Form 2290, HVUT: What Does It Mean for the Next Generation of Truckers?

June 28, 2012 by  Filed under: Taxes 

The HVUT and Form 2290 has become a staple in the transportation industry. If you are a fleet owner or owner operator you have dealt with these two before. A lot has changed over the years regarding the form and tax. The IRS and the federal government have done their best to keep up with the changing times. This is not a one-sided affair for form 2290 tax, with the changes that have been made it is the truck drivers job to research and understand them. Many problems that truck drivers face when filing the form stems from not fully understanding what they are doing. Having to rely on a tax profession is not the best answer but it can help relieve some pressure.

To give a brief history of the Form and tax, the HVUT was imposed in 1982 through the Surface Transportation Assistance Act. Since the beginning of civilization in the US, the federal government has been obsessed with taxation. Remember the Boston Tea Party?, The purpose of this tax was to place a charge on vehicles using public road ways. This was not a bad idea. The government realized that the heavier a vehicle was the more damage to the road that it caused. A study by the FHWA shows that doubling the weight of a vehicle caused an exponential increase in the amount of damage to the road way. Over a prolonged time period damages began to increase rapidly so the government was forced to take action. With a tax in place, the money collected by the IRS can be used to fund road way creation, maintenance and repair.

Since then there has been a few changes to the system such as when the tax was due and how the money should be collected. The IRS has updated their procedures for implementing the HVUT. When the Form 2290 has been filed electronically with the IRS, the vehicle owner should retain a copy of the stamped schedule 1 for State vehicle registration functions. Since July of 2009, the IRS has utilized an electronic filing and payment system. This procedure is needed for companies owning over twenty five trucks, however optional for smaller trucking operations. In either case, a paper copy of the stamped schedule 1 is provided to the taxpayer who can be presented at the time of auto registration. Since then IRS has been favoring the electronic filing system to promote the reduction of paper usage.

Seun is an associate of Etax2290 which is a leader in e-file industry, with approval from IRS and various other trusted organizations for filing IRS Form 2290 online with ease and hassle free. File form 2290 now and avoid possible penalties.

Article Source:
http://EzineArticles.com/?expert=Seun_Oyewole

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