Taxable and Suspended Vehicles in Form 2290

What is Form 2290?

Form 2290, also known as the Heavy Highway Vehicle Use Tax Return, is a tax form used to report and pay the Heavy Vehicle Use Tax (HVUT) that applies to heavy vehicles operating on public highways with a taxable gross weight of 55,000 pounds or more.

The HVUT amount is determined based on the vehicle's gross weight.

However, vehicles that are used for less than 5,000 miles (7,500 miles for agricultural vehicles) during the tax period may be exempt from the HVUT taxes but required to file Form 2290.

To know more about HVUT Form 2290 and how to file it, refer to Form 2290 Instructions for a step-by-step guide on completing your 2290 e-filing process.

Taxable Vehicles in Form 2290

Taxable vehicles are those registered and used on public highways for transporting goods and have a taxable gross weight of 55,000 pounds or more. Vehicles like trucks, semi-trucks, and truck tractors are considered highway motor vehicles.

These vehicles are subject to the HVUT, and their owners must file Form 2290 and pay the applicable tax to the IRS. The HVUT amount is calculated based on the vehicle's gross weight.

The HVUT also applies to heavy vehicles leased or purchased by a business.

For example, if you bought a large truck that qualifies as a taxable vehicle from the business dealer and drove it on any public highway to your garage, the journey from the seller's place to your destination would be considered your first taxable use of the vehicle.

Suspended Vehicles in Form 2290

Suspended vehicles are also heavy vehicles used on public highways but are exempt from paying the HVUT under specific categories.

These vehicles, designated as category “W”, are vehicles that have been used on public highways that do not exceed 5,000 miles (7,500 miles for agricultural vehicles) during the tax period. They are also commonly known as low-mileage vehicles or taxable vehicles with low mileage.

The suspended vehicles typically fall into one of the following categories:

• Agricultural Vehicles: Trucks or tractors used primarily for farming purposes and registered under the agricultural category qualify for suspension of the HVUT. To be eligible for this exemption, these vehicles must travel fewer than 7,500 miles on public highways during the tax period. However, the vehicle becomes taxable if the mileage limit is exceeded, and the HVUT must be paid.
• Logging Vehicles: Trucks that are registered with the state and used exclusively for the transportation of harvested forest products only qualify for the suspension of HVUT. Similar to agricultural vehicles, logging vehicles must travel fewer than 7,500 miles on public highways during the tax period to maintain their suspended status.
• Government Vehicles: Vehicles owned and operated by federal, state, or local governments fall under the suspended category and are exempt from the HVUT. This includes vehicles used for public safety, emergency response, and other governmental operations.
• Regular Vehicles: In addition to the list above, regular heavy vehicles that have been driven less than 5,000 miles in a tax period are also exempt from paying the HVUT and are considered suspended.

Even though suspended vehicles are tax-exempt, owners of suspended vehicles still need to file Form 2290 to indicate that their vehicles are suspended from tax. Also, reporting suspended vehicles in Form 2290 allows the IRS to keep track of these vehicles and verify their exempt status.

Form 2290 Due Date

IRS Form 2290 Due Date will be the last day of the month following the vehicle's First Used Month (FUM). The current tax period for heavy highway vehicles begins on July 1, 2024, and ends on June 30, 2025.