As anyone in the Transportation Industry will already know, the filing process for Heavy Vehicle Use Taxes (HVUT) will be a little bit different than normal this year. The Schedule 1 of the Federal Heavy Vehicle Use Tax (HVUT), which is part of the IRS Form 2290, has been extended to November 30 of 2011. It is also not possible to receive a receipt for the Form 2290 until after November 1st. This means that the majority of those filing this tax will not do so until November.
Since a stamped Schedule 1 is required to register a vehicle with the Department of Motor Vehicles, they will be accepting the HVUT proof of payment for the previous tax year of July 1, 2010 – June 30, 2011, to make things go as smoothly as possible this year. The IRS has informed taxpayers of the Form 2290 delay and the available options for payment once the form is available.
The following items may be accepted by the DMV as proof of HVUT payment until November 30, 2011:
- Original or copy of a Stamped Schedule 1 from the Form 2290 (electronically watermarked or manually stamped) for the previous tax year of July 1, 2010 – June 30, 2011.
- A copy of the IRS Form 2290 from the previous tax year, filed with the IRS as well as a copy of the front and back of the check to the IRS for the entire HVUT payment.
- Original or copy of an IRS Form 2290 (electronically watermarked or manually stamped), listing the vehicle as a “Credit Vehicle” for the previous tax year.
Once the IRS begins issuing the Form 2290 again, the process will revert to the normal procedures. The proof of HVUT payment will then be able to be sent to the DMV for any applications requiring HVUT verification.
This tax that the IRS collects is an annual tax on commercial motor vehicles that weigh
55,000 pounds or more. This is referred to as the taxable gross weight of a vehicle. Congress is in the process of extending the tax, and the previously mentioned due date exists as a temporary regulation that postpones the due date until November 30, 2011.
Although it is still not possible to file Heavy Vehicle Use Taxes with Form 2290 yet, the Truck Tax experts at Express Truck Tax will be available to answer any questions as well as help drivers and trucking companies file those taxes. For more information, visit the Express Truck Tax website or give the Truck Tax experts a phone call at 704-234-6005. You can also email any questions to support@ExpressTruckTax.com.
Although it is many things, HVUT is first and foremost, an acronym standing for Heavy Vehicle Use Tax. This federal highway use tax is to be paid annually to the federal Internal Revenue Service (IRS) on vehicles that operate on public highways that also have a gross weight of 55,000 pounds or more. The federal government then distributes this revenue back to the state departments for highway construction and maintenance projects.
All carriers are required to send the proof of payment of the HVUT to the Department of Motor Vehicles (DMV) along with their registration renewal in order to successfully register their Heavy Vehicle. Proof of this can be either a copy of a received Schedule 1 (from IRS form 2290) with a copy of the electronic receipt of Schedule 1 showing the dated e-file watermark, or a copy of the IRS form 2290 with a copy of the electronic IRS payment confirmation screen.
To clarify, the IRS Form 2290 is the official form that trucking companies and owner operators have to file to correctly pay their Heavy Vehicle Use Tax. The Schedule 1 is a part of that form. The easiest way to file this form is through an IRS Authorized E-File provider like Express Truck Tax. ExpressTruckTax.com makes this process incredibly simple so that filing this form only takes a few minutes.
For vehicles that are exempt from the heavy vehicle use tax payment by the IRS, a statement of exemption must be submitted by the carrier with their registration renewal. These vehicles are commonly referred to as “Credit Vehicles.” A carrier must send a copy of the IRS form 2290 showing their request for suspension from the HVUT payment with their registration renewal for vehicles that qualify for suspension. These vehicles can also be filed online from Express Truck Tax.
The relatively recent ability to file these taxes online also makes it possible to file VIN corrections online as well. It is understandable that some mistakes may be made on tax returns from time to time. Express Truck Tax understands this, and that is why they were the first to introduce Free VIN Corrections as part of their basic service. This should help to give peace of mind to anyone filing their tax return online. Since the Vehicle Identification Number (VIN) is a complicated combination of letters and numbers, it is one of the easiest places to make a mistake on the Form 2290.
The best part about filing Form 2290 with Express Truck Tax is that they offer a terrific customer support team to assist with any questions people may have. They are available Monday through Friday from 9:00 AM until 6:00 PM EST at (704)234-6005 or anytime by email at support@ExpressTruckTax.com
The IRS recently advised those in the transportation industry with heavy highway vehicles that their next federal highway use tax return will be due on November 30, 2011, instead of the typical due date of August 31st.
The current highway use tax is scheduled to expire on September 30, 2011. The proposed temporary regulations dictate that the November 30th filing deadline for Form 2290 HVUT Return for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. The IRS also states that returns should not be filed and payments should not be made before Nov. 1. This extension is designed to reduce confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date.
For those in the transportation industry who need to apply for state vehicle registration on or before November 30th, the new regulations require states to accept the stamped Schedule 1 of the Form 2290 issued by the IRS for the previous tax year, ending on June 30, 2011 as a proof of payment. Federal Law requires that state governments receive proof of payment of the federal highway use tax as a condition of vehicle registration. Typically, after the return is filed and the tax is paid, the taxpayer receives a stamped Schedule 1 to use when registering the vehicle.
If someone needs to register a newly acquired vehicle during the July-to-November period, the new regulations require a state to register the vehicle, without proof that the highway use tax was paid, as long as the person registering the vehicle presents a copy of the bill of sale or another document showing that the owner purchased the vehicle within the previous 150 days.
The heavy vehicle use tax applies to trucks, truck tractors and buses with a taxable gross weight of 55,000 pounds or more. Vehicles such as vans, pick-ups and panel trucks are typically not taxable because they fall below the 55,000-pound requirement.
Although the IRS discourages filing until November 1, 2011, the god folks at Express Truck Tax are willing to help you every step of the way! If you have any questions regarding Truck Taxes, and how to file them, feel free to chat with their experts at (704) 234-6005. You can also email them at support@ExpressTruckTax.com. For more information about Truck Taxes, check out their Website and Blog: ExpressTruckTax.com
To file the IRS Form 2290 for Heavy Vehicle Use Tax, there are a few key pieces of information you will need to know in order to receive a stamped Schedule 1 from the IRS. First and foremost, you should have an idea as to the number of miles driven by each vehicle, because if a vehicle was driven less than 5,000 miles (or 7,500 miles if agricultural) then it would technically be considered to be a credit vehicle. Other information that is key to filing Form 2290 is your Employee Identification Number (EIN), Vehicle Identification Number (VIN), and the taxable gross weight of the vehicle.
The Employee Identification Number is a required section of the Form 2290. This is a number that is unique to you, and the IRS uses it to identify a business entity. If you do not have an EIN, you can apply for one through the IRS website.
Another necessary part of the Form 2290 is, of course, the Vehicle Identification Number. Every vehicle is required to have a VIN, which is a 17 character combination of numbers and letters. This information can typically be found on the registration or title of the vehicle. In order to know how much tax is to be paid, you must also report the Taxable Gross Weight of the vehicle. This can be found by adding the following totals: unloaded weight of the vehicle fully equipped for service, unloaded weight of any trailers equipped for service and customarily used in combination with the vehicle, and the weight of the maximum load customarily carried on the vehicle and on any trailers customarily used in combination with the vehicle.
Once this information is obtained, the best way to file the Form 2290 is by using an IRS-approved E-File provider like ExpressTruckTax.com. Filing this form online is a much better option than mailing it in, or waiting in line at the IRS office. Filing Online through the secure servers of Express Truck Tax is safer than sending important tax documents via postal mail. It is also much quicker. The IRS typically processes each return and sends it back to you in a matter of minutes. This helps you stay focused on what matters to you, not on endless paperwork, or long lines at the IRS office.
On Monday, July 18, the IRS announced that the 2290 filing deadline for the 2011-2012 tax period would be extended by 90 days. All 2290 forms, which are usually due on August 31, will instead be due on November 30. The extension is designed to alleviate any confusion that may be caused by changes in the HVUT tax laws, which are currently set to expire on September 30, 2011.
In order to assist heavy vehicle owners with state vehicle registration, the IRS submitted new regulations requiring all states to accept the 2010-2011 proof of HVUT payment (schedule 1) for registration purposes during the months of July through November. The regulations also extend the grace period during which a newly acquired vehicle can be registered by the state without a 2290. Any heavy vehicle acquired on or after July 1 may be registered without proof of HVUT payment within 150 days of purchase. You will need to provide the state with documentation showing the purchase occurred within this grace period.
The IRS has tentatively announced that they will begin accepting 2290 returns and 2290 payments for the 2011-2012 tax period beginning November 1. ExpressTruckTax will send email notifications to all our registered users as soon as the IRS begins accepting 2011 electronic returns.
ExpressTruckTax Advanced Filing
For our users that have taken advantage of our Advanced Filing and have already prepared your 2011-2012 return, your completed 2290 will remain in our secure database - ready to be filed. Once the IRS begins to accept 2290 filings, ExpressTruckTax will automatically transmit your tax return to the IRS. If you need to edit or update your prepared 2290 at any time prior to November 1, you may do so simply by logging into your ExpressTruckTax account and editing your 2011 return. Please note, no tax payment will be processed by the IRS for the 2011-2012 tax period until the IRS begins accepting 2290 returns in November.
For those users that have not yet prepared your 2290 return for the 2011-2012 tax period, you may do so now using our Advanced Filing product. This will allow you to complete your 2290 return in advance, ensuring that you and your company are well prepared once the 2011-2012 filing season begins.
Please do not hesitate to contact our support center if you have any questions or if we may be of additional service. You can reach us by phone at (704)234-6005, Monday through Friday - 9 am to 6 pm (EST) or by email, 24 hours a day, at support@expresstrucktax.com. For more details regarding the 90-day extension, you may view the official announcement on the IRS Newsroom website. Thank you for using ExpressTruckTax, where IRS 2290 and IFTA are made easy!
Earlier this month the Internal Revenue Service informed truckers, owner operators, and trucking companies who file federal highway use tax returns that the typical deadline of August 31st will be extended to November 30, 2011. The official legislation for the currently scheduled to expire on September 30, 2011. The current legislation has yet to be passed through Congress; the extension was put in place because it is still possible for Congress to alter the tax legislation after the expiration date. According to the IRS, returns should not be filed and payments should not be made prior to November 1st.
New regulations require state Departments of Motor Vehicles to accept a prior year stamped Schedule 1 of the Form 2290. Typically, taxpayers are required to present a stamped Schedule 1 to register a vehicle with the DMV. The Schedule 1 is usually stamped by the IRS as a proof that the return was filed correctly.
If a taxpayer acquired a new vehicle during July 2011-November 2011, recent regulations allow states to register vehicles without proof that the highway use tax was paid as long as they provide a copy of the bill of sale or a similar proof of purchase to verify that it was acquired in the past 150 days.
If you are unsure whether or not you qualify to file the Heavy Vehicle Use Tax, it typically applies to trucks, truck tractors, and buses with a taxable gross weight of 55,000 pounds or greater. As a rule of thumb, vans, pick-ups, and panel trucks do not qualify due to the 55,000 pound minimum.
One of the most challenging jobs in this country is also one of the most vital to our nation’s economy. The job I am referring to is that of Heavy Vehicle Owner Operators. The job of an owner operator is not only physically strenuous, it can also be confusing and stressful due to the various taxes that owner operators must file each year for their heavy vehicles. These taxes include Heavy Vehicle Use Tax (HVUT) which includes the IRS Form 2290 as well as IRS Form 8849. Another tax that affects the trucking industry is the International Fuel Tax Agreement (IFTA).
The IRS Form 2290 has its own set of detailed instructions. Form 2290 is in 2 sections.The first part, the Schedule 1, must be completed and stamped by the IRS in order for the vehicle to be registered with the Department of Motor vehicles. The traditional way to obtain this stamp from the IRS can be filed one of two ways. The form can be sent to the IRS office via postal mail and then wait for the stamped form to be sent in the mail, which can take several weeks. The other option is to file at the nearest IRS office and get it stamped in person. This is also a very time consuming option that often includes waiting in line for a long period of time..
The process for filing IFTA (International Fuel Tax Agreement) can also be very confusing. Each driver must keep detailed trip notes for the number of miles that were traveled, and also how much fuel was purchased in each state or province. The reason for keeping these records is so that the Fuel Tax (IFTA) is accurately distributed to all of the states and provinces that were involved. For Example, If a driver drove through a state on it’s public highways, but did not purchase any fuel in that state, then that state did not receive any taxes from that driver. The Fuel Tax would redistribute the taxes so that certain states would not be neglected if they were used.
Fortunately, these confusing processes have been made easier, simpler, and safer. ExpressTruckTax.com serves as a one-stop-shop for all truck tax needs! Express Truck Tax allows drivers to E-File a completed Form 2290 online with the IRS and receive a stamped Schedule 1 in minutes. (The stamp is actually a watermark, not a physical stamp. State DMV’s will accept this as proof) The IFTA process is also much easier thanks to the online tools that Express Truck Tax has to offer. With features like online trip sheets and abnormal MPG audits, Express Truck Tax has what it takes to get you back on the road with as little paperwork as possible.
Waiting for the IRS to release the Form 2290 for HVUT for the new tax year will likely take quite a while. According to a Federal Register notice set to be published on Wednesday, July 20th, implementing new regulations states that taxpayers filing Form 2290 should not file before November 1, 2011. In addition to that, the IRS will not be releasing receipted Schedule 1 forms prior to Nov. 1st. The current HVUT system is currently up in the air. Without a law passed from Congress, the tax will expire by Sept. 30, 2011.
Under current regulations, a tax is in place for the period between July 1, 2011, through Sept. 30, 2011. If Congress remains inactive on the matter, taxpayers will merely be liable for that taxable period and would have to file by Nov. 30.
In the Federal Register, the IRS does state that if Congress extends the tax past Sept. 30, anyone who filed for the “short taxable period” would also be required to file a second Form 2290 for the rest of the 2011-2012 tax season.
Amid all of this confusion and what seems to be a chaotic situation for many in the Trucking Industry, you can take comfort that you will be able to Electronically file any HVUT taxes imposed by the IRS with our service. Although we do not know what that will entail right now, we will be able to adjust our product to the changing requirements by the IRS (if needed).
