As a trucking company, you might feel up to speed on meeting the requirements for employee drug testing in South Dakota, but maybe you’re not as confident with understanding the tax laws that exist for trucking companies that operate within the United States.
One of these laws states that your company must file Form 2290 for Heavy Highway Use Tax with the IRS. This form must be filed by anyone who registers a heavy highway motor vehicle (defined as having a taxable gross weight of 55,000 pounds or more) in their name.
Prorate Services, LLC can handle preparing and filing this form on your behalf so that you can keep your company operating within national and state legal parameters.
You can learn more about IRS 2290 Heavy Highway Use Tax filings and the filing process by examining the following Q&A.
What information do I need to file this form?
You’ll need your company’s Employer Identification Number (EIN), the Vehicle Identification Number for each vehicle and the taxable gross weight of each vehicle. You can find a table on the IRS website that will allow you to determine your total tax amount.
When do I need to file?
Form 2290 is due by the last day of the month that comes after the month in which you used the vehicle on a public highway for the first time in a taxable period.
What filing methods can I use?
You, or the preparer you work with, may file Form 2290 electronically or by mailing a paper form to the IRS.
Electronic filing is mandatory if your company is completing information about 25 or more vehicles. The IRS also encourages you to file electronically if you would like for your form to be processed more quickly.
What else should I know about filing Form 2290?
You can claim a credit for a tax paid on a vehicle that has been driven 5,000 miles or fewer during a reporting period. Other instances when you can claim this credit are if you sell a vehicle or if it is stolen or destroyed.
If you anticipate putting 5,000 miles or fewer on any of your company’s vehicles during a particular reporting period, you can also choose to request a suspension of tax that you would otherwise owe for these vehicles. If you do end up using the vehicles beyond 5,000 miles, you will be responsible for paying a tax.
If your company has been approved to participate in a state vehicle replacement incentive program, you might be able to receive a credit or refund. You, or the preparer you work with, can submit this claim by providing the appropriate information on Form 2290.
For additional information about IRS Form 2290 Heavy Highway Use Tax, including filing deadlines, visit the IRS website.
When you’re ready to start preparing your IRS Form 2290, Prorate Services, LLC has the expertise to help keep your trucking company compliant and legal. We support our clients with a variety of services to ensure your company remains in compliance, including employee drug testing in South Dakota, tax filings, license filings, compliance consulting and driver qualification files. For assistance with your company’s compliance needs, call and speak with one of our experts today.