Waynes World - June 2006

NTA OFFERS ONLINE DOT TRAINING, ROADCHECK
2006 COMING IN JUNE, AND...

HEAVY HIGHWAY VEHICLE
USE TAX DUE AGAIN
By Wayne Schooling

ROADCHECK 2006
Each year the Commercial Vehicle Safety Alliance (CVSA) sponsors a 72-hour event called “Roadcheck” during which many roadside inspections are conducted across the United States, Canada and Mexico. This year it will take place June 6–8, so this is a good time to gain a better understanding of these roadside inspections.

When a driver is stopped for a roadside inspection at a weigh station, it is important for him/her to understand the protocol and follow the instructions given. The more professional and accommodating the driver is, the easier the inspection will be. There are six different levels of roadside inspections, with Level I, the North American Standard (NAS) Inspection, being the most comprehensive. The other levels of inspection are Level II, Walk-Around Driver/Vehicle Inspection; Level III, Driver – Credential Inspection; Level IV, Specials Inspections; Level V, Vehicle Only Inspection; and Level VI, Enhanced NAS Inspection for Radioactive Shipments.

During a roadside inspection, the North American Standard Uniform Out-of-Service Criteria are used to determine whether to place a commercial motor vehicle or its driver out of service. If any out-of-service conditions exist, the driver will be advised of what needs to be done before he/she can drive again. The entire process takes between 45 and 60 minutes, so just be patient and relax.

FEDERAL HEAVY VEHICLE TAX TIME
It’s that time of the year again – when Federal Highway Use Tax on heavy motor vehicles that are operated on public highways must be paid to the Internal Revenue Service by the motor carrier or owner. The tax applies to highway motor vehicles having taxable gross weights of 55,000 pounds or more and includes trucks, tractors and buses. A highway motor vehicle includes any self-propelled vehicle designed to carry a load over public highways, whether or not also designed to perform other functions.

You must file Form 2290 and Schedule 1 for the period of July 1 of the current year through June 30 of the next year if a taxable highway motor vehicle is registered, or required to be registered in your name under any state, District of Columbia, Canadian or Mexican law at the time of its first use during the period. You may be an individual, corporation, partnership, or any other type of organization (including nonprofit, charitable, educational, etc). Schedule 1 is used to list all reportable vehicles by category and vehicle identification number (VIN).

Proof of payment of this tax is required in order to register your vehicle in any jurisdiction, both for the first time and at renewal time. Proof of payment consists of a receipted Schedule 1 of Form 2290 “Heavy Highway Vehicle Use Tax Return” stamped and returned to the taxpayer by the IRS after the taxpayer has paid tax on the vehicle.

Form 2290 is used to figure and pay any tax on heavy vehicles, or to claim exemptions from the tax when vehicles are expected to be used on public highways 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the tax period. Additional returns must be filed if the taxable gross weight of a vehicle increases during the tax period.

The tax period begins on July 1 and ends the following June 30, and you must pay the full year’s tax on all vehicles that you have in use during the month of July. The tax can be paid in a single payment with your return, or in four equal installments. Returns must be filed by the last day of the month following the month of the vehicle’s first taxable use in the tax period, even if you are filing the return just to suspend the tax. They must be filed in accordance with the instructions applicable to the form on which the return is made.

Returns of corporations or person other than corporations that are filed by hand carrying them in must be filed with the Commissioner in the Internal Revenue District where the principal place of business or principal office or agency of the corporation, or principal place of business or residence of the person is located. Canadian and Mexican registered vehicles that operate in the U.S. must also pay the tax! The rate is, however, reduced by 25% for any vehicles registered in Canada or Mexico. The reduced tax applies whether or not the vehicles are also required to be registered in the U.S.
Records must be kept for all taxable highway vehicles registered in your name, and stored for at least three years after the date the tax is due or was paid. You should also keep copies of all returns and schedules you have filed. Full instructions are attached to Form 2290. Forms are available at any Internal Revenue Office or may be obtained from their website at www.irs.gov.

Don’t forget, this tax must be paid for any vehicle being licensed that is over 55,000 lbs. in a U.S. jurisdiction – even if the vehicle is exempt from paying the tax. States will not accept your license registration or renewal applications without a copy of the stamped Schedule 1 returned to you from the IRS.

U.S. DOT & OSHA TRAINING ONLINE
NTA becomes the first association to offer U.S. DOT and OSHA training online. Now Terminal Managers, Safety Directors, Safety clerical staff, drivers, mechanics, brake inspectors, recruiters and Owner Operators can have access to training on the Federal Motor Carrier Safety Regulations (FMCSR) anytime, anyplace, 365 days a year. You can rely on NTA’s Motor Carrier Training Programs to get you and your company into compliance. Every person, upon completion of a course, will receive a Certificate of Training issued from the DOT’s Transportation Safety Institute. Single and multiple user training is available. To find out more, visit www.ntassoc.com.