2290 Highway Use Tax Services

Vehicle title transfer is the process whereby the title of the usage of a vehicle is transferred from one person to another. This is typically the case when selling your car or truck to someone If you own, drive, or manage a professional vehicle in the United States of America, then you will need to pay commercial vehicle taxes. While these taxes are criticized by numerous people for their sheer existence, there is a good reason behind why these taxes were originated to begin with. There are two basic varieties of commercial vehicle taxes – highway use tax and heavy highway use tax. These taxes must be filed using IRS form 2290, and thus are federal taxes. Before we go into details about these taxes, let us see what IRS means by a “commercial vehicle.”.

According to the IRS, any auto that has a total weight of 55,000 lbs or greater is considered a commercial vehicle, and if it journeys a minimum of 5000 miles per year on public highways, it is obligated to pay the commercial vehicle taxes in the form of highway use tax and heavy highway use tax. The Internal Revenue Service (IRS) gathers these taxes and then distributes it back between the states to take care of and develop highways and other roads.

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The highway use tax is analyzed on an annual basis by the IRS on commercial vehicles (as defined above) that travel 5000 miles or more on public highways in a year. The prevailing highway-use taxes are fixed at $ 100 plus an additional $ 1000 per 1000 pounds over 55,000 lbs, and at $ 550 for vehicles that have a gross weight of over 75,000 lbs. This tax is levied as commercial vehicles are heavy and can cause considerable wear to public roads when traveled for the required distance yearly. Not just that, these vehicles can cause more damage than other if involved in accidents with regular vehicles – both to the highway itself and other autos. These taxes are used to create new highways and roads, and maintain these and existing roadways.

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The heavy highway use tax is the same as the general highway use tax, i.e. it adheres to the same rules. While these commercial vehicle taxes are levied on business and licensed contractors that run entire fleets of commercial vehicles, there are many groups that are exempt from the highway use tax and heavy highway use tax. These include state and local governments, vital services like the fire department, the police department, ambulance associations and rescue squads, the federal government and the American Red Cross. These authentic bodies apart, commercial vehicles that do not travel over 5000 miles annually do not need to pay these taxes. In order to be exempt, the proprietor of the vehicle must do mileage reporting and submit all papers to the IRS every year.

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Other vehicles that are excused from the commercial vehicle taxes include agricultural vehicles that do not travel more than 7500 miles per year, blood collector vehicles, and vehicles that are allowed to travel on public highways but are not considered commercial – like vehicles that transport mobile machinery, off road vehicles etc. You can file your IRS form 2290 either manually or online. The less complicated method is to file online, and be finished with it. Ensure that you have copies of your commercial vehicle’s registration and renewal certificates, as you have to attach them to the form.