The IRS recently issued an alert reminding owners of most heavy highway vehicles that July 1, 2018, marked the beginning of the time to file Form 2290, Heavy Highway Vehicle Use Tax Return.
The highway vehicle use tax applies to highway motor vehicles used during a certain period with a taxable gross weight of 55,000 pounds or more. This typically includes trucks, truck tractors and buses; however, most vans, pickup trucks, panel trucks and similar trucks aren’t subject to this tax because they have a taxable gross weight that is less than 55,000 pounds. The tax depends on the weight of the vehicle, and a number of special rules apply. Form 2290 contains specific instructions regarding those rules.
The IRS expects as many as 800,000 Heavy Highway Vehicle Use Tax Returns to be filed in 2018. Though paper filing is an option, the government requires taxpayers with 25 or more taxed vehicles to file their forms electronically. The due date for filing and paying the associated tax is August 31, 2018, for vehicles used in July 2018. For vehicles used during the current period of July 1, 2018, through June 30, 2019, the due date is the last day of the month following the month the taxable vehicle is first used on public highways.
Here’s an example: John purchases a new taxable vehicle on November 3, 2018. The vehicle is required to be registered in his name. It is first used on the public highway when John drives it home from the dealership. John must file Form 2290 reporting the new vehicle by December 31, 2018, for the period from November 1, 2018, through June 30, 2019. John must file this form even if he already filed a Form 2290 for an earlier period related to different vehicles.
The IRS encourages all owners to take advantage of electronic filing due to the speed and convenience of the process. There’s no need to visit an IRS office, since the form and payment can be made online. Visit the IRS website for a list of IRS-approved e-file providers, including approved Form 2290 providers.
Typically, once the IRS accepts a taxpayer’s return, the stamped Schedule 1 is available within minutes. The taxpayer can then print the schedule to provide it to the respective state motor vehicle department.
In the event a taxpayer wants face-to-face services, all IRS Taxpayer Assistance Centers now operate by appointment. Taxpayers can call 844.545.5640 to schedule a visit. Visit the Taxpayer Assistance Center page on the IRS website for details.
For additional information related to this form or if you have questions, contact Nick or your trusted BKD advisor.