Find the easiest way to report a change in the taxable gross weight of your heavy highway vehicle on HVUT Form 2290.
Every now and then, trucking businesses encounter an increase in the weight of the vehicle due to an increased volume of transportable material or changes made to the vehicle.
This additional weight is added to the taxable gross weight of the vehicle, which increases the tax liability on the vehicle. This increased weight must be reported to the IRS through Form 2290 Amendment.
But there’s more to weight amendment than just a number.
In this blog, we will be discussing the heavy vehicle weight calculation, why did the IRS decide to tax vehicle owners for additional vehicle weight, and ways to report these changes through HVUT Form 2290.
Determining The Weight Of The Vehicle
The IRS states that a vehicle has to weigh at least 55,000 pounds or more for it to be qualified for Heavy Highway Vehicle Usage Tax.
According to FHWA, the gross taxable weight of a vehicle is determined by adding the following weights.
- The actual unloaded weight of the vehicle fully equipped for service.
- The actual unloaded weight of any trailers or semitrailers fully equipped for service customarily used in combination with the vehicle.
- The weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers customarily used in combination with the vehicle.
The sum of the above three weights gives us the gross taxable weight of a federal vehicle.
However, the gross weight will change if any of these three weights change.
Further, this exhaustive explanation from the Federal Highway Administration (FHWA) will help you understand the weight and tax calculation regime in detail.
However, as a taxpayer, you must know that there is something fundamental about the tax levied on heavier vehicles.
Vehicle Weight & Tax Liability
This Enforcement Publication from the Federal Register suggests that the relationship between the weight of a highway vehicle and the tax liability is directly proportional. The heavier the vehicle, the more pressure the vehicle would put on the road, causing more damage and wear and tear to the road.
Federal Highway Administration (FHWA) is an authoritative body of the U.S. government that constructs, maintains, and preserves federal highways.
The authority states in the publication that when heavier vehicles utilize the federal highways, they also cause more damage to the highways than regular vehicles due to their extreme weight.
And when the roads are damaged due to the heavyweight of the vehicle, the repairs and reconstruction costs also arise, which called for a Heavy Highway Utility Tax (HVUT).
Tax funds collected from the truckers and trucking businesses through HVUT are used to develop the federal highways and spent on related welfare activities.
This is why both the IRS and FHWA are strict about reporting heavy vehicles and collecting the tax.
How To Report Increased Taxable Gross Weight Of The Vehicle On Form 2290?
Let’s say that you bought a vehicle that weighs 55,000 pounds on March 1, 2021, and started using it in the same month.
In such a case, you report the First Month Of Use in your 2290 return and file the form by the end of April 31, 2021.
Now, due to a mechanical change made to the vehicle and the additional load that your vehicle has to transport, the weight of your vehicle changed from 55,000 pounds to 65,000 pounds.
Since you have already filed the 2290 return for the previous weight: 55,000 pounds, you are required to file a 2290 Amendment for the increased weight and pay the additional tax for the 10,000 pounds.
The tax is calculated according to the following 2290 tax computation regime.
Calculating Tax For Increased Vehicle Weight
According to FHWA, you will have to pay an additional $22 for every 1000 pounds that your vehicle gains in a period.
Circling back to our example; your vehicle reports 10,000 pounds as additional taxable gross weight.
Now, let’s divide the 10,000 pounds with the 1000 pounds base, which would give us a product of 10.
So, the additional tax would be $22 x 10 = $220
Here’s a tabular representation to make things easier.
|Gross Taxable Weight||Heavy Vehicle Use Tax Rates|
|Below 55,000 lbs||No tax|
|55,000-75,000 lbs||$100 plus $22 per 1,000|
pounds over 55,000 lbs
|Over 75,000 lbs||$550|
So, you will be required to pay $220 as an additional tax for the increase in the taxable gross weight of the vehicle.
Report Increased Gross Taxable Vehicle Weight With EZ2290
Taxpayers are required to file a 2290 Amendment to report an increase in the weight of the vehicle.
Due to the ongoing pandemic and the restrictions it brings with it, the IRS is encouraging businesses and truckers alike to choose e-filing methods to submit their returns.
With EZ2290, you can easily submit your 2290 returns and amendments in 3 easy steps.
But to get started, you have to create your very own EZ2290 account (it’s free).
Step 1: Select The Previous 2290 Filings
Users that have e-filed HVUT Form 2290 with EZ2290 can directly select their previous 2290 submission from their dashboard.
New users that haven’t previously e-filed with us can still use our 2290 Amendment e-file services to submit their amended returns.
Step 2: Complete Your 2290 Amendment
Furnish your tax and business information, such as your business name, TIN/EIN, address, and other information.
Most importantly, do not forget to select ‘Amendment’ in the form. Otherwise, your form will be treated like a regular submission, which will complicate the process.
Provide the VIN of the vehicle for which you’re amending the details.
Validate the information thoroughly before you proceed to the next step.
Step 3: Submit To The IRS
Securely transmit your e-returns to the IRS through our 256-bit end-to-end encrypted platform. No more worrying about data privacy and data interception.
A digital copy of your e-files will be saved to your account for documentation purposes. You can retrieve these files at any time. Explore EZ2290.