What Is Form 2290 and Who Is Affected By It?

Heavy Highway Vehicle Use Tax Return refers to an IRS tax form which has to be filed annually by the owners of heavy highway vehicles (those greater than or equal to 55,000 lbs). While Form 2290 is critical for operations’, maintenance and record teams of fleets, others working in truck companies also need to have a basic understanding so as to pay the correct amount of taxes due. The amount owed on Form 2290 is utilized for the construction and maintenance of highways which is served by fleets and other commercial vehicles.

What are the start and end dates of Form 2290’s Tax Year?

Fleet operators and truck drivers need to be aware of the prepaid period between July 1 to June 30 of the succeeding year as their expenses and mileage get tracked over the period of a single tax year on each Form 2290 for every vehicle used on Highway. Different from the traditional calendar year principles, a new vehicle used on public highways in July has to reported by end of August which is a unique benchmark which fleets have to pay heed to for avoiding tax deficit and penalties.

Deadline for Form 2290 That will Cost You If Missed

The IRS determined August 31 as the cutoff date for filing Form 2290 for the initial use of your truck in July. For trucks that were put into service later in the year, you are required to file by the end of the month following the last used month. To illustrate, if a truck comes into service in October, you need to file it by the end of November. Paying attention to these deadlines is important because interest and IRS related penalties are incurred after certain defaults.

The Importance of Timely Submission for Truckers

Filing late can adversely impact financial and operational activities when renewing vehicle registration, as there are multiple penalties for missing the 2290 deadline. One of the most troublesome issues that truckers face is the payment of Form 2290 because a lot of states will not issue tags and register a vehicle without active payment. Early filing and utilizing an IRS-certified e-filing provider greatly assist in resolving any and all problems that truckers face throughout the year.

Note: For more information, visit IRS website