Types Of Vehicles Filed Under Form 2290

Welcome to our blog, filers. Today, at ThinkTrade Inc, we are going to talk about different kind of vehicles can be filed through form 2290. Obviously, taxable vehicle are one among them. Let’s get into the depth of the subject to understand the vehicles and the criterion’s for filing tax.

Taxable Vehicles:

Taxable vehicles are vehicles that weight more than 55,000 pounds and are used on the public highway for transportation. It is strongly believed that, due to the heavy weight of these vehicles, they cause most of the damage on the public highway. The tax paid through the form is directly contributed in the maintenance of the highway.

Suspended Vehicles:

The next kind of vehicles in the list is suspended vehicles. These vehicles do not cross more than 5,000 miles a year (7,500 miles for agricultural vehicles) and are not accounted as taxable vehicles, and thus, they don’t have to pay any tax to the IRS. All they need to do is, keep IRS informed about the suspension by filing 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.

Exempted Vehicles:

Exempted vehicles are those who are owned and operated by the government authorities. They don’t have to file form 2290 at all.

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)

In addition, 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.

Logging Vehicles:

These vehicles are used for the conduct of logging and are designed for the same purpose. They majorly deal with 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.

 Agricultural Vehicles:

Vehicles that are exclusively used for the delivery of agricultural goods in and around the place are tagged 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. In addition, if the vehicle crosses more than 7,500 miles, you’re liable to pay Heavy Vehicle Used Tax for the exceeded miles.

If you still unsure of the vehicle you are driving and the category it falls, don’t worry. You can reach our Tax Experts through one phone call and clear your list of queries. Ring us at 866-245-3918 or send them a message via live chat. For 24/7 assistance, email at support@taxexcise.com. We are here to fix it for you!

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