Top 10 of the 2290
Posted July 3, 2017
A new heavy vehicle use tax (HVUT)/Form 2290 tax year is upon us. The 2017-2018 tax year officially starts on July 1, 2017, and runs through June 30, 2018. Here are the top 10 things you need to know about filing your HVUT/Form 2290:
1. Vehicles subject to the tax. If you’re registering a vehicle in your name and it has a taxable gross weight of 55,000 pounds or more (including trucks, tractors, and buses), and you’re using it on a public roadway, you’re subject to the tax. The tax applies to both interstate and intrastate operations.
2. Canada and Mexico based carriers are subject to the tax. If they’re operating taxable vehicles into the United States, they’ll need to file and pay. They’ll also need to carry proof of tax payment upon entry into the United States.
3. Due dates. Returns are due by the last day of the month following the month of the vehicle’s first taxable use in the reporting period. That means for vehicles in operation in July 2017, the due date is August 31, 2017.
If a taxable vehicle is placed into service during the reporting period, you must file an additional Form 2290 and Schedule 1 and pay tax due. For example, you purchase a taxable vehicle on December 5, 2017, and the vehicle is required to be registered in your name and the vehicle is first used in December. In this case, you must file an additional Form 2290 and Schedule 1 and pay the tax due before January 31, 2018. Since it’s a partial year filing, you pay a reduced tax.
4. You can suspend the tax. If you believe that you’ll operate your taxable vehicle 5,000 miles or less during the tax year (7,500 miles for agricultural vehicles), you can claim a suspension of tax. You’re still required to file Form 2290 but no tax payment is required. If, however, you end up operating the vehicle more than 5,000/7,500 miles during the tax year, at that point you must file an amendment to your original filing and pay the tax.
5. Electronic filing of HVUT. If you have 25 or more vehicles, then IRS regulations require electronic filing; however, the IRS encourages all taxpayers to file electronically. You can print your proof of tax payment within minutes after the IRS accepts your return. And, opportunities for errors are significantly reduced.
6. Claiming credits. Now’s the time to claim any credits that you may have earned last year. Credits can be claimed in a few different situations. If you ended up using a vehicle 5,000 miles or less (7,500 miles for agricultural vehicles), you can claim a credit. If you sold a vehicle on which you paid the tax last year, you can claim a credit on this year’s filing. Or, if a vehicle was destroyed or stolen last year, you can claim a credit.
7. Claiming refunds. If your credits exceed the amount you owe on your 2017-2018 filing, you’ll need to file a refund to get the rest of your money back. See IRS Form 8849, Schedule 6 for more details.
8. HVUT enforcement. Proof of HVUT payment is required to register your vehicles. Registration won’t be issued without proof of tax payment. Again, electronic filing is encouraged; you will have proof of tax payment with very little waiting if you need it for vehicle registration purposes.
9. Payment of tax. Your options for paying the tax include direct debit, Electronic Federal Tax Payment System (EFTPS), or check/money order. If you wish to use EFTPS, you must first enroll with the IRS. See EFTPS.gov for details.
10. Where to find more information. The IRS publication, “Instructions for Form 2290,” provides more details about everything mentioned in our Top 10.
Visit 2290online.com to electronically file your heavy vehicle use taxes.
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