HVUT - Heavy Vehicle Use Tax
What is HVUT?
Vehicles operating on public highways with a gross weight exceeding 55,000 pounds must pay
Heavy Vehicle Use Tax (HVUT) annually. If you have a qualifying vehicle with a liable gross weight listed under IRS, the annual tax will be calculated every year and one must clear the tax dues without fail at a given due date.
A qualifying vehicle is evaluated by measuring the unloaded weight of the motor vehicle, and the weight when used in conjunction with trailers. If the trucker fails or lately file the HVUT, then he will owe a penalty with high net tax due.
Who Must File?
If you have a heavy vehicle (gross weight with or more than 55,000 lbs.) operating on public highways, you must file Form 2290. Each tax period starts on July 1 of the current year and ends in June of the following year. For new vehicles, you must file form 2290 at the end of the month that follows the month of its first use (i.e., if you use in August, file within September 30th).
What is required?
Filing form 2290 requires details about business and vehicle (whether you do by online or paper). Business details include Name, address, EIN (Employer Identification Number), and signatory details. Whereas, vehicle details include Vehicle Identification Number (VIN) and Gross Weight of the Vehicle.
If you are processing the payment to IRS via direct debit, make sure to hold the routing number and the account number ready.
When to File?
Since HVUT is calculated on an annual basis, the tax period will start every mid-year, that is, from 1st July of the current year to 31st June of the following year. For renewing Form 2290 for a new tax period, you must file the form before the due date (August 31st).
For newly purchased vehicles, the IRS Form 2290 must be filed once it is operated on roads.
How to File?
You can file form 2290 electronically as well as through paper. E-filing allows you to submit form 2290 without any manual calculation. You can enter the required details of employer and vehicle and the rest like validation checking, tax rate calculation, credits, transmitting Form 2290 to IRS, etc. will be taken care by the service provider. For more information on e-filing, visit the IRS Trucking Tax Center.
IRS authorized service providers like ExpressTruckTax.com will file HVUT and return a stamped schedule 1 as a proof of payment via email within minutes. They also provide free VIN correction along with unlimited free resubmission.
Paper
If e-filing or payment through electronic funds transfer or electronic federal tax payment system (EFTPS) does not feel convenient, you can mail form 2290 to the below given address along with voucher and money order or check.
Penalties
If any taxpayer fails to file HVUT by the end of August, the penalty will be higher. It will be equal to 4.5% of net tax due calculated on a monthly basis ( up to 5 months). For late filers who did not pay HVUT at the right time must pay a monthly penalty equal to 0.5% of the total tax due and with interest charges of 0.54% a month.
