IRS Gives Truckers Three-Month Extension; Highway Use Tax Return Due Nov. 30

The Internal Revenue Service advised truckers and other owners of
heavy highway vehicles that their next federal highway use tax return, usually
due Aug. 31, will instead be due on Nov. 30, 2011.

Because the highway use tax is currently scheduled to expire on Sept. 30,
2011, this extension is designed to alleviate any confusion and possible
multiple filings that could result if Congress reinstates or modifies the tax
after that date. Under  temporary and proposed regulations filed today in
the Federal Register, the Nov. 30  filing deadline for Form 2290, Heavy
Highway Vehicle Use Tax Return, for the tax period that begins on July 1, 2011,
applies to vehicles used during July, as well as those first used during August
or September. Returns should not be filed and payments should not be made prior
to Nov. 1.

To aid truckers applying for state vehicle registration on or before Nov.
30, the new regulations require states to accept as proof of payment the
stamped Schedule 1 of the Form 2290 issued by the IRS for the prior tax year,
ending on June 30, 2011.  Under federal law, state governments are
required to receive proof of payment of the federal highway use tax as a
condition of vehicle registration. Normally, after a taxpayer files the return
and pays the tax, the Schedule 1 is stamped by the IRS and returned to filers
for this purpose.  A state normally may accept a prior year’s stamped
Schedule 1 as a substitute proof of payment only through Sept. 30.

For those acquiring and registering a new or used vehicle during the
July-to-November period, the new regulations require a state to register the
vehicle, without proof that the highway use tax was paid, if the person
registering the vehicle presents a copy of the bill of sale or similar document
showing that the owner purchased the vehicle within the previous 150 days.

In general, the highway use tax applies to trucks, truck tractors and buses
with a gross taxable weight of 55,000 pounds or more. Ordinarily, vans,
pick-ups and panel trucks are not taxable because they fall below the
55,000-pound threshold.

For trucks and other taxable vehicles in use during July, the Form 2290 and
payment are, under normal circumstances, due on Aug. 31. The tax of up to $550
per vehicle is based on weight, and a variety of special rules apply to
vehicles with minimal road use, logging or agricultural vehicles, vehicles
transferred during the year and those first used on the road after July.

Last year, the IRS received about 650,000 Forms 2290 and highway use tax
payments totaling $886 million.

This entry was posted in Individual, Taxation. Bookmark the permalink.

Leave a Reply