In legislation signed into law Friday, Oct. 22, by President Bush, taxpayers owning only one or a few heavy vehicles can no longer pay heavy use taxes (commonly known as the 2290) in installments.
Congress approved the legislation Oct. 12.
Congress’ thinking on the matter: “It is not cost effective for the IRS to monitor and enforce compliance. Thus, the committee (the House/Senate conference panel on transportation) believes it is appropriate to eliminate the ability of taxpayers to pay the use tax in installments.”
The heavy vehicle use tax (HVUT) is paid every year and must be paid before trucks can be registered. For trucks weighing more than 75,000 pounds, the tax amounts to $550. Some truckers have found it convenient to pay this tax in installments.
Overall, these and other provisions are contained in the $137 billion corporate tax overall known as HR4520 and are expected to generate an additional $4 billion per year for the Highway Trust Fund. Watch this Web site for more information on HR4520.