IRS sets up temporary reg to deal with HVUT Form 2290 delay

| 7/18/2011

If you’re checking back with the IRS daily looking for the new HVUT 2290 forms, you’re going to be waiting a while.

A Federal Register notice set to publish Wednesday, July 20, implementing final and temporary regulations states Form 2290 taxpayers should not file before Nov. 1, 2011. And the IRS will not be providing receipted Schedule 1 forms before Nov. 1.

Hanging in the balance is what will happen with the HVUT imposed by Section 4481. If Congress does not change the law, that tax will expire by Sept. 30, 2011.

Under the current regulations a tax is in place for July 1, 2011, through Sept. 30, 2011. If Congress does not act, taxpayers will only be liable for that “short taxable period” and would have to file by Nov. 30.

However, the IRS notes in the Federal Register filing that if Congress extends the tax past Sept. 30, anyone who had filed for the “short taxable period” would be forced to file a second Form 2290 for the remainder of the 2011-2012 tax season.

Who will have to file and how much they pay also hangs in the balance of Congress’ decision.

If Congress votes to extend the tax past Sept. 30, 2011, and substitutes a longer taxable period, taxpayers who become liable to the heavy vehicle use tax after June 30, 2011, and before Nov. 1, 2011, will also be required to file a Form 2290 for the tax period of July 1, 2011, to June 30, 2012, (or the end of the new taxable period, if earlier) by Nov. 30, 2011.

The upshot to the Federal Register notice is that receipted Schedule 1 forms for filing a Form 2290 for the taxable period ending June 30, 2010, must be accepted by the states as substitute proof of payment for registration applications filed between July 1, 2011, and Nov. 30, 2011.

The IRS is accepting requests for public hearings on the temporary and final regulations. However, those regulations become effective July 20 when published in the Federal Register.