the exempt status of your vehicle, thus avoiding possible fines.

Also, the stamped Schedule 1 is needed for the renewal of a motor vehicle’s registration with the DMV. If you miss the deadline for filing, it could disrupt your trucking business and cause issues with renewing your registration.

With the help of the low-mileage exemption, truck owners can remain compliant with IRS rules while saving money. If your vehicle qualifies, you should take advantage of this exemption.

Note: For more information, visit IRS website