Tax Credit For 2290 Heavy Vehicle Use Tax
If you are paying the heavy use tax ( IRS Form 2290 PDF ) in 2006 and plan to sell your truck during the tax period, you’ll have a pleasant surprise starting this year. You can apply for a credit when you sell the truck- meaning you’ll get a pro-rated portion of the tax back.
In previous years, you had to pay the $550 tax and if you sold your truck during the tax period, you did not get anything back. You could provide the form to the person you sold the truck to so that they didn’t have to pay the tax in addition to what you already paid. But once you paid the tax, your money was gone.
Now if you sell your truck, you can apply for a credit on the money you paid out. This also applies to trucks that were destroyed in a wreck or that were stolen. This policy is in effect for the tax period of July 1, 2006 to June 30, 2007. It does not apply to trucks sold, destroyed or stolen prior to July 1, 2006.
You cannot apply for a credit until after June 30, 2007, on trucks sold during the current tax period. The IRS is certainly not going to remind you about it, so, if you are due a refund, don’t forget to file. You will need IRS form 8849 ( IRS Form 8849 PDF ) and 8849 Schedule 6 ( IRS Form 8849 Schedule 6 PDF ) to claim a credit.
The instructions for filing for the credit and figuring the amount owed is found on page 5 of the 2006 instructions( IRS Instructions for 2290 PDF ).
To make it easier, the owner of a category V truck (75,000 lbs or more registered weight) that was in service during the month of:
July only will have a $504.17 credit owed.
July and August only will have a $458.33 credit owed.
July, August and September only will have a $412.50 credit owed.
July, August, September and October only will have a $366.67 credit owed.
July, August, September, October and November only will have a $320.83 credit owed.
July, August, September, October, November and December only will have a $275.00 credit owed.
July, August, September, October, November, December and January only will have a $229.17 credit owed.
July, August, September, October, November, December, January and February only will have a $183.33 credit owed.
July, August, September, October, November, December, January, February and March only will have a $137.50 credit owed.
July, August, September, October, November, December, January, February, March and April only will have a $91.67 credit owed.
July, August, September, October, November, December, January,February, March, April and May only will have a $45.83 credit owed.
For more information, call the IRS at 866-699-4096 or go to your local office. Click here for Local IRS office information.
Other points to remember about the 2290 Heavy Use Tax. The tax is due the next month after the truck is put in service. For trucks on the road in July 2006, the tax is due by August 31, 2006. For trucks that aren’t put into service until sometime in the month of August, 2006, the tax is due by Sept 30, 2006. And So forth. Also, the tax is pro-rated for trucks that are not in service for the full tax period. The details on the pro-rated tax are in the 2290 instructions. The tax must be paid in full and on time or you will be assessed penalties and interest.
