So truckers, so what are the plans for weekend? Hope you are allowing your heavy rigs to rest and resting yourself as well. However, today, we are going to about various type of vehicles filed through form 2290.
So before any delay, we would get to the topic. To start with, taxable vehicles are the first.
If your vehicle weighs more than 55,000 pounds and is used for more than 5,000 miles a year then your rig is categorized as taxable vehicles. As they are heavy by weight, they cause most of the damage to the highway and the tax collected through form 2290 is directly contributed to the maintenance.
The second list of vehicles under form 2290 is suspended vehicles. These vehicles do not cross more than 5,000 miles (and 7,500 miles for agricultural vehicle), during the taxation period. You don’t have to pay taxes if your vehicle is categorized as suspended, however, you need to file form 2290 and report IRS about your suspension.
The Vehicles That Come Under This Category Are:
- Vehicles traveling less than 5,000 and agricultural vehicle commuting less than 7,500
- Mobile machinery for non-transportation function, non-transportation trailers and semi-trailers
- Official blood collectors by blood banks and organizations are categorized here
Important: In case, if the annual mile exceeds 5,000 for commercial vehicles and 7,500 for agricultural vehicles, then they become Taxable vehicle and you owe full tax.
This category is for the vehicles that is owned and operated by the government authorities. They follow the same procedure followed by suspended vehicles. No payment of tax to be done, however, it is mandatory to keep IRS informed about their exemption.
Following are the vehicles that come under the category:
- The Federal Government,
- The American National Red Cross,
- The District of Columbia,
- A nonprofit volunteer fire department, ambulance association, or rescue squad,
- A state or local government,
- Indian tribal governments (To carry out essential tribal government functions)
- Mass transportation authority’s (under certain conditions)
Also exempt from the tax (not required to file Form 2290) are:
- Qualified blood collector vehicles used by qualified blood collector organizations, and
- Mobile machinery that don’t come under the category of heavy vehicle.
Logging vehicles is used exclusively for the conduct of logging operations and designed to do the same. They majorly deal in transporting logs from forestry area and deliver to the destination, sometimes making use the public highway. They are registered highway vehicles; however, the tax rate is comparatively less than what is paid by the taxable vehicles.
Note: There is no special tag or number place required to identify the vehicle is used for logging or transporting harvested forestry products.
With the average miles limit 7,500 miles; these vehicles are indulged in delivering agricultural goods in and around the place.
Vehicles under This Category are:
- Primarily used for farming purposes
- Registered under the state law as a highway motor vehicle but are exclusively used for farming and agricultural purpose.
Important Note: There is no special tag or identification to recognize if the vehicle is exempted from filing form 2290, but a detailed report should be sent to IRS about your usage. Also, if the vehicle crosses more than 7,500 miles, you’re liable to pay Heavy Vehicle Used Tax for the exceeded miles.
So, which category does your rig fall in? Suspended or taxable vehicle, whichever it is, you need to file your tax by the end of November 2014 if you have taken your vehicle out for the first time in the month of October 2014. As you know, efiling is the best method to file and pay your dues to IRS; Tax2290.com is one of the authentic and authorized efiling service providers, serving the audience since a decade. Reach our Tax Experts for more assistance; it would be simply queries or feedback. Simply call us @ 1-866-245-3918 or shoot a simple email with your concerns typed to firstname.lastname@example.org. Happy filing!