2018 Federal Heavy Highway Vehicle Use Tax Due

The 2018 HHVU tax reporting year runs from July 1, 2018 to June 30, 2019. The HHVU tax is paid on each vehicle with a gross vehicle weight of 55,000 pounds and greater that travels 5,000 miles or more per year. The HHVU applies to most petroleum cargo tank vehicles and transports. Once the tax is filed and paid, the IRS will send back a stamped IRS Form 2290 Schedule 1 within 6 weeks.

What’s New with 2290 Filings:

• You may now use a credit card or debit card to pay the Heavy Highway Vehicle Use Tax. See the information under “Ready to File? Here’s How” below.
• The Form 2290 has been revised. You will now enter the month of first use on the Schedule 1 exactly as it was entered on the IRS Form 2290 in Part I, line 1. See Month of first use under Schedule 1 (Form 2290) on the Form 2290 Instructions for more information.
• Final regulations for the Heavy Highway Vehicle Use Tax went into effect July 1, 2015 and include a change to the calculation of the tax liability when a buyer purchases a second-hand vehicle from a seller who has paid the tax for the taxable period. See the Form 2290 instructions for information. The final regulations are available in Internal Revenue Bulletin 2014-47.

Filing Form:

• You must file this IRS Form 2290 (Rev. July 2018) for the tax period beginning on July 1, 2018 and ending on June 30, 2019. Don’t use the July 2018 revised form if you need to file a return for a tax period that began on or before June 30, 2018. Be sure to fill out both Schedule 1 Forms attached to IRS Form 2290.

Filing Deadlines:

• The filing season for IRS Form 2290 filers is July 1 through June 30. The filing deadline for Form 2290 is based on the month you first use the taxable vehicle on public highways during the reporting period.
• For vehicles you first use on a public highway in July, file IRS Form 2290 between July 1 and August 31.
• For vehicles you first use on a public highway after July, file IRS Form 2290 by the last day of the month following the month in which you first used the vehicle on a public highway. The tax for the current filing season is prorated for vehicles you first use on a public highway after July.

Filing Methods:

• You may file IRS Form 2290 electronically. You must file electronically if you are reporting 25 or more vehicles on IRS Form 2290.
• You may mail your completed IRS 2290 form Complete and mail IRS Form 2290. See IRS Form 2290 Instructions for the correct mailing address. Expect to receive your stamped Schedule 1 within 6 weeks after we receive your Form 2290.

Payment Amount:

• The amount of the HHVU tax is calculated based on gross vehicle weight (GVW) and the month the vehicle is first used during the reporting year. The minimum annual HHVU weight tax is $100 for vehicles in use between July 1, 2018 and June 30, 2018 having a GVW of 55,000 pounds and increases to a maximum $550 for vehicles with a GVW over 75,000 pounds.
• The tax for the current filing season will be prorated for vehicles you first use on a public highway after July. For vehicles not in use during July 2018, the applicable annual HHVU weight rate is reduced by 1/12 for each calendar month after July 31 until the vehicle is first used. For example, the annual HHVU tax on a vehicle first used in October of the 2018-2018 reporting year is reduced by 3/12ths of the annual rate based on GVW because it was not in use for the first three months of the reporting year.
• The weight rates and monthly proration calculations are fully explained in IRS Form 2290 and instructions.

How to Pay:
There are four methods to pay the tax.

• Electronic funds withdrawal (direct debit) if filing electronically.
• Electronic Federal Tax Payment System (EFTPS).
• Credit or debit card payment.
• Check or money order using the payment voucher.
• You must pay the tax in full with your Form 2290.

Important Reminders:

• All taxpayers must complete the first and second pages of Form 2290 along with both pages of Schedule 1.
• You must have an established employer identification number (EIN) to file Form 2290. Click here to obtain an EIN online.
• When you click on the form links, make sure you scroll down to see the complete form.

Schedule 1 Copies for Filed Forms 2290:

To receive a copy of a current Schedule 1, be sure you have already filed Form 2290 and fully paid the tax. You may fax a request to 855-386-5124. You must include a copy of the Form 2290 and Schedule 1 previously filed. Please attach a signed cover sheet and indicate “Expedite Schedule 1 Request.” Include your name, phone number, fax number, the date the Form 2290 was filed and the number of pages being faxed. Your request must be signed by an authorized individual able to bind the company. You may also send a written request to: Department of the Treasury, Internal Revenue Service, Cincinnati, OH 45999-0031.

Courtesy of Mark S. Morgan, PMAA Regulatory Counsel: mmorgan@pmaa.org