What is Form 2290 tax?
2290 is a heavy vehicle usage tax, paid by the vehicles with a gross weight of 55,000 pounds or more. It is also known as the Heavy Vehicle Use Tax (HVUT) and the tax rate varies with the vehicle’s gross weight. The Government uses such tax revenues for the maintenance of the nation’s road infrastructure.
Who Needs to Pay the 2290 Tax?
All truck owners operating a heavy usage vehicle, are required to file 2290 tax. However government-owned vehicles are exempted from paying this tax. Additionally, if your vehicle is used for less than 5000 miles during the tax period, the tax liability is nil (7500 miles for agri vehicles).
Calculating 2290 Tax
2290 tax is calculated based on two factors:
- Vehicle’s first used month
- Taxable gross weight
Vehicle’s first used month is helpful in determining when to pay taxes. This also helps in paying taxes only for the actual months used. Taxable gross weight is the one which determines your tax liability. Heavier the vehicle, the heavier will be the tax paid.
Taxable gross weight = Unloaded weight of the vehicle + unloaded weight of trailers or semi trailers + weight of maximum load carried
Refer to this table to know exactly how much you owe.
| Taxable Gross Weight | Tax Rates |
|---|---|
| 55,000 pounds | $100 |
| Between 55,000 to 75,000 pounds | $100 + $22 for every 1000 pounds |
| Over 75,000 pounds | $550 |
Note: The tax rate may vary if you have a logging vehicle
Form 2290 due date
The tax liability must be paid on or before 31st August every year. But if you have newly owned vehicles refer to the following table to find the due date based on your first used month.
| First Used Month | Due Date |
|---|---|
| July | August 31 |
| August | September 30 |
| September | October 31 |
| October | November 30 |
| November | December 31 |
| December | January 31 |
| January | February last date |
| February | March 31 |
| March | April 30 |
| April | May 31 |
| May | June 30 |
| June | July 31 |
Penalties for non-compliance
The penalty for late filing or non-filing of Form 2290 tax can vary. Generally, it is 4.5% of the tax liability and for succeeding 5 months 0.5% will be added each month. Additionally you may need to pay interest of 0.54% per month. However it is advised to consult your tax advisor for the most up-to-date information.
Mode of Filing
- Electronic Filing: File Form 2290 electronically with the help of Electronic Return Originator (ERO), transmitter, or Intermediate Service Provider (ISP). You will receive an IRS stamped form 2290 schedule 1 within minutes as a proof for your payment.
- Paper Filing: Mail Form 2290 along with your check/ money order to the address shown under.
Form 2290 with full payment and the payment is not from an international financial institution | Internal Revenue Service P.O. Box 932500 Louisville, KY 40293-2500 |
Form 2290 without payment due or payment made through EFTPS or by credit/debit card | Department of the Treasury Ogden, UT 84201-0031 |
Form 2290 with a check or money order from an international financial institution | Internal Revenue Service 1973 Rulon White Blvd. Ogden, UT 84201-0038 |
Grace time for filing
You can ask for an extension of time to file your return before the deadline by sending a letter to the IRS 7940 Kentucky Drive Florence, KY 41042-2915. You need to provide a thorough explanation of the delay in your letter. The extension can be no longer than six months, with the exception of foreign taxpayers. The period for filing an extension does not also extend the time for paying the tax. You must make a second request if you would like an extension of the payment deadline.
Recordkeeping
Maintain records for every taxable highway vehicle registered in your name for a minimum of three years following the day the tax is due or is paid, whichever comes first. Also maintain copies of all the schedules and returns you have submitted.