US Truckers Given Three-Month Tax Return Extension

by Leroy Baker, Tax-News.com, Washington

20 July 2011

The United States Internal Revenue Service (IRS) has advised truckers and other owners of heavy highway vehicles that their next federal heavy highway use tax (HHUT) return, usually due on August 31, will instead be due on November 30, 2011.

The HHUT is levied each year, under Form 2290, on businesses and independent contractors who own vehicles, in a tax year starting on July 1, with a taxable gross weight of 55,000 pounds or more, and who expect to use the vehicle more than 5,000 miles a year on public highways.

The tax of up to USD550 per vehicle is based on weight, and a variety of special rules apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the year and those first used on the road after July. Last year, the IRS received about 650,000 Forms 2290, and HHUT payments totalling USD886m.

Because the HHUT is currently scheduled to expire on September 30, 2011, this extension is designed to alleviate any confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date. The November 30 deadline, for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. Returns should not be filed and payments should not be made prior to November 1.

Under federal law, state governments are required to receive proof of payment of the HHUT as a condition of vehicle registration. To aid truckers applying for state vehicle registration on or before November 30, the new regulations require states to accept as proof of payment the stamped Form 2290 issued by the IRS for the prior tax year, ending on June 30, 2011.

For those acquiring and registering a new or used vehicle during the July-to-November period, the new regulations require a state to register the vehicle, without proof that the HHUT was paid, if the person registering the vehicle presents a copy of the bill of sale or similar document showing that the owner purchased the vehicle within the previous 150 days.

Recommended