How to Calculate HVUT for Form 2290

How to Calculate HVUT for Form 2290

Alma Bailey 0 Comments

The deadline to pay HVUT is fast approaching! Are you ready?

Just a few short months ago your trucking company had to pay its 2018 taxes. But it’s not over yet, another truck tax is looming just around the corner. The Heavy Vehicle Use Tax (HVUT) Form 2290 is due September 3rd, 2019.

What is Form 2290?

The Heavy Highway Vehicle Use Tax Return, or Form 2290, is a Federal Excise Tax placed on all registered motor vehicles operating on US public highways with a gross weight equal to or exceeding 55,000 lbs. Taxes are collected annually and are used for ongoing highway construction and maintenance.

Who must file 2290?

If you:

  • Own and operate a heavy vehicle with a gross weight of 55,000 pounds or more

  • Are a:

    • independent trucker or owner operator;

    • limited liability company (LLC);

    • corporation;

    • partnership;

    • or any other type of business organization (including nonprofit, charitable, educational, etc.)

  • Run lanes in the United States

To prepare for the cost of this important highway vehicle tax, first you need to know how to calculate the tax fee.

How to Calculate HVUT

HVUT fees are based on the number of taxable vehicles you operate and the gross taxable weight of each vehicle.

The gross taxable weight is determined by adding:

  1. the empty gross weight of the vehicle
  2. the unloaded weight of any attached trailers customarily used in combination with the vehicle
  3. the heaviest load customarily transported

Calculating HVUT Costs (fees are based on gross taxable weight per vehicle):

$100 + $22 (per 1,000 lbs over 55,000 Ibs) = HVUT fee (per vehicle)

Any taxable vehicle exceeding 75,000 lbs will pay a maximum HVUT fee of $550
 

Examples of How Much HVUT Form 2290 might cost:

Independent Operator: 1 Truck

1 vehicle with a taxable weight of 73,000 pounds = $486.00


Small Fleet: 5 Trucks

5 vehicles, each with a taxable weight over 75,000 lbs = $2,750.00

Growing Fleet: 10 Trucks

10 vehicles, each with a taxable weight over 75,000 lbs = $5,500.00

When is the HVUT Form 2290 Due Date?

HVUT fees are collected annually and are used for highway construction and maintenance. If you bring a taxable truck into operation during the current tax period (July 1, 2019 to June 30, 2020), you must file Form 2290 by the last day of the month following the month of first use. Fees are prorated.

For taxable vehicles that operated during the full filing period from July 1, 2018 to June 30, 2019, Form 2290 must be submitted by the due date. Normally, Form 2290 is due on August 31st of each year. For 2019, this date falls on a Saturday pushing the due date to Tuesday, September 3, 2019.

How to Pay the HVUT & the Form 2290 Filing Process

The easiest and preferred method is to submit Form 2290 filing and pay IRS taxes online. Form 2290 is used to file HVUT. Schedule 1 records all taxable vehicles used during the tax period. Whether you are a domestic freight transportation company, or an international carrier with a registered vehicle under state, District of Columbia, Canadian or Mexican law, you are required to submit Form 2290 and Schedule 1 by the September 3rd deadline. Payment to the IRS can be processed by credit card or debit card.

Download instructions on how to fill out Form 2290.
Visit the IRS to learn more about Form 2290 and how to file online.

If you operate a fleet of 25 vehicles or more, you are required to file HVUT and pay the IRS online. For smaller operations, the IRS also encourages you to file HVUT Form 2290 online, although it is not mandatory. The benefit of filing Form 2290 online is the ability to print your proof of tax payment rather than waiting for paper copies to arrive in the mail. For convenience and speed, working with an authorized IRS e-file provider, such as eTruck Permits is an effective means of managing this important tax payment.

Enforcement of the HVUT

The IRS, FHWA, State and local agents work together to spot and address Heavy Vehicle Use Tax evasions. Canadian carriers crossing the border into the US will most likely need to provide proof of filing to a US Customs and Border Protection officer. A copy of Schedule 1, stamped and returned to you by the IRS is used for proof of payment. The penalty for late payment is 4.5% of the total HVUT tax which is due monthly for up to 5 months. If the tax filer not only fails to pay on time, but also does not file on time, an additional monthly penalty of 0.5% of the total tax due is enforced. Additional interest charges of 0.54% per month accrue as well.

Failure to provide proof of HVUT payment will result in heavy penalties and or suspension of vehicle registration halting operations. At that point, your business can no longer provide services on US public highways.

Do you have the available funds to pay HVUT?

If you are like many other trucking businesses, maintaining positive cash flow is becoming even more of a challenge and meeting payments on time is increasingly difficult. Too many times the working capital you need is tied up in unpaid freight bills from slow paying customers. Partnering with an invoice factoring company for trucking is an easy solution to solve this problem. Freight factoring is the ideal financial strategy for your trucking company to get paid today so you can easily pay your HVUT fees and any other outstanding taxes.

To ensure your trucking business is financially prepared for tax payments and yearly operational expenses, look into the benefits of freight factoring to establish and maintain fast access to working capital.

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