Comprehensive Guide to Heavy Highway Vehicle Use Tax
Heavy Highway Vehicle Use Tax (FHUT or HVUT) 2290 or "Road Taxes" are just some of the names used for this tax. Owner-operators contact ATBS every year with questions about this tax, often confused or worried by the conflicting messages they hear. For owner-operators this is an important tax to know about and be prepared to deal with on an annual basis.
What Is IRS Form 2290?
Taxes for vehicles with taxable gross weights of more than 55,000 pounds are calculated and paid through the Heavy Vehicle Use Tax Return 2290.
When an individual purchases a used vehicle for the current tax period, he or she is also required to file Form 2290.
The Internal Revenue Service (IRS) suspends tax on vehicles with mileage less than 5,000 miles (7,500 miles for agricultural vehicles). The heavy vehicle tax does not have to be paid on these types of vehicles; however, you should file Form 2290 for these types of vehicles.
IRS has further shared form 2290 heavy highway vehicle use tax return instructions explaining who is subject to these tax rules and if there are any exceptions.
Who Is Required To File A Heavy Highway Vehicle Use Tax Return?
FHUT is a tax that truckers who have vehicles with taxable gross weights of 55,000 pounds or more have to pay each year with Form 2290 to the IRS.
Highway motor vehicles can include any self-propelled vehicle that is intended to carry a load over public highways, regardless of whether it has any other function. A truck, truck tractor, or bus is an example of a vehicle designed for carrying a load over a public highway. A van, pickup, panel truck, and similar truck with a taxable gross weight under 55,000 pounds are generally exempt from the heavy highway use tax.
What Are The Tax Filing Deadline?
IRS Form 2290 is used to report FHUT taxes each year, which run from July 1st through June 30th. This form needs to be filed once the vehicle has been used on a public highway for the first time and not when it is registered.
According to the IRS, the due date for filing FHUT 2290 is the last day of the month immediately following the first month that the vehicle has been used, or First Used Month (FUM). The deadline for vehicles with May as the first used month is June 30, 2022.
If you decide not to use, sell, or remove your vehicle at the end of the calendar year, you may be entitled to a refund. A Schedule 6 and IRS Form 8849 will allow you to do this.
Are There Penalties For Failing To File And Pay?
There are penalties and interest imposed by the IRS if the Heavy Vehicle Use Tax is not filed on time and paid in full. It is important to remember that interest is accrued monthly, which means that what begins as a flat $250 tax can tend to increase by hundreds over a very short period of time.
If you cannot provide your carrier or governmental agencies with proof of payment (stamped Schedule 1) of 2290 for your carrier, you may be forced to cease operating your truck even though your truck isn't impounded. In my opinion, skipping this tax will mean thousands of dollars worth of lost revenue for a company, as skipping it can be seen as an unwise decision.
Frequently Asked Questions
What is the deadline for filing Form 2290 for the 2022-2023 tax period?
The deadline to file IRS Form 2290 for the 2022-2023 tax year is August 31st. Currently, heavy highway vehicles are subject to taxes beginning on July 1, 2022, and expiring on June 30, 2023.
For the 2290 tax return, what information is required?
Before you start filing your 2290, ensure that you have the following information. It will save you more than five minutes if you have this information handy.
- Business Name & Address.
- Employer Identification Number EIN.
- Vehicle Identification Number VIN.
- Taxable Gross Weight of Vehicle.
- First Used Month (FUM) of Vehicle.
Who needs to submit Form 2290 electronically?
The IRS encourages all Form 2290 filers to e-file. In order to e-file, you must use an IRS-approved software provider if you report 25 or more taxable heavy highway motor vehicles.
How to pay the tax?
There are several ways to pay HVUT when filing Form 2290.
- Taxes due for suspension vehicles exceeding the mileage limit
- Electronic Funds Withdrawal (EFW)
- Electronic Federal Tax Payment System (EFTPS)
- Money order or check
- Credit/Debit Card