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IRS New HVUT (form 2290) Regulations for 2011

August 27th, 2011
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There are several taxes that are imposed on those in the trucking industry each year. Heavy Vehicles travelling on public highways are subject to HVUT, or Heavy Vehicle Use Tax. These taxes can be filed by filing a Form 2290. Truckers, owner operators, and trucking companies were recently notified by the IRS that their next highway use tax return for filing HVUT (which is usually due on August 31) will instead be due on November 30, 2011. The primary reason for the extension of the due date is to reduce confusion and multiple filings of Form 2290 that could result if Congress reinstates or makes changes to the current highway use tax after September 30, 2011.

The previously mentioned Heavy Vehicle Use Tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds and above. There are also many detailed rules and regulations that apply to vehicles with minimal road use, logging/agricultural vehicles, vehicles transferred during the year, and also those whose first use month was during July. In typical scenarios, vans, pick-ups and panel trucks are not taxable because would [under normal circumstances] fall below the 55,000 pound requirement.

The recently determined filing deadline of November 30 for Form 2290 (Heavy Highway Vehicle Use Tax Return) applies to the tax period beginning on July 1, 2011. This does not only include those vehicles that were used during July, it also includes those whose first use month was during August or September. According to recent statements from the IRS, 2290 tax returns should not be filed and payments should not be made until November 1, 2011.

Regulations for new vehicles that need to be registered will also take effect. Any new vehicle that needs to be registered during July through October of 2011, state DMV’s are now required to accept a Stamped Schedule 1 from the previous year since it is not possible to receive a stamped Schedule 1 until November of 2011. If a vehicle was acquired within the current tax year, and there is not a stamped Schedule 1 for the previous year, the owner only needs to provide some form of proof of purchase to prove that the vehicle was recently placed in his/her possession.

Fortunately, once the Form 2290 is available, the electronic filing service: ExpressTruckTax.com will be able to E-File the form and send it to the IRS in minutes. Express Truck Tax is an IRS Authorized E-File provider for filing Form 2290. The E-Filing Process is very simple; the form can be completed in minutes, and it can be sent to the IRS as soon as it is finished. It is such a time saver when you compare it to waiting in the IRS office for hours or sending it via postal mail and waiting weeks for the IRS to process it.  All you will need is your basic information about yourself, and your truck.

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HVUT Regulations for Tax Form 2290

August 23rd, 2011
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The IRS announced earlier in the year that the Form 2290 for Heavy Vehicle Use Taxes will not be available for the 2011- 2012 tax year and that the heavy vehicle use tax will expire by end of September 2011. A later announcement stated that the due date of the Form 2290 had been extended by 90 days. This further changed the due date even further to Nov 30th 2011. This was meant to be a relief to tax payers, and hopefully cut down on multiple filings.

There is now a bill that has been drafted (H.R. 763) that has also been sponsored by Michael Michaud, a Democratic from Maine’s 2nd District. This bill contains new rules and regulations for the Trucking Industry. With this new law, there is a great possibility that the heavy vehicle use tax fees may be increased, depending on the size of your vehicle. For more information on the bill, you can go to http://www.opencongress.org/bill/112-h763/show

Here are some of the proposed rules according to the new bill in Congress: H.R. 763: Safe and Efficient Transportation Act of 2011.  In Section 4 of the bill, it explains the newly proposed regulations.
Section 4 – safe and efficient vehicle charges
(a) In General- Subsection (a) of section 4481 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
‘In the case of the use of any highway motor vehicle described in section 127(i) of title 23, United States Code, in lieu of the rate in the table, the rate shall be equal to the lesser of-
(1) $100 per year, plus $22 for each 1,000 pounds (or function thereof) in excess of 55,000 pounds,
(2) $800 per year.


According to the previous years’ HVUT calculations, any vehicle weighing 55,000 pounds owed $100 per year and anything in excess of 55,000 would yield, $100 + $22 for each 1,000 pounds in excess of 55,000 pounds. A vehicle weighing above 75,000 pounds would have to pay $550 annually.

Based on the proposed rules for HVUT Form 2290 for the current year 2011-2012, the calculation for the fee structure would be: $100 + $22 for each additional 1,000 pounds over 55,000. But for a 75,000 pound vehicle that would previously owe $550, the current calculation would be: $100 for the first 55,000 pounds, $550 for the 25,000 extra pounds $650 total due for 75,000 lbs and above vehicle.

It is important to keep in mind that much of this new bill proposes that the maximum weight of a heavy vehicle be increased. So this new pricing structure is meant to reflect that. As you can see, the pricing change mainly affects larger trucks. This is because there will likely be new trucks on the roads that will be larger than anything out there now.

Section 4 also mentions that:
The amendment made by this section shall apply to taxable periods beginning after the date of this act’s enactment.

While no one can predict the status of this bill, it is safe to bet that the good folks at Express Truck Tax will be ready to help anyone file whatever forms are necessary. It is certain that their Truck Tax experts will be able to help. If you have any questions or would like to learn some more about the transformations in heavy vehicle use taxes, please contact IRS authorized EFile provider ExpressTruckTax.com at 704.234.6006 or by email at support@ExpressTruckTax.com

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Truck Tax Regulations for 2011 (HVUT)

August 20th, 2011
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You don’t have to be a transportation expert to understand that Washington DC is known for its gridlock. The very worst of it is actually off the roads and on Capital Hill. While both parties in Congress continue to argue, there is a significant piece of legislation that has yet to be voted on. The delay of this legislation being enacted has thrown many people in the trucking & transportation industry for a loop.

The law previously referred to is a transportation law known as SAFETEA-LU – the Safe, Accountable, Flexible, and efficient Transportation Equity Act: A Legacy for Users – which expired in 2009, but it allowed the taxes associated with the Highway Trust Fund to be collected for an additional two years. When SAFETEA-LU became law in 2005, lawmakers added what they believed to be enough time to get the next multi-year transportation authorization bill in place.

Those two years have passed faster than expected and we are left without a new Highway Bill to replace it. The House and Senate committees are now drafting preliminary versions of the legislation and will continue to debate its details. Let’s hope that both sides come to an agreement soon to avoid massive confusion in the trucking industry. Trucking Regulations alone are complicated enough.

Under normal circumstances, tax provisions related to the Highway Trust Fund would be extended as part of the authorization. Unfortunately, no one can accurately predict what will happen in the future, especially with the extreme volatility between political parties of late. One thing that is predictable, however, is that ExpressTruckTax.com will keep updating their website and blog with the latest news affecting the Trucking Industry. Once there is more information available about the HVUT filing process, we will let you know. Express Truck Tax is the premier provider of Tax Services for the Trucking Industry; as soon as the IRS releases the new Form 2290, it will be available for EFiling at www.ExpressTruckTax.com.

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IRS Interim Regulations for Filing Heavy Vehicle Use Tax(Form 2290)

August 5th, 2011
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For those who are heavily involved in the Trucking and Transportation Industry, it may not be a surprise that this tax year has so far been less than normal as far as Heavy Vehicle Use Tax is concerned.  
 
A Federal Register notice was posted on July 20th, this newly imposed final and temporary regulations by stating that Form 2290 taxpayers should not file before November 1, 2011. The new regulation also added that the IRS will not be providing receipted Schedule 1 forms before the 1st of November.

It is unclear what the future holds for HVUT. Many speculate that there will simply be a delay in the filing season, but the bill has yet to be voted on at this point. If Congress does not change the law, the tax will expire by September 30th, but it seems unlikely that the government would let a tax like this one simply expire. Current regulations have set a tax for July 1, 2011, until Sept. 30, 2011. If Congress neglects to act on this Truck Tax regulation, taxpayers will only be liable for the “short taxable period” (July – September) and would be required to file by Nov. 30. However, if Congress extends the tax past Sept. 30, anyone who files for the “short taxable period” will also be liable for a second Form 2290 for what remains of the 2011-2012 tax year.

For vehicles that need to be registered during Jul-Oct of 2011, the state DMV’s are required to accept a Stamped Schedule 1 from the previous year since it is not possible to receive a stamped Schedule 1 until November 2011. If a vehicle was acquired within the current year, and there is not a stamped Schedule 1 for the previous year, the owner only needs to provide some form of proof of purchase to prove that the vehicle was recently placed in his/her possession.

Luckily, once the Form 2290 is available, ExpressTruckTax.com will be able to E-File the form and send it to the IRS in minutes. The E-Filing Process is very simple; the form can be completed in minutes, and it can be sent to the IRS as soon as it is finished. It is such a time saver when you compare it to waiting in the IRS office for hours or sending it via postal mail and waiting weeks for the IRS to process it.

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