Taxpayers must keep records for all taxable highway vehicles registered for at least three years after the date the tax is due or paid, whichever is later.

Failing to file and pay the HVUT by the due date can result in penalties, but an extension may be requested in writing before the date is missed.

Taxpayers must keep records for all taxable highway vehicles registered for at least three years after the date the tax is due or paid, whichever is later.

Taxpayers must keep copies of all filed returns and schedules, even if a vehicle is registered in the taxpayer’s name for only a portion of a period.

Records should include the following:

• A detailed description of the vehicle, including the vehicle identification number (VIN);
• The weight of loads carried by the vehicle as required by any state in which the vehicle is registered or required to be registered;
• The date the vehicle was acquired and the name and address of the person from whom it was acquired;
• The first month of each period in which a taxable use occurred and any prior month in which the vehicle was used while registered in the taxpayer’s name (with proof that the prior use wasn’t a taxable use);
• The date the vehicle was sold or transferred and the name and address of the purchaser or transferee (if not sold, records showing how/when the vehicle was disposed of); and
• If the tax is suspended for a vehicle, a record of actual highway mileage; for an agricultural vehicle, carriers must also keep accurate records of the number of miles it is driven on a farm.

Penalties

Failing to file and pay the heavy vehicle use tax (HVUT) by the due date can result in penalties. The late penalties are 4.5 percent of the tax due, assessed on a monthly basis up to five months. Taxpayers making late payments also face an additional penalty of 0.5 percent of the tax due, along with additional interest of 0.54 percent accruing monthly.

Outside of Internal Revenue Service (IRS) monetary penalties, states will not register vehicles without proof of tax payment.

Can an extension be granted?

In circumstances where the carrier knows it won’t be able to submit the Form 2290 by the deadline, an extension may be requested. The carrier must, however, make the request for more time in writing before the due date of the return. Requests must be submitted to:

• Internal Revenue Service
• 7940 Kentucky Drive
• Florence, KY 41042-2915

In the request letter, the carrier must fully explain the cause of the delay. The extension may be for no more than six months.

Note: An extension of time to file doesn’t extend the time to pay the tax. If the carrier wants an extension of time to pay, it must be requested separately.