BHT&D Certified Public Accountants Blog

It’s Time To File Form 2290 – Heavy Highway Vehicle Use Tax Return

Posted by Andrew Seiler on Wed, Aug 03, 2016 @ 07:00 AM

Heavy_Highway_Vehicle.jpgTaxpayers that have a taxable highway motor vehicle registered in their name must file an IRS Form 2290. 

For vehicles placed in service July 1, 2016 or earlier, the due date to file the return is August 31, 2016

The IRS is no longer sending out reminders and the penalties for late payment are significant.  Here are a few points to consider when filing Form 2290:

  • Only vehicles with a taxable gross weight of 55,000 pounds or more are required to be reported.
  • There are a few exemptions to the above, including vehicles owned by Federal, State, and local governments, certain nonprofits, and specially designed mobile machinery for non-transportation functions. 
  • Vehicles sold, stolen, or destroyed during the year are eligible for a credit on the unused portion of the tax. 
  • Vehicles used less than 5,000 miles (7,500 for agricultural vehicles) can be listed as suspended with no tax due. 
  • Suspended vehicles that returned to service and exceeded the 5,000 miles (7,500 for agricultural vehicles) must be reported as of the month wherein the vehicle exceeded the mileage limit. This mileage limit applies to the vehicle, not the owners.  If the vehicle is purchased that was previously suspended, the new owners must consider the miles use by the previous owner in calculating the applicable miles. 
  • New vehicles purchased during the year must be reported by the end of the month following the month of purchase. If the purchased vehicle was previously owned by a taxpayer, you are required to maintain documentation and proof of either the vehicle being listed as suspended or the Heavy Highway Use Tax being paid on the vehicle

If you need assistance in filing the IRS Form 2290, please request a complimentary accounting consultation or contact us at (616) 642-9467.

By:Andrew Seiler

Photograph: Oliveira



Tags: Small Business, Vehicle Tax, Form 2290