Tax season is among the most feared times for businesses. If you have a business involved in owning a fleet of trucks, now might be the time to learn about the 2290 tax form.
How important is Tax Form 2290?
If you drive a vehicle, you have probably experienced the ups and downs of road use. Roads can sometimes be in good condition and other times in poor condition. Things happen like certain roads that are degraded due to the large number of vehicles that cross them every day. In theory, the heavier vehicles on the roads imply more weight on the sidewalks. The weight increases wear and tear and the inevitable destruction of roads.
Tax Form 2290 preserves the structural integrity of roads by providing the government with adequate funds for road maintenance. Part of the funds would go to repair certain areas with potholes or cracks. Others may turn to road safety to find out if repairs need to be made. Overall, it will help make the roads safer for everyone.
Should everyone pay for Form 2290?
No, not everyone is going to pay for it. The better known name of the tax is Tax on heavy vehicles on the roads. Only companies that use heavy vehicles for commercial purposes, such as trucks, will have to pay for it. Included in this are those involved in the delivery of all kinds of goods. You don’t need to pay it if the business only uses sedans or compact cars.
Are there possible exemptions?
Yes, there are numerous exemptions. The first batch of exemptions is for government entities and charities. Trucks and other heavy vehicles used by the government will not require a presentation. This includes emergency medical vehicles and fire trucks. The exact same thing happens with heavy vehicles used in charity or voluntary work. This means that trucks used for food aid missions are exempt from payment. This exemption will also apply even if these vehicles travel more than 5,500 miles per year.
The second exemption is for vehicles used in agriculture. People who own vehicles for agricultural purposes can also apply for exemptions. Trucks delivering produce are exempt if they travel less than 7,500 miles.
How should a business owner submit Form 2290?
There are three ways to do this: do-it-yourself (DIY) filing, law firm filing, and tax specialist filing. While DIY archiving may seem tempting, this option can make you worry about a lot while running out of time. Getting jobs to ship can take time now. Add to this the complicated filing procedure. You can also face penalties if you are late.
Applying through law firms may seem ideal, but this would cost more. Attorneys can charge hourly fees and you will be looking to shell out a lot. You may be considering paying hundreds of dollars in the process just to get everything right.
Filing taxes by a tax specialist may be the best option as it provides you with less hassle and costs. With a specialized tax company to assist you, you have competent assistance at your side. They do the fieldwork to gather all the documents and file them with the Internal Revenue System (IRS). The best part is that you pay only a fraction of what you would pay a law firm.
Filing the 2290 tax form is very important, and the sooner you do it, the better. If you want more time to weigh all the options, search the web and read more.