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Truck Tax 2290 Forms Made Easy When You Own Multiple Trucks 

Tax season is almost always daunting, and it can be even more complicated when you have a complex financial situation. If you operate a trucking business and own multiple vehicles in your name with a taxable gross weight of 55,000 pounds or more, you will have to fill out the IRS 2290 tax form.

The filing deadline for Form 2290 begins on July 1st, 2020, and ends on June 30th, 2021. You will be required to file Form 2290 by the last day of the month following the month in which you first used your heavyweight vehicle on a public highway. If you own multiple trucks and want to figure out how to get your new heavyweight vehicles on the road and working for you, it is not too complicated to figure out the additional tax. The additional vehicle tax will be prorated for the months in which it was in service. Here is a useful tool created by the IRS that can assist you in determining when you need to make your payments and what you need to input on Line 1 of Form 2290.     

Required Forms and Information

·         Employee Identification Number (EIN): If you do not have an EIN, you can apply for one at IRS.gov/EIN. You can also fax or mail Form SS-4, Application for Employer Identification Number to the IRS.

·         Vehicle Identification Number (VIN): The VIN can be found on your registration, title, or in numerous locations on the vehicle. It is a good idea to make extra copies of your registration and keep them organized so that doing your taxes takes less time. Also, make sure that the VIN you locate is for your vehicle and not the trailer.

·         Taxable Gross Weight: In order to calculate your taxable gross weight, you will find the total of:

o   The actual unloaded weight of the vehicle fully equipped for service.

o   The actual unloaded weight of any trailers or semi-trailers fully equipped for service customarily used in combination with the vehicle.

o   The weight of the maximum load customarily carried on the vehicle and on any trailers or semi-trailers customarily used in combination with the vehicle.

Record Organization

The IRS suggests holding onto a number of records for a minimum of three years in order to do your taxes more effectively. It is also recommended to keep a file on each vehicle, and within that file make sure to have a thorough description of the vehicle, including the VIN and registration.

Here are some additional items to keep in that file:

1.    The weight of loads carried by the vehicle.

2.    The date you acquired the vehicle, as well as the name, address, and contact information of the person or entity from whom you acquired the vehicle.

3.    The first month of each period in which a taxable use occurred and any previous months in which the vehicle was used in the period while registered in your name. Be sure to have proof that the prior use was not taxable. That proof will usually come in the form of a Schedule 1, which is described below.

4.    The date the vehicle was sold or transferred and the name and address of the purchaser or transferee. If it wasn’t sold, the records must show how and when you disposed of it.

5.    Maintain copies of your actual mileage records.

6.    Records or proof of any credits or deductions that are applicable to you.

Schedule 1

A Schedule 1 form is proof that you have paid heavyweight vehicle taxes to the IRS after submitting a Form 2290. When you receive your Schedule 1, make sure it is stamped; you will need the stamped copy in order to obtain your tags and vehicle registration from your state Department of Motor Vehicles.

Schedule 1 forms can also be used when you are reporting a tax suspension for one of your vehicles.

The Schedule 1 will also be filled out concurrently with your Form 2290, as it will list your multiple vehicles and their VINs. You can report up to 24 vehicles on the Schedule 1 if you are filing a paper version. However, if you are using 25 or more vehicles, you must e-file.

Suspension

In Part II of Form 2290, if you wish to suspend tax payments on a vehicle, you can note if they are going to be used for at most 5,000 or 7,500 miles, or none at all. You will also have to provide the VIN, so make sure to have your registration nearby. This will also be applicable if you have sold or traded one of your vehicles and no longer need to pay the tax.

Reporting Multiple Vehicles

If your information is easily accessible, you will be able to accomplish this part quickly enough on Form 2290. In column 3 on page 2, you will simply write the number of how many vehicles you have of the corresponding weight. Column 4 will describe the easy math you will need to perform, and then you will note the amount of tax in that same column.

Logging Vehicles

If you run a logging business, be sure to pay close attention to the columns on Page 2 of Form 2290. Your taxes will be lower. If you want to find out if your vehicles are legally considered logging vehicles, review Page 2 of the Form 2290 instructions.

How Your Truck Tax Can Help Organize Your 2290

Proper planning and organization can lead to a much less stressful tax season for you or your business. Be sure to maintain detailed vehicle information so you can accurately fill out your Form 2290. You will be able to report all your vehicles on one Form 2290 without any additional addendums or more complicated forms. If you still have questions, feel free to get in touch with us at Your Truck Tax.