HVUT/FORM 2290 Tax Renewal

The Heavy Vehicle Use Tax (HVUT), or Form 2290 is an annual Federal Excise tax that is enforced on heavy vehicles (equal to or exceeding 55,000 pounds) that operate on public highways. Transportation companies are held liable for filing an HVUT on an annual basis and include individual truckers or owner/operators, LLCs, corporations, partnerships, etc. Unlike many of the state and federal government taxes, this tax must be paid on the upcoming year, not the previous year.  It is essential that businesses file their HVUT forms correctly and on time to avoid paying penalties, interests, and IRS audits.

What is the purpose of an HVUT/2290 form?

Companies are typically required to fill out an HVUT/2290 form for the following reasons:

• Figure and pay the tax due on vehicles that exceed 55,000 pounds
• Figure and pay the tax due on vehicles that you purchased during the period
• Claim tax suspension when a vehicle is only expected to be used for less than 5,000 miles
• Pay the tax due on vehicles that you filed a tax suspension claim for, but exceeded 5,000 miles
• Claim credit for taxes paid on destroyed, stolen, or sold vehicles (or used less than 5,000 miles)
• Report the purchase of a taxable vehicle for which the tax was suspended

How much is the tax?

The tax is calculated based on gross vehicle weight, so the bigger the truck, then the greater the tax on the vehicle will be. Logging vehicles are eligible for a reduced rate if:

• It is used exclusively for the transportation of products harvested from the forested site, or it exclusively transports the products harvested from the forested site to and from locations on a forested site (public highways may be used between the forested site locations); and
• It is registered (under the laws of the state or states in which the vehicle is required to be registered) as a highway motor vehicle used exclusively in the transportation of harvested forest products.

Who is exempt?

Some vehicles and groups are exempt from the HVUT, but may still have to file a tax form with the IRS or notify the Department of Motor Vehicles (DMV) of their exempt claim status. Organizations that are exempt include:

• The Federal Government
• The District of Columbia
• State or local governments
• Indian tribal governments (only if the vehicle is used for an essential tribal government function)
• The American Red Cross
• Mass transportation authorities (if it is created under a statute that gives it certain powers normally exercised by the state)
• Nonprofit volunteer fire departments, ambulance associations, or rescue squads

DISA's Transportation Compliance team can ensure you only file HVUT/Form 2290 Tax Renewal forms when required, and claim credits or tax suspensions whenever applicable.