Highway Use Tax Form 2290 Services

Vehicle title transfer is the process through which the title of the possession of a vehicle is transferred from one person to another. This is generally the case when selling your car or truck to someone else If you own, drive, or manage an industrial vehicle in the United States of America, then you need to pay commercial vehicle taxes. While these taxes are bashed by many individuals for their sheer presence, there is a good reason behind why these taxes were proposed to begin with. There are two basic kinds 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 explain about these taxes, let us see what IRS means by a “commercial vehicle.”.

According to the IRS, any vehicle that has a total weight of 55,000 lbs or more is considered a commercial vehicle, and if it drives a minimum of 5000 miles each year on public highways, it is mandated to pay the commercial vehicle taxes in the form of highway use tax and heavy highway use tax. The Internal Revenue Service (IRS) collects these taxes then distributes it back between the states to care for 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 existing 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 an entire 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 specified distance annually. 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 automobiles. 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 follows the same rules. While these commercial vehicle taxes are imposed on business and contractors that operate entire fleets of commercial vehicles, there are many groups that are exempt from the highway use tax and heavy highway use tax. These consist of state and local governments, important services like the fire department, the police department, ambulance associations and rescue squads, the federal government and the American Red Cross. These accredited bodies apart, commercial vehicles that do not travel over 5000 miles each year do not have to pay these taxes. For you to be exempt, the owner of the vehicle must do mileage reporting and submit all sheets 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 beyond 7500 miles per year, blood collector vehicles, and vehicles that are allowed to travel on public highways but are not considered commercial – like automobiles that transport mobile machinery, off road vehicles etc. You can file your IRS form 2290 either personally 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 should attach them to the form.