Heavy Vehicle Use Tax (HVUT) is an excise tax which is paid annually by the owners of vehicles with a registered gross weight equal to or above 55,000 pounds. This federal tax is paid by inter-state and intra-state registered vehicles. The filing of HVUT Form 2290 started in the late 90’s owing to the fact that most of the road damage was caused by heavy trucks. Since then, individuals have been paying this toll through various means. However, the introduction of 2290 tax online was a commendable step in not only allowing ease of payment but also convenience and flexibility.
Heavy Vehicle Use Tax is an important tax deduction or payment which every truck owner/operator should proudly pay. There is need to protect our nation’s investment and ensure that we have the best transportation system globally. Through this tax, the government is able to finance a wide range of other investments and maintenance services. These include improving highways and bridges through maintenance, enforcement of highway laws, deal with traffic congestion issues and meet other costs such as those of administration. To benefit from these services, you first need to pay. There is no better way to pay than by filing your 2290 tax online.
Heavy Vehicle Use Tax payments and remittances have come a long way. In the late 90’s, paper filing was the, most popular way to file for these returns. This was both acceptable and convenient by then. However, as a manual process, it was characterized by frequent delays, errors and wasted time. Technological developments have allowed for other forms of filing which are much convenient and effective as compared to the paper form filing of Heavy Vehicle Use Tax (HVUT) returns.
E-filing as it is being termed is the new and convenient way to file your returns from 2290. Filing your 2290 tax online is much easier and free of errors. It also saves users essential time as you do not have to travel or use the post to file your returns. You therefore don’t have to wait for days to receive your schedule 1 copy as compared to the conventional paper form filing. Most of the errors in posting returns in your HVUT are associated with the preparation and processing. These are significantly slashed when you use e-filing of Heavy Vehicle Use Tax. Additionally, as a 2290 tax payer, you are assured of the fact that you will get your schedule 1 copy within minutes. More so, it has also made it easier for the IRS to process other tax returns. By opting to use e-files and pay your taxes with the IRS, you not only save time but also assist federal government substantially.
Due to its convenience, reliability and effectiveness, 2290 tax online has become a norm in the United States. You should not be left out either. With the amazing support and trust by taxpayers in the US, e-filing is a proven method to file your Heavy Vehicle Use Tax (HVUT) returns. It also ensures that you stay aware from penalties occasioned by late returns filings or tax forfeiture.
Form 2290 is a standard form for filing the tax return to the Internal Revenue Service, an entity of United States Department of Treasury. IRS being a Government body will be responsible to fix and collect the tax from the citizens of the United States who owns heavy vehicles which are deemed to fall under the Form 2290 category.
Not all the heavy vehicles will fall under the scope of Form 2290. Only those trucks whose weight is 55,000 pounds or more will be eligible for paying the tax amount to the IRS. Anything less than the prescribed weight, say like, if the vehicle weighs even 54,999 pounds, you will not be under the scope of form 2290. Form 2290 Electronic filing can be made by paying the tax online.
IRS will have track of the owners who owns the truck which comes under the scope of 2290 IRS tax form. If anyone fails or neglects paying the tax, the IRS will consider the issues seriously and will send a notice to each owner who is found guilty in not paying the tax on time. If owners receive a notice, they will have to file a separate form 2290 with the penalty.
The Tax period is from 1st of July to 30th June. This tax period is the regular tax period scheduled by IRS and vehicle owners need to pay the tax during the tax period. Tax amount depends on several factors and varies as and when particular factor falls under the scenario.
Factors affecting the Tax amount:
There are 3 prime factors which varies tax amount
1) The month of first use of the vehicle – The tax gets calculated from the month when the vehicle is used first on the highways. If the vehicle is purchased at the initial tax period i.e. in July, the owner will be liable to pay full tax amount for the entire tax period. If the vehicle is purchased after July, then the tax needs to be calculated from the month when the vehicle is used first. In this case the tax amount will be reduced or partial tax amount need to be paid for the remaining tax period.
2) Vehicle Category – The vehicles are categorized by the IRS based on the purpose of its usage and the status of the vehicles. The tax amount varies depending on the category.
3) Weight of Vehicle – The weight matters in calculating the tax amount. As the weight increases more than 55,000 pounds, the amount of tax also increases.
Not only the corporate companies, Limited companies who run the transportation business also need to file form 2290, even the individual owners need to pay the tax.
Who are treated as Disregarded entities?
A Qualified subchapter S Subsidiaries (QSubs) and eligible single-owner are treated as disregarded entities. They can file the form 2290 as usual but they are eligible to claim the refunds, credit to the IRS. They need to submit their EIN for filing.
The filing happens based on the tax payer’s TIN number. Keep the EIN and TIN ready for the filing purpose.
Schedule 1 –
Once you do form 2290 electronic filing successfully, the IRS will issue the receipt i.e. Schedule 1. This acts as a proof of the payment made and the copy can be used further in registering your vehicle in any state of the US.
In search of the Mediators who helps in E filing?
Just to discharge all the responsibility of the E filing, you may need assistance. Contact Etax2290.com for the entire E Filing service. We are masters in form 2290 electronic filing and have many clients across the US. Any queries with regards to the 2290 IRS Tax form will be addressed by us.