Friday, April 2, 2010

Roles and Responsibilities in HVUT Collection and Administration

The code of federal regulations establishes a framework for HVUT enforcement in 23 CFR 669 and assigns responsibilities to multiple federal and state agencies.

Internal Revenue Service
The IRS is responsible for HVUT collections and taxpayer audits.

States are required to obtain proof of payment when registering heavy trucks subject to the tax. Further, 23 CFR 669.11 requires that the Governor of each state certify HVUT compliance prior to July 1 of each year. In so doing, the Governor or his or her designee must submit a letter with text prescribed in 23 CFR 669.9 and contained within Form FHWA-1563 certifying that the state is obtaining proof of payment as a condition of registering heavy trucks subject to the HVUT.

Federal Highway Administration
FHWA is required under 23 U.S.C. 669.21 to periodically review the state's procedures for complying with HVUT requirements. This review must include the inspection of registration records and other supporting documentation. Part 699 of the Federal-aid Policy Guide requires FHWA to conduct HVUT compliance reviews at least once every three years for each state in the nation. Responsibility for conducting these reviews falls to the division offices.

If a state fails one of the periodic compliance reviews, the Secretary of Transportation has the authority to withhold up to 25 percent of the state's Interstate Maintenance funds [23 U.S.C. 104(b)(5)]. A finding of non-compliance could, therefore, cost the state millions in lost highway funding. Thus, it is imperative that states take measures to ensure HVUT compliance.

More Information

Link to 23 CFR 669.11:
Link to 23 U.S.C. 669:;sid=33be34f2784b538a5c0ef4b46f81ca3b;rgn=div5;view=text;node=23%3A1.;idno=23;cc=ecfr makes it easy to file Highway use tax. YTT is IRS approved efile service provider for tax form 2290 and 8849. You can also amend your tax 2290 with simple steps.

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