Monthly Archives: July 2014

If you own a heavy vehicle, you likely pay taxes on it. And you likely would prefer to pay less tax on it if possible. There are a few exceptions and exemptions from the  heavy vehicle usage excise tax, which we’ll discuss below. Read on to find out if you can minimize – or eliminate – some of the tax payment!

Logging Vehicles
Logging vehicles pay 75% of the tax that a non-logging vehicle would pay. How do you know if you drive a logging vehicle? Your truck has to meet both of the requirements below:

1. It is used exclusively for the transportation of products harvested from the forested site, or it exclusively transports the products harvested from the forested site to and from locations on a forested site (public highways may be used between the forested site locations).
2. It is registered (under the laws of the state or states in which the vehicle is required to be registered) as a highway motor vehicle used exclusively in the transportation of harvested forest products.

You must still file a 2290 for a logging vehicle, but at least you pay a bit less.

Qualified Blood Collector Vehicles
No, not the ones driven by vampires – or, not just those. Only vehicles used by qualified blood collector organizations meet this requirement. In addition, at least 80% of the use of the vehicle in the prior tax period must have been for the collection, storage, or transportation of blood. In the first tax period of usage for the vehicle, the organization owning and using the vehicle can certify to the reasonable expectation that it will be used 80% of the time for collection, storage, and transportation of blood.

Non-Highway Motor Vehicles
There are three categories to consider here, but these are basically vehicles that you use for a specific purpose, not for hauling a load of freight.

1. Specially designed mobile machinery for non-transportation functions – Basically, this vehicle has machinery mounted to the chassis that allows the vehicle to perform mining, construction, farming, etc, operations. The chassis would have to undergo substantial modification to perform any hauling, and it must be specially designed for the intended purpose.
2. Vehicles specially designed for off­highway transportation – These vehicles must be specially designed to perform a specific function, such as hauling a particular load not on a highway. Size matters. If the truck won’t fit on the highway, it qualifies. Other vehicles may also qualify if they are not subject to licensing or safety requirements, or if they cannot transport a load at a minimum of 25 MPH.
3. Non-transportation trailers and semi­trailers – Picture the lot where a crew builds a large building. The site foreman has a trailer to meet contractors, suppliers, etc. That is a non-transportation trailer.

If those apply to your vehicle, you do not file a 2290 for it.

Vehicles Exempted Based on Specific Owner/Operator Types Some organizations do not fall under the 2290 regulations. These exempt groups include:

• The federal government
• The District of Columbia
• A state or local government
• The American Red Cross
• A nonprofit volunteer fire department, ambulance association, or rescue squad
• An Indian tribal government but only if the vehicle’s use involves the exercise of an  essential   tribal government function
• A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state

You’ll notice the trend there of either government institutions or non-profit organizations owning the vehicles. If you work for one of those organizations and use the vehicle exclusively for that organization, your vehicle is exempt.

Bottom Line
That’s it! If your vehicle falls in one of those three main categories, you do not need to complete form 2290, or you receive a lower rate if you have a logging vehicle. If you are not exempt from the law, be sure to remain in compliance by using the simple ez2290.com tools. You can complete the process and receive your Schedule 1 in just a few minutes. As the name says, it’s easy!

You may have noticed while out driving that the highways are under constant repair. Or you may have noticed that the ones not being repaired are in need of repair. Either way, someone has to pay for all that road work.

Who pays? You, me, and all the others out there who pay taxes for a living – I mean, who pay taxes out of the money we earn for a living.

Recently there have been stories in the news about the possible shortfall in the Highway Trust Fund (HTF), the fund that reimburses states for the federal portion of road work project costs. For those unfamiliar with how that funding process works, which is probably almost all of us since it wasn’t’ covered in Schoolhouse Rocks “I’m Only a Bill,” this site has a good brief explanation.

To overcome the projected shortfall, various politicians have suggested a short-term infusion of cash. Where will that cash come from? Well, starting on July 1, 2015, it may come from the taxes you pay when you file form 2290.

Currently, the government calculates the tax you owe on your vehicle starting at 55,000 pounds and capping the cost at 75,000 pounds. For a 55,000 pound vehicle, you pay $100 in tax. For each additional 1,000 pounds, you pay $22 more in tax up to 75,000. For any vehicle over 75,000 pounds, you pay $550 in tax. In order to pay back the amount to be contributed to the HTF, a proposal exists to raise the weight limit to 97,000 pounds. While that exceeds the current weight limit under federal standards for interstate usage, states offer exceptions that permit heavier vehicles to use the roads.

The higher weight cap for the excise tax would bring those heavier vehicles under a higher taxable rate. The rate would work like it does now, starting at $100 at 55,000 pounds and increasing by $22 per 1,000 pounds. With the higher weight cap, however, the highest amount an owner may pay would go from $550 to $1,100. Depending on your vehicle, the higher tax may not matter. If your vehicle weighs 75,000 pounds, you’d still pay $550 next year. If you are at 80,000 pounds, though, your tax bill would go from $550 to $660. As of this writing, the new rule isn’t official.

Should it happen, we’ll update this post and recalculate our tax software to ensure ez2290.com is e-Filing for the correct amounts. But be on the lookout for the possible higher tax amount. And don’t be surprised if it happens for July 1, 2015.

Have you ever had that moment when, just after it’s too late to do anything about it, you realize you messed something up? It’s always nice to know that you can go back and correct an error when you find one. This post will cover how to fix a common mistake we see, an incorrect VIN on a 2290.

In case you don’t know, the VIN is your Vehicle Identification Number. Along with your EIN, the IRS uses the VIN to ensure that a specific vehicle, owned by a specific person, remains in compliance for a specific tax period.

Getting the correct VIN on your 2290 means that process works more smoothly. Getting the wrong VIN means you may get a letter from the IRS asking about the discrepancy.

To ensure you provide the correct VIN, first make sure you have your vehicle paperwork handy. The VIN usually appears on registrations, insurance cards, and other slips of paper. You can also find it on your vehicle in various places, such as at the bottom of the windshield, in a wheel well, on the driver-side door post, or on the engine block.

The VIN should be 17 characters (letters and/or numbers). Older vehicles may have fewer characters. Once you have the VIN, you include it with the vehicle information you enter on the site.

Should you have a VIN of less than 17 characters, enter the letter X after all the characters in your VIN to make 17 characters. For example, if your VIN is 13F4938T1876, you need five more characters to make the VIN 17 characters. You record it on the site as 13F4938T1876XXXXX.

If you entered the VIN correctly, you’re good to go. Complete the process, submit your 2290, and collect your Schedule 1. Always check the VIN on your Schedule 1 to confirm it is correct, along with the other information on the Schedule 1.

Should you find the VIN doesn’t match after receiving your Schedule 1, you will need to complete an amended 2290. Basically, you use the same process you did to create the first 2290, except you check the box for “Amended 2290 Return.”

Then you will be able to click “Add New” where you see “VIN Correction.” Provide the new VIN and the old, incorrect VIN. The remainder of the information should be the same as on your original filing, so add that to your new filing.

Complete the process by providing the remainder of the information requested. If you completed the original filing on our site, there is no charge for a VIN correction. If you filed the original 2290 elsewhere, our standard rates apply (and we welcome you to the site!).

Our Support Center has a more detailed explanation of the process. Be sure to check the Support Center for answers to your other questions as well. Or you can always call, email, or chat with our outstanding Support Team! We have 24 hour email and chat support during July and August.

So you just bought your first rig. Congratulations! Now you need to be able to drive it legally in order for it to start making money for you. Filing Form 2290 is a key step to ensure regulatory compliance. A question we often hear is, “When do I need to file my Form 2290?”

For a vehicle you just purchased, IRS instructions state that “Form 2290 must be filed for the month the taxable vehicle is first used on public highways during the current period.”

Let’s say you bought a truck on May 14, 2014, and plan to use it immediately. The tax period runs 7/1-6/30 each year. You need to file Form 2290 and pay the tax for the current period, 2013-14, by 6/30/14.

Of course, 7/1/14 starts a new current period for 2014-15. That means if you plan to continue to use the vehicle for that period, you need to file Form 2290 and pay the tax by 8/31/14, since the first month of use for the current period would be July, 2014.

Got all that? Basically, you need to pay the tax and file Form 2290 no later than the month after you first use the truck. And every year after that first year, you need to pay the tax and file Form 2290 no later than 8/31/14 if you use the truck in July.

When you file Form 2290 and the IRS accepts your filing, you get a Schedule 1. That document proves you are current on your tax. Your state motor vehicle agency will want to see the Schedule 1 before issuing you the tags. In future years, your state agency may allow you to use the prior period Schedule 1 for a couple of months before needing proof for the new period. Texas, for example, permits proof of payment of the prior period through October 1.

You can file your Form 2290 electronically or on paper. The IRS requires anyone with 25 or more vehicles to file electronically, and they encourage everyone to file electronically. If you file electronically, you save yourself a trip to the local IRS office (if there is one local to you), and you can get your Schedule 1 within minutes of the IRS receiving and accepting your return.

You receive a pdf of your Schedule 1 when you file electronically. Print it and take it when you go to register your vehicle. You can access that pdf copy at any time in your account online, so you can print it again should you misplace the original copy.

There are other advantages to filing electronically, as well, such as the bank-level security offered and the ability to pre-file for an upcoming year. You can even test it out to see how easy it is before deciding to complete the filing.

About US

ez2290.com provides full service HVUT (Heavy Highway Vehicle Use Tax) e-Filing backed by live phone and chat support. Our experience in the software and tax filing industries ensures that you get best of both the worlds – online and full service assisted filing. In either case, you have terrific support at no additional cost, with 24 hour support via chat and email during July and August.