So truckers, how are you doing today? Did you know you could file various types of vehicles through form 2290? Well, that is the topic of our blog today. We are going to tell you how exactly you can make use of the form to file other types of vehicles other than taxable vehicles.
However, to start with, we will talk about taxable vehicles.
Vehicles that weigh more than 55,000 pounds and used on public highways for over 5000 miles are counted as taxable vehicles. With the weight they carry, it is believed that these vehicles tend to cause most of the damage to the highway. The tax paid through the form is directly contributed in the maintenance of the highway.
This is the next type of vehicle in the list. Suspended vehicles are those, who do not cross the minimum mileage i.e. 5,000 miles, and they are not counted as the taxable vehicle. They don’t have to pay any taxes, however, they need to keep IRS informed about the suspension through form 2290.
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.
Vehicles that are owned and operated by the government authorities, they don’t have to pay tax to IRS, however, they need to keep IRS informed about their exemption.
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)
Also 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.
Vehicles used exclusively for the 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.
The name speaks it all. 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.
Are you driving any of the vehicles? If the vehicle is first time used on the road in the month of October 2014, you are liable to file your prorated tax and pay your dues through form 2290. Do note, logging vehicles come under taxable vehicles; the only difference is that the taxes they pay are comparatively less. So come over Tax2290.com, a prime product of ThinkTrade Inc. and file your return with utmost ease. Reach our Tax Experts for more assistance; it would be simply queries or feedback. Simply call us @ 1-866-245-3918 or shoot a simple email with your concerns typed to email@example.com.