Blog / How to File Form 2290 for New Vehicles (First Use Month Rule)

One of the most important things for any owner-operator, fleet owner, or trucking company to know is how the IRS First Use Month (FUM) regulation applies when registering a recently purchased heavy vehicle. Filing Form 2290 for new vehicles ensures their compliance with tax and avoids penalties.

First Use Month for New Vehicles

The very first month in which a truck is put on the road for commercial use, is considered the FUM; therefore, whatever tax filing you make for Form 2290 Heavy Vehicle Use Tax (HVUT) is based on that month and not the month of purchase. The IRS, through this rule, will pro-rate what tax you owe on HVUT; meaning you pay from the onset of the month your vehicle started operating until the end of that tax year.

How to Calculate Pro-Rated HVUT Tax for New Truck

With the help of pro-ration allowed for taxes levied on new vehicles, the IRS reduces what a new truck owner-for-hire or operator will otherwise pay under full annual filing. Pro-rating will take into consideration the First Use Month of the particular new truck and the truck's taxable gross weight. Trucking companies or owner-operators can enter data in an online 2290 tax calculator to derive the tax due with greatest accuracy.

Steps to E-File Form 2290 for New Vehicles

It is advisable to e-file the Form 2290 for new vehicles to ensure full compliance; this may be done at the IRS-authorized e-file provider's site. To e-file, sign up for an account; enter the new vehicle details such as VIN (Vehicle Identification Number), select the First Use Month, have the tax calculated, and submit your return. You will receive a stamped Schedule 1 for registration of the new vehicle, renewal of IRP plates, and updating of DOT records upon approval.

Penalty Avoidance: Late Filing Issues for New Vehicles

The HVUT for new trucks will be penalized should it fail to be submitted within the stipulated time frame, and this will rest solely on the FUM. The Form 2290 must be submitted on or before the last day of the month following your FUM—i.e., if your vehicle was first used in October, then the deadline for filing is November 30. So, if you miss that checkpoint, really the fines, interests, and loss of compliance could haunt you down, especially at the state level calendars. The delays accumulating increased time and externalities should be, however, made bearable.

Note: For more information, visit IRS website