The Heavy Highway Vehicle Use Tax, filed on IRS Form 2290 annually, is a major compliance requirement among commercial trucking businesses. Yet, not all heavy vehicles on the road have to pay the tax. The IRS has a specific exemption, called a tax suspension, for those vehicles that do not meet a certain threshold of use.

The Commercial Vehicle Mileage Limit for Tax Suspension

Electronic filing of Form 2290 also allows for easier recordkeeping. With paper filing, you

A suspension of the tax, for the tax period beginning on July 1st and ending the following year on June 30th, can be correctly claimed only if the heavy highway motor vehicle is used with a public highway mileage less than the mileage use limit.

The mileage limit for most commercial highway vehicles is:

5,000 miles or less.

This is a basic IRS rule every taxpayer submitting Form 2290 should know: If you expect your vehicle to be used under this limit for the whole tax period, you must file Form 2290, check the box for the suspension, but no tax is due.

Special Limit for Agricultural Vehicles

Electronic filing of Form 2290 also allows for easier recordkeeping. With paper filing, you

There is a separate mileage use limit that is higher for those vehicles that qualify as agricultural vehicles.

Agricultural vehicles have a mileage use limit of 7,500 miles or less.

It has to be registered as an agricultural vehicle as per the state law and used principally for farming purposes to qualify for this extended tax suspension.

Takeaways for HVUT Suspension

Electronic filing of Form 2290 also allows for easier recordkeeping. With paper filing, you To be fully compliant with your Form 2290 filing and to maximize your tax savings, remember the following key points:

• Tax Suspension: The particular exemption from paying the HVUT due to low mileage.
• Mileage Use Limit: The maximum distance a commercial vehicle can travel before the HVUT is due, which is 5,000 miles.
• Form 2290 is the form filed with the IRS to report and pay the Heavy Highway Vehicle Use Tax and to claim tax suspension.
• Tax Period: HVUT is filed on an annual basis for the period beginning July 1 and ending June 30.
• Taxable Gross Weight: To fall under the HVUT in the first place, vehicles must have a gross weight of 55,000 pounds or more.
• E-file: The recommended, fastest, and most accurate way to file Form 2290 and get the stamped Schedule 1.

Note: For more information, visit IRS website