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KAREN RUSSELL: OK, I see it's the top of the hour. So for those of you just joining us welcome to today's webinar Understanding Form 2290 Heavy Highway Vehicle Use Tax and we're glad you're joining us today. My name is Karen Russell and I'm a Stakeholder Liaison with Internal Revenue Service and I am your moderator for today's webinar which is slated for 75 minutes. Before we begin if there is anyone in the audience that is with the media please send an email to the address on the slide. Be sure to include your contact information and the news publication you're with, our media relations and Stakeholder Liaison staff will assist you and answer any questions you may have. And as a reminder, this webinar will be recorded and posted to the IRS video portal in a few weeks. The portal is located at www.irsvideos.gov. Please note continuing education or certificates of completion are not offered if you view in our guided version of our webinars on the video portal. We hope you don't or won't experience any technology issues today but if you do; this slide shows helpful tips and reminders. We've posted technical help document you can download from the material section on the left side of your screen and it provides the minimum system requirements for viewing this webinar along with best practices and quick solutions. If you completed and passed your system check and you're still having problems, try one of the following. The first option is to close the screen when you're viewing the webinar and re-launch it, and the second option to click on the settings on your browser viewing screen and select HLS. Now, you should have received the presentation in a reminder email but if you didn't, we've got you covered, you don't need to worry, you can download the presentation by clicking on the materials button, or excuse me, yes, the materials dropdown arrow on the left side of your screen as shown on this slide. Closed captioning is available for today's presentation. If you're having trouble hearing the audio through your computer speakers, click the closed captioning dropdown arrow located on the left side of your screen and this feature will be available throughout the webinar. During the presentation, we will take a few breaks to share knowledge-based questions with you. At those times a polling style feature will pop up on your screen with a question and multiple-choice answers. Select the response you believe is correct by clicking on the radio button next to the selection and then clicking submit. Now some people may not get the polling question and that may be because you have your popup blocker on.

So please, take a moment to disable your popup blocker now so you can answer the questions. If you have a topic specific question today, please submit it by clicking the ask question dropdown arrow to reveal the textbook, type your question in the textbox and then click send. And we say this all the time, this is very important, please do not share any sensitive or taxpayer specific information when you're asking a question. I want to, again, welcome and thank you for joining us for today's webinar. Before we move along with our session, let me make sure you're in the right place. Today's webinar is: Understanding Form 2290: Heavy Highway Vehicle Use Tax. And the webinar is scheduled for approximately 75 minutes. And I'm going to introduce our fabuloso speakers today, we've got Joseph McCarthy and Philip Yamalis, they're both Senior Stakeholder Liaisons in the Communications and Liaison Division. Both work with tax professionals and small business owners in their respective areas providing outreach and education and identifying ways the agency can be more responsive to customer needs. And with that, I am going to turn it over to Joe to begin the presentation. So take it on Joe, it's all yours. JOSEPH "JOE" MCCARTHY: Thank you Karen. Today we'll be reviewing Form 2290 filing requirements, 2290 due dates, Form 2290 e-filing requirements, and Heavy Highway Vehicle Use Tax payment options. But before we jump into those topics, let me give you a quick overview of the Heavy Highway Vehicle Use Tax. The Heavy Highway Vehicle Use Tax is a federal excise tax which collects over $1 billion a year.

The taxes are collected go to the Department of Transportation's Highway trust fund which is used to finance most federal government spending on highways and mass transit projects. If you like more information or learn more about the highway trust fund, you can find more information on the link that is shown at the bottom of your slide. Now, let me turn over to my co-presenter Philip Yamalis. PHILIP "PHIL" YAMALIS: Thank you Joe McCarthy. I don't know if you heard Karen introduce us, but I think I heard her call us fabuloso, that's impressive because I don't know about fabuloso, that's a high title to work for, but let's go for it. So the Heavy Highway Vehicle Use Tax appears, applies to highway motor vehicles which includes any propelled, self-propelled vehicle design to carry load over the public highways. So these are typically tractor trailer trucks and buses used on public roads in the United States. The taxes assessed only on qualifying vehicles with a taxable gross weight of 55,000 pounds or more. RUSSELL: Philip, already I'm interrupting you. So, you just said that the Heavy Highway Vehicle Use Tax applies to highway motor vehicles used on public roads. Does the tax apply to vehicles that are not registered and are used strictly for off road purposes? YAMALIS: No. No. That's a great question Karen. And the tax does not apply to vehicles that are not registered and that are used strictly for off road purposes. For example, an unregistered highway tractor used only on job sites, that unregistered highway tractor is trailered from job site to job site, that would not be subject to the Heavy Highway Vehicle Use Tax. RUSSELL: OK. Good. Thank you for that clarification. And now you just mentioned the term taxable gross weight, is that the same as gross vehicle weight? YAMALIS: I indeed mentioned the term taxable gross weight and I emphasized the word taxable gross weight of 55,000 pounds or more. No, taxable gross weight is not the same as gross vehicle weight. Give me a chance and we'll get over this in the following slide.

But before we do that, let's make it easy for our attendees and go to our first polling question.

RUSSELL: Yes, let's do that. OK audience, our first polling question is, the Heavy Highway Vehicle Use Tax is based on the vehicle's taxable gross weight, applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more, applies to highway motor vehicles used on public roads, or D because those were A, B, and C, or D, all of the above? Take a minute to review the question and, again, click the radio button next to the answer, the one that you think is the answer. OK. The Heavy Highway Vehicle Use Tax is, I'm going to give you a countdown from five to zero and we're going to close out the polling, so here we go. Five, four, three, two, one. All right. Let's stop the polling and let's share the correct answer on the next slide. OK. And the correct answer is D, all of the above. So let's see how we did. Oh, we've got 75 percent accuracy rate. So you know Phil, if you'd like to do a little, give a little clarification, that would be great. YAMALIS: Yes. Karen, I could see here the answer is definitely all of the above. As we, as we pointed out in the first couple slides, the Heavy Highway Vehicle Use Tax is definitely based on a vehicle's taxable gross weight, taxable gross weight. I haven't got into all the specifics of that yet. We also know that it applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more and applies to highway motor vehicles used on public roads. So we covered that in the first two slides, all three of those items apply, that is the definition of the Heavy Highway Vehicle Use Tax and hopefully that clarifies it. RUSSELL: I'm sure did for the audience, they just needed a little, a little help there. All right Philip, it's still you, so. YAMALIS: All right. Well, then let's specify it just a little further. So, I talked about taxable gross vehicle weight, right? So to determine the vehicle's taxable gross weight for purposes of computing the Heavy Highway Vehicle Use Tax, you have to take the actual unloaded weight of the vehicle fully equipped for service and then the second bullet, the actual unloaded weight of any trailers or semitrailers fully equipped for service which are customarily used in combination with the vehicle. And to determine the vehicle's taxable gross weight for purposes of computing the Heavy Highway Vehicle Use Tax, you take the weight of the maximum load which is customarily carried on the vehicle and any trailers or semitrailers that are customarily used in combination with the vehicle. Add them together, that's the taxable gross weight of the vehicle. Remember, there can be a difference between the weight of the maximum load that's customarily carried on the vehicle which impacts the taxable vehicle weight and the maximum gross vehicle weight rating assigned by the manufacturer, right, which could always be most of the time which would be higher. So this is important because vehicles are taxed based on the taxable gross weight of the vehicle not the gross vehicle weight rating that is assigned by the manufacturer. So with Joe, let me turn it over to you to show us an example of an apportionment identification card.

MCCARTHY: OK. Thanks Phil. The way to clear for registering a vehicle in the state may affect the taxable gross weight used to figure the tax. Whether it is an International Registration Plan registration or IRP which requires a declaration of gross weight as a specific amount, the vehicle's taxable gross weight must also be no less than the highest gross weight declared for the vehicle in any state that the vehicle is a tractor trailer or a truck trailer combination, the taxable gross rate must be no less than the highest combined gross weight declared. On this sanitized example on this slide of an Illinois' International Registration Plan registration or an IRP registration, if you look closely you can see the weight declarations for each state the vehicle is proportionally registered. As such, the taxable gross weight would have to be at least 80,000 pounds, the highest gross weight declared for any vehicle in any state, the AB and BC shown on the slide are Alberta and British Colombia, which are a Canadian promises not part of the United States and are not considered US states. Phil, let me turn it back to you. YAMALIS: Thanks Joe. I was having some difficulty with my microphone here. As the International Registration Plan registration or IRP's highest listed gross weight used for the State of Illinois' registration purposes is 80,000 pounds. The 80,000-pound weight would be the taxable gross weight. As such, the taxable gross weight would fit in the Category V on the Form 2290, that's V as in Victor, sections of which are now being shown on the screen. The Category V is for vehicles with a taxable weight of over 75,000 pounds. RUSSELL: Phil. YAMALIS: Yes.

RUSSELL: It is I. Let's say you perform the taxable, let's say you perform the taxable gross weight computation calculation you previously discussed and that weight is higher from the weight listed on the International Registration Plan registration or IRP registration, which weight is used for 2290 purposes? YAMALIS: Yes. That's an excellent question Karen. So if the computed taxable gross weight is higher, OK, and you use that number, remember where there is an International Registration Plan registration or an IRP which requires a declaration of gross weight as a specific amount, the vehicle's taxable gross weight must be no less than the highest gross weight declared for the vehicle in any state. RUSSELL: Got it. Thank you for clarifying that point. YAMALIS: You got it. Let me turn over to Joe to go into this a little further and show the registration fees. MCCARTHY: All right. This slide shows a state schedule for our fiscal year registration fee or a vehicle registry, I'm sorry, vehicle registered on the basis of gross weight category. It shows the gross vehicle weight categories for the state registration purposes which is what we're going to focus on. In this example, the vehicle's taxable gross weight for 2290 filing purposes must fall within the highest gross weight category which the vehicle is registered in that state. And the taxpayer has requested a plate type V, their taxable gross weight must fall within 64,001 pound and 73,280-pound range. The taxpayer would use this weight, the taxable gross weight vehicle reported on Form 2290 based on the weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers customarily used in combination with the vehicle for state registration purposes.

Now, here's a closer look at the state registration V table based on gross weight category.

Again, if a taxpayer is requesting a plate type V, the taxable gross weight must fall within that 64,000 to 73,280-pound range which is highlighted on the screen. Now, as the state registration use a weight category that range from 64,001 through 73,280 pounds, the amount reported on the 2290 could fall anywhere between the 2290 categories K through T shown on the slide. Phil, would you like to discuss the taxable gross weight? YAMALIS: Sure Joe, let's go for it. So to determine the vehicle's taxable gross weight for purpose of computing the Heavy Highway Vehicle Use Tax on a vehicle registered only in a state or a state that based the registration on actual unloaded weight, you have to take first the actual unloaded weight of the vehicle fully equipped for service, the actual unloaded weight of any trailers or semitrailers fully equipped for service customarily used in combination with the vehicle, and then you also have to take the weight of the maximum load customarily carried on the vehicle or any trailers or semitrailers customarily used in combination with the vehicle. You add them together as I mentioned earlier, that's the taxable gross weight of the vehicle. So with that Karen, let me turn it over to you to go into our next polling question. RUSSELL: Certainly. OK. Our next, our second polling question is, what are the different methods of determining vehicle weight used in computing the Heavy Highway Vehicle Use Tax? Is it A, the International Registration Plan registration, IRP gross weight, specific gross weight? B, the state vehicle registration, gross vehicle weight category? C, the actual unloaded weight? Or D, all of the above? Take a moment, review the question, click the radio button that best answers the question. I'm going to give you a couple of seconds. I want to give you some time so that you can moll this over a little bit because we want a really good accuracy rate on this. OK. We're going to stop the polling and we'll share the answer, the correct answer on the next slide. And the correct answer is D, all of the above. The different methods of determining the vehicle weight using computed Heavy Highway Vehicle Use Tax are all of them. So, let's see here, we have a little bit better accuracy rate, we've gotten up to 78 percent. So Phil or Joe, if you guys would like to give any clarification that the audience may need that would be great. MCCARTHY: OK. I think that's probably one of the reasons people are getting this they might not be getting this answer correct is there's so many terms that sound exactly the same. But if you just remember that if you have an International Registration Plan registration, the state registration, gross vehicle weight, the actual unloaded weight, that is, those are, each one of those, the different method of determining the vehicle's taxable gross weight used when computing Heavy Highway Vehicle Use Tax. So don't get confused by all the terms, just going go through them one-by-one and you'll get to the right answer. RUSSELL: Excellent. Philip, do you want to add anything to that or did he pretty much explain it in a nutshell? YAMALIS: I think, I think Joe hit the nail right on the head. I mean, sometimes when we, when we over think these things, it really gets a bit confusion. So just follow the guidance and you should be OK. RUSSELL: Well we're going to turn it right back over to you Philip, so. YAMALIS: OK. Thanks Karen. Let's talk about an overview of the Heavy Highway Vehicle Use Tax now. So the Form 2290 must be file by the person whose name is on the vehicle's registration. The person whose name is on the vehicle registration is determined by state law. It's important to note that the name on the vehicle's registration may not be the owner of the vehicle though. So it's possible that the owner of the vehicle will not be the person filing the Form 2290 or paying the Heavy Highway Vehicle Use Tax. The taxpayer, the tax period for the Heavy Highway Vehicle Use Tax is usually July 1st through June 20th. And it covers the upcoming tax period with the remainder of the upcoming period if filed for a partial year. Form 2290 must be filed by the last day of the month following the month of first used. The taxes paid at the time the 2290 is due. The Heavy Highway Vehicle Use Tax is a graduated tax, the heavier the registered weight, the more the tax is owed. The Heavy Highway Vehicle Use Tax are full year ranges from $100 to $550 and the tax is prorated for partial years.

Joe, why don't we get into an example of how the 2290 filing due dates work and how they might change. MCCARTHY: OK. The chart on the screen now is a snapshot of the when to file Form 2290 chart which you will find in the 2290 instructions. As Philip mentioned, the filing season for filing Form 2290 filers is July 1st to June 30th. The Form 2290 must be filed by the end of the month following the month the vehicle was first used on a public highway during the taxable period. For example, if the vehicle is first put in to use in July of the taxable period, the Form 2290 must be filed between July 1st and August 31st. Even when the Form 2290 is filed for a partial year, the same rules apply. For example, if a vehicle is first put into use in October of the taxable period, the Form 2290 must be filed between October 1st and November 30th.

RUSSELL: Joe, I have a quick question. MCCARTHY: Sure Karen. RUSSELL: What if the Form 2290 filing due date false on a weekend or a holiday? MCCARTHY: That is a very good question. If that's the case Karen, then the return would need to be filed by the following or the next business day. RUSSELL: Okey-dokey, thank you. MCCARTHY: OK. So let me give you a few examples of filing due dates to explain how they work, in the first example, the vehicle's first use on a public highway during the tax period is February 15th 2019. So the Form 2290 covers only part of the year, February through June 30th. As the vehicle's first use on a public highway during the tax period occurred in February 2019, the 2290 would have been due by the end of the month following the vehicle's first use or March 31st. However, since March 31st fell on a Sunday, the due date would be April 1st. Use the partial period table found in the Form 2290 instructions to determine the amount of tax to report on Form 2290. Part one of Form 2290 figuring the tax will help taxpayers determine the vehicle's month of first use during the tax period. In the second example, the vehicle's first use on a public highway during the tax period occurred in July of 2019, however, since August 31st, 2019 fell on a Saturday, the due date is the next day that is not a Saturday, Sunday, or a legal holiday, and since September 1st fell on a Sunday, September 2nd was a legal holiday, and due to that date, the due date of the return was September 3rd. The amount of tax to report is shown on page two of Form 2290 under the annual tax column one. So remember, the Form 2290 must be filed by the end of the month following the month the vehicle was first used on a public highway during the taxable period.

RUSSELL: So to break it down and simplify it for the audience, the nuts and bolts are, the 2290 is always due by the end of the month following the month the vehicle was first used on a public highway during the tax period. MCCARTHY: Exactly, Karen. And with that, I think Phil, I'm going to turn it back over to you. YAMALIS: Sure. So here are your examples broken down on the Form 2290 Part 1 showing the month that the vehicles on the form were used on public roads. You could see on the slide that the first use was in February of 2019. As line one is modified to show 2019-02 instead of the customarily, the customary year of the 2290 of 2019-07. As such, the due date of the 2290 since we first put vehicles on the road in February of 2019 would have been March 31st, 2019, the following month, right? However, as Joe indicated, March 31st fell on a Sunday, so the due date now becomes Monday, April 1st. So remember, the Form 2290 must be filed again, by the end of the month following the month that the vehicle was used, first used on a public highway during the taxable period. Here's another example of the Form 2290 Part 1 showing that the month that the vehicle on the form were used on public roads. Now line one that the first use was in July of 2019, 2019-07. Such, the due date of the 2290 would have been August 31st, however, August 31st, 2019 fell on a Saturday, so the due date is the next day which is not a Saturday, Sunday or legal holiday, and September 1st fell on a Sunday, September 2nd was a legal holiday, and a lot of days in the way there, so the due date now becomes September 3rd. So remember, the Form 2290 not only must be filed by the end of the month following the month the vehicle is first used on a public highway, during the taxable period, that would be on the first business day following the weekend, Saturday, Sunday, and legal holidays. I hope I made that just a little clearer. Joe, take it away by stressing this even more. MCCARTHY: OK Phil, thanks. There are some other important points to remember when filing a Form 2290. The filing deadline is not tied to the vehicle registration. Let me repeat that, the filing deadline is not tied to the vehicle registration date. So, regardless of the vehicle's registration renewal date, taxpayers must file Form 2290 by the last day of the month following the month which the taxpayer first used the vehicle on a public highway during a taxable period. Karen, with that, I think it's time for our next polling question. RUSSELL: OK. So, the audience knows how this works. Our third polling question, hopefully, this is 100 percent accuracy, when should you file the Form 2290, by the end of the month following the month the vehicle was first used on a public highway during the tax period; by the end of the month the vehicle was first used on a public highway during the tax period; by the end of the year the vehicle was first used on a public highway during the tax period; or D, none of the above. Take a moment. Read the answers carefully then click the one that is the correct answer. Hit submit. I'm going to give you a few more seconds. OK. We're going to stop the polling and let's share the correct answer on the next slide, please. OK. The correct response is A, file the Form 2290 by the end of the month following the month the vehicle was first used on a public highway during the tax period. So, for a full year 2290 date, due date would be August 31st. Let's see how we have, 82 percent accuracy rate. We're getting better. We're getting better. Speakers, presenters, I'm not sure, do you want to do any additional clarification or are you good with 82 percent. YAMALIS: I'm going to blame it on computer gremlin because I think we repeated this about seven times that the 2290 has to be filed by the end of the month following the month the vehicle was first used on a public highway during the tax period. Joe, you would add to that? MCCARTHY: Well, I think I have a more optimistic view. I think the caffeine is finally kicking in and so the accuracy rate of the answers is going up. YAMALIS: Very good. RUSSELL: All right, Phil, I think it's your turn. You can take it away. YAMALIS: Fabuloso, Karen. Let's go ahead and take a look at what information you need to gather together to file the Form 2290. So the first thing you'll need or an Employer Identification Number of the EIN, right? You cannot use a Social Security Number when filing a Form 2290. You need an Employer Identification Number. You also need the Vehicle Identification Number also known as the VIN number, right, for each vehicle that you're reporting. And you'll need the famous Taxable Gross Weight of each vehicle. RUSSELL: Another question... YAMALIS: Those three items, hit me. RUSSELL: I'm sorry. OK. I can't. What of someone in our listening audience does not have an Employer Identification Number or EIN, we love our acronyms, what should they do? YAMALIS: Karen, there you go again asking another magnificent question. So, it is very well possible that you are driving a truck, you have a social security number, you don't already have an EIN. To get an EIN if you don't already have one, you simply go to our irs.gov website and apply for one. There's a magnificent form there that allows you to apply for one. It will take up to four weeks for your new EIN to be fully integrated into our systems. So, it's important to note that when you get your EIN, you want to use the name exactly as shown on your EIN application. The reason this is so important is that e-filed return will indeed reject if the name that the IRS has on record for your EIN does not exactly match the name on the e-filed Form 2290. This is called a name control mismatch. The name control for a business is the first four characters of your business name. If you use your own name rather than a business name, your name control will be the first four letters of your last name. But if your last name is fewer than four characters such as the name Jane Doe, the name control would be Doe, D-O-E. If you do have problems with name control, you can call the Business and Specialty Tax Line at 1-800-829-4933. Let me repeat that since that number is not on the slide. It's the Business and Specialty Tax Line which specializes on the Form 2290 and that number is 1-800-829-4933. Once you gather all the information you need to file the Form 2290 and the Form 2290 Schedule 1, you have to complete the Form 2290. So, to do so, you will input the filer's information, you'd indicate the type of return being filed, you figure the tax, you include a statement in support of suspension if that's applicable and we'll get into that in a moment, and finally, you sign the return. So, that's an overview of filing 2290.

Joe, you want to take the next slide and get into specifics? MCCARTHY: Absolutely, Phil. Part of filing Form 2290 includes completing the Form 2290 Schedule 1 which is the schedule of heavy highway vehicles. You are required to report each individual vehicle by its Vehicle Identification Number or VIN. You report both tax vehicles and tax suspended vehicles by VIN.

Those of you who might not be familiar with tax suspended vehicles, tax suspended vehicles, taxes suspended for trucks used 5,000 or fewer miles and for agricultural vehicles used for 7,500 or fewer miles on public highways. Again, this tax suspended mileage use limit means that the use of a vehicle on U.S. public highways is limited to 5,000 miles or less or 7,500 miles or less for agricultural vehicles. The mileage use limit applies to the total miles on the vehicle used during a period regardless of the number of owners. Now, I want to stop here for a moment and address a common mistake people make related to the Form 2290 as the Heavy Highway Vehicle Use tax return. The Heavy Highway Vehicle Use tax is assessed on the vehicle and that's why it's so important that you report each vehicle using the Vehicle Identification Number or VIN of each separate vehicle on the Form 2290. The Heavy Highway Vehicle Use Tax does not, I repeat, does not follow the name on the registration. For example, let's say you purchased a new truck and trade in the old truck, transfer the registration from the old truck to the new truck, you still have to file a Form 2290 for the new truck even though the registration of the vehicle from the old truck is transferred to the new truck. RUSSELL: I have a question. MCCARTHY: OK, Karen.

You have a lot of questions. RUSSELL: Thank you. I know, right? So, is the IRS receipted Form 2290 Schedule 1 the proof of payment needed to register a vehicle with the person's state Department of Motor Vehicles and that's why completing the Schedule 1 is so important?

MCCARTHY: That is right. An original or a copy of the IRS receipted Schedule 1 is generally needed to register a vehicle and we'll talk about how to get a stamped Schedule 1 in a minute.

So, here's the picture of the upper part of a Form 2290 Schedule 1. This is where you would input the Vehicle Identification Numbers and enter the category of the vehicle. Taxable vehicles are categorized A through V based on the vehicle's taxable weight and whether or not the vehicle is a logging vehicle. Separately, tax suspended vehicles are categorized as W. The different taxable vehicle weight categories are listed right on the Form 2290. With that, let me turn it over back to you, Phil. YAMALIS: Got it, Joe. Thanks. Double muted there. All right. Now, as it was previously states that an IRS receipted Form 2290 Schedule 1 is the proof of payment needed to register your vehicle with your state Department of Motor Vehicles, however, there's an exception to that requirement of having to present a receipted Schedule 1 to your state Department of Motor Vehicles in order to register your vehicle. So, it's called the 60-day rule. So, under this 60-day rule, state Department of Motor Vehicles may require new or used vehicle without a receipted Schedule 1 provided the original copy of the bill itself is presented to the Department of Motor Vehicles showing that the vehicle is acquired within 60 days of registering the vehicle. Now, this rule allows drivers to operate on the road immediately without having to wait for a receipted Schedule 1 from the IRS to provide the Department of Motor Vehicles. So, unfortunately folks, there are instances where we see that the 60-day rule creates problems for vehicle owners. The problem is that when vehicles are registered without using a receipted Form 2290 Schedule 1 as Karen indicated earlier, it's not uncommon for vehicle owners to forget to file the Form 2290 for the newly-purchased truck and pay the associated tax.

So, it's very important to remember that we register a vehicle without using Form 2290 Schedule 1 because of the 60-day rule, the Form 2290 must still be filed and the related tax must still be paid, OK? RUSSELL: Phil, what happens... YAMALIS: Yes, Karen? RUSSELL: What happens if the vehicle is registered in July, August or September? YAMALIS: Again, another great question. So, remember, there's a special rule for registration that occur during the months of July, August or September. If the state received your application for registration of your highway motor vehicle during the months if July, August or September, you may provide the immediately previous taxable period's receipted Schedule 1 that was returned to you by the IRS as proof of payment. So, remember, the file Form 2290 for the current period by the due date of the return. But during the months of July, August or September, you can use the previous year's Form 2290 Schedule 1. Continuing, you could file the Form 2290 in two ways you can e-file it or you can use what I call snail mail or regular U.S. postal service mail. We encourage everyone to e-file. Folks, it's indeed the preferred method but e-filing 2290s is required if you are reporting 25 or more vehicles. Look, I want to make it clear and I don't want to oversimplify this but the advantage of e-filing is so that you'll receive your IRS watermarked Schedule 1 within a few minutes instead of several weeks which allows you to immediately register the vehicle and immediately get on the road. Who doesn't want that? However, if you choose to paper file or snail mail and are mailing the return with or without the full payment, please use the appropriate mailing address listed on the Form 2290 instructions. Expect to receive your stamped Schedule 1 up to six weeks after the IRS receives your Form 2290. I do want to stress that with the current pandemic going on, that six weeks could turn into several more. So, again, take advantage of e-filing. It certainly speeds things up. Joe, why don't you go ahead and share why e-filing is better than paper filing just a bit more? MCCARTHY: Well, I certainly will, Phil. Now, I want to reemphasize that the main benefit of e-filing 2290s which is, that the IRS will provide you a stamped Schedule 1 within minutes of accepting your e-filed 2290. With paper file, as Phil mentioned, it can take up to six weeks and as Phil also mentioned, due to pandemic and the IRS campus closures, that six weeks might be optimistic. So, if you're looking to register a truck, you definitely want to e-file especially this year. When you e-file your Form 2290, the stamped or receipted Schedule 1 can be immediately presented to your state Department of Motor Vehicles in order to register your vehicle which allows you to get on the road a lot sooner. E-filing also saves you time especially when filing for multiple vehicles and, importantly, reduces errors that are commonly found on paper 2290s. And now, Karen, I think it's time for our last polling question. RUSSELL: It sure is. OK, audience, which of the following is not true, not true, when e-filing 2290, you'll receive your IRS watermarked Schedule within a few minutes, Schedule 1; you can pay your heavy highway vehicle use tax electronically; your heavy highway vehicle use tax is due when you file Form 2290; or when you e-file Form 2290, you'll receive your IRS watermarked Schedule 1 within six weeks. Which of those statements is not true? Take a minute to review the question. I'm going to give you a few more seconds. OK. Let's stop the polling and we'll share the correct answer on the next slide.

And the correct answer is D. D is not true because when you e-file your 2290, you receive your IRS watermarked Schedule 1within minutes, not within six weeks. Let's see what the accuracy rate is. And we are at 84 percent. That is fabulous. Thank you very much. So, Joe, how do you electronically file a Form 2290 and Schedule 1? MCCARTHY: Well, Karen, to find an e-file provider, visit the Trucking Tax Center and that's located at irs.gov/trucker which is shown on the screen and select e-file Form 2290. At this webpage, you can review the list of participating commercial software providers and select one that best meets your needs. The service offers and the fees charged differ by provider. And Internet search can also turn up 2290 e-file providers. Once you choose your 2290 e-file provider, follow the prompts to electronically file your 2290. Phil, why don't you take it from here? YAMALIS: OK, Joe.

Thanks. OK. So, you've e-filed your Form 2290. Now, let's talk about paying the heavy vehicle use tax. Sorry for the technical difficulties. I'm hearing some vibrating. I apologize about that. There are three ways to electronically pay. The slide shows the first two methods. The first method is through electronic funds withdrawal during the e-file process.

Again, it's safe, it's easy to use and the funds can be withdrawn from either your checking or savings account. Electronic funds withdrawal is probably the quickest and easiest way to pay Heavy Highway Vehicle Use Tax as you file your Form 2290. The second method is to use the Electronic Federal Tax Payment System otherwise known as EFTPS. EFTPS is, too, a safe and easy method to use. The added benefit of using EFTPS is that not only are you going to pay your Heavy Highway Vehicle Tax on it, you could pay other types of federal taxes through the EFTPS system as well. You need to be enrolled in EFTPS, however, to use it. So, if you aren't already, it takes about five to seven business days to open up a new EFTPS account. Keep that in mind when your Form 2290 due date is around the corner and payment, of course is right around the corner.

RUSSELL: OK. So, I'm sure that there are people in the audience that would love to know how to enroll in EFTPS. YAMALIS: Karen, I'm sure there are. The simplest thing, quickest way to enroll in EFTPS is by enrolling at the EFTPS website, not at the IRS website. So, I would encourage you to visit EFTPS at www.eftps.gov. There's a link for new enrollment. The alternative is that you could call the EFTPS customer service center at 1-800-555-4477 to request a paper enrollment form. Karen, let me repeat that number since you asked the question and it's not on the slide. The EFTPS customer service line is 1-800-555-4477 and that's where you can request an enrollment form if you don't do so at eftps.gov. There are also EFTPS phone numbers for the hearing-impaired and for Spanish speakers. But, again, the fastest and the easiest way to enroll in EFTPS is enrolling at the EFTPS website, www.eftps.gov. Now, of course, I say this, of course, very emphatically that you can also pay the heavy highway vehicle use tax the old fashion way by check or money order and you can send payment along with the Form 2290-V, the payment voucher to the address shown on this slide. For more information on all your payment options, folks, visit irs.gov and select the pay button. Now, there is a specific address for the Form 2290-V. It's indicated on this slide, the Louisville, Kentucky address that you see.

Please note that the IRS has temporarily suspended the ability for taxpayers to pay the tax due on Form 2290 returns using a credit card or debit card. Let me repeat that because it's important. The IRS has temporarily suspended the ability for taxpayers to pay the tax due on Form 2290 returns using a credit card or a debit card. The ability to make credit card and debit card payments for the tax due on Form 2290 returns is expected to resume this January 1st, 2021. So with that, Joe, can you take us to the next line? MCCARTHY: Sure. Now, I'm going to talk about two IRS legal opinions. The first legal opinion is an IRS Office of Chief Counsel Memorandum issued back in 2014 which concluded that a taxpayer may be eligible for a credit or a refund of the Heavy Highway Vehicle Use Tax if the taxpayer was approved for a state vehicle replacement incentive program and participated in a state vehicle replacement incentive program.

The IRS memorandum concluded that when a vehicle is replaced using a state vehicle replacement incentive program the replacement of a vehicle is considered as a sale of the vehicle for federal tax purposes. However, this specialized tax treatment applies only to vehicles replaced using a state vehicle replacement incentive program. RUSSELL: Joe, where can you find information on how to apply for a refund or credit for vehicles replaced using a state vehicle replacement incentive program? MCCARTHY: That's a good question. For information on how to file for a 2290 tax credit, that's credit, see the instructions Form 2290 for information on how to file for a 2290 tax refund, see, the instructions to Form 8849, again, that's for a refund, see, the instructions to Form 8849. Philip, I'm going to pass it back to you. YAMALIS: OK, Joe, thank you. Let me go ahead and cover the second IRS legal opinion, which comes from the IRS Office of Chief Counsel Memorandum shown at the top of the slide. It addresses the pretty common trucking situation. In cases where an owner-operator leases on with a carrier, if the vehicle is registered in the carrier's name, not the owner-operator's name, a carrier files Form 2290 and the carrier pays in the heavy highway vehicle use tax, if all those conditions are met, and the owner-operator and carrier terminate the lease during the taxable period covered by the 2290, and the owner-operator leases on with another carrier and vehicle registration is changed from the original carrier to the new carrier, and if that happened the IRS legal opinion holds that the original carrier is not entitled to any IRS credit or refund of the pro-rated amount of the pre-paid heavy highway vehicle use tax after the lease is terminated. That said, in these situations, the original carrier would generally charge back the owner-operator with a Heavy Highway Vehicle Use Tax, the IRS has no involvement with this chargeback. But the IRS legal opinion also concludes that when the owner-operator goes to re-register the vehicle in his name or in a carrier's name, the new carrier's name, during the remainder of the period still covered by the Form 2290, the owner-operator does not have to file a new 2290. They do not have to pay the heavy highway vehicle use tax for the remainder of the period still covered by the 2290.

Excuse me. That said, when the owner-operator goes to re-register the vehicle with the state department of motor vehicles, they'll have to show proof that the heavy highway vehicle use tax was paid on the vehicle. Generally speaking, the owner operator can do this by obtaining a copy of the schedule 1 from the original carrier presenting it to the state department of motor vehicles to rectify this. Joe, with that, I'm going to turn it over to you to give us some filing season tips to remember. MCCARTHY: Sure. So, since we're in the midst of the 2290 filing season, let me give you a few tips, number one, be sure to use the correct year's tax return. Number two, do not alter the tax period printed at the top of the Form 2290 or schedule 1. And finally, you can file a paper return now as July 2020 that has the July 2020 form 2290.

The instructions are available in irs.gov. However, even better, you can also e-file now as the 2290 e-filing season is now open and running. Again, when 2290 e-file season started on July 1st, you are required to e-file if you are reporting 25 vehicles or more on your Form 2290.

And you can pay the Heavy Highway Vehicle Use Tax using electronic funds withdrawal, the Electronic Federal Payment System commonly referred by its acronym, EFTPS or by check or money order. With that, let me turn it back to you, Phil. YAMALIS: Thanks, Joe. OK. Let's review some common 2290 resources that are available from the IRS. As Joe indicated earlier, we have the trucking tax center and Karen mentioned it in her opening remarks as well. The trucking tax center with its easy to remember internet address, irs.gov/truckers contains all the info that you need to file to Form 2290. RUSSELL: Philip, is the information also available in Spanish?

YAMALIS: Si, Karen. That means yes. Most irs.gov articles about the Heavy Highway Vehicle Use Tax are available in both English and Spanish, including the trucking tax center at the right top right of each English page of irs.gov. You'll see Espanol hotlink, if there is a Spanish counterpart. RUSSELL: Thank you. YAMALIS: de nada. There's also publication 4900, Karen, which is publication on e-filing and e-paying on Heavy Highway Vehicle Use Tax. That is also available in Spanish and there are the IRS help lines to help answer your questions. The help lines are available Monday through Friday, 8:00 AM to 6:00 PM Eastern Time, again, the hot help lines are listed on your slide. They are available Monday through Friday, 8:00 AM to 6:00 PM Eastern Time. And that's all I have, Karen, so with that, let me turn it over to you and perhaps we can get into our question and answer session. RUSSELL: Thank you so much. All right, everyone, again, it's me, Karen Russell and I'll be moderating the Q&A session. And before we start the Q&A session, I want to thank everyone for attending the presentation today, Understanding Form 2290, Heavy Highway Vehicle Use Tax. And early on, I mentioned we want to know what questions you have for our presenters and this is your opportunity. If you haven't input your questions, there is still time. Go ahead and click on the dropdown arrow next to the, Ask Question, field. Type in your question and click, Send. And Joe and Philip are staying on with us to answer your questions. And also joining us today for the Q&A session is Joe Mazzuca and he is an Internal Revenue Agent in our Small Business and Self-Employed Division and is our subject matter expert for excise taxes and the Form 2290. And then one thing before we start, we may not have time to answer all your questions, however, we will answer as many as time allows.

And if you're participating to earn a certificate and related continuing education credit, you will qualify for one credit by participating for at least 50 minutes from the official start time of this webinar, which means the first few minutes of chatting that I did before the top of the hour, those don't get included in that 50-minute computation, OK? So let's get started. And we'll get to as many questions as we can. So, let's get to the questions. Here we go. All right, Joe Mazzuca, I've got a question for you. After the initial filing of Form 2290, does the Form 2290 have to be filed for each year if the truck is still on the road? MCCARTHY: Karen, I think Joe is having some audio problems, so I'm going to go ahead and take that one for him. Every year, the, if you still own the motor vehicle, you're still going to have file a 2290 for that particular vehicle, again, based on the vehicle identification number. So this is an annual filing. Let's you buy a truck part-year, you have a part-year of 2290 the very first year you have it and in the second year, assuming you have it for the entire year, you'll file another 2290 for the subsequent year for the entire year. RUSSELL: Thank you, Joe McCarthy, I appreciate that. So you know what, Phil, I've got a question for you. YAMALIS: Let's do it.

RUSSELL: OK. The question is what, is everyone who drives a commercial truck required to file the 2290 whether they have 1 or 100 trucks? YAMALIS: Karen, you have to file the Form 2290 in Schedule 1 for the tax period as I mentioned earlier beginning on July 1st and ending on June 30th. If a taxpayer, if a taxable highway motor vehicle is registered or required to be registered in your name under date, District of Columbia, Canadian or Mexican law at the time of its first use during the period and the vehicle has a taxable gross weight of up to 55,000 pounds or more. So, if you only have to file Form 20, you only have to file Form 2290 if a highway motor vehicle is registered in your name and has taxable gross weight of 55,000 pounds or more, the requirement to file Form 2290 is not based on the number of vehicles or person or a company operates, so when they own a 100 or they own one the Form 2290 is required that meets those requirements. RUSSELL: Thank you so much, Philip. I appreciate that. So, I think Joe Mazzuca has resolved the technology issues. The audience are not the only ones that go through those.

So just, question. JOE MAZZUCA: Yes, I'm here. RUSSELL: Really? Good, good. MAZZUCA: Sure. RUSSELL: Can you explain further what a tax suspended vehicle is? MAZZUCA: Sure. So tax suspended vehicle is a taxable highway motor vehicle with a taxable gross weight of 55,000 pounds or greater, which is reasonably expected to be used 5,000 miles or less or 7,500 miles for agricultural vehicles on a U.S. public highway, then the tax is suspended during that particular taxable period. RUSSELL: OK. And then, so following, piggybacking on that, can a person that filed the 2290 actually claim a credit for a vehicle that they paid tax on but used it less than 5,000 miles. MAZZUCA: Yes. So, if the tax has been paid for a period and the vehicle has used 5,000 miles or less or 7,500 miles or less for agriculture vehicles, the person who paid the tax may make a claim for the credit, so if it's vehicles used 5,000 miles or less during the tax period or 7,500 miles or less for agricultural vehicles, a credit for tax paid can be claimed on the first Form 2290 filed for the next period. Likewise, a refund for tax paid can't be claimed, cannot be claimed in the Form 8849, Claimed for Refund of Excise Taxes until the end of the Form 2290 tax period. So, for example, if the tax is paid for the period July 1st, 2020 to June 30th of 2021 for a vehicle used 5,000 miles or less during the period, a credit on Form 2290 can't be claimed until after June 30th, 2021. RUSSELL: Got it. So, it has to go the full year. MAZZUCA: Right. RUSSELL: That the period covered is a full year, so that you actually know that it wasn't driven more than 5,000 miles. MAZZUCA: Right. RUSSELL: OK.

So. MAZZUCA: Yes, exactly, exactly. RUSSELL: OK. So, all right, more credits and refund questions. If a person sells a vehicle during the tax period for which the tax was paid, can they get a credit or a refund? MAZZUCA: Right. So, yes. Yes. So you can claim a credit on line 5, Form 2290 for tax paid of the vehicle that was sold before June 1st of the taxable period on the next Form 2290 filed or refunded tax spending claimed on Form 8049, Claimed for Refund of Excise Taxes and that's on Schedule Six of the Form 8849. RUSSELL: So, if they didn't want to wait, right, so if they didn't want to wait, they wanted to get the refund, they have to do 8849, but if they wanted to wait, they could get the credit on their following year 2290.

MAZZUCA: Yes. That's correct. RUSSELL: All right. So, one more question about credits. So if the owner filed a Form 2290 and paid tax on the vehicle, and the vehicle was in an accident and totaled during that same tax period that the tax was paid on, is there a partial refund of the taxes paid? How does that work? MAZZUCA: Yes. So, you can claim a credit on line 5 of Form 2290 for tax paid on a vehicle that was destroyed before June 1st of the taxable period on the next Form 2290 filed or refunded tax can be claimed in the Form 8849. So, we got to keep in mind, though, a vehicle is considered destroyed when so damaged by accident or other casualty is not economical to rebuild it, so if you take a look at Form 2290 line five instructions, it will give you how to compute the credit, compute the credit information required that needs to be submitted with that. MCCARTHY: Joe, can I just jump in there for a second? If the truck is replaced, there would be a 2290 filing and a tax payment that's associated with that. MAZZUCA: Sure. MCCARTHY: Is that not correct? MAZZUCA: Yes. MCCARTHY: Yes. RUSSELL: Good points both Joes. And I do want to apologize to the audience, we have been having some technology issues, audio issues and I apologize for that. I know, in particular where I am. I'm working remotely. We've got a really bad storm going on. It actually looks like there might be a tornado. So for me, I apologize and I apologize for the rest of our presenters if you guys are experiencing audio issues in the audience. But please do stay on, so that we can answer, we've still got a lot of questions to go through. We've got some time for them. So the next question, Joe Mazzuca, is since this is an annual form, if the truck was purchased, say a truck was purchased from a dealership and put it into use in April 2020, did we file a Form 2290, do they file the Form 2290 by May 31st, 2020 or wait to file it by July 1st, 2020? MAZZUCA: OK. So, I'm sorry, can you repeat the question again? RUSSELL: I sure can. So the 2290 is an annual form, what if somebody purchases a truck from a dealership and they put it into use in April, say, OK, so they bought a truck. They put in use April 2020. Do they need to file the 2290 by May 31st? Or can they wait to file it by July and not file it until July 1st? MAZZUCA: So, the vehicle was first used in what month again? It was used in what month, April or May?

RUSSELL: Purchased from the dealership and put into use in April. MAZZUCA: In April, OK, got you. So, April, so it's first used in April, so they were filed by the end of May, so they'd be paying a prorated amount of tax there, that would cover them for the month April, May, and June of that year. So they're paying a prorated amount of tax. So it's not the full year, just a prorated amount of tax. And in July of that, of July that year that if we reset the tax period then, so in July, if the vehicle is first used, first use occurs in July of that particular tax period then they're going to pay the appropriate amount of tax based on the taxable gross weight of the vehicle. RUSSELL: Yes. So, we'll have a partial period for when they first put the truck on the road and then they will do a full period, full year period when July rolls around as long as that vehicle still on, being used. MAZZUCA: Yes. Yes. And then we do some partial-period tax. RUSSELL: OK. MAZZUCA: Yes. We do some partial-period tax table on, so Form 2290 instructions has the partial-period tax table on page 13. Keep in mind there's two tables there. There is vehicles, except logging vehicles and then you've got logging vehicles.

So you want to make sure you're using the right table and that's the partial-period tax table.

RUSSELL: OK. And we are coming to the end of our Q&A session. I have time for one more question to ask you, Joe Mazzuca. MAZZUCA: Sure. RUSSELL: I was going to call you Joe Maz.

So, does the 55,000 taxable gross weight for the vehicle include both the tractor and the trailer as one unit? MAZZUCA: Yes, so as we covered a lot of, Joe and Philip covered a lot, the tax is based on the taxable gross weight of a heavy motor vehicle. So, we defined that throughout the presentation as the actual unloaded weight of vehicle fully equipped for service and then you've got the actual unloaded weight of any trailers or semitrailers fully equipped for service that are customarily used in combination with the vehicle, and, then we've got the weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers customarily used in combination with the vehicle. So, you're really looking at, when you look at that definition there and then you, how you register the vehicle in a state may affect the taxable gross weight used to figure the tax, so I know we covered that in great detail if you're registered with International Registration Plan, you use the highest weight declared in a state, if you're using a gross weight category between a certain range of weight, then your taxable gross weight is going to be based on the maximum load customarily carried, so it's a matter of looking at weight tickets in determining what's my, what's our maximum load. So if you're at between 63,000 pounds and 72,000 pounds as the gross weight category you may not always carry 72,000 pounds. That may not be the maximum load customarily carried. You might be somewhere in between that weight based on what you normally would customarily carry the maximum load. So just keep it in mind when you're looking at taxable gross weight for gross weight category registration. IRP is pretty much locked in. It says, we covered that rule before but IRP is pretty much locked in to the highest weight declared in any state. RUSSELL: OK. Thank you.

Thank you for that. And that's all the time that we have for questions. So I want to thank Joe Mazzuca, Philip, and Joe McCarthy for sharing their knowledge and expertise and for answering the questions that we could that came in. And before we close out, Philip, what key points do you want the attendees to remember from today's webinar? YAMALIS: Thanks, Karen. We always have key points that we want you to take home with you. First, we encourage you to file Form 2290 and pay heavy highway vehicle use tax for each taxable vehicle you own, weighing 55,000 pounds or more. While the Internal Revenue Service recommends e-filing 2290s for all taxpayers, indeed, it would be mandatory if you are reporting 25 or more vehicles, OK? Using e-file, you can, of course, receive the watermark Schedule 1 within minutes. You can review the list of participating commercial software providers. The link is available from the IRS Trucking Center and irs.gov/trucking. And you select the software provided that best meets your need. Services offered and fees charged differ by the software provider, so you must use one of the participating commercial software providers, all of the software prompts to complete, sign, and, of course, e-file your return. You cannot e-file Form 2290 on irs.gov. Joe, do you want to finish up with your key points? MCCARTHY: Sure. The deadline for filing a full year 2290 is August 31st. Now, you want to visit the trucking tax center that's at irs.gov/trucker where it will link to a chart showing the 2290 filing deadline chart. If you have or any due date falls on a Saturday, Sunday or legal holiday, file by the next business day and if you want to more information on the heavy highway vehicle use tax, more information on e-filing 2290 and Schedule 1, go to the trucking tax center on the IRS website. It has all the information that you need.

Karen, with that, let me turn it back to you. RUSSELL: Thanks, Mr. McCarthy. So, audience, we are planning additional webinars throughout the year. To register for an upcoming webinar, visit irs.gov, keyword search, webinars and select Webinars for Tax Practitioners or Webinars for Small Businesses. When appropriate, we will offer certificate and CE credit for those webinars.

And we invite you to visit our video portal at www.irs.videos.gov and you can view archived versions of our webinars and, again, continuing education or certificates of completion are not offered if you view an archived version on the video portal. Again, a big thank you to Joseph McCarthy, Philip Yamalis, and Joe Mazzuca for a great webinar and sharing their expertise and experience with us and staying on to answer your questions. And I also want to thank you, our audience, our attendees for attending the webinar, Understanding Form 2290 Heavy Highway Vehicle Use Tax. So if you did attend today's webinar for at least 50 minutes from the official start time of the webinar, you will qualify for one possible CPE credit. Again, the time we spent chatting before the webinar doesn't count towards the 50 minutes. If you're eligible for continuing education from the IRS and you registered using your valid PTIN, your credit will be posted to your PTIN account. If you are eligible for continuing education from the California Tax Education Council, your credit will be posted to your CTEC account and if you registered through the Board Institute of CPA, your participation information is provided directly to the FICPA. If you qualified and haven't received your certificate by August 13th, please email us, email us at the email shown on the slide, CL.SL.Web.Conference.Team@IRS.gov. And if you're interested in finding out who your local Stakeholder Liaison is, you can send an email to that address as well and we'll get that information to you. Now, we would appreciate it if you would take a couple of minutes to do a short evaluation before you exit. If you would like to have more sessions like this one or you have thoughts on how to make them better or you want a Tax Tip added to IRS.gov or a Factsheet or an FAQ on IRS.gov. Include that, those suggestions in the comment survey and if the button doesn't work or it doesn't pop-up, please make sure your pop-up blocker is disabled. It's been a pleasure to be with you today. And on behalf of the IRS. I want to thank you, our presenters, and we appreciate that you attended. It's important for us to stay connected with the tax professional community, individual taxpayers, and your industry associations, government organizations because you make our jobs a lot easier by sharing the information that allows for proper tax reporting. Thank you, again, for your time and attendance.

We wish you much success in your business or practice and you may exit the webinar now.