Tax Form 2290 – A quick introduction before you pay
Tax season is one of the most dreaded times for businesses. If you have a business involved in truck fleet ownership, now might be the time to learn about the 2290 tax form.
How important is the 2290 tax form?
If you drive a vehicle, you’ve probably experienced the ups and downs of road use. Roads can sometimes be in good condition and other times in poor condition. Such things happen when certain roads become degraded due to the large number of vehicles passing through them on a daily basis. In theory, the passage of more heavy vehicles on the roads implies a greater weight on the sidewalks. Weight increases wear and tear and the inevitable destruction of roads.
The 2290 tax form preserves the structural integrity of highways by providing the government with adequate funding for highway maintenance. Part of the funds would go towards fixing certain areas with potholes or cracks. Others may look to road safety to determine if repairs need to be made. Overall, it will help make the roads safer for everyone.
Should everyone pay Form 2290?
No, not everyone is going to pay for it. The most well-known name of the tax is Heavy Vehicles on Highways Tax. Only companies that use heavy vehicles for commercial purposes, such as trucks, will have to pay it. Included in this are those involved in the delivery of all kinds of goods. You don’t need to pay it if the company only uses sedans or compact cars.
Are there possible exemptions?
Yes, there are numerous exemptions. The first batch of exemptions is for government entities and charities. Trucks and other heavy vehicles used by the government will not require a presentation. Included in this are emergency medical vehicles and fire engines. Exactly the same is true for heavy vehicles used for charity or volunteer work. This means that trucks used for food aid missions are exempt from payment. This exemption will also apply even if these vehicles travel more than 5,500 miles per year.
The second exemption is for vehicles used in agriculture. Persons who own vehicles for agricultural purposes may also apply for an exemption. Trucks delivering produce are exempt if they travel less than 7,500 miles.
How should a business owner file Form 2290?
There are three ways to do this: DIY Filing, Law Firm Filing, and Tax Specialist Filing. While DIY filing may seem tempting, this option can leave you worrying about a lot while you run out of time. Obtaining documents for submission can already take time. Add to this the complicated filing procedure. You may also face penalties if you file late.
Filing through law firms may sound ideal, but this would cost more. Lawyers may charge hourly fees and you will have to shell out a lot of money. You may be thinking of paying hundreds of dollars in the process just to get it all right.
Filing with a tax specialist may be the best option as it provides you with less hassle and cost. With a specialized tax company to help you, you have competent support at your side. They do the legwork to gather all the documents and file them with the Internal Revenue System (IRS). The best part is that you pay only a fraction of what you could be paying a law firm.
Filing your 2290 tax form is very important, and the sooner you do it, the better. If you want more time to weigh all your options, search the web and read more.