KNOWING YOUR VEHICLE CATEGORY FOR FILLING FORM 2290

Categorizing accurately your vehicle will allow you to file the form 2290 error-free. In this blog, we will be providing you important information to consider before filing the form to ensure that you will not be overpaying the tax and more specific information.

Taxable Vehicle

A vehicle that is having a gross weight of 55,000 pounds or more and run more than 5000 miles (7500 miles for the agricultural vehicle) in a tax year (from July 1 to June 30 of the following year) is considered as a taxable vehicle.

Exempted Vehicles
The use of a highway motor vehicle isn’t subject to the tax if it is used and actually operated by:
-The Federal Government
-The District of Columbia;
-A state or local government;
-The American National Red Cross;
-A non-profit volunteer fire department, ambulance association, or rescue squad;
-An Indian tribal government but only if the vehicle’s use involves the exercise of an essential tribal government function;
-A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state.

Also exempt from tax (and thus not required to be reported on a Form 2290) is the use of:
-Qualified blood collector vehicles used by qualified blood collector organizations;
-Mobile machinery that meets the specifications for a chassis as described under Specially designed mobile machinery for nontransportation functions, later.

Suspended Vehicles:
Suspended vehicles (Category W) are those, which do not exceed the yearly mileage limit 5,000 miles or 7,500 miles for agricultural vehicles. They are not counted as the taxable vehicle. They don’t have to pay any taxes, however, they need to keep the IRS informed about the suspension through form 2290. If the annual mile exceeds more than 5,000 miles and 7,500 miles for agricultural vehicles then you have to file for Form 2290 Amendment for mileage increase and pay taxes for the entire tax period.
The Vehicles 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.

Logging Vehicles:
A registered highway motor vehicle exclusively being used to transport products harvested from the forested sites or exclusively being used from or to forested sites is considered as a logging vehicle. There is no special tag or license plate identifying a vehicle as being used in the transportation of harvested forest products is required. The tax rate for logging vehicle is less than what is paid by the normal taxable vehicles.

Agricultural Vehicles:
An agricultural vehicle is any registered highway motor vehicle that is primarily used for farming purposes which includes transporting any farm commodity to or from a farm or used directly for agricultural production. The maximum mileage of this vehicle is 7,500 miles per year.

A special tag or license plate identifying the vehicle as used for farming is not required for it to be considered an agricultural vehicle.
(Form2290.com is an Authorized IRS approved e-file provider of Form 2290 Heavy Highway Vehicle Use Tax. It provides facility to e-file your Form 2290 in a simple and quick manner with Affordable Prices)

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