The trucking industry is, in many ways, the lifeblood of our economy. Truckers transport the goods that fill shelves and meet consumers’ everyday needs. Their value is only increasing, along with the trucking industry itself, which is thriving and growing with more new truckers joining every year. For truckers or small fleet owners new to the industry, understanding administrative obligations can be challenging. One such requirement is the 2290 highway tax. For first-time filers, this tax can seem complex, so we’ve put together this beginner’s guide to help new truckers navigate the filing process and avoid the consequences of non-compliance.
The Heavy Vehicle Use Tax (HVUT) applies to owners of heavy vehicles, mostly truckers, requiring them to file IRS Form 2290 to pay this tax. Since heavy loads cause significant wear and tear on infrastructure,the funds collected from the HVUT are used for roadway repairs and improvement projects to sustain the very highways and bridges these heavy vehicles rely upon to transport goods.
What constitutes a “heavy vehicle” and what is the tax rate?
A heavy vehicle, according to the IRS, is one with a gross taxable weight of 55,000 pounds or more, including a fully loaded trailer. The baseline tax is $100 for a 55,000-pound vehicle, increasing by $22 for every additional 1,000 pounds, with a maximum tax of $550 for vehicles over 75,000 pounds.
Certain vehicles are exempt from the 2290 highway tax, including those used for public transportation, public health, and emergency services. Additionally, vehicles used in agriculture that travel less than 7,500 miles per year are often exempt. Since their usage of the roadways is limited, so is their wear and tear on the roads which relieves them of this tax obligation.
Before filing, gather key documents, including your Employer Identification Number (EIN), Vehicle Identification Number (VIN), vehicle’s gross weight, and mileage records, which will be used to fill out the form, covered in step 2 if filing by paper or opening an account to e-file. For a more thorough preparation guide, reference our article How to Prepare for the 2290 Tax Due Date: A Step-by-Step Checklist.
The next step, which can be skipped if you are e-filing, is to fill out Form 2290, which is the tax form by which the 2290 highway tax is paid. The upper section contains fields for your name, address, and EIN. Ensure your business name, address, and EIN are exactly as they appear on your records, which help prevent a rejection of your filing. The next section (Part I) is for tabulating the amount of taxes due. Use the computation chart on page 2 of the form.
The next section (Part II) is where the mileage threshold can be noted for those vehicles that traveled less than 7,500 miles for agricultural vehicles (or less than 5,000 miles for all others). The final section on page 1 is for the signature and date. Again, page 2 is the tax computation chart, while page 3 contains the Schedule 1. Be sure to fill out this form in its entirety! It is important to double check your data entry to avoid errors prior to submission.
Once Form 2290 is completed, the next step is to file. There are a few options for filing methods, including the traditional paper form filed via the United States Postal Service, e-filing, and using third-party services.
Beyond saving a few cents on a stamp, e-filing is an objectively superior option for several reasons. Not only is it convenient, with the ability to file from virtually anywhere with an internet connection, but it helps eliminate potential for errors, expedites processing and helps avoid delays, potential fines and penalties. In fact, the IRS requires anyone with more than 25 vehicles to e-file, so it’s clear what their preferred method is.
Payment is due upon filing. There are several payment options including electronic funds withdrawal (direct debit), EFTPS, check, money order, credit or debit card.
Upon payment, you’ll receive a copy of your stamped Schedule 1 as proof of payment. Remember, the Schedule 1 is on page 3 of Form 2290. If you file by snail mail, you will receive a paper copy by snail mail. If the 2290 highway tax is processed by e-filing, a digital copy can be furnished in minutes upon filing.
Due Date: It is important to note that the 2290 highway tax is not due at the same time as the rest of your quarterly/annual taxes (a common mistake). The filing deadline for Form 2290 is typically due on August 31st. If the 2290 highway tax is not paid on time, there will be a late filing penalty.
Vehicle Weight: Another common mistake is incorrect vehicle weight classifications. It’s important to note that there’s two columns on page 2 of Form 2290 for tax computation. Column A is for vehicles except logging and column B is for logging vehicles. Be sure to use the appropriate column, since the rates differ.
Business Information: Another mistake to guard against is using the incorrect EIN. A mismatch between the EIN and business name can cause delays. Late or missed payments can result in penalties with interest, so it’s in our best interest to take measures to avoid them. Schedule your 2290 highway tax filing in advance.
If a mistake is made when filing the 2290 highway tax, a new Form 2290 can be filed to correct the errors. In the area above Part I, there is an area with checkboxes for noting whether the form is for an address change, a VIN correction, or an amended return for an increase in taxable gross weight.
Late filing, underpayment, or incorrect filings incur penalties. For a more thorough discussion of the penalties and interest rates and guidance on requesting penalty relief for first-time offenders, reference our article How to Avoid the 2290 Late Filing Penalty.
These mistakes can be avoided by following some best practices, such as: double-checking vehicle information before submitting the form, ensuring the EIN is established well in advance, utilizing e-filing tools that provide error-checking and automatic notifications, and setting reminders for filing deadlines to prevent late filings.
i2290.com specializes in one area: helping you with the 2290 highway tax. Composed of highly competent customer service experts, our dedicated staff includes both English and Spanish speaking individuals who are ready to help you with all things Form 2290, guiding you through the process, meeting you wherever you may need assistance.
As part of our first-rate service, we assist with VIN corrections and weight increase amendments at no additional charge, and you can rest assured that there are zero hidden costs or surprise fees. Plus, we maintain a digital copy of your stamped Schedule 1 for seven years (so you always have easy access to it when you need it). At i2290, we’re committed to providing you with the best experience possible, and if we ever fall short, we’ll do everything we can to make it right.
Our software will guide you through a short series of questions about you and your vehicle(s), then automatically calculate your taxes for you – it’s as easy as that. If you hit a roadblock along the way, our world-class support team is always happy to help at no extra expense! With i2290, you can enjoy the convenience of e-filing, save time and money, and receive your stamped Schedule 1 in minutes.
For a smoother filing experience, create an account with i2290.com and experience the support of our 2290 highway tax experts!
Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re properly filing and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.
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