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BRIAN WOZNIAK: So, I see we're right at the top of the hour and let's get started. Welcome to today's webinar entitled "Understanding Form 2290 Heavy Highway Vehicle Use Tax." And we're glad you're joining us. My name is Brian Wozniak , I am a Stakeholder Liaison with the Internal Revenue Service and I will be your moderator for today's webinar which is slated for 60 minutes.

And before we begin, if we have anyone in the audience with the media, please send an email message to the address listed at the bottom of this slide and be sure to include your contact information and the news publication you're with. And then our Media Relations and Stakeholder Liaison staff can assist 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 and the IRS Video Portal is located at www.irsvideos.gov. Technology problems, in case you do experience a technology issue, this slide shows some helpful tips and reminders. We posted a technical help document that you can download from the Materials button on the left side of your screen and it provides the minimum system requirements for viewing this webinar along with some best practices and quick solutions. Now, if you have completed and passed your system check and you are still having problems, then try one of the following: the first option is to close the screen where you're viewing the webinar and re-launch it. And the second option is to click on the gear icon. Now, some of you may not see that gear icon, it depends on your web browser, but if you do have it, the gear icon will be in the top right corner of the slide in photo boxes. When you click it, you'll be given two choices, select Flash instead of HLS from the available media box. We hope you received today's PowerPoint in the reminder email, but if not, you can download it by clicking on the Materials button and that Materials button is located 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, please click the CC button on the left side of your screen and this feature will be available throughout the webinar.

During the presentation, we're going to take a few breaks to share knowledge-based questions with you. And that 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 your selection and then click submit. If you do not get the pop-up box for responding to the questions, then please enter your response timely in the ask questions feature so that we can track your participation in today's event. And if you have a topic-specific question today, please submit it by clicking on the Ask Question button. Simply enter your question in the text box and click submit. And please, I cannot emphasize this enough, do not enter any sensitive or taxpayer-specific information. So, moving right along with our session, let me introduce today's speakers. Joseph McCarthy and Philip Yamalis, our Senior Stakeholder Liaisons in the Communication and Liaison Division, there is no time like the present to get things started, so I'm going to turn it over to you Joe to begin the presentation. Joe. MCCARTHY: Well thanks, Brian, and welcome everyone to today's webinar on "Understanding Form 2290: The Heavy Highway Vehicle and Use Tax." Let's take a look at some of the topics we'll be covering during today's webinar. Today, we'll be reviewing Form 2290 filing requirements, Form 2290 due dates, and Form 2290 e-filling requirements. But separate from that, we'll also be discussing Form 720 filing requirements related to the 12% retail tax on imported heavy vehicles. But before we jump in to 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 that 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. In calendar year 2018, approximately 923,000 Forms 2290 were filed. In addition, 71% of those Forms 2290 were electronically filed, representing 2.9 million taxable vehicles. If you'd like to learn more or get more information about the highway trust fund, you can find more information at the link that is shown at the bottom of this slide. The Heavy Highway Vehicle Use Tax applies to highway vehicles, which includes self-propelled vehicles designed to carry a load over public highways. These are typically tractors, trucks, and buses used on public roads in the United States. The Heavy Highway Vehicle Use Tax falls under Internal Revenue Code Section 4481, again, that's 4-4-8-1.

The tax is assessed only on qualified vehicles with a taxable gross vehicle weight of 55,000 pounds or more. The tax is based on the weight of the vehicle as registered for state purposes assuming the state requires a gross vehicle weight rating or GVWR which is usually listed on the door pillar of the driver side of the vehicle. The person who is liable for the Heavy Highway Vehicle Use Tax is determined by the name listed on the vehicle registration. And just so you know, the registrant does not have to be the owner of the vehicle. WOZNIAK: And pardon me just a moment Joe, you said that the highway or excuse me, the Heavy Highway Vehicle Use Tax applies to highway vehicles used on public roads. And the question is, does the tax apply to vehicles that are not registered and are used strictly for off road purposes? MCCARTHY: No, Brian, they do not. The tax does not apply to vehicles that are not registered and are used strictly for off-road purposes. For example, an unregistered dump truck that is used only on job sites that it's trailered from job site to job site would not be subject to the Heavy Highway Vehicle Use Tax. Does that answer your question? WOZNIAK: Yes, it did. Thanks. MCCARTHY: OK. The tax period for the Heavy Highway Vehicle Use Tax is July 1st through June 30th and covers the upcoming tax period or the remainder of the upcoming period if filed for partial year. Form 2290 must be filed by the last day of the month following the month of first use. This tax is paid at the time at the time the 2290 is due. The Heavy Highway Vehicle Use Tax is a graduated tax. The heavier the registered weight, the more tax is owed. The annual Heavy Highway Vehicle Use Tax for a full year ranges from $100 to $550 and the tax is prorated for partial years. OK.

I think it's time for our first polling question, Brian, take it away. WOZNIAK: Good. Thanks, Joe. Our first polling question is cued up on the screen for you and it is, the Heavy Highway Vehicle Use Tax is, A, imposed by IRC, Internal Revenue Code Section 4481, B, applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more, C, has a tax period of July 1st through June 30th, or D, all of the above. So audience, please take a minute, review the question again, and then click on the radio button you believe most closely answers this question. And we're going to give everyone just another second or two to make your selection.

So go ahead, select your answer and click submit. And I think we're okay. So let's go ahead, we're going to stop the polling now and we will share the correct answer on the next slide, and the correct answer is D, all of the above. The Heavy Highway Vehicle Use Tax is imposed by IRC Section 4481, it does apply to highway motor vehicles with a taxable gross weight of 55,000 or more, and it does have a tax period of July 1st through June 30th. Going to take a look at how our audience did and I see that 97% of you responded correctly, and that's a great correct response rate. So, let me turn it over to you, Philip, to discuss filing and paying of the Form 2290. YAMALIS: Thank you Brian. Happy to be here today. As Joe mentioned, the filing season for Form 2290 filers is July 1st through June 30th. Now you'll need to file the form in the month that the taxable vehicle is first used on public highways during the reporting period. For example, if the vehicle was first used on a public highway in July, then Form 2290 has to be filed between July 1st and August 31st. Now this chart is a snapshot of the when to file Form 2290 chart which you can find when you visit our trucking tax center which is irs.gov/trucker.

Now the chart is pretty cut and dry, it's just your basic if then scenario. WOZNIAK: And Philip, another quick question for you, what if the 2290 filing due date falls on a weekend or holiday? YAMALIS: That's a great question Brian. Now if that's the case, then the return would need to be filed by the next business day. For example, this year in 2019, the due date would be Tuesday, September 3rd since August 31st is a Saturday, Labor Day is Monday, September 2nd, a holiday, so we go to the next day, Tuesday, September 3rd. Does that answer your question, Brian? WOZNIAK: It does. Thanks, Philip. YAMALIS: Awesome. So let's take a look at what you need to gather in order to file Form 2290. Step one, you'll need an Employer Identification Number. I emphasize that you cannot use a Social Security Number. Second, you'll need your Vehicle Identification Number otherwise known as a VIN for each vehicle that you will be reporting on the Form 2290 and then you'll need the taxable gross weight of each vehicle. You'll need to check the table 2 of the Form 2290 to calculate the tax based on each vehicle's taxable gross weight. WOZNIAK: And Philip, we have another question, I'll just jump right into it. What if someone in our listening audience does not have an Employer Identification Number or EIN, what should they do? YAMALIS: Well, if someone doesn't already have an EIN, you can go to irs.gov and apply for one. It really is pretty simple, it takes about two weeks for a new EIN to be established in our system. Now, when you get your EIN, you'll use the same exact name on your Form 2290 as was assigned to you with your EIN. Now, your name control on the Form 2290 must exactly match your EIN. Just a note about IRS name controls, now if you applied for the EIN using a business name, the name control for the business is the first four characters of your business name. If you use your own name rather than a business name, then your name control is the last four letters I'm sorry, it's the first four letters of your last name. So if your last name has fewer than four characters such as Jane Doe, then the name control would be D-O-E, the first three letters of Doe. WOZNIAK: OK. Thanks for that explanation. YAMALIS: Oh, you're quite welcome, Brian. You bet. Let's talk next about how you can file Form 2290. So there are two ways to file the form, you either e-file it or the old fashioned way, snail mail. We encourage everyone to e-file, in fact, it is the preferred method today. However, e-filing 2290s is required if you're reporting 25 or more vehicles. Now the advantage of e-file is that you'll receive your IRS watermark Schedule 1 within a few minutes and who wouldn't want that?

Now if you choose to paper file the return and you're mailing the return with or without full payment, we ask that you use the appropriate mailing address which is listed in the Form 2290 instructions. Then you should expect to receive your stamped Schedule 1 within approximately six weeks after we received your Form 2290. WOZNIAK: And Philip, we have another question for you because, of course, we want everyone to be really knowledgeable after this webinar. So the IRS wants everyone to electronically file the e-file. So how would our audience members go about finding a Form 2290 e-File Provider? YAMALIS: That's a really great question, Brian. To find an e-file Provider, simply visit the Trucking Tax Center at irs.gov/trucker and select e-file Form 2290. At that point, you can review the list of participating commercial software providers and select the one that best meets your needs. The services offered and the fees charged differ by each provider on the list. WOZNIAK: OK. That's good to know. What next Phil? YAMALIS: What next? We're going to talk about paying the Heavy Highway Vehicle Use Tax.

So there are three ways to electronically pay the tax. Now, this slide shows us the first two methods. First, we have Electronic Funds Withdrawal during the e-file process. It's safe, it's easy, and the funds can be withdrawn from either your checking or savings account. Second, we have the Electronic Federal Tax Payment System also known as EFTPS. EFTPS as well is safe and easy to use, and you can not only pay the Form 2290 tax, but you could pay other federal taxes through this system as well. Now you need to be enrolled in EFTPS to use it which if you aren't already, it takes about five to seven business days to become enrolled. So do keep that in mind when your Form 2290 due date and payment are right around the corner. WOZNIAK: OK, Philip, you know I'm going to ask it. YAMALIS: Oh, I know you're going to ask and I know exactly what you're going to ask. WOZNIAK: OK. So how do you enroll in EFTPS? YAMALIS: Brian, I knew you were going to ask it. Here it is, so to enroll in EFTPs or for more information on enrollment, simply visit eftps@eftps.gov or you can call the EFTPS customer service phone number to request an enrollment form, that number is 1-800-555-4477. Again, that number 1-800-555-4477. Now, there's a third method for paying your Form 2290, and the third method is new as of last year, 2018. You can also pay the tax now with your credit card or debit card using the internet, your phone, or another mobile device whenever you e-file or if you file by paper. Filing this or paying this way, it's safe and secure, the IRS uses standard service providers and business commercial card networks and your information is used solely to process your payment. Additionally, as you see on this next slide, no part of the service fee goes to the Internal Revenue Service when using a service provider. Simply visit irs.gov and select pay for more information on paying via credit or debit card. Now, of course, you can also pay the Heavy Highway Vehicle Use Tax the old fashioned way and that's simply by writing a check or money order. Now, you would send payment along with the payment voucher to the address shown on this slide in Louisville, Kentucky. Now, for more information on all types of payments, visit irs.gov and select the pay button on the homepage. Now, as we mentioned earlier and I would like to reemphasize it now, if you are reporting 25 or more vehicles on your Form 2290, you must e-file, it's not a choice. The definition of 25 or more vehicles will not include any vehicles for which you're claiming a suspension of tax and Joe will get into that suspension of tax in just a little bit. WOZNIAK: And pardon me again, Philip, but why are we pushing e-file? Why is this so important? YAMALIS: Well, Brian, as you know, the major advantage of e-filing versus filing by paper is that first of all, as I mentioned earlier, you get your IRS watermarked Schedule 1 within minutes rather than waiting six weeks to receive it in the mail. WOZNIAK: That's a quick turnaround.

YAMALIS: Yes, it is. It is definitely a quick turnaround. Brian, we'll get into more advantages of electronically filing in just a little bit. Now, let me turn it back to you for the next polling question. WOZNIAK: OK Phil, and here it is. So based on the information Philip just shared, which of the following statements is not true? And we see the questions cued up on the screen. So, again, which of the following statements is not true? A, you are required to file Form 2290 for vehicles weighing 55,000 pounds or more, B, an Employer ID Number is required to file Form 2290, C, you can only pay the Heavy Highway Vehicle Use Tax by check, or D, e-filing Form 2290 is required if reporting 25 or more vehicles. So, again, we're looking for the statement that is not true, which statement is false? Audience, please take a minute and click on the radio button you believe most closely answers this question and we're going to give everyone just another second or two to make their selection and click submit. And I think we'll everyone should have had the chance to respond, so let's go ahead and stop the polling now and we will share the correct answer on the next slide. And the correct response is C. And answer C states you can only pay the Heavy Highway Vehicle Use Tax by check. And just to clarify as Philip mentioned, there are various payment options. You can pay the Heavy Highway Vehicle Use Tax via Electronic Funds Withdrawal, EFTPS, credit or debit card, or by check. And I see that 93% of you responded correctly. So, again, great correct response rate and I'll turn it back over to Joe. What we are going to be discussing next? MCCARTHY: Brian, we're going to be discussing prorating the Heavy Highway Vehicle Use Tax on Form 2290 when purchasing a used highway motor vehicle from a private seller. When purchasing a used highway motor vehicle from a private seller where the private seller has already paid the Heavy Highway Vehicle Use Tax, the private seller of the heavy vehicle may but does not actually have to claim the allowable refund or credit for the Heavy Highway Vehicle Use Tax for the taxable period, and when the buyer's purchase and first use of the vehicle is in the same month that the vehicle is bought. If all of these conditions are met, then the buyer can prorate their 2290 tax by one month and that said, although the liability month would be prorated, the filing due date for the Form 2290 will not change. Form 2290 still has to be filed by the end of the month after the month of first taxable use. Now let's talk about the same transaction from the seller's perspective, a private seller of a used highway motor vehicle may qualify for a credit or refund of the unused version of the prepaid Heavy Highway Vehicle Use Tax. In either case where they are claiming a credit or a refund, you are required to attach some specific information to return which includes the vehicle identification number or VIN, the taxable gross weight of the vehicle, the date the date that the vehicle was sold, a computation of the credit or refund amount, and the name and address of the buyer. For more information on claiming this credit, see the instructions to Form 2290 Line 9. Philip, let me turn it over to you. Phil, are you with us? Are you on mute?

YAMALIS: Thanks, Joe, I was having some technical difficulties with my microphone. Thanks for your patience. MCCARTHY: Not a problem. YAMALIS: So since we're in the midst of the Form 2290 filing season, let me review some tips for the filing season. Be sure to use the correct year's tax return. Also, do not alter the tax period that is printed at the top of the Form 2290 or the Schedule 1. You can file the Form 229 you can file the 2019 Form 2290 right now as the Form 2290 and the instructions are currently available on irs.gov. Now, Form 2290 e-file began on July 1st, 2019. Remember what we said, you must e-file if reporting 25 or more vehicles per return and pay the tax via Electronic Funds Withdrawal, EFTPS, debit or credit card, or the old fashioned way by check or money order. Now I know Brian asked earlier about reasons to e-file.

Let me take this opportunity to emphasize some of the benefits of e-filing 2290. Remember, what is the main benefit, the IRS will provide you a stamped Schedule 1 Schedule 1 within minutes of accepting your e-file Form 2290. Now this receipted Schedule 1 Schedule 1 can then be presented to your state Department of Motor Vehicles in order to register the vehicle. E-filing also saves you time. It reduces errors that are commonly found in paper filed 2290s. Finally, e-filing is the simplest way to file the Form 2290. To e-file the 2290, make sure you have your Employer Identification Number or EIN. If you don't have an EIN, you can get one online by fax or by email I mean or by mail. For more information on Employer Identification Numbers, go to the IRS website and type the keyword EIN into the irs.gov search box. The quickest method to get an EIN is online. However, it will take about two weeks for the IRS to establish your EIN in our systems. Now, e-filing does come at a cost and vendors' fees do vary, but some vendors charge less than $10 for one truck. Joe, why don't you take it again from here. MCCARTHY: OK, Thanks Phil. On Form 2290 Schedule 1, which is the schedule of heavy highway vehicles, you are required to report vehicles by the Vehicle Identification Number or VIN. You report both taxed vehicles and tax suspended vehicles by VIN. To those of you who might not be familiar with tax suspended vehicles, the tax is suspended for trucks used for 5,000 or fewer miles and for agricultural vehicles used for 7,500 or fewer miles on public highways.

Finally, a receipted or stamped Form 2290 Schedule 1 is proof of payment needed to register your vehicle with your state Department of Motor Vehicles. Now, I want to stop here for a moment and address a common mistake people make related to Form 2290, the Heavy Highway Vehicle Use Tax return. The Heavy Highway Vehicle Use Tax is assessed on the vehicle. That is why you report each vehicle using the vehicle identification number or VIN for each separate vehicle listed on the Form 2290. The Heavy Highway Vehicle Use Tax does not follow the name on the registration.

For example, let's say you purchase a new truck, and you trade in the old truck and 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. As I stated, a receipted or stamped Form 2290 Schedule 1 is proof of payment needed to register your vehicle with the state Department of Motor Vehicles. However, there is an exception to the requirement of having to present a stamped copy of the Form 2290 Schedule 1 to your state Department of Motor Vehicles in order to register a vehicle. It's called the 60-day rule. Under the 60-day rule, no Schedule 1 is required to be shown to your state Department of Motor Vehicles for registering a new or used vehicle that you just purchased provided the original or a copy of the bill of sale is presented to the Department of Motor Vehicles showing that the vehicle was acquired within 60 days of registering the vehicle. This rule allows drivers to operate on the road immediately without having to wait for a receipted Schedule 1 from the IRS to provide to the Department of Motor Vehicles. Unfortunately, there are instances where the 60-day rule creates problems for vehicle owners. The problem is that when vehicles are registered without using Form 2290 Schedule 1, it is not uncommon for the vehicle's owners to forget to file Form 2290 for the newly purchased truck and to pay the associated tax. So, it's very important to remember. If you register a vehicle without using Form 2290 Schedule 1, the Form 2290 and Schedule 1 must still be filed and the related tax must be paid on time. There is a special rule for registration that occurs during the months of July, August, and September. If the state receives your application for registration of your highway motor vehicle during the months of July, August, or September, you may provide the immediately previous taxable periods approved Schedule 1 that was returned to you by the IRS as proof of payment. Remember to file Form 2290 for the current period by the due date of the return. Brian, I think it's time for our next polling question. WOZNIAK: Yes, it is, Joe. OK.

Audience, our next our third polling question is what are the main benefits of e-filing Form 2290. Is the answer: A, with e-filing, you receive your stamped Schedule 1 within minutes; B, e-filing saves you time; C, e-filing reduces errors; or D, all of the above? So, again, please take a minute to review the question, possible answers and click in the radio button you believe most closely answers this question. And we're going to give everyone just a few more seconds to make your selection. Please select an answer and click submit because we're going to stop the polling. Let's go ahead and stop the polling now and share the correct answer on the next slide.

The correct response is D, all of the above. The benefits of the electronically filing Form 2290 include that you will receive your stamped Schedule 1 within minutes and e-filing saves you time and it reduces errors. So, let's take a look, and I see that 99% of you responded correctly, again, an incredible response rate. So, with that, Joe, I'm going to turn it back over to you.

MCCARTHY: Thanks, Brian. Now, we're going to talk about a couple of IRS legal opinions. In 2014, the IRS Office of Chief Counsel ruled that a taxpayer may be eligible for a credit or 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.

This is because the IRS ruled that when a vehicle is replaced using a State Vehicle Replacement Incentive Program, the replacement of the vehicle is considered a sale of the vehicle for federal tax purposes. However, this specialized treatment specialized tax treatment I should say applies only to vehicles replaced using a State Vehicle Replacement Incentive Program. Now, for more information on how to file for a 2290 tax credit, see the instructions to Form 2290.

For more information on how to file for a 2290 tax refund, see the instructions to Form 8849.

That's 8-8-4-9. That's the claim for refund of excise taxes. Another legal opinion which is shown at the top of this slide addresses a pretty common trucking situation. In cases where an owner or operator leases on with the carrier yet the vehicle is registered in the carrier's name, not the owner operator's name, the carrier files Form 2290 and the carrier pays the Heavy Highway Vehicle Use Tax. If all of these conditions are met and the owner operator and the carrier terminate the lease during the taxable period covered by the 2290 and the owner operator leases on with another carrier and the vehicle registration is changed from the original carrier to the new carrier, then, this IRS legal opinion holds that the original carrier is not entitled to any IRS credit or refund of a prorated amount of the prepaid Heavy Highway Vehicle Use Tax after the lease is terminated. That said, in these situations, the original carrier would generally charge back the owner for the Heavy Highway Vehicle Use Tax, but the IRS has no involvement with this charge back. This legal opinion also holds that when the owner operator goes to re-register the vehicle during the remainder of the period still covered by the 2290, the owner operator does not have to file a new 2290 and pay the Heavy Highway Vehicle Use Tax for the remainder of the period still covered by the existing 2290. That said, when the owner operator goes to reregister the vehicle with the State Department of Motor Vehicles, they will 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 2290 Schedule 1 from the original carrier and presenting it to the State Department of Motor Vehicles. Unfortunately, not all state Department of Motor Vehicles are familiar with this issue. So, the IRS sent out a communication document to the State Department of Motor Vehicles explaining this issue with a document explaining what proof of payment is acceptable under these conditions. Now, switching topics completely, we are going to discuss the retail tax on imported vehicles, also known as the tax on heavy imported vehicles.

This is a 12% excise tax on the first U.S. retail sale of the imported vehicle. In order for this excise tax to apply to an imported heavy vehicle, the gross vehicle weight must exceed 33,000 pounds for a truck chassis and body, must exceed 26,000 pounds for a semitrailer chassis and body, must exceed 1,900 I'm sorry, 19,500 pounds for a tractor and its gross vehicle weight with a trailer or semitrailer must exceed 33,000 pounds. If those conditions are met, you use Form 720. That's the quarterly federal excise tax return to report the 12% excise tax Quarterly Federal Excise Tax Return to report the 12% Excise Tax. Now, while this tax applies to all vehicles, not just imported vehicles that meet this criteria we just reviewed, there is a reason why we're only discussing imported vehicles. When you purchase a truck from a U.S. dealer, you are automatically charged the 12% tax which the dealer then remits to the U.S. Treasury.

However, when purchasing a vehicle from the foreign seller, let's say for example a Canadian or Mexican seller, the Canadian or Mexican seller is not obligated to charge and remit the 12% Excise Tax or to file a Form 720. What we typically hear at the IRS is that when a U.S. purchaser purchases a truck in Canada or Mexico which is subject to the 12% Excise Tax and the U.S.

purchaser doesn't file a Form 720 or pay the 12% Excise Tax after importation upon sale or use either because they don't know about the 720 filing requirement or they forget to file Form 720 and pay the associated tax. This Federal Excise Tax is assessed on the first U.S. retail sale of the imported heavy vehicle, the key phrase being "first retail sale". Any subsequent sales after the first retail sale in the United States are not subject to the tax on imported heavy vehicles. The second bullet where it states if an importable or taxable article, the taxable article that is being referred to is any imported heavy vehicle that meets all the gross vehicle weight criteria we previously discussed. The 12% Federal Excise Tax on the first U.S. retail sale of an imported heavy vehicle applies not only to new trucks, but to used trucks as well assuming they have never previously been subject to the first U.S. Retail Sale Rule. It's important to note that the United States Customs Service shares import data with the Internal Revenue Service regarding heavy vehicles subject to the federal excise tax. We'll see why this sharing of important information is so important on the next slide. The United States Customs Service import information is important because the IRS cross-checks the import information with Form 720 filed with the Internal Revenue Service. The IRS sends out examination letters that conducts audits when vehicles identified in the United States Customs Service import information are not reported on the purchaser's Form 720. These examinations are conducted to increase compliance for imported vehicles that are subject to the excise tax. With that, I think we have our last polling question. Is that right, Brian? WOZNIAK: That is correct, Joe. And here is our last polling question today. When is the 12% Excise Tax assessed on heavy vehicles? Is the answer: A, when first U.S. retail sale of a new or used vehicle occurs; B, when the vehicle's weight equals the specified gross vehicle weight threshold; C, when the vehicle is used solely on public highways; or, D, when the vehicle has previously been subject to the 12% Excise Tax?

OK, audience, by now, you should be pros at this at answering the questions anyway. So, please take a moment. Click on the radio button you believe most closely answers this question on when is the 12% Excise Tax assessed on heavy vehicles. We're going to give everyone just a few more seconds to make your selection and submit it. So, everyone submit your answers because we're going to go ahead and stop the polling now, and let's share the answer on the next slide.

The correct response is A, the 12% Excise Tax applies when the first U.S. retail sale of a new or used vehicle occurs. And actually the wording from the Internal Revenue Code is slightly different. The wording from the code is upon the first U.S. retail sale of the heavy vehicle after production, manufacture, or importation. And we're taking a look. I see that 79% of you responded correctly. Now, that was a tough question, still a good response rate. Joe, I don't know if you want to go back and make some clarifications on that or shall we move on to some common resources. MCCARTHY: Well, I think that the thing to keep in mind for the audience is just to remember that if you are purchasing a vehicle from Canada or Mexico or from any foreign country and it's the first time it's going to be used in the United States and you're buying it directly from the foreign country, there is a 12% Excise Tax that applies. You're going to have to file that Form 720 to pay the associated tax. So, whether they got this right or wrong, that doesn't concern me as much as them actually making sure that they recognize that there's an issue. They have to file and they have to pay. So, with that, I'll turn it back to you, Brian.

WOZNIAK: All right. Yes. Thanks a bunch for that clarification. That really helps. And I'll turn it back over to Philip. Philip, you want to go on some common resources? YAMALIS: Sure, Brian. Let's do that. Let's review some of the common 2290 resources that are available from the Internal Revenue Service. So, first we have the Trucking Tax Center with its easy to remember Internet address, IRS.gov/truckers. That contains all the info that you need to file.

Again, that's IRS.gov/truckers. Be aware that most IRS.gov articles about the heavy highway vehicle tax use the heavy boy, tongue twister today, most articles about the Heavy Highway Vehicle Use Tax are available in both English and Spanish, including the Trucking Tax Center.

Now, at the top right of each English page, you'll see an Espanol hotlink if there's a Spanish counterpart. Publications 4900 and 510 are also available to you here. Our help lines are available Monday through Friday from 8:00 AM to 6:00 PM, and those numbers are listed here on this slide. That's 8:00 AM to 6:00 PM Eastern Time. And with that, let me turn it back over to you, Brian, to continue. WOZNIAK: OK. Thanks, Philip, and those are some great resources. Now, we're going to transition into our question and answer session here. But before we start the Q&;A, I want to thank everyone for attending today's presentation again on the topic of understanding Form 2290, the Heavy Highway Vehicle Use Tax. Joe Mazzuca has joined us and he is our Subject Matter Expert for today's webinar. Joe is responsible for the administration in policy decisions regarding the Retail Truck Tax, the Heavy Highway Vehicle Use Tax, the tire tax, and other various excise taxes. So, we're very fortunate to have him here with us today.

And again, he's going to field the questions. That said, we may not have time to answer all of the questions submitted, but we will answer as many as time allows. And if you are participating to earn a certificate in related continuing education credit, you will qualify for one credit by participating for at least 50 minutes from the official start time of the webinar, which again began promptly at the top of the hour. So, with that, let's get started, Joe. I'm going to just go into the questions as we've received them and read them verbatim. MAZZUCA: Sure. WOZNIAK: So, here's your first one. Does the highway vehicle use tax filer need to be the owner and registrant of the vehicle? For example, a vehicle is owned and registered to Joe S. who not only has an SSN, but the highway vehicle use tax is paid by Trucking Incorporated under their EIN with the correct VIN and tax classification. Since the tax was collected for the VIN, is that acceptable? MAZZUCA: So, the tax is paid by the person that the vehicle is registered to. So, whoever the registrant is that's listed on the vehicle registration would be liable for the tax.

WOZNIAK: OK. MAZZUCA: So, that's the proper party that would pay the tax there. WOZNIAK: OK.

Thanks for that clarification. Here's another one for you. If a truck was put into use in February, then, the due date is July 1st? MAZZUCA: Well, so, if a vehicle is first used during the tax period in February, then, it's the Form 2290 payment due would be by the end of March the following month, March 31st. So, we have to look at this July 1st to June 30th and kind of reassess the period. So, when we're looking after July when it comes up in July, any vehicle that's first used in July, the associated tax, if there's any due on payment and return would be due on August generally August 31st. But if that vehicle just sits in storage somewhere or is out of service, and then they first use it in February of that particular tax period, then, the payment and return would be due by the end of March. WOZNIAK: OK. Our next question is, what vehicles would fall under Category W? So, if they're not subject to the tax, they should still be reported? MAZZUCA: Right. So, a Category W is still a highway motor vehicle that's registered or required to be registered under state law. So, that is for vehicles that the registrant or taxpayer doesn't believe would be reasonably expected to be used on a public highway more than 5,000 miles or 7,500 miles for an agricultural vehicle. So, once it goes over that taxable gross weight of 35,000 pounds or greater, it's still going to be subject to tax.

Now, whether there's going to be a tax due, that just depends on how many miles the owner or the registrant determines will be used on public highway during the year. So, they still would have to report it on the form. WOZNIAK: OK. Thanks for that clarification. Moving right along, related question on taxable gross weight, is that only the GVWR or does it also include the weight with a trailer? MAZZUCA: Right. So, I would taxable gross weight, when you look at that definition and you see IRP registration or some other types of registration, they go by combined gross weight which is the maximum load of the tractor-trailer combination. So, I would look at taxable gross weight as the combined gross weight of a tractor and its load that a customer really carries. So, gross vehicle weight rating of the vehicle is the maximum load that the manufacturer recommends the vehicle can carry. But taxable gross weight is the maximum load customarily carried on the tractor including its load. So, even though you might have something that's, the tractor might say 80,000 pounds, its gross vehicle weight rating between the tractor and the trailer, sometimes it really doesn't if you don't customarily carry that weight, then you should be paying tax at 80,000. It's just based on the loads that you're carrying, the maximum loads that you customarily carry. WOZNIAK: OK. And, Joe, we're just going to keep moving along. We have a bunch of questions here. MAZZUCA: Of course, sure. WOZNIAK: So, more on registration. The question is how does one find if they are a registrant doesn't depend on the company? MAZZUCA: Well, the registrant is the cab card well, let's call it the cab card for higher P.B. cab card state registration Cab Card State Registration. So, when you go to buy a truck generally, the owner is the registrant. The owner and the registrant could be one and the same person. So, you have title that shows who own the truck and then a registration which is the person that's listed as the cab card owner of the registration. So, you have to look at the vehicle registration. We'll say registrant and that's the name right there. That what we would determine if that's the person who's responsible for paying and filing the return, Form 2290. WOZNIAK: OK, good information. Here is a somewhat related question. How does the state vehicle registration determine who is liable and the amount? MAZZUCA: Sure. So, again, we'll look at the name listed on the registration and then we'll look at what's that what the registered weight is. So, if you're, let's say, an IRP carrier. I'm Joe Mazzuca. I'm listed as the registrant and I specify on each jurisdiction that I want to carry weight. So, for registration for IRP, we look at the taxable gross weight is returned by the highest weight declared in any state. So, the highest weight declared in any state will be your taxable gross weight when you look at the Form 2290. So, when you look at the Form 2290, you have columns there on page two. It says categories A through V. So, if most IRP registrants are over 75,000 pounds, they're normally 80,000 pounds. So, if somebody was running a truck IRP is IRP registrant, they're running a truck in July and they're 80,000 pounds, for a full year, that will be $550 in tax. MCCARTHY: Joe, it's Joe McCarthy. Can I just jump in for a second?

MAZZUCA: Sure, sure. MCCARTHY: For the people who might not be familiar, can you explain what the acronym IRP stands for? MAZZUCA: Sorry. I'm using acronyms. That's International Registration Plan. So, that allows carriers to go from state-to-state based on a plan that's set out many years ago. It allows just for one cab card registration as opposed to multiple license plates being fixed on the front of the truck. So, International Registration Plan is what IRP stands for. MCCARTHY: OK. Thanks, Joe. Back to you, Brian. MAZZUCA: OK. WOZNIAK: OK. And moving right along with the questions, Joe, what is the Schedule 1 that the IRS sends and what does the filer use it for? MAZZUCA: OK. So, Schedule 1, that's called a Schedule of Heavy Highway Vehicles. So, you want to use it to report all vehicles for which you're reporting tax and those that you're reporting suspension of tax by category and vehicle identification number.

So, what we do is that when you file your Form 2290, you'll file a Schedule 1 in duplicate and you send it to the IRS. You can send it to the IRS. We keep one schedule with the return, the Form 2290, we stamp one and we send it back to you. And that Schedule 1 copy is used to register your vehicle at the state Department of Motor Vehicles. So, it's really important to keep that Schedule 1 in a safe place. WOZNIAK: OK. Next question, is the 2290 due every year you own a taxable vehicle? If vehicles are bought at different times, are they grouped together for annual filing? MAZZUCA: Right. So, again, July 1st is going to be the key date or any of the month that that's determined when you have to file Form 2290. So, if you have, let's say, five trucks that you're using in July and they meet the taxable gross weight requirement and you don't and there's if you're anticipating that you're going to be using those more than 5,000 miles, even if it's less, if it's actual gross weight of 5,000 miles I'm sorry, 55,000 pounds or more and the form will be due and any payment due by the end of August. So, if you're running those five trucks if it's due by July, it's due by the end of August. Let's say you buy two more trucks in September. So, those you buy two more trucks in September. It meets the taxable gross weight requirement. Those would be and you're the registrant, then, you'd file Form 2290 by the end of October. So, next, year, let's say July 2020, now you've got seven trucks that you're still registering, you're still owning, you're still operating. Now, you're going to report those seven trucks for the July 2020 tax period. WOZNIAK: OK. Thanks. MAZZUCA: Little more involved question there, so... WOZNIAK: No. That's fine. We appreciate you clarifying that. Our next question is on the 2290 due date. It states if the vehicle is ongoing use, is the 2290 due July 31st? MAZZUCA: Yes. That goes on to it kinds of continue on with my question I mean, the answer to the previous question. So, it's if it's continually being used year on, year on and if it's being used in July, then, the Form 2290 payment due would be due by the end of August.

But then again, if the truck, let's say, July, the truck went down or there's no business, nothing's you're not actually using it on a public highway. Let's say you don't use it until August. Then, you would file a Form 2290 by the end of September, but you're going to pay a less amount of tax. Remember, the 2290, the tax amount is prorated. So, it's the annual tax of $550 on a vehicle that is over 75,000 pounds now becomes, I believe, $518 if you use it in August, first use occurs in August of the tax year. WOZNIAK: OK. We'll change it up a little.

Here's your next question. MAZZUCA: Sure. WOZNIAK: How does a vehicle owner cancel the 2290 tax if the vehicle is scrapped? And is any of the tax refundable? MAZZUCA: OK. I just want to clarify the term "scrapped". If he just simply stops using the truck, he just decides he's not going to use it, any tax paid on the vehicle, that generally will not the credit or refund. But if he didn't exceed 5,000 miles let's say during the of during the taxable period, he may be able to file a claim for refund on Form 8849 to get any tax back or prorated amount of tax. But if a vehicle is destroyed like in an accident, it's not economical to rebuild, then and there's no subsequent Form 2290 filing, he can get a refund a prorated amount of refund for the unused portion of the tax. WOZNIAK: OK. I have another question. We'll go with is the 2290 due 60 days after purchase? They're still a little confused about that component. MAZZUCA: Yes. OK.

So, if you buy a new or secondhand vehicle and you register that vehicle within 60 days of purchase and you show a bill of sale or other evidence of a title transfer, you don't have to show, the regulations say no proof of payment is required. In other words, no receipted Schedule 1 is required to register that vehicle at the state Department of Motor Vehicle. However, you're still required to file Form 2290 by the due date of the return. So, that rule just simply allows the truck driver, the taxpayer to just get on the road right away as opposed to waiting for a Schedule 1 to come back and then present it to the DMV. I mean, if that were the case, people's trucks would be sitting around waiting forever, I mean, for the Schedule 1 to come back from the IRS. So, we don't want that to happen. So, that's why that rule is in place. WOZNIAK: OK, got it. Joe, we're going to try to squeeze in one last question. I think it's a quick one. MAZZUCA: Sure. WOZNIAK: Can you e-file even if it is only one 2290? MAZZUCA: Yes. Yes. e-filing is mandatory for if you're reporting 25 or more vehicles per return, but we encourage everybody to file even if it's one vehicle. WOZNIAK: OK. That's great. So, that's all the time we have for questions, folks. And I do want to thank Joe for sharing his knowledge and expertise in answering these questions. And right now, I'm going to turn it back over to Phil to go over some key points of the presentation. Phil? YAMALIS: OK. Thanks, Brian. So, some of the key points we want you to leave here remembering, file the Form 2290 and pay the Heavy Highway Vehicle Use Tax for each taxable vehicle weighing 55,000 pounds or more. Choose e-file. Remember as Joe just told us, it's required if you're reporting 25 or more vehicles, but it's encouraged for all filings for faster processing. You can receive the watermarked Schedule 1 within minutes. It's more accurate and it's safe. Review the list of participating commercial software providers. The link is available from the Trucking Tax Center and select the one that best meets your needs.

Again, services offered and fees charged differ by provider. You cannot e-file your form 2290 on IRS.gov. You must use one of the participating commercial software providers. Follow the software prompts to complete the sign and to e-file your return. Joe, why don't you finish up on the key points? MCCARTHY: Sure, Phil. The deadline for most 2290s is August 31st although this year it's slightly different. Visit the Trucking Tax Center at IRS.gov/trucker for a link to a chart simplifying the 2290 filing deadline. If any due date falls on a Saturday, Sunday, or legal holiday, file by the next business day. In 2019, the due date is Tuesday, September 3rd since August 31st is a Saturday and Labor Day is Monday, September 2nd. Back to you, Brian. WOZNIAK: OK. That's great information. OK, audience, in closing, we will state that we are planning additional webinars throughout the year and to register for any upcoming IRS webinars, please visit IRS.gov. You can search using the keyword "webinars" and then you can select from webinars for tax practitioners, webinars for small businesses, et cetera. And, yes, we will be offering certificates and CE credits for other upcoming webinars. You can also visit the IRS video portal at www.IRSvideos.gov. And again, I want to give a big thank you to Joe McCarthy and Philip Yamalis, and especially our Subject Matter Expert, Joe Mazzuca, for a great webinar today. And I also want to thank you, each and every one of our attendees for participating in today's webinar titled, "Understanding Form 2290, Heavy Highway Vehicle Use Tax". Continuing education, if you attended today's webinar for at least 50 minutes after the official start time at the time at the top of the hour, you will receive a certificate of completion that you can use with your credentialing organization for one possible CPE credit. If you're eligible for continuing education from the IRS and you registered with your valid PTIN, your credit will be posted in your PTIN account. And if you're eligible for continuing education from the California Tax Education Council, your credit will be posted to your CTEC account. If you've registered through the Florida Institute of CPAs, your participation information will be provided directly to them.

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