Bureaucratic snafu resolved
Friday, April 29th, 2011
We helped one of our clients solve a problem today by resolving a bureaucratic snafu. The issue relates to one of the many areas where the federal and state governments communicate with each other. For owners of heavy trucks, the state requires county clerks to obtain verification that the federal heavy highway vehicle use tax has been paid before issuing a new registration annually. This has been a standard procedure for many years to ensure that heavy haulers pay for the extra wear and tear their big rigs inflict on the nation’s highways.
For several years, our client has been resigned to the apparent requirement and has dutifully paid the tax because otherwise, the company could not get tags for their truck. We found out about the situation as we worked on an unrelated matter. We learned that this particular type of truck is exempt under federal tax code because it is not designed to haul loads. But the county clerk’s staffers refused to issue the tags until our client provided proof that the tax had been paid.
We did some research, pulled the documentation together, and called the county clerk’s office. At first the clerk was not aware that an exception to the law existed. After we explained the exception and the fact that our client’s truck met the requirements for the tax exemption, she called her colleague at the state level. She confirmed that indeed there is an exception and the state has a procedure in place to handle it that the county clerk’s office was unaware of until today. She now has an affidavit for our client to sign to certify that their truck is exempt so they can get tags for their truck.
The representative from the county clerk’s office called us back to let us know that she would immediately inform the staff and make the affidavit available to our client and all others who apply for tags for an exempt vehicle. We solved a problem for our client that saves them a significant tax cost each year.
If you own a heavy truck subject to the heavy highway vehicle tax and you file IRS Form 2290, check the instructions for the exemption rules or call us, and we can help you determine if your vehicles are exempt. This is just one of the many ways we go beyond the usual tax-and-accounting CPA services to help our clients solve problems.