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For trucks and other taxable vehicles in use during July, payments are due on August 31. The tax is based on weight and normally ranges from $100 to $550 per vehicle. A variety of special rules, discussed in instructions for Form 2290, apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during year and those first used on road after July.
State governments are required to receive proof of payment of federal highway use tax as a condition of vehicle registration. Schedule 1 of Form 2290 is stamped and returned to filers for this purpose. This process remains unchanged.
The Jobs Act also eliminated reduced tax rates for vehicles registered in Canada and Mexico. For vehicles with a base registration in either country, tax rate was 25% below regular rate.
In addition, Jobs Act made electronic filing mandatory for taxpayers who file highway use tax returns for 25 or more vehicles. The availability of electronic filing for Forms 2290 is pending. Taxpayers should continue to file paper returns. The IRS will notify taxpayers when electronic filing program is available.
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our tax articles section.