2290 IRS Heavy Highway Use Tax Services

Vehicle title transfer is the process where the title of the usage of a vehicle is transferred from someone to another. This is normally the case when selling your auto to another person If you own, drive, or manage a business vehicle in the United States of America, then you have to pay commercial vehicle taxes. While these taxes are chastised by many individuals for their sheer existence, there is a good reason behind why these taxes were put forward in the first place. There are two basic varieties of commercial vehicle taxes – highway use tax and heavy highway use tax. These taxes need to be filed using IRS form 2290, and thus are federal taxes. Before we explain about these taxes, let us see what IRS means by a “commercial vehicle.”.

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

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The highway use tax is evaluated 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 present 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 substantial wear to public roads when traveled for the required distance annually. Not just that, these vehicles can cause more problem than other if involved in accidents with regular vehicles – both to the highway itself and other trucks. These taxes are used to build 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 adopts the same rules. While these commercial vehicle taxes are levied on business and professionals 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, essential services like the fire department, the police department, ambulance associations and rescue squads, the federal government and the American Red Cross. These formal bodies apart, commercial vehicles that do not travel more than 5000 miles per year do not need to pay these taxes. For you to be exempt, the user of the vehicle must do mileage reporting and submit all charts to the IRS every year.

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Other vehicles that are released from the commercial vehicle taxes include agricultural vehicles that do not travel beyond 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 personally or online. The simpler method is to file online, and be done with it. Make sure you have copies of your commercial vehicle’s registration and renewal certificates, as you have to attach them to the form.