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2290 Federal Highway Use Tax
Call us at (765) 742-2610
to process and submit your 2290 Highway Use Tax to the IRS
2290 Federal Highway Use Tax / Form 2290:
Who has to file the IRS Form 2290: Farmers; Private Carriers; For-Hire truck owners hauling exempt commodoties; For-Hire truck owners huling non-exempt commodities that require Trucking Authority, Dealers. If you are plated at 54,999-lbs or less, you are not required to file or pay on the IRS Form 2290. If you are plated at 55,000-lbs or more, you are required to file and pay the Form 2290 tax with the IRS each year. The IRS describes who must file as: You must file the 2290, and the Schedule 1 of the form 2290 for the tax period beginning July 1 (of each year) and ending on June 30 (of the following year), if a taxable IRS 2290 highway motor vehicle is registered, or required to be registered, in your name under state, District of Columbia, Canadian, or Mexican law at the time of it's first use during the 2290 tax period and the vehicle has a 2290 taxable gross weight of 55,000-lbs or more. You may be an individual, limited liability company (LLC), corporation, partnership, or any other type of organiation (including nonprofit, charitable, educational, etc) that may be filing the IRS tax form 2290. Disregarded entities and qualified subchapter S subsidiaries: Qualified subchapter S Subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for the IRS form 2290 excise tax and reporting purposes for the 2290. QSubs and eligible single-owner disregarded entities must pay and report excise taxes on the 2290 form, register for excise tax activities, and claim any refunds, credits, and payments under the entities employer identification number (EIN). These 2290 filing actions cannot take place under the owner's taxpayer identification number (TIN). Some QSubs and disregarded entities may already have an EIN. However, if you are unsure, please call the IRS Business and Specialty Tax line at (800) 829-4933. Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other Federal tax purposes (other than employment taxes). Dealers: Any vehicle operated unders a dealer's tag, license, or permit is considered registered in the name of the dealer for the purposes of filing an IRS form 2290. Used Vehicle: If you acquire and register or are required to register a used taxable vehicle in your name during the form 2290 tax period, you must keep as part of your records proof showing whether there was a use of the vehicle or a suspension of the 2290 tax during the period before the vehicle was registered in your name. This implies that if the previous owner used the vehicle, but failed to pay the IRS form 2290 tax for the tax period (July 1 - June 30) you purchased the vehicle, the IRS may hold you liable for this unpaid form 2290 tax. No kidding! The form 2290 proof of payment evidence, or lack of payment of the IRS tax form 2290 to the IRS may be a written statement signed and dated by the person (or dealer) from whom you purchased the vehicle. Bottom line: when you buy a used tractor or truck from an individual or trucking company, make sure the previous owner filed and paid the IRS form 2290 for the one year tax period (July 1 - June 30) on the tractor or tuck you just bought by giving you a copy of his or the company's form 2290, schedule 1, to show proof he or the company has paid the tax. Otherwise the IRS may force you to pay the form 2290 tax for the entire tax year, July 1 - June 30. No, you cannot use this IRS form 2290 from the previous owner to cover your own form 2290 tax on the truck or tractor for the rest of the IRS tax form 2290 tax year, but it is proof you will not have to pay the 2290 tax for the entire year because they may not have paid the IRS form 2290 tax. A dealer may have had the truck parked since the start of the IRS form 2290 tax period (July 1), so get a written and signed statement from the dealer stating non-operational use of the truck since July 1 for your form 2290 tax purposes and possible 2290 audit. Better to be cautious than sorry.
IRS Form 2290 for Logging Vehicles: A vehicle qualifies for the filing of the IRS form 2290 as a logging vehicle if: 1). It is used exclusively for the transportation of products harvested from the forested site, or it exclusively transports the products harvested from the forested site to and from locations on a forested site (public highways may be used between the forested site locations), and 2). It is registered for purposes of form 2290 filings (under the laws of the State or States in which the vehicle is required to be registered) as a highway motor vehicle used exclusively in the transportation of harvested products. As logging vehicles qualify for a lower 2290 tax rate than regular trucks, the IRS tax form 2290 qualification is important. Logging vehicles do not use public highways 100% of the time, and assigned a lower 2290 tax rate assigned to logging vehicles when the form 2290 is filed. For the 2290 form reporting purposes, a vehicle will be considered to be registered under the laws of a state as a highway motor vehicle used exclusively in the transportation of harvested forest products if the vehicle is so registered under a state statute or legally valid regulations. For IRS 2290 reporting purposes, no special tag or license plate identifying a vehicle as being used in the transportation of harvested forest products is required as no provision is supplied on the IRS form 2290. Products harvested from the forested site may include timber that has been processed for commercial use by sawing lumber, chipping or other milling operations if the processing occurs before transportation from the forested site. The IRS form 2290 tax rate for 80,000-lbs logging trucks for a full year is $412.50. For a non-logging vehicle, the form 2290 rate for a full year is $550. The 2290 tax-exempt status for logging vehicles is 5,000 miles or less per year. The filing of the IRS form 2290 for logging vehicles is the same if they stay in state or cross state lines. There is a pro-rated form 2290 tax rate for logging vehicles that are purchased after July.
Taxable Vehicles on the IRS form 2290: Highway motor vehicles that have a 2290 taxable gross weight of 55,000-lbs or more are deemed taxable on the form 2290 and are required to be included on filings of the IRS form 2290. For the purposes of filing the 2290, a highway motor vehicle includes any self-propelled vehicle designed to carry a load over public highways, whether or not also designed to perform other functions. Examples of vehicles that are designed to carry a load over public highways include trucks, truck tractors, and buses which would be subject to the filing of the IRS tax form 2290. Generally, vans, pickup trucks, panel truck, and similar trucks are not subject to the form 2290 tax because they have a taxable gross weight less than 55,000-lbs and the IRS form 2290 tax starts at 55,000-lbs, meaning that the form 2290 does not have to be filed on these vehicles. For filing of the IRS form 2290 purposes, a vehicle consists of a chassis, or a chassis and body, but does not include the load. It does not matter if the vehicle is designed to perform a highway transportation function for only a particular type of load for the filing of the IRS form 2290, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer), or a special kind of cargo, goods, supplies, or materials. For the purposes of filing the form 2290, it does not matter if machinary or equipment is specially designed (and permanently mounted) to perform some off-highway task unrelated to highway transportation except to the extent discussed below under Vehicles not considered highway motor vehicles. Variations to the filing of the form 2290 need to be studied. 'Use' as far as the 2290 is concerned means the use of a vehicle with power from it's own motor on any public highways in the United States. A public highway is any road in the United States that is not a private roadway. This includes federal, state, county, and city roads. Exemptions to the IRS form 2290 filings are the following: To be exempt from the form 2290 tax, a highway motor vehicle must be used and actually operated by the Federal Government; the District of Columbia; a state of local government. Also exempt from filing the IRS form 2290 is the American National Red Cross; a nonprofit volunteer fire department, ambulance association, or rescue squad; an Indian tribal government is exempt from filing the IRS form 2290 only if the vehicle's use involves the excercise of an essential government function. Also exempt from filing the form 2290 is a mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state. Other vehicles that qualify to be exempt from the 2290 are qualified blood collector vehicles used by qualified blood collector organizations. Any mobile machinary that meets the specifications for a chassis described under 'Specially designed mobile machinary for non transportation functions qualifies to be exempt from the IRS tax form 2290. As mentioned, to qualify as exempt from filing an IRS form 2290, a qualified blood collector vehicle is a vehicle at least 80% of the use of which during the prior 2290 tax period was by a qualified blood collector organization for the collection, transportation or storage of blood. A vehicle first placed in service in a form 2290 tax period will be treated as a qualified blood collector vehicle for the tax period if the qualified blood collector organzation certified that the organization reasonably expects at least 80% of the use of the vehicle by the organization during the 2290 tax period will be in the collection, transportation or storage of blood. Vehicles not considered highway motor vehicles for the filing of IRS form 2290 are specially designed mobile machinary for nontransportation functions: A self-propelled vehicle is not a highway vehicle if all the following apply for the exempt qualification of the form 2290: a)The chassis has permanently mounted to it machinary or equipment used to perform certain operations (construction, manufacturing, farming, or similar operations) if the operation of the machinary or equipment is unrelated to transportation on or off the public highways. b) The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if this is applicable) for the machinary or the equipment, whether or not the machinary or the equipment is in operation. c) The chassis could not, because of it's special design and without substantial or considerable modification, be used as part of a vehicle designed to carry any other load. Vehicles specially designed for off-highway transportation: For the filing of the IRS form 2290 purposes, a vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. To make this determination when filing the form 2290, you can not take into account the vehicle's size, whether the vehicle is subject to the licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Again, for 2290 purposes, it does not matter that the vehicle can carry heavier loads off the highway than it is allowed to carry over the highway. Nontransportation trailers and semi-trailers: When determining whether to file the IRS form 2290, a trailer or semi-trailer will not be treated as a highway vehicle regarding the combined weight necessary for the filing of the form 2290 if it is specially designed to function as an enclosed stationary shelter for carrying on a non transportation function at an off-highway site. For example, a trailer that is capable of functioning as an office for an off-highway construction operation is not a highway vehicle, and if towed or transported by a vehicle unique to the transportation of these trailers, if the weight of the power unit is under 55,000-lbs, the IRS form 2290 need not be filed.
Federal Tax ID Number (EIN): When you file your IRS form 2290 with the Internal Revenue Service, you are required to file the 2290 tax with a Federal Tax ID Number, also called an Empolyer Identification Number, or EIN or EIN Number. You are not supposed to file the 2290 Federal Highway Use Tax with your Social Security Number. If you do not have a Federal ID Number, we can apply for one for you. If you are going to apply for Trucking Authority, and your truck, or truck and trailer is plated at 55,000-lbs or heavier, you will need an IRS EIN Number. This Federal EIN is your permanent number and can be used immediately for most of your business needs, including opening a bank account, applying for business licenses, and filing a tax return by mail. However, no matter how the application for an EIN Number or Federal Tax ID Number is done, it will take up to two weeks before your Employer Identification Number becomes part of the IRS' permanent records. You must wait until this occurs before you can file an electronic return with the IRS, make an electronic payment, or pass a Federal Tax ID Number matching program.
IRS Form 2290 Tax Year: The form 2290 tax year starts on July 1 each year and ends on June 30 the following year. The IRS requires you to pay the form 2290 tax at the start of each tax year for the upcoming year. However, the IRS does give you a one month grace period to file and pay this 2290 tax. To be more accurate, If you put your truck or semi-tractor to work hauling loads at any time within a month, you are allowed to file the IRS tax form 2290 by the last day of the following month without having penalties and interest levied against you for a late filing of the 2290 form. If you run your truck in July hauling loads, you are allowed to file the IRS form 2290 by the end of August without penalties or interest being owed to the IRS. Note: the IRS considers the date stamped on the form 2290 as the date officially received. If your 2290 tax is due by August 30, and the IRS receives the IRS tax form 2290 and payment by mail in September, it will be considered as a late payment. If you are going to mail your IRS form 2290 to the IRS, make sure the IRS receives the form 2290 and payment by the due date. Whether you stay in state hauling loads or cross state lines by applying for ICC Authority, if your truck or truck and trailer weigh 55,000-lbs or more, you will be involved with the 2290. Caution: If you acquire a vehicle and use it on the public highways in any month other than July, you are still liable for the IRS tax form 2290 filing for the prorated tax period. You must file the IRS form 2290 and pay the tax by the last day of the month after the month you use the vehicle. If there is an unpaid form 2290 tax liability for the months before you acquire and use the vehicle during the tax period, you are liable for the total 2290 tax for the entire period, to the extent not paid. In that case, you must file IRS tax form 2290 and pay the 2290 tax by the last day of the month after the month notification is received from the IRS that the IRS form 2290 tax has not been paid in full.
IRS Form 2290 Tax Weight Categories: The IRS tax form 2290 is structured by weight categories. If your truck or truck and trailer are plated at 54,999-lbs or lower, you will not be involved with the form 2290 tax. If your truck or truck and trailer are plated at 55,000-lbs or heavier, you will be involved with the 2290. The lowest category on the IRS form 2290 is the 'A' category at 55,000-lbs and the annual tax for for Category A is $100. The highest category on the form 2290 is Category 'V' with weights 'Above 75,000-lbs' and the annual tax is $550. The IRS form 2290 tax categories go up in increments of 1,000-lbs.
Transfering the IRS Form 2290 Tax: When you sell a truck and then buy another truck to replace it, you can transfer the 2290 tax from the old truck to the newly purchased truck within the same IRS form 2290 tax year. The IRS will not allow you to transfer the form 2290 tax from the previous owner of the truck to your ownership. In other words, the 2290 tax cannot follow the truck from one ownership to a different ownership. If you park a truck you paid the IRS form 2290 tax on, but do not sell the truck, and then buy another truck, the IRS will not allow you to transfer the tax from the parked truck to the new truck as you still own the old truck. If you want to transfer the 2290 tax from the truck you park to a newly purchased truck, the old truck needs to be taken out of your ownership - you need to sell it. You will need to show proof to the IRS the sale of the truck when you file the IRS form 2290. If the truck is a write-off as a result of an accident - and it cannot be glued back together, you need to show documentation with the filing of the IRS tax form 2290 that it is a write-off and it can no longer be used. When transfering the 22902 tax, you may need to pay for an additional month. Example: If you paid $550 when you filed the IRS form 2290 for a tractor you ran in July and then sold the tractor on October 10th. and then bought and ran a tractor later that month, the IRS considers each partial month's use as a full month when you file a form 2290 on the new tractor. For the old tractor you sold on October 10th. for 2290 tax purposes, the IRS considers this as 4 months of use in the tax year, which started in July when you filed your 2290. For the new tractor you bought and ran at the end of October, the IRS considers the form 2290 tax use as October through June of the following year, 9 months when you submit the IRS tax form 2290. Now add the 4 months from the old tractor to the 9 months of use on the new tractor and you have 13 months of taxable use on both tractors for the tax year. You paid for 12 months when you filed the form 2290 on the old tractor, and you will then need to pay an additional $45.83 for one month to the IRS when you do the 2290 tax transfer. If, as sometimes happens, you sell the old tractor in one month and buy the new tractor one month later and do a tax transfer on the IRS tax form 2290, then the math adds up to 12 months and you will not have to cough up the additional month of IRS form 2290 tax payment to the IRS, but you will still have to show proof of sale to the IRS when you file the IRS form 2290.
Proof of IRS Form 2290 Tax Payment with the License Branch / IRP Office: When you buy or transfer a license plate at the license branch or IRP office, you may be asked to show proof of having filed the form 2290 tax if your plate is 55,000-lbs or heavier. If you are asked to show proof of the IRS tax form 2290 filing, you will need to show the Schedule 1 section of the IRS form 2290 showing the VIN of the truck. This is the part you get back from the IRS when you file and pay the form 2290 tax. Most license branches and IRP state offices follow the IRS practice of not requiring proof of the 2290 payment until after the following month of purchase. License branches and IRP offices look at the date of purchase as shown on the title or Application for Title and base the requirement from that date when asking proof of payment on the IRS tax form 2290. If you bought a truck or tractor in July, for instance, the IRS would normally require the filing and payment on the IRS form 2290 by August 31st. If you buy a plate in either July or August, then you should not be asked to show proof of having filed the form 2290. But if you wait until September in this example, you will be asked to show proof of the 2290 tax filing if your plate is 55,000-lbs or more.
IRS Form 2290 Tax Exempt Filings: If your truck is used commercially and is plated at 55,000-lbs or more and travels 5,000 miles or less in a given tax year (July 1 through June 30 the following year), you will need to file the form 2290 with the IRS, but you can do an IRS form 2290 tax-exempt filing and not have to pay the 2290 tax. If you are a farmer with a farm-plated truck, you are allowed up to 7,500 miles in an IRS form 2290 tax year to be eligible for the 2290 tax-exempt status. If you file the IRS tax form 2290 with the tax-exempt status, but later find that you are exceeding the maximum mileage allowed for the form 2290 tax-exempt filing, you need to file an updated 2290 and pay the full tax associated with the month you first ran the truck or tractor in the IRS tax form 2290 tax year. You should not have to pay any penalty or interest on the 2290 tax as long as the IRS has the original tax-exempt IRS form 2290 tax filing. This usually applies to farmers and to owners of lightly used trucks. If you apply for Trucking Authority, you will probably be traveling more than 5,000 miles in any form 2290 tax year, unless you start hauling loads in June where you may not travel 5,000 miles by the end of June - the end of the 2290 tax year. You would then qualify for an IRS form 2290 tax-exempt filing for the end of that tax year.
To Avoid IRS Form 2290 Tax Penalties: If you feel you cannot afford to pay the form 2290 tax by the time it is due, you can avoid the heavy penalties associated with a late 2290 filing. You need to complete and file the IRS tax form 2290 by the due date, but without payment. The front page of the IRS form 2290 will be stamped at the IRS office, but the back half-page of the Schedule 1, form 2290 will not be stamped until payment is made. You will be exempt from any 2290 late filing penalty, but you will still need to pay the interest on the 2290 tax once it has been paid. Once you have made payment on the IRP tax form 2290 to the IRS, the IRS will follow up by sending you a letter stating the interest due on the late payment on the 2290. When anyone files an IRS form 2290 without payment (if payment is due), the Schedule 1 section of the form 2290, as mentioned, will not be stamped until receipt of payment. When you go to the license branch or IRP office to buy or renew a license plate, the license branch or IRP office will not do the purchase or renewal transaction if proof of payment on the 2290 is required. You will need to make a 2290 tax payment before the license branch or IRP office will allow you to buy or renew your plate. Of course, if you are crossing state lines after registering for Trucking Authority, you will be involved with the IRP office and not with your local license branch. The IRP office has the same requirements on your IRS form 2290.
Method of Payment for the IRS Form 2290 Tax: Currently, the IRS accepts payment for the form 2290 Highway Use Tax in the form of a check, Cashier's Check or Money Order. Credit or debit cards are not accepted for the IRS form 2290 tax payment
When to File: IRS form 2290 must be filed for each month a taxable vehicle is first used on public highways during the current period. For the 2290, the current period begins July 1, and ends June 30 the following year. Form 2290 must be filed by the last day of the month following the month of first use. The filing rules for the IRS tax form 2290 apply whether you are paying the IRS form 2290 tax or reporting suspension of the tax on the form 2290. The following exmples demonstrate these rules: John uses a taxable vehicle on July 1. John must file the IRS form 2290 by August 31, for the period beginning July 1 through June 30 of the following year. John then purchased a new taxable vehicle on January 3 of the following year. The vehicle is required to be registered in his name (or the name associated with his EIN number for 2290 purposes) to take advantage of an IRS form 2290 transfer . The vehicle is first used in January, soon after purchase. John must file another form 2290 reporting the new vehicle by the last day of February, the following month of use, for the period that started the previous July 1 through June 30 of the following year (the year the truck was purchased and put on the road). Note: If any due date falls on a Saturday or sunday, or legal holiday, you can file the 2290 by the next business day. Extension of time to file the IRS Form 2290: Before the due date of the return, you may request an extensionof time to file your form 2290 by writing to the Department of the Treasury, Internal Revenue Service, Cincinnatil, OH 45999-0031. In your letter, you must fully explain the cause of the delay for the filing of the 2290. Except for Taxpayers abroad, the extension to file the IRS tax form 2290 may be for no more than 6 months. An extension of time to file the IRS form 2290 does not extend the time to pay the form 2290 tax. If you want an extension of time to pay the 2290, you must request that separately.
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