Recent Changes to Heavy Vehicle Use Tax

June 23, 2012 by  Filed under: Taxes 

Similar to the many laws and statutes that have been enacted in the United States, the heavy vehicle use tax has gone through different stages of development. The IRS has implemented various changes to the current tax that is seen today. The original notion of the heavy vehicle use tax remains the same, but many changes have been made to the filing process.

For instance, there was a change in 2004 to require the IRS to provide an electronic filing process. This comes as no surprise because “e-filing” is considered the easiest and most feasible method of filing form 2290 today. The IRS saw that paper filing was becoming inefficient as it took weeks for individuals to fully complete the filing process of Form 2290. The IRS now features a program that refers those who need assistance e-filing to a list of service providers who are capable of completing all the necessary truck tax forms. In 2008, the IRS made another change that related to e-filing. The federal agency passed a law that required carriers with 25 or more vehicles to file electronically. Steps have definitely been taken by the IRS to promote the widespread use of e-filing for various tax forms.

Another change made to the heavy vehicle use tax was the credit system established in order for taxpayers to be repaid through tax returns for their sold or deleted vehicles. The IRS continued research on the trucking industry and found that trucking fleets often buy and sell vehicles as it relates to their company’s progression. It appeared that more selling occurred than buying, meaning that many trucking companies were still paying a yearlong tax on a vehicle that may no longer be in their possession. For this reason, the IRS decided to create Form 8849, which is a tax return form.

Finally, the IRS deleted the quarterly payment option which got enforced in the start of 2011 tax period because of a delay in passing the truck tax by the senate. IRS provided a 3 month extension to all tax filers to keep up with their vehicle registration process during that period. For 2012 tax period the annual payment option got reestablished which helps trucking companies as it relates to the purchase and sale of vehicles. Based on the month that a vehicle begins service, the IRS requests a lesser amount of money as the year ends out. Assuming that the filing season begins in July, this means that an owner/operator would have to pay a higher tax had their vehicle started use in August than say February because the truck tax filing year would be ending out.

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.

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