2014 US Trucking News – Truckers Must Pay Late HVUT Fees
Two years ago, the revenue service of the US Federal Government, also known as the Internal Service Revenue or the IRS, gave truck drivers a break over the disbursement of heavy vehicle use tax. But the American Trucking Association (ATA) claims in their state laws newsletter that currently, this is coming back to haunt some people.
HVUT, also known as the Heavy Vehicle Use Tax, is a yearly federal highway use tax that is paid to the federal IRS on vehicles which operate on public highways. These vehicles have a gross weight of around 55,000 lbs, or heavier. The Heavy Highway Vehicle Use Form, also known as Form 2290, is a type of excise tax. Revenues are given by the federal government back to the states for the construction of highways, as well as to finance maintenance projects.
This form needs to be filed every month, especially when a vehicle that is deemed taxable is first used on a public highway during its current period. This current period starts on July 2013, and ends on June 2014. The HVUT Form 2290 must also be filed by the final day of the month, following the month of its first use. These rules of filing are also applied whether the person is the one who pays the tax, or reports the tax’s suspension.
Carriers must also give their proof of payment of the HVUT to the Division of Motor Vehicles (DMV), together with their renewal of registration. Proof of their observance can either be a copy of a receipted schedule 1 with a copy of both sides of their terminated check, or a copy of their electronic receipt of Schedule 1, which shows the dated e-watermark. It can also be a copy of the IRS Form 2290 alongside a copy of their electronic IRS payment confirmation screen.
For vehicles that are exempted from the IRS’ tax payment of heavy vehicle usage, a declaration of exemption should be given by the vehicle carrier with their renewal of registration.
Carriers should also send copies of the IRS Form 2290 which shows their appeal for postponement for paying their HVUT, with their registration renewal for vehicles that are qualified for suspension. The punishment for not filing IRS Form 2290 by August 31 is equivalent to 4.5 percent of total tax due, charged on a monthly basis which lasts up to five months. Delayed filers who do not pay their HVUTs can also face an additional monthly penalty which is equivalent to 0.5 percent of the total tax due. There are also additional charges of 0.54 percent each month.
Back in 2011, HVUT was extended from its normal due date on, August 31, to the last day of November since the US Congress was late in extending the tax itself. And because these carriers have to show some proof of payment of HVUT right before they renew their vehicles’ registration, the IRS has also relinquished for renewals between July and November 2011, which let their carriers renew by displaying their 2010 filing instead.
But in certain cases, carriers failed to pay their 2011 HVUT. And now, the IRS is contacting them in order to collect the outstanding amounts.