New Law Changes Highway Use Tax Rules: Installment Payment Option Eliminated

The IRS is helping truckers and other managers to remember substantial express way vehicles that the part choice for paying the government interstate utilization cost will never again be accessible. This change was merged in the American Jobs Creation Act of 2004 and applies to filers of Form 2290, Heavy Highway Vehicle Use Tax Return.

Starting with the Form 2290 for the duty year that starts on July 1, 2005 and closures on June 30, 2006, the funds owed indicated on the structure must be forked over the required funds by the due date of the return. By and large, the due date for recording the return and paying any cost due is August 31, 2005. Installment can be made with check, cashask or electronically through electric installment (EFTPS).


In past years, citizens who opportune recorded Form 2290 could decide to pay the price in four equal portions. Customarily, these portion installments were expect on the most recent day of August, December, March and June. Around 148,000 citizens picked this choice a year ago in 2004.

As a rule, the interstate utilization charge applies to trucks, truck tractors and transports with a terrible assessable weight of 55,000 pounds or more. Commonly, vans, pick-ups and board trucks are not assessable in light of the fact that they fall beneath the 55,000-pound edge.

For trucks and other assessable vehicles being used amid July, installments are expect on August 31. The cost is attention around weight and ordinarily extends from $100 to $550 for every vehicle. A mixed bag of uncommon principles, talked about in the guidelines for Form 2290, apply to vehicles with insignificant street use, logging or farming vehicles, vehicles exchanged amid the year and those initially used out and about after July.

State governments are thankful to get verification of installment of the elected thruway use access as a state of vehicle enlistment. Plan 1 of the Form 2290 is marked and came back to filers for this reason. This procedure stays unaltered.

The Jobs Act additionally disposed of decreased assessment rates for vehicles enrolled in Canada and Mexico. For vehicles with a base enrollment in either nation, the assessment rate was 25% beneath the customary rate.

Also, the Jobs Act made electronic recording required for citizens who document expressway utilization expense forms for 25 or more vehicles. The availability of electronic documenting for Forms 2290 is pending. Citizens ought to keep onfixing paper returns. The IRS will recommend citizens when the electronic documenting project is accessible.