Category: Expresstrucktax.com

IRS 2290 Form filing Delays for tax year 2011-2012

An annual tax on the use of heavy highway vehicles is imposed in Section 4481 of the Internal Revenue Code. The IRS uses Form 2290 to report this tax. The Internal Revenue Service has stated that the law governing taxes imposed on the use of heavy highway vehicles (Form 2290)
will expire on September 30, 2011. The IRS Form 2290 for the new tax year beginning July 1, 2011 is not available at this time and has not yet been published by the IRS for the new tax period. Due to the current situation, you can most likely expect a delay in the filing period for heavy vehicle use tax form 2290. It is also very likely that we may also expect to see changes in the new Form 2290 when it is published.  This is based on the fact that the Heavy Vehicle Use Tax Schedule 1 for previous tax periods has typically changed slightly from year to year.

Although the 2290 form is not yet ready, you can still get your vehicle tags for the tax period beginning July 1, 2011. Existing regulations allow states to register heavy highway vehicles when the registration application is received during the months of July, August, or September. A Schedule 1 for the previous year (July 2010 – June 2011) then state offices can accept it as a proof of payment.

You can also get your newly acquired heavy highway vehicles registered by the state without having a proof of tax payment. If you present an original or a photocopy of the bill of sale showing that the vehicle was acquired during the 60 days preceding the date that the state receives the application for registration.

Taxpayers should be aware that the IRS strictly discourages sending any old/previous form or payment to the IRS in order to file HVUT for new tax period (2011-2012). If the older form is sent to the IRS, the payment will be applied towards the tax account and a Schedule 1 will not be issued. However, they will send a notice to send a new form when it becomes available.

We will keep you updated on the latest changes as we get them from the IRS.  In the meantime, if you have already filed a 2290 return for the tax year 2010-2011, then you should contact the IRS at 866-699-4096 to get a copy of your Schedule 1. If you have filed through one of the IRS authorized E-File providers such as ExpressTruckTax.com then you need to get in touch with them to get a copy of your Schedule 1.

HVUT Regulations for Tax Form 2290

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

Pay HVUT (IRS form 2290) On Time with Express Truck Tax

As anyone who is a veteran of the Trucking Industry will tell you, there are many more business and economic responsibilities other than simply getting something delivered at the right time and place. Heavy Vehicle Use Tax, or HVUT, is one of the most common taxes on heavy highway vehicles in the United States. Paying this tax properly involves filing the IRS Form 2290. This Form is so easy to E-File online, and thanks to Express Truck Tax, there is no reason to be late, as evidenced by these points:

  • IRS Fines
    • Unless you enjoy IRS Audits and spending time in courtrooms, it is a terrible to not pay your taxes. The IRS can add all kinds of interest and late fees, but if you end up in court over the matter it will lead to the court costs as well as heavy fines.
  • Not filing or not paying is a felony
    • Fines are bad enough, but it could be worse. Going to court can lead to criminal charges. The IRS & state governments could prosecute anyone who purposely cheats to avoid paying the truck tax. It can also lead to time in prison.
  • Stay focused on your business
    • If these are not paid in a timely manner, the previously mentioned fines, court appearances, and possible jail time could seriously put a halt on your business. The time and energy spent worrying about IRS Audits, Fines, and Court Dates is not worth it. Especially when the taxes are not typically very high.
  • Taxes help improve public roads
    • Paying taxes is never a joyful experience, but you should get some gratification in the fact that much of the taxes paid for HVUT go back into the cost of roads and highway expenses. It just makes sense; if you enjoy using something, you shouldn’t mind paying for it.
  • It’s So Easy

E-file IRS form 2290 with expresstrucktax.com on time. It’s made as easy as 1-2-3 to e-file truck tax 2290 and get IRS stamped Schedule 1 in few minutes. Avoid IRS penalties and Audits by keeping your 2290 records with express truck tax. E-file IRS 2290 VIN Corrections for free of cost.

Truck Tax Regulations for 2011 (HVUT)

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.

IRS Tax Implications for those in the Trucking Industry

For many Owner-Operators of Heavy Highway Vehicles, the benefits of self employment make being on the open road a very exciting experience. However, due to the heavy regulation of the Trucking and Transportation Industry, there are various taxes you must pay for self-employment income earned as an independent truck driver. Since self-employed individuals are not subject to tax withholding, there is more control over periodic tax payments throughout the year, which can be cut down by claiming deductions for business expenses.

Self-Employment Tax

The Self-Employment tax applies to truck drivers who operate their own business. These taxes are imposed in order to fund the Social Security and Medicare programs. The disadvantage of paying these taxes as a self-employed individual is that you owe twice as much as taxpayers who earn their income from employment. This is because employers are responsible for paying the other half of these taxes for their employees. There is somewhat of a silver lining to this though, the IRS does allow you to claim a deduction for 50 percent of the self-employment tax payments you make as an adjustment to income.

Truck Driver Deductions

You are not required to pay income tax or self-employment tax on your gross earnings from self employed truck driving. Instead, it calculates your tax due on net earnings, which is equal to your gross earnings minus all deductions you can claim. In order to claim a deduction, the expense must be ordinary and necessary to operate your business. This may cover any number of expenses you incur, but typically, truck drivers may deduct the cost of gasoline, oil, truck repairs, insurance and parking charges. You may also deduct the cost of the truck itself by including the lease payments or depreciation of the purchase price in your deductions. And, if you ever stay in a hotel during those long road trips, you may deduct your lodging expenses also.

Other Truck Taxes

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:

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 2290 forms until November 1 of this year.

Express Truck Tax is Your All-In-One Provider of U.S Federal Tax Forms 2290 and 8849

ExpressTruckTax.com has everything you need to to file your truck taxes online so that you can keep on rolling. It is packed with all sorts of features that benefit Owner Operators, Trucking Companies, and other service providers filing HVUT.

One of the most commonly filed IRS forms among those in the Trucking Industry is the IRS Form 2290, and its accompanying Schedule 1. With Express Truck tax, you can easily file this IRS form online in minutes, and for as little as $9.90, it is the most attractive price in the industry.  

After filing Form 2290 with the IRS through Express Truck Tax, the person filing will receive Free Fax and Email Notifications to let them know that the Schedule 1 is ready. Express Truck Tax also offers optional Text Message reminders as well. Once the IRS processes the Return, you will be notified so that you can print your stamped schedule 1. Express Truck Tax can also notify your contracting (leasing) company to let them know that your payment has been made.

When creating your Form 2290 online, Express Truck Tax will automatically create a Form 8849 for credits. There is also the option to upload an Excel Template for a multiple vehicle filing.  You can file for only 1 truck or up to 40,000 vehicles with our Enterprise Filing!  Express Truck Tax also offers flexible pricing plans to fit any fleet. Tax professionals and CPAs also receive custom discounted pricing to file for many of their clients.  

The customer service does not stop once the form is filed. Express Truck Tax also offers Free VIN corrections so that no one is penalized for a simple typo. There is also the ability to amend a previously filed Form 2290 through the service. For any questions about the service, Express Truck Tax offers unlimited, USA-based customer support via email, chat, and phone. Simply email support@ExpressTruckTax.com, call 704-234-6005, or go to ExpressTruckTax.com to live chat with the excellent customer support professionals.  

You can file your Form 2290 (HVUT) in just minutes via self-service, file by phone and full service, meaning you can register and file yourself, or have us take care of the filing. Either way, this easy-to-use software will save you time and money. Express2290.com was built by one of the most talented teams in the industry—no one has more experience in HVUT E-Filing!

Get started today at ExpressTruckTax.com. Email us at support@expressexcise.com or call 704-234-6005.

Express2290.com, Express8849.com, ExpressExcise.com, and ExpressExtension.com, are part of ExpressTaxZone.com line of tax products.

Changes for Heavy Vehicle Use Tax (HVUT) and IRS Form 2290 as of July 1, 2011

As of July 1, 2011, the process of filing a Form 2290 for Heavy Vehicle Use Tax has changed dramatically as a result of new legislation not being passed by Congress. These new regulations affect tax service providers, trucking companies, and owner operators of highway motor vehicles with a taxable gross weight of 55,000 pounds or more.

Heavy Vehicle Use Tax form 2290 – Overview
The
Form 2290 imposes an excise tax on certain highway motor vehicles (26 CFR Part 41) under section 4481 of the Internal Revenue Code. Section 4481 imposes an excise tax on the use in any taxable period of a highway motor vehicle with a taxable gross weight of 55,000 pounds or more. The person to whom the vehicle is registered at the time of the first use for the year must pay the tax. The amount of the tax is based on the gross weight of the vehicle with a maximum of $550 per vehicle per taxable period. The tax period begins on July 1 and ends on June 30th of the following year.

However,
for the taxable period beginning on July 1, 2011, section 4482(c)(4) of the present law states that the taxable period ends as of September 30, 2011 instead of the typical June 30th deadline. For this three month period, the tax has been reduced to 25 percent of the tax rate for a 12-month period. Section 41.6011(a)–1(a)(1) requires each person liable for the tax imposed by section 4481 to file a return for each taxable period. Section 41.6011(a)–1(b) provides that the return is in Form 2290, (Heavy Highway Vehicle Use Tax Return).

A
Form 2290 must generally be filed by the last day of the month following the month in which someone first becomes liable for tax. For most taxpayers, their first use of a vehicle in a taxable period occurs in July and thus their return is due by August 31st. This is because July is the first month of the tax period, and if a vehicle was registered in the previous year, July is the first month of the current year. Section 41.6001–2(b) explains that when a state that receives an application to register a highway motor vehicle, they must receive a ‘‘proof of payment” of the tax imposed by section 4481(a). This proof of payment typically consists of a receipted Schedule 1 (Form 2290) that is returned by the IRS to a taxpayer that files the form 2290 and pays the amount of tax due with the return.

The
taxpayer registering the vehicle must present proof of payment for the taxable period that includes the date on which the application for registration is filed. In the case of an application filed in July, August, or September of this year, the proof of payment for the preceding taxable period may be used. The tax imposed under section 4481 will expire on September 30, 2011, unless Congress changes the law. Under existing regulations, the person liable for the tax must file a Form 2290 by the last day of the month after the month that the person first becomes liable for the tax.  Current statutory and regulatory provisions require the person liable for the tax to file a Form 2290 for taxable use during the period of July 1, 2011, through September 30, 2011. Also, if Congress extends the tax past September 30, 2011, anyone who filed a Form 2290 for the short taxable period of 2011 would have to file a second Form 2290 covering the period after September 30, 2011, until either the expiration date of the extension or June 30, 2012 (whichever comes first).

Extension of Form 2290 HVUT Due Date

In order to provide a more efficient tax administration and alleviate taxpayers’ potential administrative burden, temporary regulations have postponed the due date of Form 2290 for the 2011 short
taxable period until November 30, 2011. If Congress does not extend the tax past September 30, 2011, taxpayers will file one Form 2290 and will pay the reduced amount for the 2011 short taxable period by November 30.  If Congress does extend the tax past September 30, 2011, and substitutes a longer taxable period for the 2011 short taxable period, taxpayers who become liable for the highway use tax after June 30, 2011, and before November 1, 2011, a will file Form 2290 for the period July 1, 2011—June 30, 2012 (or the end of the new taxable period, if earlier), by November 30, 2011. In either case, most taxpayers will have to file only one return for the taxable period beginning July 1, 2011.

Temporary regulations suggest that taxpayers should file a
Form 2290 no earlier than November 1, 2011 for taxable use during the 2011 short taxable period. The IRS will not provide a receipted Schedule 1 for a return and accept associated payment for the taxable period beginning July 1, 2011, before November 1, 2011.

Temporary Regulations for Proof of Payment for DMV registration
Special rule for registration after June 30, 2011, and before December 1, 2011.
For the period between July 1, 2011, and November 30, 2011, a State must register a
highway motor vehicle without proof of payment if the person registering the vehicle presents the original or a photocopy of a bill of sale or another document proving ownership indicating that the vehicle was acquired by the owner either as a new or used vehicle during the preceding 150 days before the date that the state receives the application for registration of the vehicle, and the vehicle has not been registered in any state subsequent to such date of purchase.

Substitute proof of payment for the taxable period beginning July 1, 2011.
A state shall accept a
2290 Schedule 1 for the previous taxable period as a substitute for proof of payment.

Temporary Regulations-  filing dates
In the case of a
highway motor vehicle that incurs a  taxable use during the period July 1, 2011 through September 30, 2011, the person liable for the tax must file a return no later than November 30, 2011. The return should be filed no earlier than November 1, 2011. If the return is filed and payment is submitted before November 1, 2011, the IRS will not provide a receipted Schedule 1 (Form 2290, ”Heavy Highway Vehicle Use Tax Return”) as proof of payment until after November 1, 2011, and will provide the receipted Schedule 1 only if the full amount of the tax for the 2011 taxable period has been paid.

Trucking Companies, contractors, service providers, or individual owner operators who need to get a Form 2290 schedule 1 for previous tax years can contact the IRS, or file form 2290 online through an IRS authorized
E-File provider such as ExpressTruckTax.com. For more information on heavy vehicle use tax, you can call the good folks at Express Truck Tax at 704-234-6005 or email at support@ExpressTruckTax.com

Federal Highway Use Tax Form 2290 – Credit Vehicles

In certain situations, one can actually claim a credit for a vehicle using the IRS Form 2290 (Heavy Vehicle Use Tax). The simplest, quickest, and safest way to file this form is through ExpressTruckTax.com, an authorized IRS E-file Provider of this form.

If a heavy vehicle was stolen, destroyed, or sold before June 1st and not used during the rest of the year, it qualifies as a credit vehicle. Another qualification for Credit Vehicles is if a heavy vehicle was used for 5,000 miles or less, or an agricultural vehicle that was used for 7,500 miles or less. Another significant qualification is that a credit, lower tax rate, exemption, or refund is not allowed for an occasional light or decreased load; neither is it allowed for a discontinued or changed use of the vehicle.

Even though the qualifications for credit vehicles can be complicated and confusing, ExpressTruckTax.com helps make this process simple. The filing process only takes a few minutes. If you need any help, the dedicated customer support team can help walk you through the process in minutes.

File a Federal Highway Use Tax Form 2290 VIN Correction for Free!

To err is human, and the folks at Express Truck Tax understand this. Unfortunately, sometimes mistakes are even made on important documents like Tax Returns. If you wer unfortunate enough to incorrectly enter your VIN number when filing your Heavy Vehicle Use Taxes with IRS Form 2290, there is still hope for you!  Thanks to Express Truck Tax, you can Electronically File an IRS Form 2290 VIN Correction at no charge!

This is an exclusive offer from Express Truck Tax that no other HVUT E-File provider is offering. This filing process only takes a few minutes and the best part of it all is that it is also absolutely FREE. Express Truck Tax allows anyone to correct a VIN Number for any previously filed IRS Form 2290. The person filing the form will receive a new IRS-Stamped Schedule 1 in only a few minutes.  

Because of this speedy service, drivers, owner operators, and trucking companies will be able to get their truck taxes taken care of quickly, so that they can get back on the road in no time!  Express Truck Tax realizes that time on the road is valuable and that people need to spend as little time as possible worrying about the little details.  That’s why Express Truck Tax is making this process much simpler for those in the Trucking Industry who file HVUT.

3 Month Tax Extension for Internal Revenue Service Form 2290 (Federal Heavy Vehicle Use Tax)

Earlier this month the Internal Revenue Service informed truckers, owner operators, and trucking companies who file federal highway use tax returns that the typical deadline of August 31st will be extended to November 30, 2011. The official legislation for the currently scheduled to expire on September 30, 2011. The current legislation has yet to be passed through Congress; the extension was put in place because it is still possible for Congress to alter the tax legislation after the expiration date. According to the IRS, returns should not be filed and payments should not be made prior to November 1st.

New regulations require state Departments of Motor Vehicles to accept a prior year stamped Schedule 1 of the Form 2290. Typically, taxpayers are required to present a stamped Schedule 1 to register a vehicle with the DMV. The Schedule 1 is usually stamped by the IRS as a proof that the return was filed correctly.  

If a taxpayer acquired a new vehicle during July 2011-November 2011, recent regulations allow states to register vehicles without proof that the highway use tax was paid as long as they provide a copy of the bill of sale or a similar proof of purchase to verify that it was acquired in the past 150 days.

If you are unsure whether or not you qualify to file the Heavy Vehicle Use Tax, it typically applies to trucks, truck tractors, and buses with a taxable gross weight of 55,000 pounds or greater. As a rule of thumb, vans, pick-ups, and panel trucks do not qualify due to the 55,000 pound minimum.