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Showing posts from July, 2014

2290 Exceptions and Exemptions

If you own a heavy vehicle, you likely pay taxes on it. And you likely would prefer to pay less tax on it if possible. There are a few exceptions and exemptions from the  heavy vehicle usage excise tax, which we’ll discuss below. Read on to find out if you can minimize – or eliminate - some of the tax payment!

Logging Vehicles
Logging vehicles pay 75% of the tax that a non-logging vehicle would pay. How do you know if you drive a logging vehicle? Your truck has to meet both of the requirements below:
It is used exclusively for the transportation of products harvested from the forested site, or it exclusively transports the products harvested from the forested site to and from locations on a forested site (public highways may be used between the forested site locations).It is registered (under the laws of the state or states in which the vehicle is required to be registered) as a highway motor vehicle used exclusively in the transportation of harvested forest products. You must still …

Higher Heavy Vehicle Excise Tax in the Near Future?

You may have noticed while out driving that the highways are under constant repair. Or you may have noticed that the ones not being repaired are in need of repair. Either way, someone has to pay for all that road work.

Who pays? You, me, and all the others out there who pay taxes for a living – I mean, who pay taxes out of the money we earn for a living.

Recently there have been stories in the news about the possible shortfall in the Highway Trust Fund (HTF), the fund that reimburses states for the federal portion of road work project costs. For those unfamiliar with how that funding process works, which is probably almost all of us since it wasn’t’ covered in Schoolhouse Rocks “I’m Only a Bill,” this site has a good brief explanation.

To overcome the projected shortfall, various politicians have suggested a short-term infusion of cash. Where will that cash come from? Well, starting on July 1, 2015, it may come from the taxes you pay when you file form 2290.

Currently, the government…

Correcting a VIN Error

Have you ever had that moment when, just after it’s too late to do anything about it, you realize you messed something up? It’s always nice to know that you can go back and correct an error when you find one. This post will cover how to fix a common mistake we see, an incorrect VIN on a 2290.

In case you don’t know, the VIN is your Vehicle Identification Number. Along with your EIN, the IRS uses the VIN to ensure that a specific vehicle, owned by a specific person, remains in compliance for a specific tax period.

Getting the correct VIN on your 2290 means that process works more smoothly. Getting the wrong VIN means you may get a letter from the IRS asking about the discrepancy.

To ensure you provide the correct VIN, first make sure you have your vehicle paperwork handy. The VIN usually appears on registrations, insurance cards, and other slips of paper. You can also find it on your vehicle in various places, such as at the bottom of the windshield, in a wheel well, on the driver-side…

2290 Deadlines Explained

So you just bought your first rig. Congratulations! Now you need to be able to drive it legally in order for it to start making money for you. Filing Form 2290 is a key step to ensure regulatory compliance. A question we often hear is, “When do I need to file my Form 2290?”

For a vehicle you just purchased, IRS instructions state that “Form 2290 must be filed for the month the taxable vehicle is first used on public highways during the current period.”

Let’s say you bought a truck on May 14, 2014, and plan to use it immediately. The tax period runs 7/1-6/30 each year. You need to file Form 2290 and pay the tax for the current period, 2013-14, by 6/30/14.

Of course, 7/1/14 starts a new current period for 2014-15. That means if you plan to continue to use the vehicle for that period, you need to file Form 2290 and pay the tax by 8/31/14, since the first month of use for the current period would be July, 2014.

Got all that? Basically, you need to pay the tax and file Form 2290 no later t…