Form 2290: Heavy Vehicle Use Tax, commonly referred to as Highway Use Tax, addresses the amount of operation of particularly large vehicles that commonly use public highways. The importance of this tax is that it focuses on the impacts that these vehicles have on the public road system. The benefit of the Heavy Vehicle Use is that it is accessed by the federal government and distributed throughout the states to fund public highway projects in order to keep roadways in good condition.
Requirements for filing Form 2290
The IRS has outlined very specific guidelines for people who own and operate vehicles that have the potential to cause excessive wear and tear on public highways. Any vehicle with a weight of 55,000 pounds or more that is registered or required to be registered under state, District of Columbia, or Mexican law is mandated to complete form 2290. Registration status may be:
- An individual
- Limited Liability Company (LLC)
- Other groups that identify as an organizations (nonprofits, educational, charities, etc.)
Specific Uses for the Heavy Vehicle Use Tax
This particular form addresses a number of components associated with large vehicle use. The purpose of this tax is to:
Calculate and pay taxes for-
- Highway vehicles that meet or exceed 55,00 pounds
- Vehicles that exceed mileage requirements after completing a suspension statement.
- Vehicles that have increased weight and fall into a new tax category
- Used vehicles that meet criteria for tax and used during the tax period
Claim suspension on-
- Any vehicle that meets weight requirement, but was used less than 5,000 miles during the tax period
- Any agricultural vehicle that meets weight requirements but was used less than 7,500 miles during the tax period.
Claim credit for-
- Any Vehicles that were driven less than 5,000 miles
- Agricultural vehicles that were driven less than 7,500 miles
- Vehicles that were stolen during the tax period
- Vehicles that were sold during the tax period
- Vehicles that were destroyed during the tax period
Report acquisition for-
- Used vehicles that were reported for suspension purposes
The IRS has a specific list of guidelines that allow some vehicles that meet weight requirements to be exempt from filing form 2290. Law indicates that any of the following allows the exemption under the pretense that the vehicle is solely operated by:
- Federal Government
- The District of Columbia
- A government official or employee on the state or local level
- The American Red Cross
- Fire department, ambulance driver, or member of the rescue squad that works on a nonprofit level
- Indian tribal government if use is specifically related to tribal affairs
- Mass transportation that is given rights similar to those on the state level
- Blood collector vehicles that are qualified and appropriately licensed
- Mobile machinery that meets specific requirements outlined by the IRS
There are a number of additional considerations that tax payers must keep in mind about filing form 2290.
- Payment for the taxes acquired form completely form 2290 is the sole responsibility of whomever the vehicle is owned by. In the event that there is more than one person registered to the vehicle, the owner remains the responsibility party in all tax matters.
- Any persons filing taxes with more than 25 vehicles that meet requirements for the Heavy Vehicle Use Act must e-file form 2290.
- The form is due between July 1 and August 31 of the tax year
- Stamped Schedule 1- This is the proof of payment that is required for registration that you should keep for your records.