No matter how many times we file form 2290, we have our own set of questions. Having said that, this is one question that is frequently asked by our taxpayers.

And the question is: Can I file my vehicle as an agricultural vehicle?

Well, the tax rate and filing requirement depends upon your vehicle type and how you use it. And this holds as one of the most important reasons why it is so important to categorize your taxable vehicle correctly while filing HVUT form 2290.

Of course, after taxable vehicles, there is another special requirement vehicle and that is named agricultural vehicle.

Agricultural Vehicles & Higher Mileage Limits:

Vehicles are required to file HVUT are those with taxable gross weight over 55,000 lbs and that travel over 5,000 miles on public highways throughout the tax period.

However, to give farmers a break from tax, the IRS made the requirements a bit more lenient for vehicles used in agriculture. Agricultural vehicles, regardless of their weight, are allowed to drive up to 7,500 miles on public highways each year before having to pay any tax at all! For further clarification, this does not mean you don’t have to file HVUT at all.

If your vehicle weighs over 55,000 pounds, you still have to file HVUT and receive schedule 1 copy. However, if your agricultural vehicle will drive fewer than 7,500 miles throughout the tax year, you will owe zero tax when you file! This is known as filing a Category W or a Suspended/Low Mileage Vehicle.

Does My Vehicle Qualify as an Agricultural Vehicle?

Just to be sure, if your vehicle qualifies as “Agricultural vehicle” according to IRS standards, here are the requirements your vehicle should meet:

1. The vehicle is used primarily for farming purposes throughout the tax year. That means more than half of the vehicle total mileage for the year must be used for farming purpose.
2. And a farming purpose vehicle means a vehicle that is indulged in conduct of a farm. This can include activities such as transporting goods to and from a farm (goods like livestock, produce, animal feed, fertilizer, etc), direct use in agricultural production, or just performing work around the farm like repairing fences, building irrigation ditches, clearing land, etc.

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3. It is important and mandatory to register your vehicle as agricultural vehicle in your state.  Although your vehicle must be registered as such, no special license plates or tags marked “agriculture” are required to maintain your status as an agricultural vehicle.

If your vehicle meets the above requirements, then you can file your vehicle as agricultural vehicle with higher limit as well.

To file your vehicle under agricultural vehicle, skip the first “Taxable Vehicle” section of the 2290, and instead enter your vehicle’s information under the “Low Mileage/Suspended Vehicle” section. And be sure you check the box “Used for Agriculture.”

Exceeding the Mileage Limit:

There are times when you file your agricultural vehicle under the category W at the very beginning of the taxation year, and there would be outdo in the mileage limit.

If your vehicle goes over, you must file a Form 2290 Amendment for a Mileage Increase. The amendment is due by the end of the month following the month in which you exceeded the limit. This means that if you went over 7,500 in November, the amendment must be filed by the last day of February.

While you are filing mileage increase amendment form 2290, IRS would prorate HVUT for the remaining months of the tax year, which runs from July 1^st to June 30^th each year. This means, even if you owe tax, this will not be the full amount you would’ve owed if you had filed as a non-suspended vehicle initially.

Efiling with Tax2290.com is the fastest and easiest option to receive your schedule 1 copy. With tax experts round the clock to support and assist you with your queries, your filing is made much more easier. If you have any questions about E-filing your Form 2290 with a Suspended Vehicle or questions about E-filing a Form 2290 Amendment for exceeding the mileage limit, ping or email our Tax Experts to support@taxexcise.com or call them at 1-866-245-3918.