Hey there Truckers, in this article we are going to discuss what you need to do when your truck exceeds the exemption limits. Wanted to know more briefly, here it is… Generally Form 2290 is a Federal Tax Paid to the Internal Revenue Service (U.S. Department of Treasury) which is annually due. This tax is basically pro-rated and the taxes are paid up front.
The IRS has drafted guidelines to differentiate the vehicle category by the total gross weight and the number of miles for which the desired vehicle is used over the public highway within a respective tax period. Federal law states, For a vehicle that need to be reported over a Form 2290 it must possess a minimum taxable gross weight of 55000 lbs (Weight of the Tractor + Weight of the Loaded trailer) and when this subjected vehicle is used OVER 5000 (For commercial based units) & 7500 miles for (for Agricultural Units) miles within a tax period, it is called a Taxable vehicle & when the vehicle is used UNDER 5000 miles (For Commercial based units) and 7500 miles (for Agricultural Units) its declared to be exempt from paying HVUT regardless of the taxable gross weight reported. such vehicles are also known as “Suspended Vehicles” in 2290 terms.
So, when you file your HVUT Form 2290 report you are required to have an upfront positive assumption whether you’re Truck would be used OVER or UNDER the desired miles limit drafted for exemption. Many HVUT payers although encounters situation in where their truck might have been reported as an Exempt Vehicle later however the trucks would have outrun the desired miles of extension due to excessive work load and many other reasons.
So at this point, a HVUT payer is required to immediately file an AMENDED FORM 2290 to report a sudden change over the vehicle category. For which you are required to log on to www.truckdues.com and Click to Start a New return from the Home page/The Dashboard section then select Form 2290 amendment.
Now you must select the category, Suspended vehicle Exceeds Mileage to convert an Exempt unit to a Taxable Vehicle and pay the annual tax. Remember, in this scenario you will not be able to make a pro-rated tax due payment based on the time when the truck exceeds mileage, instead the IRS will expect the tax due to be paid in full.
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Have a Good One! See you over the next article.