IRS Form 2290-Heavy Vehicle Use Tax
Also called the Heavy Vehicle Excise Tax or HVUT is an annual US Federal Tax assessed on a number of vehicles which operate or intend to operate on US public highways. In general most carriers who operate in the United States must file this return. You will need proof of payment to obtain plates in most US based juridictions. As well failure to pay can be very exepensive including seizure of property.
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What is The Heavy Vehicle Use Tax (HVUT)?
The Heavy Vehicle Use Tax (HVUT) is an excise tax assessed on vehicles with a gross weight of 55,000 lbs and more that use public highways. Tax form 2290 must be filed according to the rules established by the Internal Revenue Service (IRS). PSTC can help you meet your company’s tax obligation quickly and easily.
Who needs to file?
Anyone who operates a heavy motor vehicle over the gross weight of 55,000 lbs or more on a US public highway must file The Heavy Vehicle Use Tax.
But I live in Canada do I have to file?
Yes but only on those vehicles which you want to operate in the United States. If your motor vehicle does not enter into the United States you don’t have to file. Further if your motor vehicle falls under the Mileage Use Limit exemption you can include it on your return but request a tax suspension. Ask us if you need to file and if your vehicle qualifies for an exemption.
When should I file Form 2290 Heavy Vehicle Use Tax?
Form 2290 must be filed for each month a taxable vehicle is first used on public highways during the current period. The current period begins July 1 and ends June 30 of the following year. The Heavy Vehicle Use Tax (HVUT) Form 2290 must be filed by the last day of the month following the month of first use. The filing rules apply whether you are paying the tax or reporting suspension of the tax.
When should tax be paid for vehicles used or acquired after July?
If you acquire a vehicle and use it on the public highways in any month other than July, you are liable for the tax for the prorated tax period. You must file IRS Form 2290 and pay the Heavy Vehicle Use Tax by the last day of the month after the month you use the vehicle.
Are there any exemptions?
Yes there is a Mileage Use Limit which means the use of a vehicle on public highways 5,000 miles or less (7,500 miles or less for agricultural vehicles). The mileage use limit applies to the total mileage a vehicle is used during a period, regardless of the number of owners. If your vehicle qualifies for this mileage use limit you can file for a suspension of payment on your form 2290 Heavy Vehicle Use Tax Return.
Tax Credit Vehicles (IRS Form 2290)
You may be surprised to know that you can file an IRS Form 2290 to claim a credit for certain Heavy Vehicles in some scenarios.
Heavy vehicles that were stolen, destroyed, or sold before June 1st and not used during the rest of the year qualify as a vehicle to claim a credit for. If a heavy vehicle was used for 5,000 miles or less, or an agricultural vehicle that was used for 7,500 miles or less, it too qualifies as a credit vehicle. It is important to also note that a credit, lower tax rate, exemption, or refund is not allowed for an occasional light or decreased load; nor is it allowed for a discontinued or changed use of the vehicle.
Although the rules that apply to credit vehicles may be complicated and confusing, PSTC helps make it simple. Let the professionals do the work for you.