Category Archives: Insiders on E-filing

Navigating The IRS Form 2290: Demystifying Tax-Suspened Vs Tax-Exempted Trucks.

Hello, truckers! We all have been dealing with the IRS Form 2290 to report and pay the Highway Heavy Vehicle Use Taxes every tax period. It is also important to understand certain aspects and differences in the truck tax Form 2290. Among them, Understanding the distinctions between “tax-suspended” and “tax-exempted” trucks is crucial to ensure compliance and avoid penalties. These two terms, while seemingly similar, have distinct implications for your filing obligations. This blog post aims to clarify the differences, providing a comprehensive guide to help you correctly navigate the 2290 process with tax-suspended and tax-exempted categories.

Understanding the Taxable Category Heavy Vehicles in Form 2290

A heavy vehicle or truck must have a total gross weight of 55,000 pounds or more and be estimated to travel more than 5,000 miles (7500 miles for agricultural vehicles) to be eligible for HVUT taxes. Truckers with taxable heavy vehicles must report and pay the HVUT returns using the IRS Form 2290 every tax season and get a valid Schedule 1 copy from the IRS as proof of payment.

Tax-Suspended Heavy Vehicles: Temporary Relief from HVUT Returns.

Heavy vehicles that don’t fit into the taxable heavy vehicle category. That means the total gross weight of the vehicle is less than 55,000 pounds, or it runs less than 5,000 miles on public highways. Truckers with heavy vehicles that fit into this category should report Form 2290 HVUT under the tax-suspended vehicle category and need not pay taxes for them. But they have to secure the Schedule 1 copy as a tax-suspended heavy vehicle. Suppose the tax-suspended vehicle enters into the taxable heavy vehicle category by increasing in total gross weight or travelling more than 5,000 miles threshold. In that case, truckers should file an amendment, pay the tax difference and get a revised Schedule 1 copy.

Tax-Exempted Trucks: Absolute Freedom from HVUT Returns.

Tax-exempt trucks are those that are completely and permanently relieved from the HVUT. This exemption is not conditional or temporary. The most common categories of tax-exempt vehicles include:

Vehicles Owned by Federal, State, and Local Governments: Trucks owned and operated by government entities are generally exempt from the HVUT. This includes vehicles used for public services such as road maintenance, law enforcement, and firefighting.

Vehicles Used for Mass Transportation: Trucks specifically designed and used for mass transportation, such as city buses, are often exempt.

Vehicles Used for Qualified Blood Collector Organizations: Vehicles that are used by qualified blood collector organizations are also exempt.

Certain Volunteer Fire Department Vehicles: Certain vehicles that are exclusively used by volunteer fire departments are exempt.

American National Red Cross Vehicles: Vehicles exclusively used by the American National Red Cross.

Tribal Government Vehicles: Vehicles owned and operated by Tribal Governments.

Understand the Differences and Avoid Penalties.

Failure to file Form 2290 or accurately report your vehicle’s tax status can result in penalties and other actions from the IRS. Therefore, it is crucial to understand the differences between tax-suspended and tax-exempt trucks and comply with the IRS regulations.

The distinction between tax-suspended and tax-exempt trucks is vital for accurate HVUT reporting. Tax-exempt vehicles are permanently free from the tax, while tax-suspended vehicles receive temporary relief based on mileage. Understanding these differences and adhering to the IRS guidelines will help you avoid penalties and ensure compliance. Always consult the IRS instructions for Form 2290 or seek professional advice if you have specific questions about your vehicle’s tax status. Maintaining thorough records and understanding the usage of your vehicles will save you time, money, and stress when filing your 2290.

For queries or assistance regarding Form 2290 and HVUT tax returns, please don’t hesitate to contact our customer care team at 1-866-245-3918 (toll-free) or support@taxexcise.com. They will answer all questions and support you in every way.

Taxpayers should file their tax return on time to avoid costly interest and penalty fees

Taxpayers should file their tax return by the deadline even if they cannot pay their full tax bill. Taxpayers who owe tax and don’t file on time, may be charged a failure-to-file penalty. This penalty is usually five percent of the tax owed for each month, or part of a month that the tax return is late, up to 25%.

If an individual taxpayer owes taxes, but can’t pay in full by the April 18, 2022, deadline, they should:

File their tax return or request an extension of time to file by the April 18 deadline.

  • People who owe tax and do not file their return on time or request an extension may face a failure-to-file penalty for not filing on time.
  • Taxpayers should remember that an extension of time to file is not an extension of time to pay. An extension gives taxpayers until October 17, 2022, to file their 2021 tax return, but taxes owed are still due April 18, 2022. 

Tax Season 2022 and the deadlines are just around the corner, IRS has many ways to pay your tax liabilities and choose a right option to pay the taxes that you owe on-time and complete reporting your tax returns electronically. If you need additional time to report the tax returns apply for Extension of Time using Form 7004 (Business Taxes) and Form 4868 ( Personal Taxes) at https://ExtensionTax.com. 

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Thank you for serving our country, Happy Veterans Day.

Happy Veterans day

Each year on Veterans Day we at TaxExcise.com applaud and pay our due respects to all those who have served this great country during both good and bad times. We thank all military personnel both servicemen and servicewomen alike who have given so much to our country, let’s not forget that our warriors will always be our heroes and we salute you for your service. Happy Veterans Day to our soldiers, both past and present. We owe you our thanks, but more than that, we owe you our freedom.

We would also like to applaud our very own heroes. Unlike most soldiers who are equipped with state-of-the-art equipment our soldiers come out guns blazing, our heroes prefer to make engines roar by working tirelessly and covering tarmac more like a superhero with a cape on. (just like every other hard-working American would do)

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E-file your prorated form 2290 by September 30, 2021, for trucks first used in August 2021.

ThinkTrade Inc. – Medium

Truckers, may we have your attention please, The deadline was August 31, 2021, to complete your form 2290 renewal for the tax year 2020-21, however, you still can e-file if you haven’t already, but it’s preferable to file now than later. The shorter time you wait to file, the lower the penalty will be. There’s also a prorated form 2290 to deal with, which is due by September 30, 2021, for trucks that were first utilized in August 2021.

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Just 2 days remaining to E-File Form 2290 for 2021-2022

Due to a large volume of filings taking place it is advisable to have the HVUT Form 2290 completed a few days before the deadline allowing you to beat the last minute rush and also gives you an ample amount of time to make any corrections if necessary. Be sure to have your Form 2290 completed for Tax Year July 2021 – June 2022 before the August 31st deadline in order to stay compliant and avoid any late filing charges with added penalties and interests.

Being the only IRS Authorised E-File Service Provider that’s over a Decade Old it is important that we stand up to your expectations and provide you with continuous support, guidance and undisrupted service. What sets us apart as a company is our vast knowledge gained over the years and unmatched customer service.

For any tax related questions feel free to reach our fully operational help desk. Being the very last day to report HVUT Form 2290 our support desk will be operational until midnight today making sure all returns are processed on time. Our three way line of communication allows you to speak to us by phone @ 866-245-3918 or write to us at support@taxexcise.com, to have your questions answered instantly do also try out the LIVE CHAT option available on the Website.

Stay Safe, Stay Compliant, Happy Trucking!!