Heavy gravers of 55,000 pounds and above are entrusted with seeking the IRS Form 2290 as a crucial requirement for practice. Although the use of the form is commonly with regard to the Heavy vehicle use tax (HVUT) which is a form of tax paid, it also provides for some special use categories. Such categories allow for either tax relief or reduced rates of tax on vehicles designed for certain purposes or used to a limited extent. Having this knowledge of the special categories is necessary to enhance efficient filing and remove the chances of tax overpayment.

Exemptions for Agricultural Vehicles

Vehicles that serve the purpose of agriculture are commonly noticed under one of the special use categories. Vehicles of this kind do not normally pay HVUT as long as they do not exceed 7500 miles a year. These are the kinds of vehicles that are used on farms for the sole purpose of moving products, machinery, or supplies. Such kinds of vehicles have managers who are obliged to adhere to the mileage restriction and ensure reporting is accurate in order to be granted the exemption which is recorded under category “Suspended” of IRS form 2290.

Reduced Taxes for Logging Vehicles

The other notable category consists of vehicles that are designed specifically for the transportation of wood products ranging from logs to wood chips. Loggers’ vehicles have a lower rate of tax for the HVUT since they have a special covenanted use.

It is a requirement that these types of vehicles are only used on public roadways for the purpose of transporting timber that has already been felled or other such materials. In this case, the owner has to specify the relevant type of logging vehicle in Form 2290 to be charged the lower levy.

Special Provisions for Low-Mileage and Exempt Vehicles

In Form 2290, provisions are made for vehicles that are classified as non agricultural and use general fuel for 5000 miles or less, or are non agricultural vessels exempt by law. Non-agricultural devices owned by the government, non-profit organizations or Indian tribes and governments are some of the devices that are not taxed. Such vehicles are classified as "Suspended,” thus, owners can complete the form without the risk of paying taxes. For this reason, it might suffice to state that sightings should be taken with due diligence so as not to exceed the threshold set out which may result in penalties or additional taxes.

These special use categories help the truck owners to be able to file their taxes in the correct way and to ensure that compliance with the IRS regulations is met. Do not hesitate to check the Form 2290 instructions or a tax advisor to make sure that such exemptions and reduced rates apply.

Note: For more information, visit IRS website