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Ley Mills: Welcome to today's webinar, "Understanding Form 2290, Heavy Highway Vehicle Use Tax." We're glad you are joining us today. My name is Ley Mills, and I am a Stakeholder Liaison with the Internal Revenue Service. And I'll be your moderator for today's webinar, which is slated for 120 minutes. Before we actually begin, if there is anyone in the audience that is with the media, please send us an e-mail to the address on this slide. Be sure to include your contact information and the news publication you're with. Our Media Relations and Stakeholder Liaison staff will assist you and answer any questions you may have. As a reminder, this webinar will be recorded.

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Please do it now so you can answer the questions. If you have a topic-specific question today, please submit it by clicking the Ask Question drop-down arrow to reveal the textbox. Type your question in the textbox and then click Send. Very important though, please, do not enter any sensitive or taxpayer-specific information. Again, welcome and thank you for joining us for today's webinar. Before we move along with our session, let me make sure that you're in the right place. Today's webinar is, "Understanding Form 2290, Heavy Highway Vehicle Use Tax." This webinar is scheduled for approximately 120 minutes. Well, let me introduce today's speakers: Joseph McCarthy and Philip Yamalis, are Senior Stakeholder Liaison in the Communication & Liaison division. Both work with tax professionals and small business owners in their respective areas, providing outreach and education, and identifying ways the agency can be more responsive to customer need. So I'm going to turn this over to Joe, to begin the presentation. Joe, it is all yours. Joseph McCarthy: Well, thank you, Ley, and welcome, everybody, today to today's webinar.

And today, we'll be reviewing Form 2290 filing requirements, Form 2290 due date, Form 2290 e-filing requirements and the Heavy Highway Vehicle Use Tax payment option. Well, before we jump into those topics, let me give you a quick overview of the Heavy Highway Vehicle Use Tax. The Heavy Highway Vehicle Use Tax is a federal excise tax, which collects over $1 billion a year. The taxes that are collected go into the Department of Transportation's Highway Trust Fund, which is used to finance more federal government spending on highways and mass transit projects. If you'd like to learn more about the Highway Trust Fund or get more information about it, you can find more information at the link that's shown at the bottom of this slide. Now, I'm going to turn it over to my colleague, Philip, to continue our discussion. Phil? Philip Yamalis: Thank you, Joe.

It's such a pleasure to be with you here this afternoon. So the Heavy Highway Vehicle Use Tax applies to highway motor vehicles, of course, which includes any self-propelled vehicle designed to carry a load over the public highways. These are typically tractors, trucks, and buses, which are used on public roads in the United States. Now, this tax is only assessed on qualifying vehicles with a taxable gross weight of 55,000 pounds or more. Ley Mills: Hey. Phil? Philip Yamalis: Hi, Ley. Ley Mills: You just said that the Heavy Highway Vehicle Use Tax applies to highway motor vehicles that are used on public roads. Just a question, does the tax apply to vehicles that are not registered and they're used strictly for off-roads purposes? Philip Yamalis: You know, Ley, that's a very good question. So the tax does not apply to those types of vehicles, those that are not registered and those that are used strictly for off-road purposes.

For example, an unregistered highway tractor which is used only on job site, that is trailered back and forth from that job site, right, would not be subject to the Heavy Highway Vehicle Use Tax, because it's for off-road use only. Ley Mills: Okay. Now, I got another one. You mentioned the term taxable gross weight. Is that the same as gross vehicle weight? Philip Yamalis: Right.

That's a very good question. So, taxable gross weight is really not the same as gross vehicle weight GVW. We'll go over this in the following slides. But before we do that, how about if we go into our first polling question? Ley Mills: That sounds very good to me, Phil. Audience our first polling question is, "The Heavy Highway Vehicle Use Tax is: is it, A, based on a vehicle's taxable gross weight; or is it, B, applies to highway motor vehicles, with a taxable gross weight of 55,000 pounds or more; or is it, C, applies to highway motor vehicle used on public roads; or is it, D, all of the above?" So take a moment to review the question. Click on the radio button that best answers the question and I'll give you a few more seconds to make your selection.

Okay, we are going to stop the polling now and let's share the answer. And the correct answer is D, all of the above, the Heavy Highway Vehicle Use Tax is based on the vehicle's gross taxable weight as well as it does apply to highway motor vehicles with a taxable gross weight of 55,000 or more and it does apply to highway vehicles used on public roads. It does not apply to vehicles used strictly off-road purposes. Now, let me see how we did statistically? Well, not too bad. We came up with 78%. I'll tell you what, Phil, can you maybe throw on a quick one before we go to the next slide? Philip Yamalis: Sure. I mean, we can clarify it, I just - we would just wanted to emphasize in this first section that it is a tax, the highway vehicle use taxes based on gross taxable weight. It does apply, of course, to all highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Don't worry, if you didn't get that yet, we've got some excellent examples to go over that in just a second. And it does apply to all highway vehicles, which are used on the public highway or public roads. The only vehicle does not apply too or those that are strictly for off-road purposes. And again, I'm sure, our examples just a little bit later in this presentation. We'll clarify that just as well as we can. Joseph McCarthy: Thank you very much, Phil. Ley Mills: Sounds good to me, Phil. And so just for doing that nice thing, I'm now going to turn it back to you. Philip Yamalis: Thank you, Ley. That nice thing, I like that. Let's begin our discussion that on taxable gross weight, so we can get this clarified, so folks to determine the vehicles taxable gross weight for purposes of computing this Heavy Highway Vehicle Use Tax, right? You have to take a look at 3 things. The first 2 are shown on this slide. We look at the actual unloaded weight of the vehicle fully equipped for service. Second, we look at the actual unloaded weight of any trailers or semitrailers fully equipped for service, which are customarily used in combination with the vehicle. And then, we use this third item to determine the vehicle's taxable gross weight, the weight of the maximum load, which is customarily carried on the vehicle, and on any trailers or semitrailers customarily used in combination with the vehicle. Yeah, add those 3 things together, that is taxable gross weight of the vehicle.

Remember, there can be a difference between the weight of the maximum load customarily carried on the vehicle, which then impacts the taxable vehicle weight and the maximum gross vehicle weight rating assigned by the manufacturer, which can indeed be higher, that's why I explained it, we'll get into this. This is very important, because vehicles are tax - based on taxable gross weight of the vehicle, not the GVW, the gross vehicle weight rating, as it's assigned by the manufacturer.

So we hope that's clear. Joe, let me turn it back over to you, so that you can continue with an example. Joseph McCarthy: Okay. Well, thanks, Phil. Now, let's look at an example. The weight declared for registering a vehicle in a state may affect the taxable gross weight used to figure the tax, where there is an International Registration Plan registration or IRP, which requires a declaration of a gross weight as a specific amount. The vehicle's taxable gross weight must be no less than the highest gross weight declared for the vehicle in any state. If the vehicle is a tractor-trailer or truck-trailer combination, the taxable gross weight must be no less than the highest combined gross weight declared. On this highest example of an Illinois International Registration Plan registration or IRP registration, if you look closely, you can see the weight declarations for each state the vehicle is proportionally registered. As such, the taxable gross weight would have to be at least 80,000 pounds, the highest gross weight declared for the vehicle in any state. Now, don't be confused, the AB and the BC shown on the lower left of the slide are Alberta and British Columbia, which of course are Canadian provinces and which are not part of the United States or not United States. With that, let me turn it back to, Phil. Phil? Philip Yamalis: Well, thank you, Joe. So as you mentioned the International Registration Plan registration or IRP for sake of a quick acronym, right? The IRP's highest listed gross weight, use for the State of Illinois' registration purposes, as you mentioned is 80,000 pounds. The 80,000 pound weight would be the vehicle's taxable gross weight. As such, the taxable gross weight would fit into category V on the Form 2290 section, of which are now being shown on the screen.

Category V as in Victor is for vehicles with a taxable weight of over 75,000 pound. Ley Mills: Hey, Phil, it's me again. Let's say you perform the taxable gross weight computation calculation that you previously discussed. And that weight is high - it's higher than the weight listed on the International Registration Plan registration, or as you said, the IRP registration, which weight?

Philip Yamalis: Right. Ley Mills: Okay, which weight do you use for the 2290 purposes?

Philip Yamalis: Excellent. Good. So let's highlight this example even more. So if the computed taxable gross weight is higher, then you use that number. Remember, where there's an IRP, International Registration Plan registration, which requires a declaration of gross weight as a specific amount. The vehicle's taxable gross weight must be no less than the highest gross weight declared for that vehicle in any state. Okay. Ley Mills: Yeah. Thanks, Joe. I appreciate that and clarifying the point. Thanks a lot. Philip Yamalis: That's okay. My name is Philip last I checked, Ley, but that's all right. That's good. Ley Mills: I was close. Philip Yamalis: For you any time, brother. Joe, let's turn it over to you to take us a step further. Joseph McCarthy: Okay. Thanks, Phil. This slide shows a state schedule for our fiscal year registration fees due for a vehicle registered on the basis of gross weight category. It shows the gross vehicle weight categories for state registration purposes, which is what we're going to focus on?

This example, vehicle's taxable gross weight for 2290 filing purposes, must fall within the highest gross weight category, which the vehicle is registered in that state. If a taxpayer requested a plate type V, their taxable gross weight must file within 64,001 pounds to 73,280 pound range. The taxpayer would use this weight as a taxable gross weight reported on Form 2290 based on the weight of the maximum load customarily carried on the vehicle in any trailers or semitrailers customarily used in combination with the vehicle for state registration purposes.

Now continuing on, here's a closer look at the state registration fee table based on gross weight category. Again, if a taxpayer requested plate type V, their taxable gross weight must file within 64,001 pound to 73,280 pound range, which is highlighted on the screen. Now, as state registration used a weight category that range from 64,001 pound to 73,280 pound. The amount reported on the 2290 could fall anywhere within the 2290 categories K to T, as shown on the slide.

Phil, would you like to discuss the taxable gross weight? Philip Yamalis: Joe for you, I would love to. So to determine the vehicle's taxable gross weight, as we said earlier, for purposes of computing the Heavy Highway Vehicle Use Tax on a vehicle registered only in a state or states that base registration on actual unloaded weight, you need to take the actual unloaded weight of the vehicle fully equipped for service. You also need to take the actual unloaded weight of any tractors or semitrailers, right, fully equipped for service customarily used in combination with the vehicle. And, again, you take the weight of the maximum load. Here it is again customarily carried on the vehicle, and on any trailers or semitrailers customarily used in combination with the vehicle. Yeah, add these 3 things together. Well, that is the taxable gross weight of the vehicle. So with that, Ley, let's turn it back over to you for our next polling question. Ley, is your microphone on? Ley Mills: Thank you for the guidance, Phil. Someday I'll remember to turn it back on. Philip Yamalis: Okay. Ley Mills: All right. Sorry, guys. I'm a human being and make mistakes. Okay. Here is actually the second polling question. What are the different methods of determining the vehicle weight used in computing the Heavy Highway Vehicle Use Tax? Is it A, International Registration Plan registration, the IRP gross weight, specific gross weight?

Or is it B, the state vehicle registration gross vehicle weight category? Or is it C, actual unloaded weight? Or is it D, all of the above? Again, take a moment, review the question and click the radio button that best answers the question. I will give you a few more seconds to make your selection. Okay, we are going to stop the polling now and let's share the correct answer.

And the correct answer is D, all of the above. So, the different methods of determining the vehicle weight used in computing the Heavy Highway Vehicle Use Tax. They are in International Registration Plan registration, the IRP as Phil said, gross weight. They also have, include the state vehicle registration gross vehicle weight category and the actual unloaded weight. Okay, let me see. Oh, yeah, progress here, everybody. We ended up with 84% correct. So I'll tell you what, I am turning this back to you, Phil, all yours. Philip Yamalis: Thank you, Ley. So, the Form - I'm glad to see that we had that progress. That's phenomenal. The Form 2290 has to be used and must be filed by the person whose name is on the vehicle's registration. The person whose name is on the vehicle's registration is determined by state law. Now, it's important to note that the name on the vehicle's registration may not be the owner of the vehicle, right? So it's possible that the owner of the vehicle will not be the person filing the Form 2290 or paying the Heavy Highway Vehicle Use Tax. So the tax period for the Heavy Highway Vehicle Use Tax is July 1 through June 30. That covers the upcoming tax period or the remainder of the upcoming period, if it's filed for a partial year. Form 2290 must be filed by the last day of the month following the month of first use. The tax is paid at the time the 2290 is due. The Heavy Highway Vehicle Use Tax is a graduated tax. The heavier the registered weight, the more the tax is owed. The Heavy Highway Vehicle Use Tax for a full year ranges from $100 to $550. And that tax is prorated for partial years as well. Joe, would you like to share with the audience how the 2290 filing due date work? Joseph McCarthy: Absolutely. The chart on the screen now is a snapshot of when to file Form 2290 chart, which is you'll find in the Form 2290 instructions. As Phil mentioned, the filing season for Form 2290 filers is July 1st through June 30th. The Form 2290 must be filed by the end of the month following the month the vehicle was first used on a public highway during the taxable period. So for example, if a vehicle's first use is put into use in July of the taxable period, the Form 2290 must be filed between July 1st and August 31st. Even when the Form 2290 is filed for a partial year, the same rule applies. So, for example, if a vehicle is first put into use in October of the taxable period, the Form 2290 must be filed between October 1st and November 30th.

Ley Mills: Joe, look, I have a quick question. Joseph McCarthy: Sure. Ley Mills: What if the Form 2290 filing due-date actually falls on a weekend or a holiday? Joseph McCarthy: That's good question, Ley. If that's the case, then the return would need to be filed by the next business day following the weekend or the holiday. Ley Mills: All right, that's great. This is off the cuff here. If you could speak a little louder, I appreciate it. Thanks. Joseph McCarthy: Absolutely.

Okay, if we go to the next slide, to show you how to complete 2290s under different scenarios, we have 4 examples. With the first example we have Husky Trucking Company, Inc., which is a transportation company that provides local and interstate freight delivery. They've been in business since 1990. During the tax period, July 1, 2019 to June 30, 2020, they owned and registered in their name 10 tractors that are highway motor vehicles. The first 5 of these tractors are registered with the international registration plan in state X, as tractor-trailer combination. The highest weight declared on these tractors in each state is 80,000 pounds. The first use on public highway during the tax period for these 5 tractors occurred in July of 2019.

Now, here is the first page of Form 2290, or one of the forms shows the summary of the $2,750 tax liability associated with the trucks during the tax period July 1, 2019 to June 30, 2020. Now, we'll show you how the $2,750 on the first page of the 2290 was arrived at. This is the tax computation page of the Form 2290. It shows that Husky Trucking Company is being taxed on 5 vehicles classified under category V with a gross vehicle weight of over 75,000 pounds. Here you can see where the 5 vehicles are taxed at $550 per vehicle for the period covering July 1, 2019 through June 30, 2020, which totals $2,750. This $2,750 is the same amount shown on the first page of the Form 2290, which we saw on the previous slide. This slide shows the Form 2290 Schedule 1 where the VIN of each vehicle is being taxed is listed. Here you can see the VINs of the 5 vehicles Husky Transportation had in service for the tax period July 1, 2019, through June 30, 2020. So to summarize, the Heavy Highway Vehicle Use Tax is reported on the first page of the 2290. The tax computation is also shown on the 2290, but on the tax computation page. And finally, the company's vehicles are listed by then on Form 2290 Schedule 1. Phil, can you take the next example? Philip Yamalis: Will do, Joe. So thanks for that example, let's kick it up a notch with Example 2. In this example, the other 5 tractors used by Husky Trucking are registered on the basis of a gross weight category in state X, as Joe called it, as tractor-trailer combinations, right? So the gross weight categories range from 64,001 pounds to 73,280 pounds for these tractor-trailers as you see on the slide. Based on the records as the slide indicates, Husky Trucking determined the maximum load customarily carried for each trailer. Also, the first use on a public highway during the tax period was from September 2019 through June 30, 2020. So, on this slide now, you can see each of the 5 vehicles listed by their VIN number, right, or their vehicle identification number, the maximum load that they expect to carry and the month of first use which is, as we indicated, September 2019 for all 5 of the vehicles. Now in addition, the tractor with VIN ending in 9810, the bottom one there on the slide, the last vehicle on this list, is used for short local deliveries, okay. They expect the vehicle to be used 5,000 miles or less during the tax period beginning July 1, 2019 through June 30, 2020. Now, you'll see why this fact is so important on the next slide as we transition over. So this slide indicates the first page of Form 2290. Part 1 of the form, of course, shows the summary of the tax liability associated with the trucks during the partial tax period on September 2019 through June 2020. Note, the underlined in red checkbox in the lower part of the slide that shows how to report vehicles that are expected to travel 5,000 miles or less on public roads during the taxable period. Because of this, the Heavy Highway Vehicle Use Tax is really suspended on that specific vehicle. When we get to Example 4 later in this presentation, we'll show you how to self certify that the vehicle indeed did not travel more than 5,000 miles on public roads. But for now, let's go to that Tax Computation page to show how the numbers on this page of the 2290 were arrived at like Joe did in the previous example. Okay, this is the Tax Computation page of the Form 2290, pretty cut-and-dried shows that the Husky Trucking Company is being taxed on 4 vehicles, right, with varying gross vehicle weight. Here on this slide, you could see the 4 vehicles which are multiplied by a tax for the partial year prorated for each vehicle in a separate weight category.

And that computation makes a total up to $1,231.87. This $1,231.87 is the same amount on the first page of the Form 2290, which we saw on the previous slide. Okay, so where do the tax amounts on this page come from? They come from the tax table, which I'll show you on the next slide. Also remember that there are only 4 vehicles that are shown on this Tax Computation page, because the tax for one of the vehicles is suspended, right, as the vehicles expected to be used, what did we say 5,000 miles or less from September 2019 through June 30, 2020. Okay, this slide shows the tax table for the 4 vehicles used for part of the taxable period. Of course, this table can be found in the 2290 instruction. So when you look up the vehicles in the 2290 instructions by category. In this case, there are 4 different categories. And then by the month of first use, which in this case was September, you'll find that the tax amount - you actually find the actual tax amount for the vehicles. So these amounts are put on the Tax Computation page of the Form 2290 and the total of which is put on the tax summary on Page 1 of the 2290. This slide is from the Form 2290, Schedule 1, where the VIN of each vehicle being taxed is listed. You can see the VINs of the 5 vehicles that Husky transportation that used on public roadways for the partial tax period, what do we say September 2019 through June 2020? All 5 vehicles are listed even though the tax for one of the vehicles is suspended, as the vehicles expected to be used 5,000 miles or less during this partial period September 2019 through the end of June 2020. So again, the Heavy Highway Vehicle Use Tax is for the 4 vehicles that's reported on the first page of the 2290. The Tax Computation for the 4 vehicles is also shown on the 2290. But on the Tax Computation page, and finally, all of the companies 5 vehicles placed in service in September are listed by VIN on Form 2290, Schedule 1. Hopefully that's a good summary. Joe, why don't we talk about another example?

Joseph McCarthy: Well, sure thing, Phil, a little bit of curveball here. An Example 3, we once again have Husky Trucking Company. In this example, though, in January of 2020, Husky Trucking purchased a secondhand vehicle from a truck dealership and registered it within IRP, as we also known as the International Registration Plan in state X. The vehicle was registered with the highest combined gross weight declared of 73,280 pounds in each state. The VIN of the vehicle ends in 7564. Now on this page, here's the first page of the Form 2290. For example 3 were Husky Trucking, Part 1 of the form shows a summary of the tax liability associated with used truck Husky purchased in January of 2020. Now, we'll see how the $259 tax liability shown on the first page of the Form 2290 was arrived at. This is a Tax Computation page of the Form 2290. It shows that the Husky Trucking Company is being taxed on 1 vehicle with a taxable gross weight between 73,000 and 74,000 pounds. Here you can see the vehicle classified under category T and taxed for the partial period January 2020 through June 30, 2020, which we will see on the next slide. The $259 is the same amount shown on the first page of the Form 2290, which we saw on the previous slide. Now, this slide shows the tax table for the vehicle use for the part of the taxable period January 2020 through June 30, 2020. This table can be found in the 2290 instructions. So when you look at the vehicle in the 2290 - when you look up the vehicle on the 2290 instructions by category, in this case, category T and then by month of first use. And in this particular case, January, you'll find a $259 tax amount for that vehicle. These amounts are put on the Tax Computation page of the Form 2290 and the total of which is put on the tax summary page on Page I of the 2290. And this slide is Form 2290, Schedule 1 with a VIN or vehicle identification number of the vehicle is being - that's being taxed as listed. Here you can see the VIN of the used vehicle Husky transportation purchased in January 2020, and was used by Husky Trucking from January 2020 to June 30, 2020. So to review, the VIN of the vehicle is reported on Form 2290, Schedule 1, while the Heavy Highway Vehicle Use Tax for the vehicle is reported on the first page of the 2290. And in addition, the Tax Computation for the vehicle is shown on Form 2290 on the Tax Computation page. Phil, do you want to take the next example? Philip Yamalis: Sure thing, Joe. So let's review an Example 1, we saw how to report vehicles that were in service for the entire period July 1, 2019 through June 30, 2020. An Example 2, we saw how to report 5 vehicles, whose month of first use was September of 2019, with one of the vehicles having its tax-suspended, as it was used 5,000 miles or less during the period, right? An Example 3, Joe just showed us how to report a vehicle purchase partway through the taxable period. I think, you indicated, Joe, that it was in January through June.

Now, an Example 4, we're going to see how to report all of Husky Trucking vehicles on the 2290 for the July 1, 2020 through June 30, 2021. The full tax reporting period after Examples 1, 2, and 3, for example, number 4, again, the taxable period begins on July 1, 2020. It goes through June 30, 2021. In addition, the first use on a public highway during the tax period occurred in July 2020 for all the tractors listed on the following slide. The gross weight of the vehicles are also listed on the following slide, take a look at them. The screen actually shows the last 4 digits of the vehicle identification numbers and each individual's taxable gross weight. Okay, all right.

Let's take a look if we call Example 2, Husky Trucking's check the box on the Form 2290 that stated that the tractor with the VIN ending in 9810 that last one was to be used for short local deliveries, very local and was expected to be used 5,000 miles or less during the tax period. And then, during the tax period July 1, 2019 through June 30, 2020, this tractor was used 5,000 miles or less. Now, let's see how the vehicles are reported on the 2290 from July 1, 2020 through June 30, 2021. Here's the first page of Form 2290, right? Part 1 of the form shows the summary of the tax liability associated with all of Husky's trucking vehicles during the tax period July 1, 2020 through June 30, 2021, the upcoming tax year, right? Note, bottom left hand side of the screen, the underlying checkbox in red, in the lower part of the slide, this shows how to report that vehicle that's expected to travel 5,000 miles or less on public roads. Because of this, the Heavy Highway Vehicle Use Tax is suspended on that vehicle. Well, here's where Husky Trucking now will certify that the vehicle did not travel more than 5,000 miles on public roads during the taxable period. We'll go to the Tax Computation page to show how the numbers on this page of the 2290 were arrived at. Okay, here's the tax computation page in the Form 2290. It shows that the Husky Trucking Company is being taxed on 11 vehicles classified under the various weight categories, which are taxed at various rates based on those weight categories. Here you can see where the tax for the 11 vehicles totals $4,746 for the period July 1, 2020 through June 30, 2021. The $4,746 is the same amount, which is shown on the first page of the Form 2290, which, of course, we saw on the previous slide. Now, this slide is from the 2290 Schedule 1, where the VIN of each of the 11 vehicles being taxed are listed. Here you can see the Vehicle Identification Numbers of all the 11 vehicles that Husky Transportation will have in service for the tax period July 1, 2020 through June 30, 2021 - I'm sorry, that they had in service for that tax period. So, Joe, that wraps up our examples. What then are the due dates of this Form 2290? Joseph McCarthy: Well, Phil, before I talk about the due dates, there's an important point to remember when filing Form 2290. The filing deadline is not tied to the vehicle registration date. So regardless of the vehicle's registration renewal date, taxpayers must always file Form 2290 by the last day of the month, following the month in which the taxpayer first used the vehicle on a public highway during the taxable period. And, Ley, I think it's time for our next polling question. Ley Mills: Joe, I got to say, you and Phil just provided a lot of information, and some great examples. So I am sure that the audience is looking forward to the next question. So here we go. When should you file the Form 2290? Is it A, by the end of the month, following the month the vehicle was first used on a public highway during the tax period? Or is it B, by the end of the month the vehicle was first used on a public highway during the tax period? Or is it C, by the end of the year the vehicle was first used on a public highway during the tax period? Or is it D, none of the above? So take a moment and click the radio button that you think best answers the question. Again, I'll give you a few seconds to make your selection. Okay, we're going to stop the polling now. And let's share the correct answer in the next slide. And the correct response is A, you should file the Form 2290 by the end of the month following the month the vehicle was first used on a public highway during the tax period. For a full year, the 2290 due date would be due by August 31. And we came up with, okay, 76% which is pretty good. Phil you - or Joe you want to just pitch in a little thing before we go to the next slide? Joseph McCarthy: Sure. You just have to remember that again the registration and due date and the 2290 due date are not the same. And the second major point is the 2290 is filed by - the due date, is filed by the end of the month following the month of first use on the public highway. If it was being used all year, if between July 1st and August 31st, if it's partial year, you take whatever month you purchased the vehicle, and the start of that month or to the end of the following month. Back to you. Philip Yamalis: So, if we bought a car in May, a vehicle in May, a truck in May, the following month is June, it would be due at the end of June, is that correct? Joseph McCarthy: Yeah. Anywhere between the beginning of May and the end of June in your example, Phil, would be fine, filing that 2290. Philip Yamalis: Hope that brings it home. Ley Mills: Sounds good to me. I believe you're on next, Phil. Philip Yamalis: Okay.

So, Ley, we're going to take a look at what information you need to gather together to file the Form 2290. Getting a little bit of feedback, so one of you gentlemen have your mics on, that might help reduce that. But let's take a look at the information you need to gather together.

First of all, you'll need an Employer Identification Number, right? We all know that that means EIN, Employer Identification Number. You cannot, let me stress this, you cannot use your Social Security Number, it has to be an EIN. Number 2, you'll need your Vehicle Identification Number.

We've been calling it a VIN throughout our presentation for each vehicle that you are reporting.

And number 3, you'll need the taxable gross weight as we defined earlier of each vehicle. Ley Mills: Phil, I have another question here. Philip Yamalis: Yes, Ley. Ley Mills: What if someone - yeah. Let me try to ward this here. What if someone in our listening audience doesn't have an Employee Identification Number or an EIN? What should they do? Philip Yamalis: Simple answer, get one. Let's explain how. If they don't already have an EIN, you can go to IRS.gov. I think is the best resource, IRS.gov, and apply for an EIN. Now, really, it's not that difficult to do. It will take up to 4 weeks for your new EIN to be fully integrated into our system. So if you don't have an EIN, you need to get one as soon as possible, it will take up to 4 weeks to apply.

Now it's important to note that once you get that EIN, you use the name on that EIN exactly as shown on your EIN application. The reason that this is so important is that an e-filed return will reject if the name that the IRS has on record for your EIN does not exactly match the name on the e-file 2290. This is called what we call a Name Control Mismatch. The Name Control for the business would be the first 4 characters of your business name. So for Husky, it's HUSK. If you use your own name, rather than a business name, your Name Control will be the first 4 letters of your last name. If your last name has fewer than 4 characters, such as Jane Doe, the Name Control would be DOE, D-O-E. Now if you have problems with Name Control, we urge you to call the Business and Specialty Tax Line, which specifically gets involved in this and that number is 800-829-4933. That number is not listed on the slide. So let me give it to you again, the Business and Specialty Tax Line. It's 800-829-4933. Now, once you gather all the information that I just indicated to you, to file the Form 2290 and the Form 2290 Schedule 1, you need to complete the Form 2290. So to do so, you would first input the filer's information. You would, second, indicate the type of return being filed. You would, third, figure the tax. You would include the Statement in Support of Suspension, if applicable. Remember, that vehicle that was on the highway 500 miles or less. And then, you need to sign the return. So, Joe, with that, did I hear you say that you wanted to take the next slide? Go for it. I know I heard you say that. Joe? Joseph McCarthy: Absolutely, Phil. Part of filing Form 2290 includes completing the Form 2290, Schedule 1, which is the schedule of heavy highway vehicles. You're required to report each individual vehicle by its vehicle identification number, or VIN, you report both taxed and tax-suspended vehicles by VIN.

For those of you who might not be familiar with tax-suspended vehicles, the tax is suspended for trucks used 5,000 or fewer miles on the public highway and for agricultural vehicles that are used 7,500 or fewer miles on public highways. Now the mileage use limit means the use of a vehicle on U.S. public highways again 5,000 miles or less, or 7,500 miles or less for agricultural vehicles.

The mileage use limit applies to the total mileage a vehicle is used during a period regardless of the number of owners. Now, I want to stop here for a moment and address a common mistake people make related to Form 2290, the Heavy Highway Vehicle Use Tax return. The Heavy Highway Vehicle Use Tax is assessed on the vehicle that is why you report each vehicle using the vehicle identification number, or VIN, of each separate vehicle on the 2290. The Heavy Highway Vehicle Use Tax does not follow the name on the registration. So, for example, let's say you purchase a new truck; you trade in an old truck and transfer the registration from the old truck to the new truck. You still have to file a Form 2290 for the new truck, even though the registration of the vehicle from the old truck is transferred from the old truck to the new truck. Ley Mills: Joe, I have a quick question. Joseph McCarthy: Sure. Ley Mills: Okay. Isn't the IRS receipted Form 2290, Schedule 1, the proof of payment needed to register your vehicle with your State Department Of Motor Vehicle. And that's why completing the Schedule 1 that's why it's so important. Does that right? Joseph McCarthy: Ley, that is correct. An original or a copy of an IRS receding Schedule 1 is generally needed to register a vehicle and we'll talk about how to get a stamped Schedule 1 in a minute. Ley Mills: Thanks, Joe. Joseph McCarthy: Okay. So here's a picture of the upper part of the Form 2290, Schedule 1. This is where you would input the vehicle identification numbers and enter the category of the vehicle. Taxable vehicles are categorized A through V based on the vehicle's taxable vehicle weight and whether or not the vehicle is a logging vehicle.

Separately, tax-suspended vehicles are categorized as W, the different taxable vehicle weight categories are listed right on the Form 2290. Phil? Phil, are you still with us? Philip Yamalis: Joe, I am. I took a quick snooze. Of course, my microphone wasn't working there for a second. Glad to see that it is. Joseph McCarthy: Glad to hear you back. Philip Yamalis: Hey, our producers just indicated to us that I cut out a little bit when I was giving that specialty line, the Business and Specialty Tax line for the Form 2290, especially if there's a name control mismatch.

So I want to give that number again, if everybody's got their pen or pencil ready, the IRS Business and Specialty Tax line that number is once again 800-829-4933. And again, you'll find it on the trucker's tax center if you did not get it. So that's 800-829-4933. I hope our producers are happy and I repeated it for you enough times. Those awesome producers we'd be nothing without them, right, Joe? Joseph McCarthy: Absolutely. Philip Yamalis: Anyway, as it was previously stated that an IRS receipted Form 2290, Schedule 1. This is a question that Ley brought up. He was absolutely right. The Form 2290, Schedule 1 is the proof of payment, right, which was needed to register your vehicle with your state's DMV. Now, there's an exception to this requirement of having to present a receipted Schedule 1 to your state DMV, or I know, another acronym Department of Motor Vehicles in order to register a vehicle. It's called the 60-day rule. Under the 60-day rule, a State Department of Motor Vehicle may register a new or used vehicle without receipted Schedule 1 from the IRS. Provided the original copy of the bill of sale is presented to the DMV, showing the vehicle's acquired within 60 days of registering the vehicle. The 60-day rule allows drivers to operate on the road immediately without having to wait for receipted Schedule 1 from the IRS to provide the DMV. Now, here's the catch, unfortunately. There are instances where the 60-day rule creates problems for vehicle owners, right? The problem is that when vehicles are registered without using that receipted Form 2290, Schedule 1. It's not uncommon folks, it's not uncommon for vehicle owners to forget to file the Form 2290 for the newly purchased truck, and of course, pay the associated tax. So it's very important to remember that if you register a vehicle without using that Schedule 1 from the Form 2290. The Form 2290 still needs to be filed and the related tax must be paid. Ley Mills: Phil, it's me, Ley, again. Philip Yamalis: Hi, Ley again.

Ley Mills: What happens if the vehicle is registered in, let's say, July, August or September?

Philip Yamalis: Yeah, Ley, that's a great question. There's a special rule for registrations that occurred during those 3 months, July, August or September. If the state received your application for registration of your highway motor vehicle, during any of those 3 months, July, August or September. You may provide the immediately previous taxable periods receipted Schedule 1 that was returned to you by the IRS as proof of payment. But, remember, don't forget to file the Form 2290 for the current period by the due date of the return the month - following the month, you've purchased the vehicle. Okay? Ley Mills: Sounds good. Thanks. Philip Yamalis: You're welcome.

Now, you can file the Form 2290, two ways you can either e-file it or you can use the ordinary snail mail, right? We encourage everyone to e-file. It's indeed the preferred method. Now we prefer that, it's not mandatory, you can use either of 2 ways. However, there's always a big butter. However, if you're e-filing the 2290s and you're reporting 25 or more vehicles, e-filing the 2290 is required. Okay. The advantage of doing so is that you'll receive your IRS-watermarked Schedule 1 within a few minutes, which allows you to immediately register the vehicle and get going on the roads. Who doesn't want that, right? Now, if you choose to paper file, and you're mailing the return with or without full payment, we ask that you use the appropriate mailing address, which is listed in the Form 2290 instructions. You should expect to receive your stamped Schedule 1; it could be up to 6 weeks after the Internal Revenue Service receives your Form 2290 in the mail. So, Joe, why don't you take this opportunity to emphasize, why e-filing is better than paper filing the 2290? Joseph McCarthy: Certainly, Phil, I want to reemphasize the main benefit of e-filing 2290s, which is that the IRS will provide you with a stamped Schedule 1 with a minute of accepting your e-file Form 2290 with paper file 2290s, as Phil mentioned, it can take up to 6 weeks get your IRS watermark Schedule 1 in the mail. Why wait? When you e-file Form 2290 the scanned or receipted Schedule 1 can be immediately presented to your State Department of Motor Vehicles in order to register your vehicle, which allows you to get on the road sooner. E-filing also saves your time, especially when filing multiple vehicles and it reduces the number of errors that are commonly found in paper file 2290. Now, Ley, I think it's time for our next polling question. Ley Mills: And you are right, it is time. Audience, what - well, the fourth - polling again. Here's the question. Which of the following is not true? Is it A, when e-filing 2290 you'll receive your IRS watermarked Schedule 1 within a few minutes? Or is it B, you can pay your Heavy Highway Vehicle Use Tax electronically? Or is it C, your Heavy Highway Vehicle Use Tax is due when you file Form 2290? Or is it D, when e-filing 2290 you'll receive your IRS watermarked Schedule 1 within 6 weeks. So take a take a minute, take a look at the question. Click on the radio button that you think is the most closely correct answer to the question. We'll give you a few more seconds to make your selection. Okay. We are going to stop the polling question. And we will share the correct answer in the next slide. And the correct answer is D, it is not true that when e-filing Form 2290 you'll receive your IRS watermarked Schedule 1 within 6 weeks. And as was already discussed, rather you will receive the IRS watermarked Schedule 1 within minutes. All right, how do we do? Well, we're pretty consistent here, but just a smudge below 80. Again, we hit this one at 76%. Again, that's not bad. I'll tell you. Joe, why don't you just put in one or two little comments, before we get things going? Joseph McCarthy: Well, like I said, again, I think that e-filing is definitely the way to go, because you're going to get that Schedule 1, receive the Schedule 1 immediately after you e-file that return, that 2290. And you can just immediately turn around and register those vehicles that are on 2290. And, Ley, you might just want to give the audience just like another few seconds. I think that might be one of the reasons why the scores are a tad low. So anyway. Ley Mills: You're probably right. Joseph McCarthy: So let me go to the next slide and talk about how to find a 2290 e-file provider. So to find an e-file provider, this is the Trucking Tax Center on the IRS webpage or IRS website. And it is at IRS.gov/trucker, which is on the slide. And select e-file Form 2290. At this web page, you can review the list of participating commercial software providers and select the one that best meets your needs. The services offered and fees charged differ by provider. An Internet search will also turn up 2290 e-file providers. Once you choose a 2290 e-file provider, follow the prompts to file your 2290 electronically. Phil, why don't you take it from here? Philip Yamalis: All right, Joe. So you've e-filed your 2290. Let's talk about paying the Heavy Highway Vehicle Use Tax. Now, there are multiple ways to pay. This slide shows the first 2 methods to pay your Heavy Highway Vehicle Use Tax electronically. First, electronic funds withdrawal during the e-file process, so as you're e-filing your return, you opt in for electronic funds withdrawal. It's safe. It's easy.

The funds can be withdrawn from either your checking account or your savings account. Electronic funds withdrawal is probably the quickest and easiest way to pay the Heavy Highway Vehicle Use Tax. Number 2, as you see on the slide, you can use Electronic Federal Tax Payment System otherwise known as EFTPS. It too is very, very safe and easy. Many of you are probably using EFTPS. I know the added benefit of using EFTPS is that you can pay other types of federal taxes through the system as well. Now, to use EFTPS you need to be enrolled in it to use it, which if you aren't already enrolled in EFTPS, it takes about 5 to 7 business days to go through the registration process. So keep that in mind when your Form 2290 due date and your Form 2290 payment date are right around the corner, okay. Ley Mills: Hey, Phil, a quick question. Philip Yamalis: Hit me. Ley Mills: As you're enrolling - not that one, we're too much of a friend, yeah, I'm not going to hit you. So how do you enroll in EFTPS? Philip Yamalis: So, it's a great question, Ley, as you asked them. Look, the simplest and quickest way to enroll in EFTPS is going to the EFTPS website. I would encourage our users that need to enroll in EFTPS to visit www.EFTPS.gov. Alternatively, you can call the EFTPS customer service number. And we get that number here. It's not on the slide. So I will repeat it. This is customer service for EFTPS. You can get it right on their site, EFTPS.gov. It's 1-800-555-4477 to request an enrollment form.

Again, the quickest way is to go to the website to get the enrollment form, do it online, or you can call their customer service line at 1-800-555-4477 to request the enrollment form. There are also EFTPS phone numbers for those that are hearing impaired, as well as for Spanish speaking folks as well. But again, the fastest and easiest way to enroll in EFTPS is by enrolling at the EFTPS website at www.EFTPS.gov. Boy, Ley, I hope I answered your question. Ley Mills: And you certainly did, Phil. Thank you. Philip Yamalis: Okay. So we talked about 2 ways that you can pay electronically. That's what I always recommend. That's the quickest way to get payment in. Of course, you can also pay the Heavy Highway Vehicle Use Tax the good old fashioned way, by check or money order, right? Just send the payment. But make sure you use the Form 2290-V, the Payment Voucher, and make sure you use the address shown on this slide. Again, for more information on all your payment options, go to IRS.gov, www.IRS.gov, and select the Pay button. And it will go through all these methods. But this is the address where to send in the 2290-V Payment Voucher and the 2290 tax. Now, earlier, about 2 years ago, the IRS had suspended to pay on alternate way, so the ability to pay by credit or debit card, right? Well, I'm happy to tell you and to announce that you can again use a credit card or a debit card to pay your Heavy Highway Vehicle Use Tax.

You can pay by Internet, phone or mobile device, whether you e-file or whether you mail your return. So, that information is listed right here on the slide, also listed on IRS.gov and select Pay. Ley, do we have time for another polling question? I'll tell you what I'll do, I'll even play - I'll even play the Jeopardy music too to make sure people have enough time if you want. No, I'm kidding. Ley Mills: Yeah. Actually, I'll strum my guitar to make sure you do it. Okay. Let's get down to business here. There is a final polling question. And this is, what options you have to pay your Heavy Highway Vehicle Use Tax? Is it A, credit card or debit card? Is it B, electronic funds withdrawal? Is it C, Electronic Federal Tax Payment Systems? Is it, D, check or money order?

Is it, E, all of the above? Or is it F, none of the above? So always take a - we'll give you few minutes. Review the question again, and click on the radio button that you believe most closely answers the question. So I'll give you a few more seconds, little more than I'm doing to make your selection. Philip Yamalis: It's an easy one, isn't it? Ley? Ley Mills: I hope so. We'll find out in about another second. So I'll tell you what, it is time to stop the polling and let's share the correct answer. And the correct answer is E, all of the above. Nice. Oh, my goodness gracious.

Let's party everybody. It was 98%. Outstanding. Outstanding. So, Joe, looks like, I'm going to be turning this over to you. Joseph McCarthy: Well, thank you, Ley. Since we're in the midst of the Form 2290 filing season, let me review some tips. Be sure to use the correct year's tax return, the correct years 2290, which is not a problem, if you're electronically filing the form. Do not alter the tax period printed on the top of the 2290 or the Schedule 1, again, not a problem, if you're electronically filing that return. You may also paper file as soon as July of 2021 when the Form 2290 and its instructions are available on the IRS webpage. And, of course, these forms are now available. Also, Form 2290 started e-filing on July 1 and, remember, you are required to e-file if you're reporting 25 or more vehicles on your Form 2290, but we encourage all trucking companies and truckers to electronically file. Also, you can pay the Heavy Highway Vehicle Use Tax using electronic funds withdrawal, Electronic Federal Tax Payment System, commonly referred to as EFTPS, or by check or money order, or credit or debit card. Now, let me hand it back to you, Phil. Philip Yamalis: Thanks, Joe. Yeah, I mean, you said it just perfectly, Joe. It's exactly right. I mean, we cannot over emphasize the timely enrollment. And things like, EFTPS, we can never over emphasize that, especially in today's time period. Do so ahead of time, don't wait to the last minute. No harm, no foul, better to get it earlier than later. Things like EFTPS, your EIN, if you don't have it. And where you're going to find this information, Joe, let's review some common 2290 resources available from the IRS, Joe, that's the Trucking Tax Center. It's easy to remember internet address, IRS.gov, put a forward slash, and then write the word truckers, plural, IRS.gov/truckers. That tax center contains all the info that you'll need to file your 2290 and more. Ley Mills: Yeah. Phil, let me throw in a quick one here. "Is this information, is that also available in Spanish?" Philip Yamalis: Yeah, that's a common question, Ley. We get that all the time. Most IRS.gov articles, not only those that have the Trucking Tax Center, but most IRS.gov articles on the IRS, including the Heavy Highway Vehicle Use Tax are available in both English and Spanish, including, of course, our Trucking Tax Center at the top right of each English page that you see on IRS.gov, you'll see a Espanol hotlink, if there is a Spanish counterpart. Okay. Ley Mills: Okay. Thanks, Phil. I appreciate that. Philip Yamalis: You're welcome.

There's also Publication 4900, one my favorite, which is a publication on e-filing and e-paying your Heavy Highway Vehicle Use Tax. This publication is also available in Spanish, Ley, and there are the IRS help lines, of course, to help answer your questions. These help lines are listed on this slide. They are available Monday through Friday from 8 AM to 6 PM Eastern time. Okay. Ley, that's all I have. I think that's all Joe has. Let me turn it over to you perhaps for our question-and-answer session. What do you think? Ley Mills: Hey, thanks, Phil. It sounds like a good thing to do right now. So, hello, everybody, it's me, Ley Mills. And I'll be moderating the Q&A session. Now, before we start the Q&A session, I want to thank everybody. Thank you for attending today's presentation, "Understanding Form 2290, Heavy Highway Vehicle Use Tax." Earlier, I mentioned we want to know what questions that you have for our presenters. So here is your opportunity. If you haven't input your questions, there is still time. Go ahead, click on the drop-down arrow next to the Ask Question field. Type in your question and click Send. Joe and Philip are staying on with us to answer your questions. And joining us for the Q&A session is Joe Mazzuca. Joe is an Internal Revenue Agent in our Small Business/Self-Employed Division and is a subject matter expert for Excise Tax and the Form 2290. So, Joe, I want to thank you so much for being a part of our team. We certainly appreciate it. One thing before we actually start, well, we may not have enough time to answer all the questions that have been submitted, however, let me assure you that we will answer as many as time allows. If you're participating to earn a certificate, and related continuing education credit, you'll qualify for one credit for participating for at least 50 minutes from the official start time of the webinar. So, what am I talking about, official? It means that the first few minutes of chatting before the top of the hour, unfortunately, that does not count towards the 50 minutes. So let's get started. And see how much questions we can cover in the time we still have remaining. So start off number one here. I tell you what, Phil, as long as you've been talking a lot, let me start off with you. And this is can I - you're my friend, got to do this here. "Can I file my return electronically, if I just received my EIN?" I think we covered that let's get into that. Philip Yamalis: Since I've been talking a lot? Ley, you're so kind, thank you so much. Yeah, can I file my return electronically you asked if I received my EIN? Yes, you may electronically file your return 4 weeks from the date your EIN was assigned to you. So your Name Control is established in our system, right? So if you e-filed it before then, your return might be rejected. So as our producers indicated to us, we can't over emphasize. Get in there, file for your EIN, if you don't have one. Don't wait till the last minute, get that EIN filed, so that when it comes time to file that 2290, you can e-file electronically and get that thing sent in and have that Schedule 1 returned to you in minutes. So, yeah, wait 4 weeks. Once you've got the EIN, once it's assigned into our system, we want you to wait about 4 weeks before you electronically file your return. Joseph McCarthy: And, Phil, if I can just jump in for one second, just to kind of clarify that people who might not be familiar with our EIN system, you can go on to the IRS website, apply for an EIN. It will give you that EIN immediately. But like Phil mentioned, it's going to take a while for that EIN to post internally in the IRS systems. And that's why you want to give it a little bit of time in order to file that 2290. Philip Yamalis: Last thing we want is that 2290 being rejected, because things didn't match up, right? Joseph McCarthy: Absolutely. Philip Yamalis: Thanks, Joe. That's a great point. Ley Mills: And, Joe, since you just contributed here, let me throw one at you here. If I buy another truck after I have e-filed my 2290 for the current tax period, should I e-file my original 2290 again and simply add the new vehicle to the Schedule 1? Joseph McCarthy: No, if you file your 2290 and list the vehicle as you own on the Schedule 1 and you later buy one or more additional trucks, you must file a new Form 2290, listing only the new vehicles. E-file that 2290 anytime before the last day of the month following the month the new vehicle was purchased and placed in use on public highways. And you can review the tax tables too, to find your due dates.

And again, those tables are in the Form 2290 Instructions. So, again, very, very important to e-file when it's appropriate and every time you buy a new vehicle, assuming that you're buying it partway through the year, you're going to file another 2290, hopefully e-file it. Ley Mills: Yeah, that makes sense to me. Ah, Joe Mazzuca. There is a few in the line here for you. So I will start off with this one. Joseph Mazzuca: Yes, can you hear me okay? Ley Mills: I certainly can. Can you hear me? Or do you want to hear me? All right, all right, here we go. Number one.

Joseph Mazzuca: Shoot away, I know there are a lot of questions in the queue here. So I'm going to go around with answering as many as I can so. Ley Mills: Absolutely. I appreciate that. Well, the first one we have here is, "Are electric heavy vehicles exempt?" Joseph Mazzuca: That's a great question. I had to look up that answer in the regulations. And the regulations say that's not exempt, because it's a self-propelled highway motor vehicle, even if it's run on electricity. So that is not exempt. That's still subject to tax, the Heavy Vehicle Use Tax. Ley Mills: Okay, great.

Great. Well, I know. Joseph Mazzuca: Yeah. And, let me just - I like to clarify just one item here on the presentation. When we talk about the taxes and when they're due, this is a unique tax, because this tax is paid one year in advance. So we're prepaying the tax one year in advance. So right now, we just started the current tax period starting in July 2021, and it goes through June 30, 2022. So any vehicles that are first used in the month of July 2021, you would file a return by the end of August, and then you would pay the amount of tax that's due. And that's going to cover you all the way through June 2022. So that will cover you for that particular timeframe on those vehicles that you first reported in the month of - first use occurred in the month of July.

So I just want to make sure that you're aware that this is a prepaid tax. We pay it one year in advance. It's a new, unique tax and one of the. Joseph McCarthy: So, Joe, just let me jump in for a second. Joseph Mazzuca: Sure. Joseph McCarthy: So unlike filing like a 1040 individual tax return or corporate tax return, where you're filing for the year that's already gone by with the 2290 you're filing for the year that's to come or the tax period that's to come. Joseph Mazzuca: Yes. Yes, exactly. So we need to keep that in mind, folks, when we're paying this tax, you're prepaying it. So that's why these partial period tax tables were prorating the tax, because you're saying, "Hey, like we gave you in our examples," we try to give the examples. Well, what happens if some of these vehicles, the first use occurs in September, while you pay a less amount of tax and the tax - that's what that table does, it prorates the tax based on the month of first use during the current taxable period. So shoot at me, Ley, I know, we got more questions that come up here. Ley Mills: We certainly do. That's great information by the way, Joe. Thank you so much. Joseph Mazzuca: Sure. Ley Mills: And here's number two, number two for you here. "So I want to understand, it's not the manufacturers' weight of the vehicle, but the rate of the vehicle and the gross weight usually carried." Joseph Mazzuca: Right, I think - so I think it's about the weight of the vehicle and the gross weight actually carried, that's right. So for Highway Use Tax purposes, taxable gross weight is, we defined that earlier in our presentation. So it's the unloaded weight of the vehicle plus the maximum load it customarily carries. It doesn't say gross vehicle weight rating that's ascribed by the manufacturer of the vehicle. It's the maximum load customarily carried. And how do you determine that? We went through that based on how you register the vehicle with the state, whether it's through IRP, gross vehicle weight, gross weight category or if it's unloaded weight. And I know a lot of questions - I saw lot of questions coming up regarding unloaded weight. There is only - as far as I know, there's only one state that says you register your vehicle on unloaded weight, but I think that's the State of Alaska only does it. That's only one state that does it. But for purposes of computing the Highway Use Tax, use the taxable gross weight formula if you're registering on the basis on unloaded weight.

Ley Mills: Great stuff. I appreciate that. Okay, ooh, I got another one for you. Let's try this one for you, Joe. Can a taxpayer claim a credit for a truck that went over 5,000 miles? What was sold during the tax year? Joseph Mazzuca: Yes. So the answer to that question is, yes, because there's the vehicle sold provision in the law that allows for that. So even if the vehicles over 5,000 miles, and you sold it, you get a credit on the next 2290 that you file, whether you file it in the same tax period, or you have to wait till the end of the taxable period to file for the next 2290, then you take the credit, right there, on the next 2290 file. Let's say, that you've closed up shop, you go out of business, and you say, now what do I do? How do I get my money back? So you would file a Form 8849 and use Schedule 6. It's a Claim for Refund of Excise Taxes, and use Form 8849, which is available on IRS.gov, and use - there's always various Schedules 1 through 6, you want to use Schedule 6. And that's how you get your refund back if you're no longer in business or out of business, and that's how you need to get the money back. Philip Yamalis: Joe, if I can add here, if I buy a new truck, and if my truck went crazy in August after I filed the 2290 and it broke down, it's done. I got rid of it. I'm not going to use it anymore for the rest of the year. I sold it for parts. I buy a new truck in August. And by September, I got to file new 2290, I can take the credit for that one that went kaput on the new 2290, I'm filing. Does that correct? Joseph Mazzuca: Yeah, it's a sold vehicle, right? Yes, you can. Philip Yamalis: Right. Right. Thank you so much, Joe. That was great. Joseph Mazzuca: All right. Okay. Ley Mills: All right. Well, I've got another one for you, Joe. This looks like a good one. Last year, I filed a partial in October. And that was never received - so, I have never received the 2290 Form that my payment was cashed and I received a letter. I needed this form to complete by IRP registration with my state. Is this time - at this time, can I just file at 2290 for 2021? Joseph Mazzuca: That's a great question. So let's - so there was a partial-period tax return due for October. I'm assuming, when they said, then use the Form 2290, they didn't really receive their Schedule 1, that's what had happened. So it just depends on when your renewal is going to be due for the IRP period. So, it's hard to answer the question. I don't know what the renewal date is for IRP in your state. But you're still have - if this particular vehicle is being used in July of this year that's Form 2290 is going to be due by the end of August with the payment. So it just depends on when the renewal comes. But if the renewal is for the month of July, August, September, I mean, you can use that previous year taxable Schedule 1, I understand they didn't get it. But there are options to get your - other options to use the receipted Schedule 1. So you can contact - we have a - at the campus, we have a way that you can fax down, what you filed, and they'll still look to see if it's paid. And then they would stamp that and send it back to you. Another method to use would be you would show them a copy of what's your file plus proof that you made an actual tax payment. And that's another way you can use that to get your registration. Ley Mills: That was good. Actually, here's an interesting question could be applicable, not only excise. But here's the one, is there a late filing fee if not filed on time? Joseph Mazzuca: Yes, that's failure to file penalty assessment for that filing on time. Yeah. And that's what you don't - so there are 2 penalties applicable. There's failure to file, failure to pay. And the highest penalty rate is failure to file. It's 4.5% per month. So you really just file the return. If you can't make a payment, you'll get a balance due, but you at least avoid that failure to file penalty, because that could add up, you've got 4.5% a month. So you really want to just file the return and try to make the payment at a later date if you can do that. Joseph McCarthy: Joe, can I just jump in for a second? Joseph Mazzuca: Sure.

Joseph McCarthy: I think I have a question for you. Is the failure to file penalty 4.5% or is it 5%? And then the failure to pay penalty 0.5% and they run concurrently for the first 5 months?

Joseph Mazzuca: Yes. Thank you for clarifying that. Yes, it's - your second part there. Yeah.

Joseph McCarthy: Yeah. So the key message is to the audience is file the form even if you can't make the payment file the form, because the penalty is much less for non-payment than it is for not filing. Oh, go online, e-file that 2290, and even if you can't pay, get the 2290 in as quickly as you can during the period. Ley Mills: Thank you. Okay, next one here, it's for you again.

What if you have multiple vehicles, right? You file a separate 2290 for each, if they start usage in different months. Joseph Mazzuca: Yeah, good question, very good question. So the answer would be, yes. If the month of first use during the tax period occurs in different months for each one of those vehicles, then yes, you would have separate return due. For return due for each one of those returns, or - each one of those vehicles, I should say, where the first use occurs in that particular month. And again, that's why I stressed, we looked at the Husky as example, how we tried to show you different months of first use by those vehicles and when the return was due, what it would look like and things like that. So that was just a bit more comprehensive example to add in there to show that, how that works then with that. Ley Mills: Okay, great. Thanks. And here is the next one for you. okay, "Is a lessor or a lessee responsible for filing the return?" Joseph Mazzuca: Yeah, good question. Well, it depends. It depends on whose name, right, and whose name the vehicle was registered to. So when we say registered, let's make a very clarifying point here.

And that's why we showed you those IRP and cab card registrations. Registration means cab card. So in the industry, they talk about cab card. So that's what we're looking at. We talk about registration. In whose name is that vehicle registered in. So in either one, it could be the lessor, it could be the lessee, depending on whom the vehicle is - in whose name the vehicle is registered in. So regardless of any type of lease agreement, because I've seen lease agreements that say, who's going to - the lessor or lessee is responsible for the tax, we just go, "Well, it doesn't matter to us what that contract says, we go by vehicle registration." The vehicle registration is going to determine that. Ley Mills: Great. Here's the next one for you. "What happens in the case where the 5 trucks are registered in and first used in different months? In other words, they are all not first used in the same month of the year?" Joseph Mazzuca: Yeah, kind of a rehash of the other question there. But I want to drive that point home, is that again you're going to have different 2290s with different months of first use on a 2290. So in this case, if you had 5 trucks and they had different months of use, they would be all we had 5 single - 2290 is showing the various months of first use, and again, you would know the tax will be prorated through the end of the tax year on those particular vehicles. So once you file that return, pay those tax on that particular vehicles those months of use, you're done on those vehicles through the end of the tax year. Ley Mills: Right. This is an interesting one. Joseph Mazzuca: Yeah, I like this question. I like this question. Ley Mills: I've got another one for you, Joe. Joseph Mazzuca: Ok Ley Mills: Okay. Here's another one. What is the process? If you answer, no, to that first question on the form regarding when a vehicle is placed in service? Joseph Mazzuca: Yeah, that's a good question. So I'm looking right at the form right now on the Part 1 figure the tax. It says here, was the vehicle report on this return use on public highways during July 2021. We're in the current tax period. If yes, enter 202107, because 07 means July of 2021. That's what that number means there in the boxes to the right. If no, see the table on Page 3 of the instructions. And I think we showed that in our presentation. There was a table there. So if you go to Page 3 of the instructions, the Form 2290 instructions, it has a chart, great chart. And in this period, the vehicles first use during and it gives the 12 months starting in July. So let's just say, you answered, no, let's say it was August. It says the vehicle - in this period, the vehicle is first used during August, then file the Form 2290, make your payment by September 30, 2021. And enter this date on Form 2290, line 1. So you would indicate 202108, that's telling me, the first use in the tax period occurred for that particular vehicle in August of 2021. Ley Mills: All right. Here's another one for you. Joseph Mazzuca: I just answered that actually, right. All right. All right, go ahead. Ley Mills: Well, here we go, next one. Joseph Mazzuca: Yeah. Ley Mills: How do I fill out the month of first use number? I'm looking at the Page 3 instructions, we use the same truck, as we use last year. And there is 201507 on last year's form, like 2015. Joseph Mazzuca: Yeah. I'm not sure, what that references to. How do I fill up the month of first use number? Well, I just you go to the - again, it depends on when you actually use the vehicle first use occurred in the tax period. So it all depends on that's the question we asked you. That's why we asked that question on Part 1 and figure the tax like when did the first use occurred during this tax period.

If it was July enter 202107, if it wasn't then go to the table and it'll direct you right there.

Ley Mills: Okay. This one is really interesting. How does this affect moving companies that hire individuals that own their own semi-truck and are hauling the trailers for them? Who files the Form 2290, the moving company or the truck owner? Joseph Mazzuca: Okay. That's a great question.

So again, yeah, we're looking again - we're looking at the highway motor vehicle. That's what the tax is imposed on the highway motor vehicle. So whoever's name that highway motor vehicle is registered to or in, I should say, is the responsible party to follow Form 2290 pay the tax. So it could be the moving company, if it's registered in their name, or it's the truck owner. It's the vehicles registered in their name. Ley Mills: All right. Here's another one. Heavy vehicle transports cargo from port to an offsite rail line. Is this vehicle subject to heavy vehicle tax? Joseph Mazzuca: That's a great question. I looked at that and said, this is an interesting question, because it just depends on whether there is a use on a public roadway. So if there's a use on a public highway, and the state law requires that vehicle be registered at the time of that first use on a public highway. Yes, it would be subject to tax. But if this vehicle is strictly not registered at all, and just stays not - doesn't use a public roadway, during this timeframe. It just does from port to offsite rail, and never transverses over a public roadway that would not be subject to tax. Ley Mills: Thank you. Joseph McCarthy: Ley, can I jump in for one second? Ley Mills: Sure.

Yeah, go ahead. Joseph McCarthy: Yeah, you're beating up for, Joe, here. And maybe he deserves a little bit of a break. So I'm going to - I picked out a question I think that might be helpful to the audience. And the question was, when I submit my Form 2290 electronically, I received an online duplicate filing error. Why did this happen? The answer is, the system detected that you already filed the return under the same EIN for the same tax period, the same vehicle or vehicles in the same VIN category. So what you want to do is you want to check your tax return to confirm that you are reporting new vehicles only. And that your other vehicle information is correct. But, Ley, I'll turn it back to you. Ley Mills: Yeah. Thanks so much. Actually I was going to throw one with Phil here, but I think we might have been addresses, but Phil here it is anyway. How do I make corrections to my e-file return? Philip Yamalis: So I covered a little bit, you can e-file a correction to the weight, the mileage and even the VIN, those 3 items, weight, mileage and VIN.

However, if you make another type of error on your e-filed and accepted return, you'll need to make corrections on a paper Form 2290, and mail it to the address shown on the Form 2290 instructions. So again, you can e-file correction to weight, mileage and VIN. But any other type of error, you've got to correct it on paper Form 2290. And there are specific instructions in the 2290 instructions on how to make a correction, I would urge folks to follow that, and then use the address shown in the instructions to send that paper Form 2290. In my opinion, that's probably the only exception I would use to filing the paper 2290. Try your best to try to do it electronically so that you can have that Schedule 1 back right away. Ley Mills: Thank you, Phil.

Joseph Mazzuca: Can I add to Phil's point regarding file electronically? I know, we've been talking about this, because this with the pandemic, the Ogden, Utah center, closed down and that's where all the paper returns. They perform 2290's get file. So when that happened, there were no - nothing happened those Form 2290 - paper returns were not being processed. So if you filed a paper return with a check, it goes to Louisville, Kentucky. Louisville, Kentucky process of the payment there, but they send the return to Ogden, Utah. So some saw that their check cleared. And - or they're seeing the payment, but they didn't get the Schedule 1, because of that.

So there was such a backlog, it was taking months and months to get through the backlog. So that's why we encourage people this year, there still was a backlog, they're still going through all those paper returns, trying to process all those Form 2290 paper return. So that's why we encourage everybody if they can electronically file. Please do so. Joseph McCarthy: Ley, can I add to, what Joe said? Ley Mills: Yeah, please. Joseph McCarthy: The IRS just recently finished processing all the paper returns that were filed prior to 2021. So as Joe stated, you could be waiting a very long time for a paper file 2290 to be processed, and get that receipted Scheduled 1 sent back to you. So if at all possible, at least, while the pandemic is still ongoing, please, please, please, for your own sake, electronically file the Form 2290 and make the payments electronically as well. Ley Mills: Good point. Joseph Mazzuca: And I'd like to just add one more thing. So we're about at 83% of all Form 2290 gets filed electronically about 83%. So if some taxpayers who file by paper, we did send out a postcard mailing to encourage them to electronically file, just mailed those postcards out in May, so somebody might have got a postcard saying, please consider e-filing was - it was the reasons we just talked about, because of the backlog and things like that. And I understand it causes issues for taxpayers, if they can't get the Schedule 1, they can't register the truck. And so, we're just trying to encourage them to do that. Joseph McCarthy: Get out in front of the situation rather than being reactive.

Joseph Mazzuca: Yes. Right, right. Ley Mills: All right. Joe, I have one, I think this is may have been a little repetitive. But let me raise it to what happens to the money paid by the prior owner of the truck, who paid for a full year of use for the part of the year - as a part of year after they sold the vehicle? Joseph Mazzuca: Yeah. Again, that's they sold the vehicle, they've paid the tax for the full year, they would on their next Form 2290 they file for whatever via during the current taxpayer for subsequent they would get a refund for whatever partial-period - a partial amount of tax that's refundable to them. So, and again, if they are not in business any longer, they would use a Form 8849 to Schedule 6 to claim that refund. Ley Mills: Great information. This is a very interesting question. Of course, they all have been. Is that - if I have a semi that is registered when I have not put it on the public highway yet is Form 2290 do for it? Joseph Mazzuca: Well, literally if you - if the truck - if it's registered, and has not used a public roadway.

Then no, it's not due until you actually use public roadway. So you could have a vehicle registered sitting there, it's just down. You don't have work, whatever the situation is, but once it hits that public highway that's when the tax is imposed. And there is file rules for when it is to do that. Ley Mills: Great. Here's another one for you. This is interesting too. By law, how many trucks can a taxpayer report? Joseph Mazzuca: Yeah. Well, there's no limitation on the form itself other than e-filing requirements, I don't know if that was the question that we're trying to drive at. But, I mean, if you've got 10,000 trucks registered in your name, well, you're going to file, I mean, e-file Form 2290, and you're going to report 10,000, it's on that.

That's Form 2290 in the Schedule 1, which would be quite a lengthy Schedule 1. I mean, there's continuation sheets, they would attach to that return. So let me emphasize, e-filings required for taxpayers reporting 25 more vehicles on a Form 2290. But we encouraged all taxpayers to file electronically even the reporting, even if they're referring less than 25 vehicles for a Form 2290. Ley Mills: Okay. That was good. One more for you. I'm always coming up with a good one for you.

Here's the one. So since the Form 2290, year, month, might be different for various vehicles in a particular year. Does this mean that multiple Form 2290 might be filed for a company tax year?

Joseph Mazzuca: Yeah, well, various vehicles in a particular year, I think, what they're driving at that question is that you might have different months of first use during the taxable period for each particular vehicle, look, guys, you might have - you can have multiple 2290 sent that would be due then. Ley Mills: Okay. Okay. Okay, here's another one. It's very interesting. On Example 4 - okay, Example 4, the tax was paid on the 10 vehicles, not 11, right? Joseph Mazzuca: Yes. Yes, I selected that, because I want to make clear that there was one tax-suspended vehicle, as total of 11 vehicles there. But they were reporting tax on 10 when you look at the Tax Computation page, there is a total at the bottom was 10. That's the number they pay tax on. And then underneath there is the tax-suspended one. So they pay tax on 10 vehicles, not 11. But the Tax Computation page really shows 11 in total. And, also, the Schedule 1 is - when you list all the vehicles that you're reporting. So it lists all the vehicles and at the bottom of the form if you add them up, and then you subtract out the one tax-suspended vehicle and that's the number 10, we carry to the fund of the return value. Philip Yamalis: Let me also emphasize a point, Joe, since I covered that example that 11th vehicle that was listed on 10, as you've showed, was also the vehicle that was driven 500 miles or less on the public highway. And that's why we suspended that particular vehicle, right? Ley Mills: Yes, exactly. Joseph McCarthy: I think that's 5,000 miles or less. Joseph Mazzuca: Yeah, 5,000. Philip Yamalis: Yeah, I just said 500. I must be late for lunch or something. Sorry about th Ley Mills: Well, I'll tell you what, Phil, since you're here, let me throw one at you here. How I know the IRS has received my e-filed 2290 return? Philip Yamalis: How will I know? Isn't there a song that says how will I know? No. So how will I know, you asked me, how will we know that we've received your e-filed 2290 return? So immediately, when you file an e - when you e-file 2290 return, you'll get an email notification from us. You'll also have access through that email to the electronic version of the Schedule 1 containing that watermark of the e-file logo in the background. So by receiving that like I said within minutes, that shows acceptance. And you immediately the turnaround time, as we indicate earlier as minutes, you'll get that Schedule 1 of the 2290 that we've accepted that 2290 return. And you also know immediately, because we'll tell you in the specific software that you've used that that return was not accepted by the IRS and will probably give you a reason why if there's a particular code that's being used for that, "reject." So you'll know within minutes once you try to e-file, whereas if you paper file, it takes weeks or months as in the pandemic. Well, I think we've overemphasized e-filing enough, haven't we? Ley Mills: That's important information to share, though. That's great information, Phil. Okay, Joe, I got another one here for you. "If a vehicle is only used for part of the year, each year, due to road restrictions, yeah, restrictions for example, if they can't be used from January through April, do you still have to pay the tax for the full year each year? Joseph Mazzuca: That's a great question. I selected that because it depends. Now, it just - it simply depends. Well, if the vehicles are being used in July, but you anticipate that those vehicles may not be used on public highways more than 5,000 miles, you can list those vehicles as tax-suspended for that particular year. And on the subsequent year, if in fact those vehicles were used 5,000 miles or less, then you simply certify, yes, I did actually use those vehicles 5,000 miles or less. So if they're 55,000 miles - I'm sorry, if the taxable gross weight is 55,000 pounds or greater, the state's going to require the Schedule 1 for the vehicle. But again, depending on your mileage, you may or may not owe any tax on those particular vehicles. Joseph McCarthy: Joe, can I jump in for a second? Joseph Mazzuca: Sure. Sure.

Joseph McCarthy: So I think that what the question was driving at is, let's say, I just drive the truck, January, February, March of the year, would I still have to pay for the full year even if I just use those 3 months? Let's say I was hauling salt during the winter time. Joseph Mazzuca: Well, I looked at the question and it says it can't be used from January through April. So if they're saying they're using it for. Joseph McCarthy: Okay. Joseph Mazzuca: Yeah, they're using it the - they're using from July through the end of December, and then they're taking that break, and then they're starting again. That's what they're - that's the way I interpret that question so. Yeah. No problem. Ley Mills: Well, I hate to step in here. This is great information. But unfortunately, all the time you have for the questions are done. So I want to thank you, Joe Mazzuca. Excellent information. We really appreciate it, all the information you provided, and of course, Philip Yamalis and Joe McCarthy, all of you sharing your knowledge and your expertise. And as we just said, answering all your questions. Before we actually close the Q&A session, Phil, what key points do you want the attendees to remember by today's webinar?

Philip Yamalis: Well, thank you, Ley. The first key point that I want to highlight is that you should first file the Form 2290 and pay the Heavy Highway Vehicle Use Tax for each taxable vehicle weighing 55,000 pounds or more, right? Second, while the IRS recommends e-filing 2290s and we've emphasized that more than enough today. For all taxpayers, it's indeed mandatory, if you're that guy that's reporting the 10,000 trucks, but it's mandatory if you're reporting 25 or more vehicles. So using e-file, again, you can receive a watermarked Schedule 1 within minutes. You can review the list of participating commercial software providers. The link is available at the IRS Trucking Center, the Trucking Tax Center. You select the software provider that best meets your needs. The services offered and fees charged differ by each software provider. You must use one of the participating commercial software providers, follow the software prompts to complete, sign, and of course, e-file your return. You cannot e-file your Form 2290 on IRS.gov. Joe, why don't you take it from here and finish up some key points for us. Joseph McCarthy: Sure, Phil. The deadline for filing a full year 2290 is August 31. You can visit the Trucking Tax Center on the IRS website, and that is www.IRS.gov/trucker for a link to a chart showing the 2290 filing deadline chart. If any due date falls on a Saturday, Sunday or legal holiday, file by the next business day. And if you want more information on the Heavy Highway Vehicle Use Tax or information on e-filing 2290 and Schedule 1, go to the Trucking Tax Center on the IRS website. It has all the information that you need. Ley, let me turn it back to you. Ley Mills: Thanks, Joe.

Audience, we are planning additional webinars throughout the year. To register for an upcoming webinar, please visit IRS.gov, keyword search Webinars and select the "Webinars for Tax Practitioners" or "Webinars for Small Businesses." When appropriate, we will be offering certificates and CE credit for upcoming webinars. We invite you to visit the video portal at www.IRSVideos.gov. There you can view archived versions of our webinars. Continuing education credits or certificates of completion are not offered if you view an archived version of any of our webinars on the IRS video portal. Again, a big thanks to you, to Joe McCarthy, to Phil Yamalis and Joe Mazzuca, for an absolutely great webinar, sharing their expertise with us, and for staying on for answering the questions. I also want to thank you, our attendees, who are attending today's webinar, "Understanding Form 2290, Heavy Highway Vehicle Use Tax." If you attended today's webinar for at least 100 minutes after the official start time, you'll receive a certificate of completion that you can use with your credentialing organization for 2 possible CE credits. If you stayed on for at least 50 minutes from the official start time of the webinar, you'll qualify for 1 possible CE credit. Now, as I said before, the time that we spent chatting before the webinar started, that does not count towards that 50 or 100 minutes. If you're eligible for continuing education from the IRS and registered with your valid PTIN, your credit will be posted in your PTIN account. If you're eligible for continuing education from the California Tax Education Council, your credit will be posted to the CTEC account as well. If you registered through the Florida Institute of CPAs, your participating information will be provided directly to them. If you qualify and have not received your certificate and/or your credit by July the 22nd, visit us at CL.SL.Web.Conference.Team@IRS.gov. Now, to make it easier, the e-mail is also shown on the slide as well. If you're interested in finding out who your local Stakeholder Liaison is, you may send us an e-mail using the address shown on the slide. And we'll send you that information. We would appreciate it, if you would take a few minutes to complete a short evaluation before you exit. If you'd like to have more sessions like this one, let us know. If you have thoughts on how we can make them better, please let us know that also. If you have requests for future webinar topics or pertinent information that you'd like to see in an IRS Fact Sheet or a Tax Tip or a Frequently Asked Questions on IRS.gov, include your suggestions in the comment section of the survey. Click the Survey button on the screen to begin. If it doesn't come up, check to make sure you disabled your pop-up blocker. It has been a pleasure to be here with you all. And on behalf of the Internal Revenue Service and our presenters, we'd like to thank you for attending today's webinar. It's important for the IRS to stay connected with the tax professional community, with individual taxpayers, with industry associations along with federal, state and local government organizations. You make our job a lot easier by sharing the information that allows for proper tax reporting. Thank you again for taking time out of your day to attend the webinar. We hope you found the information helpful. You may exit the webinar at this time.