03-18-2024
2 Crucial Truck Taxes You Shouldn’t Miss!
What are all the taxes to be paid after you buy a new truck?
Truck owners should be aware of the types of taxes that are imposed on their new trucks or other heavy vehicles. Even though these responsibilities are complicated, following them will make filing taxes easier for you and help your new truck driving career succeed.
In this blog, we will cover the taxes to be paid after you buy a new truck.
What is truck tax?
The “truck tax” can be applied to several different taxes or fees connected to commercial trucks and other vehicles that are used for business purposes. Another factor to consider is state-specific taxes or fees on commercial trucks.
It may be different according to the state registration fees, file taxes, or weight-distance taxes, depending on the specific regulatory system of the state.
Why is it necessary?
Funding Highway Maintenance and Construction: The funds generated from the HVUT (Highway Vehicle Use Tax) are channeled into the projects of road maintenance, construction, and improvements across the nation. These projects are indispensable for the protection of the transportation infrastructure from cars and pedestrians.
Offsetting Wear and Tear: Heavy vehicles, such as heavy trucks and buses, cause enormous destructive distress to roads and bridges because of their size and weight. The HVUT also aims at reimbursing the expenses that arise because of frequent maintenance and repair of the roads that bear a heavier load.
Environmental and Safety Initiatives: Other parts of the HVUT revenue may be spent on environmental and safety programs related to road transport. It may be emissions reduction programs for heavy vehicles and improved highway maintenance jobs.
Fairness and Equity: The HVUT mainly applies to the heavier vehicles that mostly pay greater taxes. This framework is established for fairness and equity by requiring that those who contribute more to traffic and hence the overall care of the highway system maintain their ratio.
Types of taxes applicable to truck owners:
Heavy Highway Vehicle Use Tax (HVUT):
The HVUT is applicable for vehicles weighing 55,000 pounds or over. The HUVT is by August 31st every year. For new vehicles, rolling deadlines are determined by the month the vehicle is used. You can check out our form 2290 due dates guide for better understanding.
This tax is filed through Form 2290 issued by the IRS. Either you can file manually or go with IRS Authorized Efile Provider Simple Form 2290 to file your Form 2290 Online.
Federal Excise Tax:
The Federal Excise Tax on Trucks in the United States is a tax levied by the federal government on the sale of specified goods or services rather than on the income or property of the taxpayer. The federal government applies excise taxes to gasoline, diesel fuel, and other forms of motor fuel for new truck owners.
Taxes apply upon the initial retail sale post manufacture, except for resale or long-term lease. As per IRS Code Section 4051, a 12% tax is imposed on truck chassis over 33,000 pounds, trailers and semi-trailers over 26,000 pounds, and tractors over 19,500 pounds with a combined weight exceeding 33,000 pounds.
Avoid penalties and legal issues by regulating Truck Tax compliance:
Timely filing and payment of taxes are crucial for any business. There may be fines, interest charges, and other legal repercussions if a deadline is missed, taxes are not paid, or no paperwork is filed.
Form 2290 Penalties and interest costs resulting from breaking tax regulations can greatly raise the total amount owed to the government. People can avoid these financial consequences by continuing to comply.
In many jurisdictions, intentionally breaking tax laws—also known as tax evasion—can result in criminal penalties and even imprisonment. Remaining out of legal issues calls for paying taxes on time.
Non-adherence to tax laws can spoil the reputation of an individual or business. Disclosures of tax evasion or fraud can pierce the trust of customers, business partners, investors, and the entire public.
Non-compliance raises the auditing risks of the IRS or state tax authorities. Audits involve a lengthy, expensive undertaking with the possibility of more taxes, penalties, and an addition to the legal fees if any irregularity arises.
How does Simple Form 2290 simplify HVUT?
Are you fed up with offsetting HVUT Form 2290 filing complexities? Manual tax filing takes a lot of time and is subject to manual errors. To meet this need, Simple Form 2290 has you covered! With this inclusive, web-based filing system, the steps involved in filing form 2290 have become hassle-free and very straightforward.
Let's check out the step-by-step efile process of how Simple Form 2290 simplifies HVUT filing:
The first step is to create an account on Simple Form 2290's website. Just enter your email address and create a password to proceed.
When you have an account ready, you will input your vehicle data. Simple Form 2290 allows you to enter the total taxable weight of the vehicle and the VIN.
Simple Form 2290 will work on tax to be calculated automatically depending on the weight group of your vehicle. No need to worry anymore about tedious calculations; Simple Form 2290 will do the work for you!
After checking and verifying the information you've provided, you can e-file your Form 2290 using the Simple Form 2290 platform. Simple Form 2290 helps you fill the HVUT within a few clicks.
Pay the service charge of just 6.95 dollars and pay your tax amount. Simple Form 2290 allows users to pay their HVUT electronically via multiple payment options authorized by the IRS.
After your Form 2290 is processed by the IRS, Simple Form 2290 will furnish you with a stamped Schedule 1. The document testified that you have paid the HVUT. It is important to hand it upon DMV registration of your vehicle.
Simple Form 2290 offers an easy renewal of your HVUT filing when you need to do your renewal annually. The portal stores your vehicle data, accelerating the whole process.
With an intuitive interface, automated calculations, and a fast e-filing option, Simple Form 2290 allows you to file your Form 2290 hassle-free.
No more waiting; register now and pay your new truck tax at the cheapest cost by filing 2290 online.