Category: express 2290
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House of Representatives Approves Extension of Transportation Bill
This legislation, H.R. 2887 was introduced to the House of Representatives by the Transportation Committee chairman, John Mica (R-FL), as well as other influential members of that sub-committee. The response by the House was unanimous in support of the extension.
The current Transportation Bill has already been extended several times, and a new piece of legislation is needed, but this extension will help continue funding for this nations highways and keep up to a million people at work. Rep. Mica understands this and made the following statement regarding a more permanent solution: “Unfortunately, this bill is the 22nd FAA extension and the 8th surface transportation extension. Congress has delayed passing a long-term FAA bill for over four years, and a surface transportation bill for two years. This action represents a last chance to roll up our sleeves and get transportation projects in America moving again.”
For a Senator’s perspective, when asked to comment on the decision, Sen. Frank Lautenberg of New Jersey stated: “The American people didn’t send us here to make unemployment worse and allow our roads to crumble—and that’s why we must act swiftly to extend this law,” he continued. “Instead of putting up roadblocks to this extension, I hope our colleagues will work with us to fix the economy, help Americans get back to work and keeps our country moving forward. Once we have passed this short-term fix, we need to complete work on a long-term bill that strengthens investment in our national transportation network to create jobs, maintain our roads and bridges, and invest in rail and transit to ease commutes.”
This is a positive step for the Trucking and Transportation Industry. Although it is still not possible to file Heavy Vehicle Use Taxes with Form 2290, the folks at Express Truck Tax will be available to answer any questions and help drivers file those taxes. For more information, visit the Express Truck Tax website or call our Truck Tax experts at 704-234-6005. You can also chat online, or email any questions to support@ExpressTruckTax.com.
Trucking Industry Supports President Obama’s Push for Highway Funding
The current transportation legislation “The Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users” expired in 2009, but Congress has kept adding extensions to the legislation. The most recent one expires at the end of September. If it is not extended, or if new legislation is not enacted to replace it, the transportation industry will experience a shutdown similar to what the Federal Aviation Administration (FAA) experienced earlier this year.
If there is no immediate solution, the Transportation department will experience about 4,000 jobs to be furloughed without pay, and up to one million jobs if the delay is any longer. These are jobs for the people who build our roads and keep them safe. It would be detrimental and irresponsible to our highway system if this legislation is not kept in place.
The American Trucking Associations (ATA) came out in support of President Obama stating that Congress needed to quickly act on another extension, but more extensions are no replacement for a long-term highway solution. The ATA also urged the administration to use caution when using private sector funding for public infrastructure.
Soon after, The American Association of State Highway and Transportation Officials also released a statement in agreement with the ATA. Another organization that supported President Obama’s push for new legislation came as a surprise was OOIDA (Owner-Operator Independent Drivers Association). This was a bit surprising because OOIDA and the ATA have had a history of having a different opinion than the ATA. But as to this issue they have a similar viewpoint. They also agree that the government should try to avoid private sector funding for public transit.
This delay in the typical tax year for those filing Truck Taxes has affected an entire industry. Once an extension is passed or new legislation is enacted, those Truck Taxes will be able to be filed with Express Truck Tax at www.ExpressTruckTax.com. You can use this service to quickly EFile your Heavy Vehicle Use Taxes with Form 2290, 8849, IFTA and more! It only takes minutes to complete. If there are any questions, you can send them to (704)234-6005 or support@ExpressTruckTax.com.
What is the purpose of IRS Form 2290(HVUT) and how it can be e-filed?
IRS Form 2290 is meant to send information about the usage of a commercial truck and to pay taxes on that use to the IRS. You can use this form for a single truck filing, or up to twenty-five vehicles can be reported on one form. The major reasons for filing the form include:
- Calculating and paying the taxes owed on Heavy Highway Use Vehicles
- Claiming a suspension of the tax for vehicles driven less than 5,000 miles during the applicable period (or 7,500 miles if agricultural use)
- Claiming a credit for a sold, stolen or destroyed vehicle
This IRS form only applies to a specific time period, which does not coincide with the calendar year. The typical Tax year for Form 2290 is from July 1st to June 30th of the next year. The form and any payment are typically due by the end of August of the corresponding year. The IRS requires that forms with 25 or more vehicles to be electronically filed.
As mentioned Earlier, the typical tax year is from July 1 to June 30, but this year it has changed. Due to legislation being held up in Congress, there has yet to be a legislation enacted to collect these Heavy Vehicle Use Taxes. The IRS has announced that it will not be accepting these forms until November 1 this year.
Parts of the Form:
While this form is broken down into two parts, those who file electronically with ExpressTruckTax.com only need to enter information one time. The Form 2290 consists of the Form and the Schedule 1 that needs to be stamped by the IRS in order to register a vehicle with the state DMV. Much of the information for these forms are duplicate information. Filing online with the Express Truck Tax service will save you time by only entering information once.
When E-Filing this form, instead of physically stamping the Schedule 1, the IRS will send a Schedule 1 with an official IRS watermark to verify that it was processed. State DMVs are required to accept this as proof of the Schedule 1.
Heavy Highway Vehicles:
The IRS also provides a way for owners and operators of multiple vehicles to include them in the same form. The Schedule attached to Form 2290 allows the taxpayer to list the VINs of all included vehicles. When filing electronically, you can even upload an excel document of all your vehicles. Another beneficial feature of ExpressTruckTax.com is the option to perform Free VIN Corrections. Instead of having the form rejected and sent back to you, you can correct the mistake and submit it to the IRS again at no extra charge.
Questions About the Form 2290:
If you have any questions about Filing Form 2290 or if you qualify, feel free to call the Truck Tax Experts at Express Truck Tax at (704)234-6005. You can also email them at support@expresstrucktax.com. You can also checkout their Website and Blog to stay up to date on the latest Truck Tax information: www.ExpressTruckTax.com.
What You Need to File Internal Revenue Service Form 2290 Online(HVUT)
The Employee Identification Number is a required section of the Form 2290. This is a number that is unique to you, and the IRS uses it to identify a business entity. If you do not have an EIN, you can apply for one through the IRS website.
Another necessary part of the Form 2290 is, of course, the Vehicle Identification Number. Every vehicle is required to have a VIN, which is a 17 character combination of numbers and letters. This information can typically be found on the registration or title of the vehicle. In order to know how much tax is to be paid, you must also report the Taxable Gross Weight of the vehicle. This can be found by adding the following totals: unloaded weight of the vehicle fully equipped for service, unloaded weight of any trailers equipped for service and customarily used in combination with the vehicle, and the weight of the maximum load customarily carried on the vehicle and on any trailers customarily used in combination with the vehicle.
Once this information is obtained, the best way to file the Form 2290 is by using an IRS-approved E-File provider like ExpressTruckTax.com. Filing this form online is a much better option than mailing it in, or waiting in line at the IRS office. Filing Online through the secure servers of Express Truck Tax is safer than sending important tax documents via postal mail. It is also much quicker. The IRS typically processes each return and sends it back to you in a matter of minutes. This helps you stay focused on what matters to you, not on endless paperwork, or long lines at the IRS office.
IRS Form 2290 and IFTA(International Fuel Tax Agreement)
IRS Form 2290 is what is used by the government to collect what is referred to as the Heavy Vehicle Use Tax or HVUT Tax. It is a fee that the IRS requires all vehicles with registered gross weights equal to or exceeding 55,000 pounds to pay annually on heavy vehicles operating on public highways. The tax collected is a significant source of transportation funding in the U.S. In 2006 alone, the HVUT generated more than $1.4 billion in Federal Highway Trust Fund (HTF) revenue.
The International Fuel Tax Agreement (IFTA) is an agreement between jurisdictions to simplify the reporting of motor fuel taxes. Under this agreement, one quarterly fuel use tax report is filed representing miles traveled, fuel purchased and used, and taxes/credits due in each member jurisdiction. The base jurisdiction then distributes the funds to each affected jurisdiction according to information contained in the quarterly fuel use tax reports. An interstate motor carrier operating “qualified motor vehicles” between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an International Fuel Tax Agreement (IFTA) license and decals issued by their base jurisdiction. If you have the IFTA license, you must file the Quarterly IFTA Return to your base jurisdiction.
How do they Work?
Besides the fact that they are both fees imposed on heavy vehicles, these are both similar in that they are both very complicated. The complications with IRS Form 2290 come from the difficulty of actually filing one. The trouble with IFTA is that it is an incredibly detailed system.
The IRS Form 2290 includes a Schedule 1 which must be stamped by the IRS. This can either be mailed to the IRS, which can take up to several weeks to process. It can also be taken directly to the IRS office, which can take several hours of your day. This must be accompanied by the proof of EFTPS payment.
IFTA requires drivers of Heavy Vehicles to keep trip logs of miles traveled as well as how much fuel was purchased in each state or province. IFTA must be filed quarterly and the filing date is the 30th of the following month. These trip logs are difficult to keep up because they require very detailed information. As mentioned earlier, these forms are then filed with their base jurisdiction. Most states do not provide E-Filing as of yet. Therefore, most of the time these forms are mailed to the state.
A simple solution for both of these is to use an online E-File Provider. The most advanced of the available services is www.expresstrucktax.com. Express Truck Tax acts as a one stop shop for all truck tax needs. Through them, you can E-File your Form 2290 with the IRS. It also provides a way to keep online records of your mileage and fuel purchases for IFTA reporting. This can make the IFTA process much easier.
Filing a Form 2290 with the IRS
Who Must File?
You must file a Form 2290 and Schedule 1 for the tax period beginning on July 1, 2010, and ending on June 30, 2011, if a highway motor vehicle is registered, or required to be registered, in your name under state, District of Columbia, Canadian, or Mexican law at the time of its first use during the period and the vehicle has a taxable gross weight of 55,000 pounds or more. Any type of business entity may file a Form 2290 with the IRS.
What Vehicles are Taxable?
The IRS considers taxable Highway Motor Vehicles to be any self-propelled vehicle that is designed to carry a load over public highways. Examples of such vehicles include trucks, truck tractors, and buses. The IRS typically does not consider vehicles such as vans, pickup trucks, panel trucks, or similar vehicles because they do not typically weigh 55,000 pounds or more. A vehicle may consist of a chassis, or a chassis and a body, but does not include the load of the vehicle.
Who is Exempt?
Although it is rare, some Vehicles that fit the above description may be exempt from the HVUT and Filing requirements of Form 2290. To officially be exempt from filing Form 2290, the vehicle must be owned and operated by the following:
- The Federal Government
- The District of Columbia
- state or local government
- American National Red Cross
- Non-Profit Volunteer Fire Department, Ambulance Association, or Rescue Squad
- Indian Tribe Government (Only if the Vehicle is Used for essential Tribe or Government Function)
- Mass Transportation Authority (Only if granted certain powers normally exercised by the state)
- Qualified Blood Collector Vehicles
- Mobile Machinery that meets specifications for a chassis
When to File?
A Form 2290 must be filed annually, for each taxable vehicle that is used on public highways during the current period. The Current Period is from July 1, 2010 and ends on June 30, 2011. A Form 2290 must also be filed once a vehicle is placed in service. The due date for each month is the last day of the following month. For example: if a vehicle is placed in service on October 3rd, the Form 2290 will be due on November 30th.
How to File?
Although it is possible to paper file, E-Filing is required for each return containing at least 25 vehicles. The IRS does encourage everyone to file electronically due to its security and speed. This is highly recommended for Form 2290 in particular because the filing due dates are always only one month away. There are several providers of services that can help you E-File Form 2290 with the IRS, one such provider is www.expresstrucktax.com. They provide a very excellent service for all Truck Tax Needs.
Things Freight Factoring Companies Won’t Tell You
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Featured Blogger Benjamin Bellville |
Freight factoring companies are sometimes a necessary evil if you own a small trucking company. If you are running an operation that needs to have the cash rolling in on a more regular basis than the industry average days to pay of 30-45 days then at some point you will do business with freight factoring companies. Before you get too tied up with one though you need to have a good understanding of some things they will never be upfront and voluntarily tell you and also know that they for the most part do not care about your success.
For any small trucking company I highly recommend hauling freight for a quality quick pay freight broker whenever possible if you are in need of constant quick money flow, but there will be times when a quality quick pay freight broker does not have freight available where your truck is, this is when you will need to do business with freight factoring companies. On average for a small trucking company business they are going to charge you 4-5% of the total invoice for pay on the same day that they receive the originals.
There are two types of factoring, recourse and non-recourse. To qualify for a recourse deal you will have to have stellar credit and/or do millions in sales as this means that if a customer fails to pay that you will owe any money previously paid out to you on that load back to the factoring company. It does not matter why the customer did not pay just know that the factoring company will take their money back in full immediately.
For non-recourse freight factoring you need to understand that each load does not stand alone as a separate business deal like it legally should in my opinion. Whenever you get paid for loads you have factored if at any time the customer on the load refuses payment on that load to the factoring company they will withhold money from completely different customers to cover those lost funds. In my experience of dealing with 3 different freight factoring companies they also will not have the class to call you and alert you to the situation.
Instead you are expecting much needed money and it simply never shows up. They also will not work with you to ensure you have funds available to operate. They take all funds that they claim you owe them as soon as it’s available. It’s all just a fancy advertising scheme to draw you into their web of lies and deceit. So tread carefully when dealing with them and have the understanding that they are out for themselves and not you, use them sparingly and protect yourself by having legal representation on retainer.
Do you know who does care about your businesses well being and success? That’s right Express2290. Be sure to visit them and see how they can make your life easier by handling all of your 2290 needs.
Getting Familiar With The Setup Process With Freight Brokers
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Featured Blogger Benjamin Bellville |
Today I would like to point out some key things to look for in the setup process with freight brokers. This of course being when you will have to fill out an information packet and fax it back to a broker before they will allow you to haul their freight. I’m going to talk about the type of information you will receive from them and it’s relevance, the information and forms you will need to send back to them and the little things you should look for in the packet that if not followed correctly may cost you a bundle.
What type of info will a freight broker include about themselves?
With every freight broker setup packet you will receive many pages of information about that broker. These are not pages that you need to send back, but they are pages that you should save and staple together with the finished packet after you have faxed back what was required. This information at a minimum will include the following:
1. All of the freight brokers contact information.
2. Their freight brokers authority page (MC#)
3. Their Insurance carrier information.
4. The brokers surety bond.
5. A reference page. (showing companies they have brokered freight to)
This is all information that you could find out just by knowing their MC#, but it’s just easier to have it on hand should they decide to stiff you on a payment and you need to make a claim against them.
What type of info will they require from me?
This is going to depend on the freight broker you are dealing with,some have very short packets (you will be thankful when you get that lucky!) and some will expect you to fill out an encyclopedia worth of what is sometimes pointless it would seem. following are the main things you will be asked to return every time guaranteed.
1. A copy of your authority (MC#)
2. Copy of your insurance.
3. A current W-9.
4. A carrier profile page.
5. The contract with each page initialed and dated as well as properly signed.
For this reason it would be a great idea to have copies of the first 3 on your computer easily accessible if you are using an email fax server. After you have seen a few carrier profile pages it would also be a good idea to make one of your own as every now and then you will come across a broker who wants one, but fails to send you a form.
Things to look for in the setup process with freight brokers!
Some of this information will also be included in fine print on the load rate confirmation, which is the actual contract that a freight broker and trucking company enter into on a load by load basis. What you want to watch for is their policies that need to be followed that in many cases if not followed will garner a fine for your company. These may include the following stipulations:
1. Fines for not being on time to a pickup or delivery.
2. Fines for being reported as being uncooperative with their customers.
3. Fines for damaged freight.
4. Fines for not contacting them with load movement updates on their schedule.
5. Payment information pertaining to what they will or won’t cover for things such as tolls, lumper fees,detention and layover.
Once you get the hang of the things to look for it’s best to just ask the broker any questions you may have about these things before you have them fax you a setup pack. Their will be some brokers who are too demanding and who are sticklers for all fines they say may be levied against you regardless of the circumstances. It’s a learning process every time you do business with a new broker, but if you pay attention to details you should have no problem at all.
Now that you’ve learned all about the setup process with freight brokers go on over and check out how easy the folks here at Express 2290 can make filing for your Heavy Vehicle Use Taxes which are required to be paid and proof shown before you can get your I.R.P.