The transportation industry drives economic growth by transporting necessities over long distances. However, running a trucking business involves more than just keeping the trucks running and choosing exciting routes.
In fact, trucking companies must adhere to several tax laws, including the 2290 Road Tax. But what is 2290 Road Tax? Who needs to file it, and how? Let’s just know about it in detail!
Understanding 2290 Road Tax
The Heavy Vehicle Use Tax (HVUT), commonly known as the 2290 road tax, is an annual tax fee levied on heavy highway MV with a taxable gross weight of 55,000 pounds or over that are driven on public roadways.
Tax-suspended vehicles have driven fewer than 5,000 miles (7,500 miles for agricultural vehicles) in the tax period. For such vehicles, you do not have to pay the HVUT return; nonetheless, you must file Form 2290.
Who Does Not Need to File Form 2290?
It is not important to pay 2290 road tax just because it falls under the tax category. If your vehicle is operated or used by these government agencies, then you do not have to pay 2290 road tax.
● A state or local government.
● The District of Columbia.
● An American National Red Cross.
● The Federal Government.
● A nonprofit volunteer fire department, rescue squad, or ambulance association.
● Commercial vehicle traveling under 5000 miles per year.
● Qualified blood collector vehicles.
● If a mass transportation authority is established by law and granted specific responsibility
● Vehicles used by organizations that are licensed blood collectors.
● Mobile equipment that satisfies the requirements outlined under Specially designed mobile equipment for non-transportation purposes, later, for a chassis.
When to File Form 2290?
The annual deadline for the 2290 road tax is August 31. You have until the very next working day to file your 2290 road tax if August 31 falls on a weekend or a recognized holiday. The last day of the month after the month of the vehicle’s initial usage is when you must pay the 2290 road tax if you own or operate a recently acquired car.
For instance, you must complete your 2290 Form by October 31 if your car was used for the first time on a public highway in September.
Details Required to File 2290 Road Tax Form
Before you consider filing the 2290 road tax form, it is essential to follow the details-
● Name and Address of your business
● Employer Identification Number (EIN)
● Vehicle’s Taxable Gross Weight
● Vehicle Identification Number (VIN)
● Vehicle’s FUM (First Used Month)
What Happens If You Fail to Pay Your 2290 Road Tax?
For every month or part of a month, the penalty for filing a tax return after the deadline is 4.5% of the total unpaid taxes. A penalty of no more than 25% of your overdue taxes will be assessed beginning the day following the tax filing deadline.
● If you fail to submit your 2290 road tax return by the tax filing date, you can be assessed a failure-to-file penalty.
● The failure-to-file penalty is 5% of the total amount owed for each month—or portion of a month—that your taxes are not paid.
● You won’t be penalized for filing late if you give an adequate explanation for not filing.
How to File Form?
If you want to file 2290 road tax, there are two ways: paper filing and e-filing through an e-filing service provider approved by the IRS. If you have more than 25 vehicles and you are filing the tax, then it is mandatory to file IRS online–
● Paper Filing
You must download, print, and complete Road Tax Form 2290 before filing it on paper. You can mail the completed form to the IRS with a draft check or money order.
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● Filing 2290 Road Tax Electronically
If you electronically file your return, you can select an IRS-approved e-file 2290 service provider, such as eForm2290.com. You can complete a few easy steps to file your tax return, and within minutes, you will obtain your IRS-stamped form 2290 schedule 1.
1. Create an account on eForm2290.com or log in, then e-file your form by providing the information about your truck.
2. Pay the amount due.
3. Check your inbox to get IRS Schedule 1
Regardless of your filing method, ensure you have readily available information. The process can be time-consuming, and for foreign transport entrepreneurs with language barriers, Filing 2290 Tax Electronically can be challenging and may cause anxiety and insecurities about doing properly, this is where trucking permit services come in, which are specialized and can help you out.
Remember, typing mistakes or filling information in the wrong boxes can result in penalties and affect your operation in case of unexpected FMCSA Audits.
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