Heavy Vehicle Use Tax (HVUT) – Everything You Need to Know

Heavy Vehicle Use Tax or HVUT is a federal excise tax, paid by the truck owners annually on heavy vehicles used in highways whose gross weight is 55,000 pounds or more. Inter-state and intra-state registered vehicles pay 2290 Truck Tax.

The American Association of State Highways Official discovered the Heavy Vehicle Used Tax (HVUT) filing since late 90’s, as the heavyweight trucks caused damage to the public highways. Based on the reports, it stated that a truck caused damage on the roads more than 160,000 times than a car.

What is Heavy Vehicle Use Tax?

Heavy Vehicle Used Tax (HVUT) is an annual fee levied on heavyweight vehicles, that uses public highways for transportation with gross weights of 55,000 pounds or more. In order to file Form 2290 HVUT Returns, the gross taxable vehicle weight is determined by summing up the following:

Actual unloaded weight of the heavy weight vehicle fully geared up for service.
Actual weight of semitrailers or trailers that are equipped for service and regularly used with heavy vehicles.
The maximum weight carried customarily on the vehicle and the maximum weight carried by the trailers or semitrailers along with the heavyweight vehicle.

Who Needs to Pay Heavy Vehicle Use Tax?

In order to file your HVUT Returns, the heavyweight vehicle needs to be registered in the name of the vehicle owner under “State, District of Columbia, Mexican or Canadian” law during the time of first use of the vehicle. A Limited Liability Company, Partnership, Individual, Corporation, or any other type of Organization is liable to file Form 2290. Here, a different kind of organization can include Charitable, Non-profit, Educational Institution, etc.

Heavy Vehicle Use Tax Eligibility Criteria

There is some essential information you should know before filing heavy vehicle use tax,

Vehicles with a gross taxable weight of 55,000 pounds or more are subject to HVUT. The tax amount varies based on the vehicle’s weight.
Vehicles expected to travel 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the tax period are exempt from HVUT. If a vehicle exceeds this mileage limit, the tax becomes applicable.
Owners of eligible heavy vehicles must file Form 2290 annually to report and pay the HVUT.
After filing Form 2290 and paying the HVUT, the IRS provides a stamped Schedule 1, which serves as proof of payment.

How to File Heavy Vehicle Use Tax?

Heavy Vehicle Use Tax (HVUT) Returns are generally reported in two methods, the taxpayer can pick any of the methods to report truck taxes to the IRS. If you are reporting more than 25 vehicles then you need to E-file Form 2290 as recommended by the IRS.

Manual Paper Filing of Form 2290
E-filing Form 2290

It is always wise to E-file Form 2290 online with Tax2efile as you can retrieve the filing history and save and download the Stamped Schedule 1 at any time. You can save a lot of effort and time while you E-file Form 2290. Tax2efile processes your applications on time, transmits to the IRS and you will receive the Stamped Schedule 1 in minutes.

Heavy Vehicle Use Tax Payment Methods

The Internal Revenue Service provides three payment options for taxpayers to make their tax payments. Pick the convenient payment option to make your payment on time.

Electronic Funds Withdrawal/Direct Debit

In this payment method, the IRS will initiate the funds withdrawal from the mentioned bank account of the taxpayer, which is provided while E-filing 2290 Heavy Vehicle Used Tax (HVUT). But the taxpayer must ensure that there are enough funds to honor the tax payment.

Electronic Federal Tax Payment System (EFTPS)

EFTPS is another payment option that taxpayers prefer. In this payment method, the taxpayer must schedule the payment and must be responsible for timely payment. In order to prefer this payment option, you need to create an account at eftps.gov. To start a tax payment through EFTPS, you should initiate the transaction at least one business day before the payment date.

Cheque or Money Order

When you are not comfortable with electronic fund transfer, you can pay the tax due through Money order or cheque. To opt for this payment method, print the payment voucher 2290 V and mail the voucher to the IRS.

Heavy Vehicle Use Tax Penalties

There are laws in place to impose penalties on individuals who fail to file their heavy vehicle use tax returns and those who submit fraudulent tax returns. Additionally, interest charges apply to those who delay paying penalties. However, if a taxpayer provides a reasonable cause for not filing on time, penalties may be waived. In such cases, if filing after the due date (including extensions), an explanation should be attached to the return to justify the delay.

Penalties for Form 2290 non-compliance are costly to motor carriers. The penalty for failing to file IRS Form 2290 by August 31st is equal to 4.5 percent of the total tax due, assessed on a monthly basis for up to five months. Late filers not making Form 2290 payments also face an additional monthly penalty equal to 0.5 percent of total tax due. Additional interest charges of 0.54 percent per month accrue as well.

Based on these rates, Form 2290 liability that was originally $550 would climb to over $700 by the end of the five-month period of delinquency. In addition to these federal penalties, many states suspend the registrations of vehicles for which proof of Form 2290 payment has not been provided. Once all criminal investigations and prosecutions are complete, a finding of non-compliance may be made public. The procedures for dealing with a finding of non-compliance are detailed in 23 CFR 369.12-369.17. In the event that a state is found to be in non-compliance, the following procedures are followed:

The Division Administrator notifies the Governor via certified mail of the finding of non-conformity.
The state is given 30 days to request a meeting to present evidence to overturn the non-conformity finding or to identify steps taken to bring the registration program into conformity.
If the finding is changed to complaint, the Administrator issues a final decision and the matter is concluded.
A finding of non-conformity requires the authorization of the Secretary of Transportation and must be served on the Governor or his or her designee.