When filing Form 2290, truck owners must understand the difference between taxable and suspended vehicles. They are two categories used to differentiate certain types of vehicles for tax purposes and have different implications for the taxes owed.
Here, we will discuss taxable and suspended vehicles and how to report them while filing Form 2290 with the IRS.
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Form 2290, also known as the Heavy Highway Vehicle Use Tax Return, is a tax form used to report and pay the Heavy Vehicle Use Tax (HVUT) that applies to heavy vehicles operating on public highways with a taxable gross weight of 55,000 pounds or more.
The HVUT amount is determined based on the vehicle's gross weight.
However, vehicles that are used for less than 5,000 miles (7,500 miles for agricultural vehicles) during the tax period may be exempt from the HVUT taxes but required to file Form 2290.
To know more about HVUT Form 2290 and how to file it, refer to Form 2290 Instructions for a step-by-step guide on completing your 2290 e-filing process.
Taxable vehicles are those registered and used on public highways for transporting goods and have a taxable gross weight of 55,000 pounds or more. Vehicles like trucks, semi-trucks, and truck tractors are considered highway motor vehicles.
The annual Heavy Vehicle Use Tax Form 2290 filing deadline for this tax year is August 31.
These vehicles are subject to the HVUT, and their owners must file Form 2290 and pay the applicable tax to the IRS. The HVUT amount is calculated based on the vehicle's gross weight.
The HVUT also applies to heavy vehicles leased or purchased by a business.
For example, if you bought a large truck that qualifies as a taxable vehicle from the business dealer and drove it on any public highway to your garage, the journey from the seller's place to your destination would be considered your first taxable use of the vehicle.
Suspended vehicles are also heavy vehicles used on public highways but are exempt from paying the HVUT under specific categories.
These vehicles, designated as category “W”, are vehicles that have been used on public highways that do not exceed 5,000 miles (7,500 miles for agricultural vehicles) during the tax period. They are also commonly known as low-mileage vehicles or taxable vehicles with low mileage.
The suspended vehicles typically fall into one of the following categories:
Even though suspended vehicles are tax-exempt, owners of suspended vehicles still need to file Form 2290 to indicate that their vehicles are suspended from tax. Also, reporting suspended vehicles in Form 2290 allows the IRS to keep track of these vehicles and verify their exempt status.
IRS Form 2290 Due Date will be the last day of the month following the vehicle's First Used Month (FUM). The current tax period for heavy highway vehicles begins on July 1, 2023, and ends on June 30, 2024.
The IRS Form 2290 due date for Heavy Vehicle Use Taxes (HVUT) for the tax year 2023 is
August 31, 2023.
E-file Form 2290 with TaxZerone and get your IRS-stamped Schedule 1 in minutes.
With TaxZerone, you can complete the whole e-filing process of your Form 2290 in 3 simple steps.
Enter the required information, such as your business name, EIN, VIN, taxable gross weight, and first used month (FUM).
Review the information you provided in the form, check and rectify errors, and pay the balance tax due using the EFW or EFTPS, or credit/debit card option.
Transmit the return to the IRS and get your stamped Schedule 1 as soon as the IRS processes it.
E-file IRS Form 2290 easily with TaxZerone starting at just $9.99/return.