Heavy Vehicle Use Tax Answers to Some Questions

As summer finally arrives we begin to think about the fun things in life, like going on vacation, the beach or the cottage. No one likes to think about the IRS! Yet those in the transportation industry have the annual mundane task of filing their Heavy Vehicle Use Tax (HVUT) return using form 2290.

What is Heavy Vehicle Use Tax and why does the IRS make us fill out form 2290 every year?

Well this tax was designed to generate income for the United States Federal Government to be used in maintaining and creating roadways in the U.S. Generally speaking every one who operates a vehicle on public road ways in the US and over 55,000 lbs gross weight with some small exceptions will have to fill out form 2290 and submit it along with payment to the IRS.

Are there any credits I can apply for?

Yes! That is the good news. Credits can be applied for heavy vehicles that were stolen, destroyed, or sold before June 1st and not used during the rest of the year. If a heavy vehicle was used for 5,000 miles or less, or an agricultural vehicle that was used for 7,500 miles or less, it too qualifies as a credit vehicle. You can even apply for credits from previous years! Heavy News

For example, last year I submitted payment for a truck I thought I would use over the 5,000 mile exemption cut off, but a year later I find out that I did 2,000 miles with it on U.S. public highways. I can now apply for a credit this year for that vehicle. Nice huh. It is important to note that a credit, lower tax rate, exemption, or refund is not allowed for an occasional light or decreased load; nor is it allowed for a discontinued or changed use of the vehicle.

Do Canadians have to file and pay for Heavy Vehicle Use Tax and file form 2290?

YES! OK yes if your going to use that vehicle on a public highway in the United States. Don’t forget you still can apply for an exemption if you meet the criteria mentioned above.

You might be saying this all sounds to confusing and I would rather be thinking about fishing this summer instead of the IRS, well I hear you. That is why third party service provider can be your best friend. They do the work for you and are professionals in obtaining all the tax credits you are eligible for so they also can save you money. So let the professionals do the work for you and you can focus on your business or fishing. Maybe you now have time for both!


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