When form 2290 was introduced, every taxpayer was in a misconception that this form is only for filing and reporting heavy vehicle and tax based on the weight of the vehicle. So here, we are clearing the misconception that form 2290 can play dual roles. Or should we say more than dual? Keep reading, to know how many characters form 2290 can fulfill in one go! To start with, we will talk about taxable vehicles. |
The first and very important role form 2290 plays is with Taxable vehicles. These vehicles weigh more than 55,000 pounds and manage to run through the public highway all year falls under this category of taxable vehicles. It is strongly believed that with the weight and the amount of load they carry, they tend to cause damage the roads of the highway. The tax paid through this form acts like a fundraiser in order to maintain the roads and highways of United States Of America.
The next role played as form 2290 is for suspended vehicles. These vehicles don’t cross the minimum mileage i.e. 5,000 miles and they are not counted as taxable vehicles. They usually do not pay anything as tax; however, filing form 2290 is important and mandatory to keep IRS informed about the same.
The Vehicles That Come Under This Category:
• Commercial vehicles traveling less than 5,000 miles a year • Mobile machinery for non-transportation function, non-transportation trailers and semi-trailers are not considered commercial vehicles • Official blood collectors by blood banks and organizations come under this category.
Important: In case, if the annual mile exceeds 5,000 for commercial vehicles and 7,500 for agricultural vehicles, the extra miles are calculated as payable miles.
The next in the list is exempted vehicles, which are particularly owned by the government officials and who are not liable to pay tax to the government.
The Vehicles That Come Under This Category Are:
• The Federal Government, • The American National Red Cross, • The District of Columbia, • A nonprofit volunteer fire department, ambulance association, or rescue squad, • A state or local government, • Indian tribal governments (To carry out essential tribal government functions) • Mass transportation authority’s (under certain conditions)
In addition, exempt from the tax (not required to file Form 2290) are:
• Qualified blood collector vehicles used by qualified blood collector organizations, and • Mobile machinery that don’t come under the category of heavy vehicle.
These vehicles are designed to conduct of logging operations and designed to do the same are categorized as logging vehicles. They majorly deal in transporting logs from forestry area and deliver to the destination, sometimes using the public highway. They are registered highway vehicles; however, the tax rate is comparatively less than what is paid by the taxable vehicles. Note: There is no special tag or number place required to identify the vehicle is used for logging or transporting harvested forestry products.
Do we need to introduce this vehicle type? The vehicles exclusively used for the delivering agricultural goods in and around the place are categorized as Agricultural vehicles. The average mileage limit provided to these vehicles is 7,500 miles.
Vehicles under This Category are:
? Primarily used for farming purposes ? Registered under the state law as a highway motor vehicle but are exclusively used for farming and agricultural purpose.
Important Note: There is no special tag or identification to recognize if the vehicle is exempted from filing form 2290, but a detailed report should be sent to IRS about your usage. Also, if the vehicle crosses more than 7,500 miles, you’re liable to pay Heavy Vehicle Used Tax for the exceeded miles. File form 2290 amendment return with Tax2290.com and efile by the second month of first increase.
So are you wondering which the vehicle you are driving on the road is? Now that we have given you a clear explanation on each of the type, categorize your vehicles accordingly and efile your tax return by the end of this month, i.e. 31st of August. Get your renewals done by this month and receive your schedule 1 copy to avoid penalties and interest. Do note, logging vehicles come under taxable vehicles; the only difference is that the taxes they pay are comparatively less. If you any questions, which are left, unanswered, you know where to come right? Reach our tax experts anytime of the day and the weekends too only @ 866-245-3918 or send them an email at email@example.com for 24/hour support.
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