A Detailed Guide in Filing and Paying for Form 2290 HVUT

The Heavy Vehicle Use Tax (HVUT) is an annual tax that is paid by the vehicles that are being operated or moved along highways having a gross weight of fifty-five thousand (55,000) pounds or more. If you’re a truck owner or a truck operator, it’s very important to know the methods of filing this tax when completing form 2290. Here is a brief guide that will assist you in determining your HVUT while timely meeting the requirements of compliance.

Who Needs Form 2290 and What does it Provide?

Form 2290 is the federal tax form used to report and pay for the Heavy Vehicle Use Tax (HVUT) to the IRS. The HVUT is levied on a vehicle with a gross weight over 55,000 pounds, and its fund is lagged for the purpose of the maintenance and building construction of the highways in the U.S. The tax amount you are charged with will depend on the number of pounds of weight of the vehicle and the amount of time it is used in a year.

HVUT Calculation Steps

Step 1: Find the Gross Vehicle Weight

The initial step in your HVUT calculations is finding the gross weight of a vehicle. This is the highest possible weight of a vehicle loaded to its maximum capacity. Here, the IRS operates with a weight-related tax matrix, i.e. higher the weight of the vehicle, the more the tax.

Step 2: Determine the Weight Class and the Tax Rate

There is also a schedule of the taxation tax according to the weight of the vehicle provided by the IRS. The various tax rates for several such weights are:

• For vehicles weighing between 55,001 to 75000 pounds: The tax is $100.
• For vehicles that weigh 75,001 to 80000 pounds: The tax is $150.
• For vehicles weighing between 80,001 to 85,000 pounds: The tax is $200.

There is even more tax grades for vehicles of weight greater than 85,000 pounds. Do check the IRS weight category chart to know which scale applies to vehicles of varying categories.

Step 3: Determine the Tax Liabilities Taking into Consideration the Time the Business has been in Operation

It should be noted that the HVUT tax assessment occurs annually as stated in subsection (g) of section 1723 in law. However, if you acquire your vehicle outside of January, the reporting period should be manacled. For instance, if you acquire the vehicle in the month of September or after that, you shall be liable to pay taxes only for the remaining time period of the financial year. In this case, one would pay taxes from September to June.

Step 4: Amending the Tax Returns

Also, there may be adjustments that must be made to the tax liability if the vehicle in question is used for certain activities like transporting certain classes of goods or if it remains idle for a considerable length of time and is not in operational use. There are certain exceptions that could apply to users hence, assessing these exonerations must be done meticulously to ascertain qualification.

Submission and Remitting of the HVUT

After arriving at the appropriate HVUT to be paid, you have an obligation to make a submission of Form 2290 to IRS and make payment. If one is in a hurry, it is good to make submissions electronically since this too would assist in accelerating the processing of your Schedule 1 which is the payment evidence. You must submit the 2290 Return by its deadline which is any day within the month after the month of utilization of the vehicle on public roads or grounds.

Complying with federal requirements entails the need to determine the HVUT pertinent to your heavy vehicle. With the above steps, if you ensure to file Form 2290 on time, you will escape penalties and your vehicle will be well legally registered for use on the highways.

Note: For more information, visit IRS website