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Heavy vehicle Use tax

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Thinktrade

About Federal Heavy vehicle use tax

Federal Heavy vehicle use tax (HVUT) is a yearly highway use tax compensated to Internal Revenue Service by federal heavy vehicles operating at a gross weight of 55,000 lbs. and more. This revenue earned by the Internal Revenue Service is in turn distributed back to the federal states for highway maintenance and construction requirements. Federal heavy vehicle use tax form 2290 is used to file tax for this purpose. An exemption statement should be presented by the carrier along with their registration renewal in order to obtain Federal Heavy vehicle use tax exemption from the IRS. For federal heavy vehicles that need to qualify for suspension, a carrier should send a copy of the IRS form 2290 presenting their suspension request from the HVUT payment along with their registration renewal. Earlier Federal Heavy vehicle use tax process flow As per the previous process of filing Federal Heavy vehicle use tax, first the registrant receives and completes federal heavy vehicle use tax form 2290. Further federal heavy vehicle use tax form 2290 and payment is mailed to IRS. Consequently, IRS receives 2290 Schedule 1 and mails the receipt to registrant. Registrant provides copy of receipted form 2290 Schedule 1 during registration. The federal state preserves the copy with registration record. There was no electronic verification process for states. IRS database comprises of limited information and does not include the VIN. E-filing for large carriers HR 4520 (the American Jobs Creation Act of 2004) called for up gradation in HVUT process on October 2004. For carriers with 25 or more vehicles e-filing of Federal Heavy vehicle use tax was made mandatory. New credit policy was introduced for sold or replacement vehicles. Current electronic Federal Heavy vehicle use tax process flow The IRS then started working to describe the data elements and actions that will be used to provide electronic filing for Federal Heavy vehicle use tax and other tax returns. IRS approved third party software developers created the software for e-filing federal heavy vehicle use tax form 2290. Using the current process flow, Carriers will e-file heavy highway vehicle use tax using a software package purchased by them. Data elements on the e-filing tax comprises of all the fields that existed on paper federal heavy vehicle use tax form 2290. The tax professional can print out receipt for their records and proof of payment. There is continuous ongoing effort to encourage as many taxpayers, those with less than 25 vehicles, as possible to utilize tax e-file procedure for heavy highway vehicle form 2290 filing.

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