Filing Form 2290: An Essential Tax Guide for the Farming Community
Tax time can be a confusing affair, and when your attention is elsewhere — that is, in the fields, rather than on forms — it can be overwhelming. If you drive heavy farm equipment, you might need to file IRS Form 2290, the Heavy Highway Vehicle Use Tax. This page will explain the fundamentals and keep you in compliance.
Do You Need to File?
Form 2290 is for heavy highway vehicles weighing 55,000 pounds or more taxable gross. For the agricultural sector, the most important difference is in the mileage. Your truck is a "suspended" vehicle if you will drive it under 7,500 miles within the tax period. If you will drive more than this or if your truck's mileage exceeds this figure after you have filed, it is a taxable vehicle.
What Do You Need to Know?
To return Form 2290, you'll require:
Your Employer Identification Number (EIN). You cannot use a Social Security number.
The Vehicle Identification Number (VIN) for each vehicle.
The taxable gross weight of each vehicle to calculate the amount of tax due.
A Special Note on Mileage
This is where most farm vehicle owners trip up. If you claim a suspended vehicle and later reach the 7,500-mile limit, you're required to file an amendment and pay the tax. This should be done on or before the last day of the month after you exceeded the mileage limit. Failure to do so can result in penalties and interest.
The Easiest Way to File
Paper filing is available, but for accuracy and speed, we strongly suggest e-filing. Since we're an IRS-authorized provider, our service is easy. You can file for a single vehicle or an entire fleet, and you'll receive your stamped Schedule 1—your payment confirmation—in minutes. This is the document that you need to renew your vehicle registration at the DMV.
At our agency, we're committed to assisting the agricultural community with these tax obligations without a hitch. Spend less time on tax season and more time working. Allow us to prepare your Form 2290 in a hurry and in accuracy.
