Buying the Truck Means Owing the Tax

• The purchase of a new truck makes the buyer liable for paying federal excise tax. The amount of the tax liability is added to the purchase price of the truck. The Internal Revenue Service requires the dealer to collect the tax from the purchaser and send the tax forms and tax payment to the IRS on behalf of the purchaser.
  
  

Definition of a Heavy Vehicle

• Heavy vehicles that use public highways must also pay a yearly federal tax. The IRS defines heavy vehicles as trucks, trailers and buses with a gross vehicle weight of 55,000 pounds or more. Gross Vehicle Weight includes the total weight of a loaded truck in addition to any trailer it might be pulling.
  
  

When to File the Form 2290 Return

• IRS Form 2290 is used to pay the Heavy Highway Use Tax. The form is filed yearly and must be filed for each truck owned. The tax year for the Heavy Highway Vehicle Use Tax begins July 1 and runs through June 30 of the following year. The tax must be paid at the beginning of the tax year and the Form 2290 return must be filed by Aug. 31.
  
  

Taxes on Mid-year Heavy Vehicle Purchases

• Form 2290 makes provisions for heavy vehicles purchases in the midst of the tax year. The Instructions for Form 2290 contains a Table I that lets users compute a pro-rated tax amount from the first month of use until the end of June. Form 2290 would be due by the end of the month following the month the heavy vehicle entered service.
  
  

Paying the Heavy Highway Use Tax

• The Heavy Highway Use Tax must be paid in full with the return or in equal installments. However, installments are available only if the return is filed and the installments paid in a timely manner. The first installment payment must be sent with the return. The IRS mails notices to let the taxpayer know when the other installment payments are due.