Bought a heavy vehicle for yourself? Wondering whether to pay the taxes for the whole year? Well that’s what the prorated taxes are about. As per the IRS “All heavy vehicles operated on the high way with a gross weight of 55,000 lbs or above and with a mileage of 5,000 miles (7,500 miles for agricultural vehicle) is taxable”. So have you got a vehicle with a gross weight of 55,000 lbs or above and if you have plans of operation it on the highway over 5,000 miles the dead line for paying the taxes is just a couple of days away.
Well first things first so what about the tax calculation? The Prorated taxes are calculated based on the month of first use and the vehicle should have crossed 5,000 miles. That being said the payment date would be your next question. Well, as per the IRS the “Prorated taxes are to be paid by the last date of the month following the month in which it was first used”. So the taxes for the vehicles bought by April is due and the deadline is on 31st May, 2019.
What will you incur if you don’t pay the taxes? Well that’s simple the IRS will charge a fee for failure to file and failure to pay at a rate of 4.5% and a penalty of 0.5% of the taxable amount. So why to incur these charges when it’s still not late to file your return. But the time is on the horizon and its just a couple of days more to file your prorated taxes.
What if you have paid for an old vehicle which you have sold to buy a new one? But paid the taxes in full? There’s no need to worry about it. The taxes can be transferred to the old vehicle to the new once as credits. Just by filing a Form 2290 for the new vehicle and old vehicle by listing it under sold category. Here at TruckDues.com this process is made simple and the calculations are done automatically such that the website itself will do the math and notify you the difference. This will help you assess whether if there is anything to be paid out of pocket or if the available credits would cover up the taxes for the new vehicle.
So what are you waiting for, rush now just log into TruckDues.com and enter the new vehicle details, let our website do the math for you. Just with a click you will be able to transmit the return to the IRS and receive a water mark copy of Form 2290 schedule-1 to your registered personal email.