Tax Form 2290 - A Quick Introduction Before You PayMarina Smith
August 14, 2012 — 1,386 views
Tax season is among the most dreaded times for businesses. If you have a firm involved in owning a fleet of trucks, now might be the time to know about the tax form 2290.
How important is tax form 2290?
If you drive a vehicle, you've probably experienced the ups and downs of highway use. Highways can sometimes be in good condition and at other times in bad shape. Such things happen as certain roads degrade due to the large amount of vehicles passing through it on a daily basis. In theory, more heavy vehicles passing on roads imply more weight put on pavements. Weight increases the natural wear and tear and inevitable destruction of highways.
The tax form 2290 retains structural integrity of highways by providing the government proper funding for road maintenance. Part of the funds would go to fixing certain areas with potholes or cracks. Others may go to looking at road safety to figure out if repairs should be made. Overall, it will help highways become safer for everyone.
Should everyone be paying form 2290?
No, not everybody is going to be paying it. The tax's more known name is Heavy Highway Vehicle Tax. Only businesses utilizing heavy vehicles for commercial purposes, like trucks, will have to pay it. Included in this are those involved in delivering all sorts of goods. You don't need to pay for it if the business only uses sedans or compact cars.
Are there possible exemptions?
Yes, there are numerous exemptions. The first batch of exemptions is for government entities and charitable institutions. Trucks and other heavy vehicles used by the government won't require filing. Included in this are emergency medical vehicles and fire trucks. Exactly the same also is true for heavy vehicles used in charity or volunteer work. This means trucks used for food relief missions are exempted from paying. This exemption also will apply even if these vehicles go over 5,500 miles annually.
The second exemption is for vehicles used in agriculture. People that own vehicles for agricultural purposes might also make an application for exemptions. Trucks delivering agricultural goods are exempt if they run less than 7,500 miles.
How should a business owner submit form 2290?
There are three ways of doing it: do-it-yourself (DIY) filing, law firm filing, and tax specialist filing. While DIY filing might sound tempting, this option can have you worrying over many things while you run out of time. Obtaining papers for submission can easily already take time. Add to this the complicated filing procedure. You may also face penalties if you submit late.
Filing through law firms might sound ideal but this would cost more. Lawyers can charge fees by the hour and you will be looking at shelling out a great deal. You may be looking at paying hundreds of dollars in the process just to get everything right.
Tax specialist filing may be the best option, since it gives you less hassle and cost. With a tax specialist company to assist you, you have competent assistance at your side. They do the legwork to assemble all papers and file them with the Internal Revenue System (IRS). The best part is you pay only a fraction of what you might be paying a law firm.
Tax form 2290 filing is very important, and the earlier you do it, the better. If you want more time to weigh all options, search the net and read more.