Is Form 2290 needed on an Exempt Vehicle?

By -

IRS Form 2290 is used to pay Heavy Highway Vehicle Use Tax (HVUT). IRS Form 2290 payment is set up to help provide funding to federal states to repair the roads damaged due to running of Heavy highway vehicles. Extensive running of Heavy highway vehicles weighing more than 55,000 pounds can cause repairs on the road. Thus the taxes collected through IRS Form 2290 helps for the maintenance and repair as well as a variety of other programs to keep the roads to function properly.

Any vehicle that has a gross weight of 55,000 lbs or more requires a Form 2290 to be filed with the IRS. And the taxes are paid on vehicles which runs 5,000 miles or above.

We receive a many of calls inquiring If the Form 2290 is required on a vehicle runs less than 5,000 miles or mainly used for farming purposes?

Here is the answer:

A highway motor vehicle which runs 5,000 miles or less (7,500 miles or less for agricultural vehicles) is exempt from tax but still requires a Form 2290 filed on it.

Mileage use limit means the use of a vehicle on public highways 5,000 miles or less (7,500 miles or less for agricultural vehicles). The mileage use limit applies to the total mileage a vehicle is used during the Tax year, regardless of the number of owners.

An agricultural vehicle is any Highway Motor Vehicle that is: 

1. Used (or expected to be used) primarily for farming purposes.
2. Registered (under state laws) as a Highway Motor Vehicle used for farming purposes for the entire period. A special tag or license plate identifying the vehicle as used for farming is not required for it to be considered an agricultural vehicle. 

As per the law there will be penalties imposed on the persons who are using heavy highway vehicle and failing to file the tax return Form 2290 OR filing the return after the due date. Even false filing or fraudulent returns will be penalized.

Another question arrives here: When exactly is the Form 2290 Due?

Due date to file Form 2290 is mistaken by many and they file it by the end of the Tax period. A Tax Period for Form 2290 starts from July 1st and ends on June 30th the following year.

The Form 2290 is always filed upfront on or before August 31st. Hence, it is due NOW for the current Tax Period July 2013 - June 2014.

IRS has mandate Electronic filing for each return reporting 25 or more vehicles that the taxpayer files during the tax period. However, IRS encourages all taxpayers to file electronically.

Tax2290.com makes it a lot simple and safe to file Form 2290 electronically with the IRS for your Exempt as well as Taxable Vehicles. Tax2290 is the 1st IRS certified partner and has rich experience and knowledge about e-file Federal Excise Tax Forms.

Our Tax Experts are always available to help you out with your tax related queries. For any questions you may have regarding Excise Tax Filings please reach us at 1-866-245-3918 or simply write to us at support@taxexcise.com

You can also refer to our FAQs for general queries.

Click Here to start your filing. No more waiting in Queue, or to receive stamped schedule-1 copy in mail. Do all your taxes electronically with IRS, and receive your stamped Sch-1 copy instantly in your Fax and E-mail.

Happy Trucking!!

Comments

Post a Comment

Popular posts from this blog

PREFILING IS BACK WITH TAX2290 AND GET READY TRUCKERS

By -
Image
Time ticks now for Federal Vehicle Use Tax Form 2290 reporting and we at Tax2290.com is all set to start with accepting 2290 return for the new tax year July 2020 – June 2021.     Form 2290 – Federal Vehicle Use Tax Return: The IRS  tax form 2290  is used to prepare and report the highway heavy vehicle use taxes on motor vehicles with a taxable gross weight of 55,000 pounds or more. This generally includes trucks, truck tractors and buses. The tax of up to $550 per vehicle is based on gross weight category and expected miles driven (5,000 miles for general vehicle and 7,500 miles for agriculture vehicle) on public highway.  Form 2290 and Schedule 1  must be filed for the tax period beginning on July 1, of this year and ending on June 30, of successive year. Form 2290 Electronic Filing: Tax Form 2290  can be electronically prepared and reported through TaxExcise.com. It is always easy, safe and quick when you choose to file  2290 returns electronic...
Read more

File VIN Correction Online and Get Schedule1 Copy in Minutes

By -
Many tax payers do the mistake of entering the wrong ‘Vehicle Identification Number’, which is of 17 characters and a mixture of both numbers and letters. To err is human and there are chances of entering the wrong VIN especially when filing tax 2290 at the last hour. Let’s say, you might enter S instead of the number 5 and is likely to happen with others too. Neither you nor the system has indentified it but when you carry the schedule-1 copy to the DMV’s office, you realize the mistake done by you. There is no need to press the panic button but take the necessary steps to get a new schedule-1 copy with the corrected VIN number. What is VIN? VIN or vehicle identification number is a code given to automobiles, as identification of every vehicle. Until 1981, no specific standards were followed for allocating VIN, as well as different manufacturers use different format. However, in 1981 the ‘National Highway Traffic Safety Administration’ changed the format and made it mandato...
Read more

How to Avoid Collision with Wild Animals on Highway?

By -
Summer is a prime time bringing out the best of the nature and the time when truckers can enjoy while driving. Every bend has something new to offer the trucker. This can also be treated as a stress buster for the truck drivers as they have a hectic schedule to follow. After winter hues, it’s time for truckers to take some steps to ensure they have a safe journey.  Driving on smooth roads and cleaner environment, they are likely to see many different animals: from huge moose to small porcupines. As the summer drops in, many creatures tend to become more mobile and are usually found crossing the road and moving to the other end to find a new habitat. It is different to enjoy a scene like this and most importantly, it is entertaining for the truckers.  However, wildlife and trucks on the road is a lethal mix especially if they run over an animal. It is not only emotionally upsetting but can damage their vehicle to a great extend. Yes, larger the animal, bigger the ...
Read more