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The IRS reminds truckers and other owners of heavy vehicles, the highway rate option for the payment of federal tax is no longer available. This amendment was included in the" American Jobs Creation Act of 2004 and applies to filers of the Form 2290, Heavy Highway vehicles tax.

Beginning with the Form 2290 for tax year starts on 1 July 2005 and ends on 30 June 2006, the remaining amount on the form must be signed in full by the due date of return. In most cases, the deadline for filing the return and paying any tax due is 31 August 2005. Payment can be made by check, money order or electronically through electrical Payment (EFTPS).

In recent years, taxpayers who timely filed Form 2290 could be required to pay the tax in four equal installments. Normally, this rate was paid on the last day in August, December, March and June. About 148,000 taxpayers chose this option last year in 2004.

In general, the highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more. Normally, vans, pick-ups and panel trucks are not taxable because they fall under the 55,000-pound limit.

For trucks and other taxable vehicles in use in July, the payments will be on 31 August. The tax is based on weight and usually between $ 100 to $ 550 per vehicle. A variety of special rules contained in the instructions for Form 2290, for vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the first, on the way to July.

Governments are obliged to obtain a certificate of payment of the federal tax as a condition for registration of the vehicle. Annex 1 of Form 2290 filers and stamped for this purpose. This process remains unchanged.

The Jobs Act eliminated reduced tax rates for vehicles registered in Canada and Mexico. For vehicles with a base registration in either country, the tax rate was 25% below the regular rate.

In addition, the Jobs Act made electronic filing mandatory for taxpayers who file highway use tax returns for 25 or more vehicles. The availability of electronic forms for the 2290 filing is pending. The taxpayer should continue to file paper returns. The IRS will notify taxpayers when the electronic filing program is available.