Truckers and other owners of heavy highway vehicles received some good news from the Internal Revenue Service on July 15. They were advised that their next federal highway use tax return, usually due August 31, will instead be due on November 30. The highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more.
This extension is designed to alleviate any confusion and possible multiple filings due to the expiration of the current highway use tax on September 30. It is unclear whether Congress will reinstate or modify the tax after that date. Under the temporary regulation, the November 30 filing deadline for Form 2290 (Heavy Highway Vehicle Use Tax Return) for the tax period that began July 1 applies to vehicles used during July, as well as those first used during August or September. There should be no returns filed and no payments made prior to November 1.
The new regulation requires states to accept as proof of payment the stamped Schedule 1 of the Form 2290 issued by the IRS the previous tax year, which ended June 30, in order to aid truckers applying for state vehicle registration on or before the November 30 deadline. State governments are usually required to receive proof of payment of the federal highway use tax as a condition of vehicle registration, and accept a prior year’s stamped Schedule 1 as a substitute proof of payment only through September 30.
For those acquiring and registering a new or used vehicle during the July-to-November period, 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, the new regulation requires the state to register the vehicle, without proof that the highway use tax was paid. The tax of up to $550.00 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.