Special Exempt Vehicles, Suspended Vehicles, and Other Exceptions Trucking

For all the new and veteran drivers out there, it is important to know special filing situations just to be on the safe side. Being compliant with the rules may involve taking exemptions or suspensions at times. Here is a guide on how you might be dealing with filing requirements of exempt vehicles, suspended vehicles, and other special cases.

Special Exempted Vehicles: What do you need to know about criteria?

Whereas some vehicles are exempted from paying Heavy Vehicle Use Tax (HVUT) in case they meet certain conditions, owning or running one such vehicle means avoiding the annual form 2290 filing fee. Generally, the following will qualify as exempt vehicles:

• Government Vehicles: Vehicles being operated by state, federal, or local government agencies qualify for an exemption often.
• Emergency Vehicles: These include vehicles for emergencies, like fire trucks and ambulances, may qualify.
• Non-Profit Vehicles: Vehicles belonging to qualified non-profit organizations may qualify.

If your vehicle falls under the exempt category, ensure you have evidence with you, in case an audit is initiated, and use it to prove that it falls under the exemption clause. You might not pay tax; however, as an exempt vehicle, you would still file Form 2290 to declare the status.

Suspended Vehicles: Filing Requirements for Limited Use

Suspended vehicles are those vehicles which will not cross a distance above 5,000 miles (or 7,500 miles for agricultural vehicles) during the provided tax period. In that manner, they can get HVUT suspension. Here's what you must know:

• Filing Form 2290 for Suspended Vehicles: Even if you owe no HVUT, you have to submit Form 2290 to report the suspension status of the vehicle.
• Tracking Mileage: You will have to monitor the mileage records of any suspended vehicle through the tax period. Once you surpass the maximum mileage limit for that vehicle, then you would have to file an amendment on Form 2290 and pay the additional tax for that tax period.
• Annual Renewal: You will have to refile Form 2290 each year to maintain the suspended status. This is irrespective of whether your vehicle went in the miles threshold all the time.

Suspension helps agricultural operators or seasonal truckers or businesses who run low-mileage routes greatly. Suspension lets you not pay HVUT if the mileage is minimal at any point during the time of a fiscal year.

Solutions for Other Unique Vehicle Types

In some instances, a vehicle just won't conveniently fit into one of the more common categories, and specific filing considerations apply: Logging Vehicle Logging Trucks are eligible for a lower rate of HVUT provided they are used solely to transport forest products, including timber. Just check the "Logging Vehicle" box on Form 2290 so you receive this lower tax rate.

• Leased Vehicles: If one is leasing a vehicle, usually the responsibility of filing Form 2290 would be dependent upon the lease agreement. Mostly, the onus is on the leasing company; however, it's pretty important to confirm this as well to avoid some kind of misunderstanding regarding filing or payments.
• Electric Trucks: Electric trucks have their tax considerations, too, particularly with expanding laws that allow for cleaner fleets. In some states, there is a partial or complete exemption on the HVUT electric vehicles, so keep on top of the new rules or speak to a tax expert.

Errors or Corrections

Trucking companies may end up in a situation in which previous filings need to be changed:

• Mileage Corrections: If your vehicle had reported as suspended but ran over the mileage limit, you should file an amended Form 2290 along with your payment of the amount due.
• Vehicle Sales or Disposals: If you sell a vehicle after paying the HVUT, you can take the credit on your next Form 2290 filing or you may even be eligible for a refund in some instances. Maintain the records of sales and refer to Form 8849 to take advantage of refunds.

Utilize Professional Assistance

To fulfill unusual filing needs by drivers, a trucking-industry-experienced tax professional will help you handle exemptions, suspension, and other special situations in the correct way. They might also provide guidance on how to adequately document each vehicle's status while keeping track of the mileage thresholds for ensuring compliance with those filings.

Using the proper information and a good filing system, exemptions, suspensions, and other odd cases of vehicles can be handled. Knowing such special cases, you'll know how to write them down properly which will help truckers and owner-operators save on HVUT payments and lighten their filing burden while remaining completely compliant.

Note: For more information, visit IRS website