Is Form 2290 needed on an Exempt Vehicle?

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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!!

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