Find the easiest way to report a change in the taxable gross weight of your heavy highway vehicle on HVUT Form 2290.
Taxable Gross Weight Of The Vehicle
Every now and then, trucking businesses encounter an increase in the weight of the vehicle due to an increased volume of transportable material or changes made to the vehicle.
This additional weight is added to the taxable gross weight of the vehicle, which increases the tax liability on the vehicle. This increased weight must be reported to the IRS through Form 2290 Amendment.
But there’s more to weight amendment than just a number.
In this blog, we will be discussing the heavy vehicle weight calculation, why did the IRS decide to tax vehicle owners for additional vehicle weight, and ways to report these changes through HVUT Form 2290.
Determining The Weight Of The Vehicle
The IRS states that a vehicle has to weigh at least 55,000 pounds or more for it to be qualified for Heavy Highway Vehicle Usage Tax.
According to FHWA, the gross taxable weight of a vehicle is determined by adding the following weights.
The actual unloaded weight of the vehicle fully equipped for service.
The actual unloaded weight of any trailers or semitrailers fully equipped for service customarily used in combination with the vehicle.
The weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers customarily used in combination with the vehicle.
The sum of the above three weights gives us the gross taxable weight of a federal vehicle.
However, the gross weight will change if any of these three weights change.
Further,thisexhaustive explanation from the Federal Highway Administration (FHWA) will help you understand the weight and tax calculation regime in detail.
However, as a taxpayer, you must know that there is something fundamental about the tax levied on heavier vehicles.
Vehicle Weight & Tax Liability
This Enforcement Publication from the Federal Register suggests that the relationship between the weight of a highway vehicle and the tax liability is directly proportional. The heavier the vehicle, the more pressure the vehicle would put on the road, causing more damage and wear and tear to the road.
Federal Highway Administration (FHWA) is an authoritative body of the U.S. government that constructs, maintains, and preserves federal highways.
The authority states in the publication that when heavier vehicles utilize the federal highways, they also cause more damage to the highways than regular vehicles due to their extreme weight.
And when the roads are damaged due to the heavyweight of the vehicle, the repairs and reconstruction costs also arise, which called for a Heavy Highway Utility Tax (HVUT).
Tax funds collected from the truckers and trucking businesses through HVUT are used to develop the federal highways and spent on related welfare activities.
This is why both the IRS and FHWA are strict about reporting heavy vehicles and collecting the tax.
How To Report Increased Taxable Gross Weight Of The Vehicle On Form 2290?
Let’s say that you bought a vehicle that weighs 55,000 pounds on March 1, 2021, and started using it in the same month.
In such a case, you report the First Month Of Use in your 2290 return and file the form by the end of April 31, 2021.
Now, due to a mechanical change made to the vehicle and the additional load that your vehicle has to transport, the weight of your vehicle changed from 55,000 pounds to 65,000 pounds.
Since you have already filed the 2290 return for the previous weight: 55,000 pounds, you are required to file a 2290 Amendment for the increased weight and pay the additional tax for the 10,000 pounds.
The tax is calculated according to the following 2290 tax computation regime.
According to FHWA, you will have to pay an additional $22 for every 1000 pounds that your vehicle gains in a period.
Circling back to our example; your vehicle reports 10,000 pounds as additional taxable gross weight.
Now, let’s divide the 10,000 pounds with the 1000 pounds base, which would give us a product of 10.
So, the additional tax would be $22 x 10 = $220
Here’s a tabular representation to make things easier.
Gross Taxable Weight
Heavy Vehicle Use Tax Rates
Below 55,000 lbs
No tax
55,000-75,000 lbs
$100 plus $22 per 1,000 pounds over 55,000 lbs
Over 75,000 lbs
$550
So, you will be required to pay $220 as an additional tax for the increase in the taxable gross weight of the vehicle.
Report Increased Gross Taxable Vehicle Weight With EZ2290
Taxpayers are required to file a 2290 Amendment to report an increase in the weight of the vehicle.
Due to the ongoing pandemic and the restrictions it brings with it, the IRS is encouraging businesses and truckers alike to choose e-filing methods to submit their returns.
With EZ2290, you can easily submit your 2290 returns and amendments in 3 easy steps.
Users that have e-filed HVUT Form 2290 with EZ2290 can directly select their previous 2290 submission from their dashboard.
New users that haven’t previously e-filed with us can still use our 2290 Amendment e-file services to submit their amended returns.
Step 2: Complete Your 2290 Amendment
Furnish your tax and business information, such as your business name, TIN/EIN, address, and other information.
Most importantly, do not forget to select ‘Amendment’ in the form. Otherwise, your form will be treated like a regular submission, which will complicate the process.
Validate the information thoroughly before you proceed to the next step.
Step 3: Submit To The IRS
Securely transmit your e-returns to the IRS through our 256-bit end-to-end encrypted platform. No more worrying about data privacy and data interception.
A digital copy of your e-files will be saved to your account for documentation purposes. You can retrieve these files at any time. Explore EZ2290.
Learn how to re-file your rejected Form 2290 returns + tips to establish HVUT compliance.
How To Re-File Rejected Form 2290 Returns
Imagine this; after spending hours and days preparing your 2290 returns, you finally submit your returns to the IRS only hours later, you receive a notice which tells you that your 2290 returns have been rejected citing incorrect information or non-compliance.
Not only have your efforts gone in vain, but you also have to repeat the filing process all over again (depending on the reason for rejection).
And you’re not only worried about re-filing your rejected returns but the pressure is on to report the information correctly and comply this time around.
If you do not address your rejected files, your business will be assessed for neglect and “willful disregard”.
This is a common scenario for a lot of truckers and it happens way more often than one would like to admit.
It is essential to understand that your 2290 returns can be rejected for any of the following reasons.
If you have reported incorrect VINs on your 2290 returns, your returns will be rejected by the IRS. VIN is a unique identification number designated for every vehicle. VINs are used by the IRS to track the tax history associated with the number.
If you have reported incorrect VINs on your 2290 returns, you can file a Form 2290 VIN Correction, which is exclusively used to address the incorrect VIN reporting.
After providing the necessary business and tax information, enter the correct vehicle identification number of the vehicle.
But before you enter it, be sure to verify and validate the VIN to ensure that you are reporting the correct VIN. Try these (1, 2) authorized VIN validation tools to search and verify your VINs.
If you have reported an incorrect TIN or EIN or if you have reported a historic TIN/EIN that no longer holds validity, then your 2290 returns will be rejected.
TIN or EIN is a unique business identification number that is used by the IRS to track the tax and compliance history of the businesses.
When you enter a TIN/EIN in any of the returns, the IRS checks the TIN and the name associated with that number against its own records to validate the details.
If the provided TIN/EIN does not match the records, the IRS will reject the returns.
To counter this issue, you can follow a quick real-time TIN Match regime, which helps you acknowledge the TINs or EINs that are valid and good, and the ones that are not.
Trucks use the federal highways primarily for transporting heavy shipments.
Each highway vehicle is given approximately 5000 miles per year, and 7500 miles if it’s an agricultural vehicle.
The more miles your vehicle uses, the more it is utilizing the federal highways, which causes wear and tear and damages the roads.
This is why the FHWA (Federal Highway Administration) introduced the HVUT bill, which enforces the trucking businesses to pay more taxes if they are exceeding the mileage limit.
If you have exceeded your miles and did not report the additional miles on your 2290 returns, your forms will be rejected and penalties may also be assessed per each violation.
To address this, all you have to do is report the current miles utilized by your vehicle in a tax year. You can use our free smart tax calculator to estimate the HVUT tax you owe on each vehicle according to its weight, logging status, and miles.
Noncompliance comes in many forms and businesses are mercilessly audited if the IRS notices that the business is involved in tax evasion and fraudulent activities.
When the IRS rejects your HVUT 2290 returns citing noncompliance, the issue cannot be taken lightly.
Businesses that are issued a non-compliance notice are under the radar for tax evasion, defying workplace safety norms, fraud, unverified resources and documentation, criminal history, and other violations.
If you have a poor history of filing returns or paying taxes, or if you do not have substantial evidence to support the lack of will to file your taxes and pay them, the IRS may penalize your business for each such violation.
Usually, the IRS issues a notice before it assesses a penalty. And when that notice is also disregarded, the IRS will track down the founders, executives, and other personnel.
To say the least, noncompliance costs businesses a hefty check (1,2,3,4).
HVUT tax funds are one of the largest revenue-generating sources for the FHWA. These funds are spent on constructing and maintaining the federal highways. These funds are also spent on related welfare activities.
Trucking businesses that want to stay on the road and do not want to risk losing their businesses to non-compliance must file their HVUT returns and related business tax returns on time.
Re-File Rejected Returns With EZ2290 In 3 Easy Steps
If you’re a registered user of EZ2290, you can go to your EZ2290 dashboard and view your IRS communications or check your e-filing history. Transactions that have been rejected by the IRS will be highlighted to help you address the issues at an accelerated pace.
If you’re not registered with EZ2290, you can still utilize our services to e-file your rejected 2290 returns conveniently. Sign up here to get started.
Follow the steps below to address your rejected returns and re-file them at no additional cost.
Step 1: Understand The Issue(s) Cited
If the issues cited are something as simple as incorrect tax or business details, you can create a new form and enter the new and updated information correctly.
Alternatively, you can get some tax assistance online from our EZ2290 support team. Go ahead and call or chat with one of our support executives. We’re familiar with the issues cited by the IRS and we’re trained to provide you with the required tax and compliance resolutions quickly.
If the IRS has cited multiple issues implying noncompliance, we recommend speaking to our tax experts here.
Step 2: Validate
Once you’re through reporting the details, do take some time to review your forms.
Validate the tax and vehicle details, such as TIN/Name combination, vehicle identification number, mileage utilized, and more.
Once you are confident that the newly furnished information is accurate and correct, proceed to the next step.
Step 3: Re-File 2290 Securely Online With EZ2290
You can re-file your rejected 2290 returns online with EZ2290.
Our end-to-end encrypted platform allows you to transmit your e-returns to the IRS directly.
Your data is protected and cannot be intercepted by anyone.
Do note that EZ2290 does not charge you for re-filing rejected returns. Re-files are absolutely free.
Here are the 3 most important tips you will need to accurately report your vehicle identification numbers (VINs) on HVUT Form 2290.
Smart Tips For Reporting Correct VIN
When it comes to reporting your federal highway vehicles to the IRS, there is only one qualifier that defines the uniqueness of your vehicle and it’s known as the Vehicle Identification Number or VIN.
And it’s a pretty important one.
Submitting HVUT 2290 return without specifying your Vehicle Identification Number is the perfect recipe to get your files rejected.
Reporting your vehicle identification on your 2290 return is important. Period.
But there is more to it.
VINs save most taxpayers from scams and straining tax liabilities.
Here’s how.
Scenario #1: Reporting VINs For Used Vehicles
If you’re reporting a vehicle identification number for a used vehicle that you just bought, then you might want to check if the seller also sold you the tax burden with the vehicle.
New truckers and fleet owners are sometimes lured in with suspiciously good deals on used vehicles. But once the deal has been closed and the money has been paid, the tax burden surfaces, which brings with it a chaotic wave of tax reporting and worse penalties.
Some sellers price their vehicles at a low price point because they no longer want to deal with the taxes they owe on that vehicle.
And worse, some sellers do not file or pay taxes on their vehicles at all, and when you buy a vehicle with such a complex tax history, you ultimately have to bear the entire tax liability.
And at this point, the “good” deal doesn’t seem that good.
Scenario #2: Reporting Incorrect VINs
Now, in a different scenario, if you do happen to land a good deal but report your vehicle identification number incorrectly, you are in trouble.
Reporting an incorrect will not only result in rejected files but the IRS can also assess noncompliance measures, including unannounced audits and penalties.
But all’s not gray here.
Fleet owners are aware of the dangers of misreporting or not reporting their vehicle identification numbers. So, they depend on certain “hacks” and measures that verify the vehicle identification number.
So, today, we will be introducing you to a tri-step regime to help you report the correct vehicle identification number on your HVUT Form 2290.
Identifying Your VINs Before Reporting
In order to understand if you are actually reporting a VIN that belongs to the vehicle you own, you need to identify the vehicle identification number of the vehicle.
Vehicle identification numbers are a combination of alphabets and numbers. Not all VINs are long, some VINs can be short. This is because of the standardization of the vehicle identification number format. Read more about the history of VINs here.
A vehicle identification number will give away the original geographical location of the manufacturer, model number, and other details about the vehicle.
You can decode the vehicle identification numbers with the help of this detailed read on identifying VINs from EZ2290 without depending on a VIN Lookup tool. If you need additional help, a simple and free VIN decoding tool like VIN Decoder from NHTSA will help you view the details about the vehicle. This will further accelerate identifying the correct VIN that belongs to your vehicle.
Validating Your VINs Before Reporting
Check your vehicle identification number with an authorized VIN Lookup tool such as NICB VIN Check. VIN Validation gives you an inside view of the vehicle history.
Right from checking any public records of accidents in which the vehicle was involved, insurance coverage status and disputes, legal cases, to criminal history in correlation with the VIN you’ve entered, and other important details – VIN validation helps you make well-informed purchases and tax decisions.
Further, all these details help you understand if the vehicle is even worth the effort and the money you are spending.
What’s more? VIN Validation helps you derive your tax liability.
If the previous owner did not pay the taxes or if they paid their taxes in part, you might have to pay those taxes once the ownership changes.
For this reason, the IRS encourages taxpayers who bought used cars to accurately specify the month of first use.
This way, vehicle owners can be taxed appropriately.
Verifying Your VINs Before Reporting
Similar to VIN Validation, VIN Verification is a process where you check if the vehicle identification number and details that you own match the records of the IRS and federal authorities.
When you’re verifying the VIN, be sure to enter the correct VIN characters into the search tools. And be careful and conscious of reporting the correct VIN.
Accurately specifying the month in which your vehicle was first used saves you from straining tax burden.
Step 1: If you are registered with EZ2290, you can log into your account and select the previous 2290 files from your filing history.
If you haven’t used EZ2290 to eFile your 2290 returns, you can still eFile your 2290 VIN Corrections. Sign up here to create your free EZ2290 account and get started.
Step 2: Provide the correct EIN/TIN. This must match the details you have provided in your original 2290 returns.
Step 3: Verify your VINs and report the correct vehicle identification numbers.
You can securely submit your 2290 VIN Corrections to the IRS after furnishing the required information per the above steps.
Do note that Form 2290 VIN Corrections must be used to report only the VIN Corrections.
If you want to amend other tax or vehicle details, you must file a separate return.
Here’s how a vehicle identification number plays a huge role in ensuring HVUT compliance for your trucking business.
The Importance Of VIN In HVUT Compliance
As businesses dive into the 2290 filing season, they keep important HVUT checklists by their side to stay compliant with the IRS. Like any good business practice, keeping a follow-through checklist for VINs is a good idea.
However, what is even more important than just reporting the vehicle and tax information is to validate the said information. Unvalidated reports mean you’re unsure of the information that is being reported.
And these inaccurate reports increase the risk of noncompliance, which will be flagged by the IRS and may even lead to penalty assessments for VIN discrepancies.
To avoid such unpleasant situations, trucking businesses need to check their vehicle identification numbers and the tax records associated with that number. This practice helps businesses avoid inaccurate reports and stay compliant.
That’s not all.
A vehicle identification number has a greater significance than a primary identity metric for vehicles. It protects your business from the additional tax burden, liability assessments, accelerates 2290 reporting, and does much more.
Today, we will be discussing the significance a VIN holds in HVUT compliance.
Tax History Associated With VIN
IRS, insurance companies, lending companies, and buyers use vehicle identification numbers to track the associated tax history. This means, if you did not file your truck tax for a year or if you have been penalized in the past for noncompliance, it can be tracked with the help of a vehicle identification number.
Unlike VIN lookup tools that taxpayers use, IRS, insurance, and banking institutions validate your VINs against authorized databases, which help them view the entire tax history and transactions associated with the VIN.
Further, VINs help the lending companies and federal authorities understand if the vehicle owner has been compliant with the HVUT tax regimes.
HVUT Tax Liability Assessment
If your truck has been wrongfully taxed, one of the reasons could be that the previous owner did not pay their truck taxes and proceeded to sell their truck to you at a “really good” price point.
Most likely the seller was planning on transferring the tax burden to you, which increases your tax liability and if left unaddressed, gets worse.
This is why 2290 reporting requires the owners of used trucks to report the month in which they first started using the truck in the HVUT form. The month of first use, along with the vehicle identification number and tax information must be reported.
This information is used to track the associated tax history and tax liability, based on which the IRS can assess penalties on the original owner and reduce the tax liability on the new owner.
Tax Suspension
HVUT is levied upon trucking businesses that own trucks weighing 55,000 pounds or more and utilize the federal highways to operate their trucks. However, if your truck no longer meets this criterion, you can request for suspension of tax on your vehicle.
To do this, you will need the vehicle identification number, which allows the IRS to identify the vehicle and the tax history associated with it. If the IRS observes that the reporting history is compliant and the vehicle no longer meets the HVUT criterion, then your vehicle will be suspended from HVUT taxes.
HVUT 2290 Reporting
Vehicle identification numbers are essentially used to identify the trucks that are using the federal highways. The IRS cross-validates the HVUT tax history associated with the VIN for all the previous and current owners of the vehicle. This way, every owner of the same vehicle is liable to pay their share of the HVUT truck tax per their tax periods.
But wait, there’s more. When vehicle owners want to request a transfer of title, or when they want to claim certain tax credits from the IRS on the excise tax paid, or when a trucking business wants to claim the insurance on a vehicle that has been destroyed, damaged, or stolen, the vehicle identification number is one of the most important identifiers, which enables all parties to take the necessary steps to address refund claims and transactions.
Learn how the HVUT compliance enabler, EZ2290 helps trucking businesses like you and how to get the HVUT to support your business’s essential needs.
EZ2290 Helps You Achieve Complete HVUT Compliance
Every year, thousands of trucking businesses and self-employed truckers file HVUT Form 2290 to comply with the regulatory and tax compliance guidelines of the IRS to stay on the road.
With many business owners being new or unaware of the various approaches to stay compliant, we have put together helpful information, resources, and help center links to enable businesses and self-employed truckers to access relevant HVUT information.
Heavy Vehicle Usage Tax (HVUT) is a relatively simple concept wherein a vehicle is taxed if it weighs 55,000 pounds or more and utilizes the federal highways for commercial and non-commercial purposes.
HVUT is one of the most significant contributors to generating Federal Highway Trust Fund (HTF) revenue for the U.S. This is why the IRS is encouraging truck and fleet owners to choose voluntary compliance.
While HVUT is a simple filing process, it comes with several complexities, which require extra effort and attention to retain reporting accuracy and compliance.
When you eFile 2290 Form with EZ2290, your returns undergo multiple reviews to avoid non-compliance citations or inaccurate information. However, your returns can be rejected if the IRS notices errors in your reports.
2290 returns can be rejected for many issues, such as incorrect VINs, incorrect EIN/TIN, historic information, inaccurate reports, or compliance negligence.
When the IRS rejects your 2290 returns citing a particular issue or inconsistencies, you must address the issue at the earliest in order to avoid penalty assessments.
Get help from our 2290 support team here to fix your rejected returns and re-file the rejected returns at no additional cost.
Online Help For VIN Corrections
Vehicle Identification Numbers are designated identifiers, which qualify the uniqueness of your vehicle. A vehicle identification number is a unique combination of alphabets and numbers.
Before you purchase a vehicle, it is important that you validate the Vehicle Identification Number to track the vehicle history. Spending a good amount of time to vet the VIN will help you understand if your seller is pricing the vehicle reasonably.
If you have reported an incorrect VIN in your HVUT 2290 returns, then you can correct the information by e-filing a Form 2290 VIN Correction.
The process is easier than you may think and you can complete it in less than 3 minutes.
Get help from our customer support team here to find resolutions to your VIN Correction queries.
Essentially, you are required to file a 2290 Amendment when you have to report an increase in the taxable gross weight of your vehicle and/or if your vehicle exceeds the mileage use limit.
The change in the vehicle’s weight changes its tax category. If the weight increases, the taxpayer has to report and pay the additional tax for the additional weight.
Similar to the weight, if the vehicle is utilizing the federal highways and exceeding its mileage usage limit, then the additional mileage utility will be taxed.
A 2290 Amendment is a separate form that must be filed by the end of a succeeding month from change to avoid citations from the IRS.
If the vehicle’s weight decreases and falls below the lowest tax category, the vehicle ceases to be qualified for HVUT taxes. In such a case, you must request suspension from HVUT taxes.
EZ2290 helps trucking businesses of all sizes to achieve HVUT compliance through its digital tax solutions.
Right from simplified e-file solutions to remote accessibility control, automatic tax calculations, free VIN corrections, free re-files for rejected returns, compliance management, penalty prevention programs, and more, businesses can e-file and establish compliance through our dynamic platform. Explore More Features
You can reach out to our support team at any time, for any queries, here.
EZ2290 HVUT Full Service For Large Trucking Businesses
Businesses that work with large fleets and have little time to schedule their 2290 reports should leverage our cost-effective API services.
You can outsource your 2290 e-files and compliance tasks to our teams and we will coordinate with you to prepare, validate, and e-file your returns on your behalf. Get Full Service For 2290 eFiles.
EZ2290 is an authorized HVUT compliance enabler, helping 10,000+ trucking businesses in the U.S.
Ez2290 For HVUT Form 2290 Online Filing
Maintaining tax compliance for your trucking business is not easy. With new and smarter tax solutions making appearances in the market every week, businesses are left confused about their options.
It’s always a tie between the solutions that work best for their unique tax compliance activities and the ones that provide a seamless experience. But the overall expected experience is a balance of these two elements. And it’s quite natural for trucking businesses to aim for these experiences.
Trucking Businesses & Federal Highways: An Overview
Trucking businesses with large fleets operate on and through the federal highways. If they’re not complying with the regulations of the FHWA and the IRS, they will be off the road overnight.
The dynamic nature of trucking businesses forces the businesses to purchase new vehicles and let go of the old ones. This coupled with the reporting requirements laid out by the IRS does not make it easy for trucking businesses to “just comply”. However, compliance is not something that should be compromised.
And why would you want to take that road anyway? Establishing tax and regulatory compliance puts your business in the good books of the IRS and other federal agencies, giving your business a much-needed reputational boost, and helping you find the right investors.
But the root of finding the perfect solution goes way under.
Trucking Businesses, IRS, And Tax Compliance
‘Pay your taxes or perish’ seems to be the new mantra of the IRS and it’s for a good, or rather, a fair reason.
HVUT generates significant funding for transportation. These funds are used to develop, construct, and maintain the federal highways to reduce accidents, crashes, and other vehicle incidents.
You can read the full details, benefits, and purposes of HVUT tax funds here.
Every trucking business must be responsible and acknowledge their operational utility regarding the federal highways and hold themselves accountable for their share of utility. This is not us preaching, this is what the IRS wants you to know.
And by paying taxes on time and reporting accurately, businesses can establish a healthy ground within the compliance sphere, while contributing their fair share.
Finding The Right HVUT Compliance Solution For Your Business
It is expected of a tax compliance platform to provide solutions that address the inevitable tax problems of the trucking businesses. But a solid solution is just not enough anymore because trucking businesses are looking for smart experiences that are fundamentally driven by compliance.
EZ2290 is an IRS-authorized e-file provider trusted by 10,000+ trucking businesses. All our e-file solutions are designed to accelerate your reporting accuracy, tax calculations, tax and business validation regimes, amendments, tax refund processing, and other compliance elements.
The following e-file solutions are specially designed to provide your trucking business a smart and compliant e-filing experience.
Penalty Prevention
Be it TIN discrepancies, incorrect VINs, inaccurate reports, delayed or no filings, the IRS assesses hefty penalties on trucking businesses that fail to comply with the regularized tax regimes.
A penalty prevention program from EZ2290 is a set of protocols, which are designed to help businesses to overcome noncompliance.
With timely email reminders, smart e-files, real-time TIN match and address validation protocols, automatic tax calculations, bulk filing options, virtual documentation, and time-saving processes, businesses can easily leverage our e-filing solutions and prevent being penalized by the IRS.
Bank-Grade Security
Tax reports involve sensitive business information and data. It’s meant for the eyes of the business and the IRS only. And we want to keep it that way.
Further, when you are entering the tax information on your 2290 returns, our platform starts calculating the HVUT tax automatically, helping you view the total tax you owe as you add in your vehicle information. This also allows you to check the tax break up and pay the amount appropriately.
Vehicle identification numbers are a combination of letters and numbers designated to a vehicle to qualify its uniqueness.If you have reported incorrect VINs in your previous files, the IRS may reject your reports citing inaccurate vehicle information.
EZ2290 helps you with reporting the correct VINs by providing free VIN Corrections. If you have filed with EZ2290 previously, you can select your previous filings and follow the VIN Correction steps. If you’re a new user, you can eFile 2290 VIN Correction by creating a new form and submit it to the IRS.
EZ2290 is a smart platform designed to meet the varying needs of trucking businesses. When you have a number of trucks to report, the manual process of entering the data and verifying it can be tedious.
Our paperless storage allows you to upload your vehicle data in just one click. Your data will be saved securely and can be accessed when you want EZ2290 to automatically populate your 2290 returns. This way you save time and effort.
Further, a digital copy of all your documentation and communications with the IRS will be stored on our servers. You can retrieve the files should you need the documents or proof of communication for any purpose in the future.
Free Re-Files For Rejected Returns
The IRS may reject your 2290 returns if you did not furnish the correct information or if you did not provide sufficient information. These two seem to be the most common causes of file rejections. But the reason for the IRS rejecting a particular return differs for each case.
Fortunately, the IRS cites the reason for rejection and provides a measure to address the issues cited. Now, all you have to do is address the issues cited by taking the specified measures and re-file the corrected returns.
For example, if the IRS rejects your returns citing incorrect tax information, it means that you may have reported an incorrect TIN/Name combination.
If your 2290 returns have been rejected for any reason, you can start fixing the issues by following the guidelines specified by the IRS orcontact our customer success team.
Our tax support and compliance specialists will assist you to address the rejected returns and help you re-file the now-corrected files successfully. You can re-file your rejected returns at no additional cost.
Live Tax Support
You don’t have to worry about fending for yourself when you’re hit with a notice from the IRS. We combine our vast experience in the tax compliance industry with smart technology to deliver successful and compliant experiences for your trucking business.
Our customer success team is equipped with smart tax technicians who will take care of your tax issues and compliance management regimes effectively.
Right from helping you sort out your HVUT taxes and providing verified guides, resources, and necessary information, to actually filing your tax forms on your behalf; we’re with you through it all.
As an authorized e-file provider of the IRS, we’re equipped with smart tax solutions, the right tax experts, a reliable support team, resources, and other associated solutions, which allow you to breeze through the tax season every year.
To address the initial perspective of finding the perfect balance between solutions that work best for your unique tax compliance activities and the ones that provide a seamless experience, EZ2290 is everything you need in this smart era of tax and business compliance.
And if you disagree, we totally understand.
But we would also nudge you to give it a fair try.
Learn the significance 2290 Schedule-1 holds in HVUT compliance + 5 easy tips to receive IRS Stamped Schedule-1 instantly.
When we buy food online or go to a restaurant and order some food, the seller provides a receipt – a piece of document that contains the items for which you have placed the order, and the payment details. Once you have made the payment, the receipt is stamped as ‘paid’. This denotes that the payment was successful.
Now, try applying this logic to your HVUT taxes. By paying your HVUT taxes to the IRS, you are transacting with the IRS. But how would you know that the IRS has acknowledged your payment?
That’s when Schedule-1 comes into the picture.
What Is Form 2290 Schedule 1?
Broadly, Schedule-1 is a tax form used by the filer to report the vehicle identification numbers (VINs), the month in which the vehicle was first used, business information, EIN, and other details.
Every Form 2290 comes with two copies of Schedule-1. Both copies of Schedule-1 must be filled and submitted by the filer.
However, only one of the submitted copies will be returned to the filer by the IRS after the submission and tax payment have been acknowledged.
This returned copy is treated as ‘Proof of Payment’ of the taxes.
Once the IRS validates and approves your reports, a copy of Schedule-1 is stamped by the IRS as ‘Accepted’. This little stamp means compliance for businesses.
Hence, businesses and tax professionals alike try their best to get the IRS-Stamped Schedule-1 on the first try.
Why Should I Use Schedule 1 (Form 2290)?
Filers must use Schedule-1 to ensure the accuracy of reports and HVUT compliance.
You see, 2290 Schedule-1 reports the vehicle identification numbers (VINs), Employer Identification Number (EIN), the period in which the vehicle was first used, and other business details.
Schedule-1 helps the IRS validate the information reported and track the vehicle tax history.
Essentially, all the VINs reported on Schedule-1 are verified by the IRS to check if the previous vehicle owners addressed their vehicle tax liabilities. The EIN/Name combination is also validated to check if the details match the IRS records.
Who Must File Form 2290 & Schedule 1?
Trucking businesses, fleet owners, and tax professionals who are filing Form 2290 on behalf of their clients are required to file Form 2290.
Vehicles must weigh 55,000 pounds or more to be categorized as ‘Heavy Vehicles’. Heavy vehicles that are used for commercial and agricultural purposes must utilize a mileage of 5000 miles or more, and 7500 miles or more (for agricultural vehicles) in a year.
Apart from trucking businesses, any individual or entity that uses heavy vehicles, such as vans, trucks, carriers, and other vehicles for transportation of goods or material, must file and report with HVUT Form 2290, and document Schedule-1 as ‘Proof of Payment’.
On the face of it, this field may seem very simple. But it is important to know that the IRS is not asking for your personal information here. The IRS is asking for the ‘Doing Business As’ name or the name of the business. The address field must be completed with the business address (operational location).
Vehicle Details
Schedule 1 requires you to enter the vehicle identification numbers of each vehicle for which you’re reporting with Form 2290. The category of the vehicle must also be reported next to the VIN section (as seen in the image above) to communicate to the IRS about the category in which each of your vehicles falls.
Schedule 1 (Form 2290) – Month Of First Use
Do note that you are reporting vehicles that are already registered. Vehicles that are not registered or vehicles for which the status of registration is not clear must not be reported in Schedule-1.
It is also important to understand that the ‘Month of First Use’ is for the period in which the vehicles were first used. The month applies to all the vehicles you’re reporting. For example, if you have started using the vehicles in July 2020, then you must report it as ‘202007’.
Schedule 1 (Form 2290), Consent To Disclosure Of Tax Information
Consent to Disclosure of Tax Information
This section of Form 2290 allows you to confirm that you have tried your best to furnish the most recent and accurate information to ensure compliance.
By signing in this section, you are allowing the IRS and assigned parties to review the confidential information you’re reporting.
This step is especially crucial when you outsource your 2290 e-Filing to third-party service providers or tax professionals who manage your e-files on your behalf.
5 Tips To Get IRS-Stamped Schedule-1 Instantly
Accurate Reports
Ensure that you enter the validated and verified information. Any inaccuracies in reports will result in rejected submissions, repetition of the filing process for corrections, and even penalties.
Tax Transparency
Maintain tax transparency when reporting your vehicles to the IRS. Hiding your vehicle information in order to reduce your tax liability will have a counter effect. You will end up being penalized by the IRS, making you pay double or even triple the amount of the original tax you owe.
TIN Matching
Search the IRS database to validate the TIN/Name combination that you’re about to report in the form. If you are a tax professional, it is essential to validate your client’s information. If you’re a business, verify your details against the IRS records just to be sure.
VIN Validation
If you have reported an incorrect VIN previously or if you’re not sure about the validity of the VIN, then you must most definitely practice VIN validation. A quick VIN Lookup allows you to check if you have the right VIN or if there are any errors.
Tax Discipline
It is common knowledge that not practicing tax discipline will result in rejected submissions and penalties. Being penalized by the IRS does not look good on your business profile, and may lead to missing out on potential investors (because no one wants to associate with a non-compliant business).
How Can I File Schedule 1 (Form 2290) Online With EZ2290?
You cannot file Schedule-1 as a separate form. However, you must attach both copies of the completed Schedule-1 with Form 2290 and submit the same to the IRS.
Once submitted, the IRS may accept or reject your submission after a meticulous review process.
With paper files, you receive the ink-stamped Schedule-1.
When you e-File with EZ2290, you will receive the IRS-stamped Schedule-1 within minutes after successful submission. You will receive an electronic copy of Schedule-1 with a digital watermark of the IRS stamp, aligned to the center of the document. Download and print out the document.
If you want Schedule-1 for a previous submission, you will have to send a written request to the following address: Internal Revenue Service 7940 Kentucky Drive Florence, KY 41042-2915.
This IRS-stamped Schedule-1 is accepted by the Department of Motor Vehicle (DMV) for vehicle registration and allows you to operate your vehicles on the public highways.
What To Look For In Form 2290 Schedule 1 Stamped Copy?
The IRS stamp is a watermark and it contains the date on which your submission was received by the IRS. Do not accept a Schedule-1 from any e-file provider when there is no Date Of Receipt.
A Schedule-1 (Proof of Payment) without the IRS-stamp + date of receipt is not valid and will not be accepted by any authority (including the IRS).
Further, compare the VINs and vehicle category listed in the stamped Schedule-1 with your original submissions. All the information in the IRS-Stamped Schedule-1 must be the same as the information reported in the original submission.
Any discrepancies must be brought to the attention of the e-file processor and the IRS immediately.
IRS Form 2290 is the single most important form for HVUT compliance. Schedule-1 is the only way to confirm if the IRS has received your submissions and payments. It is essential to document a copy of the stamped Schedule-1 for future references and submissions.
Schedule-1 also plays an intricate role in claiming tax refunds, tax suspension, and other legal assessments.
Use Form 8849 to claim a full HVUT refund of the overpaid excise taxes from the IRS with these simple-to-follow Form 8849 refund claim instructions.
If you own a single truck or a categorically heavy vehicle, which was taxed beyond its mileage usage or utility period, or if the taxes have been paid in excess to reduce the tax burden in the future, then you can claim a refund of the excess tax amount that you have paid in advance to the IRS.
If your vehicle has been suspended from taxes but you’re still being taxed for a suspended vehicle, you can claim a refund for the same and reduce your tax burden.
Additionally, if you accidentally report the wrong year, or the wrong First Used Month, or the wrong weight of the vehicle, then you may have to undertake an additional tax burden per your reports.
If you see yourself agreeing with any of the above scenarios, chances are that you’re either looking at amending your reports or requesting the IRS to process a refund for the taxes you have already paid.
While filing HVUT 2290 Amendment may be useful to correct the misreported vehicle information, only a credit claim request will help you communicate to the IRS that there was an excess payment of taxes, which needs to be refunded.
So, today, we will be looking at the easiest way to claim a complete refund of the overpaid excise tax – HVUT tax paid in advance.
When You Overpay HVUT Taxes
Large trucking businesses have their accounting teams manage the HVUT payments. Intending to comply with the IRS and reduce tax risk, accounting teams tend to over-estimate the HVUT tax and pay the taxes respectively.
Paying additional tax initially may seem like a burden, but it actually helps companies stay compliant. Unlike underreported taxes, over-reported taxes do not hurt your tax records. However, when the IRS observes that you have made excess payment of the tax, they will process a refund per their fair tax policy, popularly known as the Taxpayer Bill Of Rights.
On the off-chance of the IRS omitting to do so, you can communicate your case to the IRS and claim the refund for the excess tax you have paid.
Using Form 8849 To Claim HVUT Refund
If you have been in the trucking industry long enough, you must know that the IRS encourages taxpayers to follow certain refund protocols to claim the respective tax refunds.
Form 8849 is used to claim the refund of excise taxes paid by an entity or an individual. Providing information about your business, vehicle(s) for which you have paid the excess tax, vehicles that have been suspended from taxes, Employer Identification Number (EIN), Vehicle Identification Number (VIN), and other vital information must be entered in the form to help IRS identity your case and process the refund.
Further, attaching the necessary schedule to help support your claim will work in your favor.
Form 8849 & Types Of Refund Claims
Note: All the schedules listed below are downloadable files for research and understanding purposes only. Do not use them for paper filing.
Any of the above excise tax scenarios are valid to claim a refund from the IRS.
Suspended Vehicles & 8849 Refund Claims
Sometimes, the IRS may wrongfully tax entities or individuals for vehicles that are suspended from taxes. In such cases, the taxpayer can exercise their right to claim a refund of the tax paid on the suspended vehicle. The IRS will only refund the amount for the period in which the vehicle remains suspended from tax.
For example, if you have been paying taxes for your vehicle from 2008 to 2019, but you have requested the IRS to suspend your vehicles from HVUT tax in 2020 as your vehicles no longer categorically match the HVUT tax policies. If the IRS continues to tax your vehicle even after suspension and requires you to pay the tax, then you may pay the tax and claim a refund on such excess tax paid.
In this example, you will be able to claim a refund of the excess tax paid from 2019-2021 (now), the period in which your vehicle remains suspended.
Easily Claim Form 8849 Refunds With EZ2290
While it is easy to keep a track of the refund claims for one vehicle, more often than not, businesses with large fleets have to claim refunds for multiple vehicles at once. So, tracking and addressing the refund concerns can be complex.
But with a smart and convenient e-file processing platform like EZ2290 will be able to ease things and help you claim your HVUT refunds efficiently.
We help trucking businesses comply with the IRS tax policies and enable simple and easy-to-use tools, which make way for convenient filing and accurate reporting.
You too can claim your HVUT refund quickly with EZ2290 by your side (even if you did not file with us before!)
All you have to do is Sign Up Here and create your FREE EZ2290 account
Set up your business profile and provide the necessary business and tax information
Fill up Form 8849 or have our support team assist you
Understand the significance of a vehicle identification number in HVUT e-Files and learn how to eFile Form 2290 VIN Correction accurately with 5 quick tips.
Businesses within the trucking industry understand the importance of Form 2290 VIN Corrections. If you’re not familiar with the term or if you’re new to HVUT taxes, understanding Form 2290 is really essential.
To help you understand what a VIN Correction is, let me give you a quick background on a vehicle identification number, otherwise known as “VIN”.
Defining Vehicle Identification Number (VIN)
A vehicle identification number is assigned to every vehicle to identify it with a unique code. A vehicle identification code cannot be random. It has to follow a standardized sequence to denote the geographical origin area, the manufacturer’s details, and other vital vehicle information.
Role Of A VIN In HVUT Taxes
A vehicle identification number helps the IRS tax the current owner of the vehicle. Even if a vehicle has multiple owners, they all are severally required by law to file and pay their taxes with an exception to a few cases.
For Form 2290, which essentially deals with Heavy Vehicle Usage Tax, any vehicle that weighs 55,000 pounds or more is taxed by the IRS according to its gross taxable weight and mileage utility.
Now, owner-operators, truckers, fleet owners, trucking companies, and businesses within the trucking industry tend to operate with heavy vehicles that fall within the HVUT laws.
So, they are required by law to file their 2290 forms and pay the HVUT tax every year. If you’re a fleet owner or a trucker, you too are required to report the vehicle identification number, vehicle weight, mileage utility, and other information in Form 2290 and submit it to the IRS.
What Is A 2290 VIN Correction?
A 2290 VIN Correction is a form, which must be filed by the vehicle owner or their assigned designee if the previously filed 2290 return has been rejected for reporting an incorrect VIN. A 2290 return can also be rejected if you miss reporting a VIN in Form 2290.
How Would The IRS Know That I Reported An Incorrect VIN?
You see, a 2290 return, once submitted, will be meticulously reviewed by several checkpoints at the IRS office. The IRS has a record of all the vehicle identification numbers and their respective owners.
As soon as they receive your 2290 return, the IRS immediately scans the database to look for the VIN/Name combination you have entered in the form.
It is essential to ensure that you report the vehicle identification number and the vehicle owner’s name accurately. This is one of the most crucial defining factors of HVUT taxes.
Why Would The IRS Reject A 2290 Return For An Incorrect VIN?
Example scenario: Let’s assume that you have reported an incorrect VIN and you’ve submitted it to the IRS. Let’s also assume that the IRS did accept your incorrect VIN (they never miss an incorrect VIN FYI, but this is a hypothetical scenario. So, stay with me on this).
And let’s assume that the VIN you have entered does not exist in the IRS database, then the IRS will conduct a thorough background check to confirm if the vehicle exists.
Upon research, if the IRS concludes that the VIN doesn’t belong to you; your return will be rejected.
Now, let’s assume that the IRS accepts an incorrect VIN that you’ve reported. Let’s also assume that the reported VIN belongs to another taxpayer. You’re practically paying someone else’s taxes (when you should be paying yours).
And let’s assume that this taxpayer happens to have a notorious non-compliance history, lo and behold, you have just scored the attention of the IRS and heavy penalties + serious consequences (think imprisonment).
By trying to fabricate someone else’s VIN as yours; you have committed identity theft. And these unlawful practices are not tolerated by the IRS.
So, for your own peace of mind, follow the simple and lawful procedures laid out by the IRS, and correct an incorrect VIN by filing Form 2290 VIN Correction.
Note: It is important to understand that the IRS is more focused on filers reporting the information accurately than on assessing penalties. Having said that, if the IRS does find inaccurate reports or false positives, be prepared to receive notices and be on their non-compliant taxpayer’s list.
When Do You File A 2290 VIN Correction?
When the IRS rejects your 2290 return citing an incorrect VIN or missing VIN, then you are required to file a 2290 VIN Correction for the previously filed form 2290 return. If you happen to realize that you have reported an incorrect VIN after you have received Schedule-1, you still have the scope to file a 2290 VIN Correction.
By filing a VIN Correction, you are communicating to the IRS that there may have been a mistake in the previous reports.
Do note that you’re filing VIN Correction for vehicles that are already listed in your Schedule-1. New vehicles (that are not listed in Schedule-1) must be reported with a new Form 2290.
The following section will help you understand the right way to eFile Form 2290 VIN Correction and gives you some tips to prevent file rejections.
5 Quick Tips To E-File Form 2290 VIN Correction Accurately
e-File Form 2290 VIN Correction – 5 Quick Tips To Boost Accuracy.
Tip 1:Select ‘VIN Correction’
As seen in the image below, mark the VIN Correction box to clarify that you are filing a 2290 VIN Correction. If you do not select this box, the IRS will treat this as a new file, which leads to duplicate reports.
Tip 2:Validate Your VINs
Before you enter the corrected VIN in the form, be sure to quickly run the VIN through any authorized VIN Check tool. This will help you validate the VIN and report the correct information in the form. It will also help you decide if you need to file a VIN Correction or a 2290 Amendment.
Free VIN Check tools that help decode and validate your VINs
As you can see from the Form 2290 excerpt below, you have to enter the correct vehicle identification number in the “VIN You Are Reporting” column and enter the category of the vehicle in the column on the right. Do not enter the VINs for vehicles that have already been reported correctly in Schedule-1.
Schedule 1 of Form 2290
Tip 4: Enter The Correct EIN
There must be no disparities in the EIN reported in your previous return and the 2290 VIN Correction. If you are a tax professional filing a VIN Correction on your client’s behalf, be sure to validate the EIN before you enter it in the VIN Correction form. Do note that you and your client will be held accountable if there are disparities in the EIN reported in a 2290 VIN Correction form.
Tip 5: Correct All Incorrect VINs At Once
Before you submit your correct VINs, be sure to review your Schedule-1 and run all the VINs through a VIN Check tool to verify if the VINs are valid and report appropriately. If you see that one or more VINs need to be corrected, report all VIN corrections in a single Form 2290 VIN Correction and submit the form to the IRS. Avoid duplicate filings and reports.
e-File Form 2290 VIN Correction With EZ2290
EZ2290 is an IRS-authorized e-File provider, enabling businesses with convenient HVUT e-Files and tax compliance.
Apart from helping truckers and businesses with 2290 e-Files, we also provide tax compliance support to help you re-File your rejected returns at no additional cost.
You can securely e-File a 2290 VIN Correction in 4 simple steps with EZ2290.
Businesses within the trucking industry understand the essence of HVUT compliance. A compliant business means sustainability and consistency.
With many businesses still recovering from a harsh 2020, not complying with the IRS would result in unwarranted penalties and interests.
So, be it a trucker or a trucking business, compliance is no longer a requirement – it’s a necessity. The rise in demand for compliance is directly proportionate to the ugly aftermath of noncompliance.
If you’re here, then you must also be desperately looking for a guide or some sort of help to navigate through the HVUT Form 2290 and its filing process.
So, let’s get to it.
What Is Form 2290?
Form 2290 is an IRS informational return used to figure and pay heavy vehicle tax. The IRS defines a heavy vehicle as any vehicle used for commercial or agricultural purposes weighing 55,000 pounds or more.
Tax professionals or the filer must report the vehicle information, such as the mileage utilized in a year, weight of the vehicle, vehicle identification number, and other such information.
The IRS uses the tax reports to interpret the highway utility and the tax received on highway infrastructure and development programs.
Origin Of Form 2290
Form 2290 dates back to 14th July 1986 when the FHWA (Federal Highway Administration) published a final rule implementing the requirements of the statute – Enforcement of Heavy Vehicle Use Tax in the Federal Registrar.
Form 2290 is since used to report the maximum weight and size of the vehicles utilizing the federal highways for commercial and non-commercial purposes.
For a taxpayer operating a trucking business, Form 2290 is used to report the vehicle information to communicate to the IRS about the purpose of use, the weight of the vehicle, mileage usage, period in which the vehicle was first used, taxable constituents, and other information.
This allows the taxpayer to figure and pay the tax per the HVUT tax norms, helping with HVUT compliance.
From The Perspective Of The IRS
All the information reported in the 2290 form is used to validate its credibility to ensure the accuracy of reports. The reports are further used to analyze and interpret the federal highway usage, damage caused by the heavy vehicles, investments in federal highway development programs, and concluding the pending projects and related decisions.
Additionally, the IRS maintains the database of the existing, new, and old trucking businesses and taxpayers in the industry to evaluate trends and compliance regulations.
Who Uses Form 2290?
Form 2290 must be used by the following individuals and entities.
Truckers
Trucking partnerships
Trucking companies
Owner-operators
Agricultural transporters
Heavy-duty transporters
Internal trade transport entities
Commercial goods transport entities
Please note that vehicles other than trucks that meet the HVUT criteria are also treated as heavy vehicles by the IRS and will be taxed accordingly. Taxpayers and entities alike must participate in the voluntary compliance program and contribute their share of taxes to help enhance the federal highway infrastructure of the country.
Form 2290 Taxable Gross Weight
The IRS has set up a transparent tax computation process in order to tax a vehicle according to its taxable gross weight as follows.
Tax Computation Table
Logging Vehicles
Vehicles that are used to transport forestry goods and trees to and fro from the harvest locations are called Logging Vehicles. Forestry goods and trees tend to be very heavy and logging vehicles are used for their immaculate strength and safety in transit.
A heavy load = additional pressure on the highway surface, which leads to eventual damage. Hence, Logging vehicles are taxed slightly higher than non-logging vehicles.
Exceptions For Form 2290
Certain individuals and entities are exempt from reporting with Form 2290, which are as follows.
The Federal Government
The District of Columbia
A state or local government
The American National Red Cross
A nonprofit volunteer of the Fire Department, Ambulance Association, and Rescue Squad
An Indian Tribal Government but only if the vehicle’s use involves the exercise of an essential tribal government function
A mass transportation authority created under a statute that gives it certain powers normally exercised by the state
Qualified blood collection vehicles used by qualified blood collection organizations
You are required to fill all the fields that apply to you and provide the most accurate information. If you are unsure about the information you’re about to report, it is probably best to approach a tax professional or get support from our Tax Support Team here. This voluntary compliance approach will save you from being penalized for fraudulent or incorrect filings.
HVUT Form 2290
Name: This one can be a bit tricky. Always note that the IRS is not asking for your name. The IRS is asking the name of the business/entity on behalf of which you’re filing Form 2290. You can check if the name/TIN combination is correct by conducting a quick TIN check with the IRS. If the TIN/Name combination matches, then you can enter the name per the IRS records in this form.
EIN: Employer Identification Number is a special identification number assigned to employers and businesses. Validate your EIN before you report it in the return.
Address: Enter the operational address of your business per the IRS records. The IRS tracks your tax and compliance history by contacting the local tax authorities. When you enter the ZIP and address, the IRS will contact the authorities of the local area specified.
Check If Applicable:You can see that there are certain boxes, which you can select if they apply to you.
If you are amending a previous 2290 return, then you can select the ‘Amended Return’ box.
If you are filing this return to correct an incorrect VIN previously reported, then select the ‘VIN Correction’ box.
If the operational address of your business has changed, then amend your business address by selecting the ‘Address Change’ box.
If this is your final 2290 filing; if you no longer own a taxable heavy vehicle or wound up your business, then you must select the ‘Final Return’ box.
Part I Of HVUT Form 2290
Form 2290 Part – 1
Enter the year in which the vehicle was first used by you or your workers for commercial purposes. For example, if the period in which you first used the vehicle was in July 2020, then enter 202007 in the first line of the right column.
If your vehicle was subject to an additional tax liability for increased weight in the filing period, then the additional tax amount imposed on your vehicle must be entered in line 3 of the right column.
Now calculate the sum of line 2 and 3 and enter the final tax amount in line 4 of the right column
If you have overpaid your taxes, then you have a tax credit. Enter the tax credit amount in line 5 of the right column.
Now, deduct the amount entered in line 5 from line 4, and enter the remainder amount here. This is the tax amount that you owe.
After this, you can select the method by which you plan to pay the tax you owe.
Part II Of Form 2290: Statement In Support Of Suspension
Form 2290 Part – 2
7) Declare whether the suspended vehicles that you have used on public highways are for agricultural or regular use.
8.A) Declare whether the suspended vehicles were subject to tax in the previous tax year. For 2020-2021, the previous filing year is 2019-2020. Check if your suspended vehicles were taxed in the 2019-2020 tax year.
8.B) Enter the vehicle identification numbers of the vehicles that were not subject to tax in the 2019-2020 tax year.
9) Declare the ownership transfer of suspended vehicles that were not subject to tax in 2019-2020 by entering the vehicle identification numbers, name(s) of the vehicle owner(s), and the date of ownership transfer.
Third-Party Designee:If you want another individual to be involved to discuss the details entered in the return with the IRS, then select the box in this section and furnish the Designee’s name, Personal Identification Number of the designee, and their phone number. If not, select ‘No’ and leave this section blank.
Sign Here: The taxpayer or the preparer has to make their declarations and furnish the signature to confirm that the information reported in the form is valid.
Paid Preparer Use Only: If you have hired a tax preparer, then he/she must provide the required information and provide their signature in this section.
Tax Computation: Form 2290
Tax Computation Table
Logging Vehicles are vehicles that are used for transporting forestry goods and trees. Vehicles Except Logging are vehicles that are used for transporting products not related to forestry.
Heavy vehicles used for commercial transport are considered Vehicles Except Logging in the HVUT tax lingo.
Enter the number of vehicles in each of the columns as applicable to your business and calculate the tax.
For example, if you own 1 vehicle that weighs 55,000 pounds and another vehicle that weighs 65,000 pounds. Just type the number of vehicles (not the tax amount) in columns 3(a) and 3(b).
Now, calculate the tax by multiplying Column 1 or Column 2 with Column 3.
Enter the total amount in the last box of Column 4.
Schedule 1 Of Form 2290
Schedule 1 of Form 2290
There are 2 copies of Schedule 1 in every 2290 form. You must fill, complete and file both the forms to the IRS. However, only one of the copies will be stamped by the IRS and sent back to you as Proof Of Payment. You must document Schedule 1 for future use and reference.
Box-Wise Instructions For 2290 Schedule-1
Enter your business name in the ‘Name’ box
Enter the operational business address with the zip code
Enter the EIN assigned to you or your business (must be in consensus with the IRS records)
Enter the period in which the reportable vehicles were first used.
Enter the vehicle identification number and the category of each taxable vehicle in the Vehicles You Are Reporting box.
Summary Of Reported Vehicles
Enter the total number of vehicles you’re reporting for the current filing period in Row A
Enter the total number of vehicles in Category W on which the tax is suspended in Row B
Now, deduct the total number of Category W vehicles from the total number of vehicles reported and enter the final number in Row C.
For example, if you have reported a total of 9 vehicles, and only 1 vehicle is suspended from the tax liability (Category-W Vehicles), then the total number to be entered on Row ‘C’ would be ‘8’.
How Do I Fill Out Form 2290?
You can type the information into an electronic version of the form and print it out to mail by paper. Alternatively, you can e-File with minimal effort. If you are using a smart e-Filing tool like EZ2290 for your HVUT filings, then you can complete the entire process of completing and eFiling in less than 15 minutes.
The most important thing here is to have all the required information by your side (regardless of the filing method you choose). It will fasten up your filing process and minimize errors in reporting.
How Do I File Form 2290?
You can file Form 2290 by paper or through electronic filing methods. While traditional paper filing takes more time to complete and process, the electronic filing comes with several automated advantages, which fasten up your e-Filing process.
Easily e-File Form 2290 Online With EZ2290
EZ2290 brings to you the smoothest 2290 e-filing experience. Receive the IRS-stamped Schedule-1 in just 4 easy steps. Further, our Smart Tax Calculator gives you an approximate estimate of the total tax you owe.
Truckers and trucking businesses must be filed the IRS Form 2290 for Heavy Vehicle Use Taxes (HVUT) every year by August 31st for the current tax period for heavy highway vehicles begin on July 1, 2021, and ends on June 30, 2022.
For Previous Tax Years
Use the following table to determine the due date for vehicles purchased and used in the current and previous filing periods.
If The Vehicle Is First Used During This Period
File Form 2290 And Make Your Payment By
Enter This Date On Form 2290, Line 1**
July
August 31
YYYY07
August
September 30
YYYY08
September
October 31
YYYY09
October
November 30
YYYY10
November
December 31
YYYY11
December
January 31
YYYY12
January
Last day of February
YYYY01
February
March 31
YYYY02
March
April 30
YYYY03
April
May 31
YYYY04
May
June 30
YYYY05
June
July 31
YYYY06
IRS Form 2290 Schedule 1
Schedule-1 of Form 2290 is proof of payment of the HVUT tax. This document is issued by the IRS with the official acceptance stamp. Schedule-1 must be documented and can be used as evidence for payment proof when amending returns. Additionally, Schedule-1 also comes in handy when you want to request suspension of tax for a vehicle.
What Is Form 2290 Amendment?
It is important to note that Form 2290 Amendment is not a separate form. You can report the amendments you want to make through Form 2290 by selecting the “Amended Returns” box. You can only file an amendment for previous returns.
You can file an amendment for your previous returns in the following scenarios.
Increase In The Taxable Gross Weight Of The Vehicle
If the weight of your vehicle increases during a tax year, you must file an amendment to communicate to the IRS about the change in the vehicle weight. Increased vehicle weight = Increased tax liability.
Suspended Vehicles Exceeding The Mileage Use Limit
Regular heavy vehicles are limited to use 5000 miles (7500 miles for agricultural vehicles) in a tax year. If the vehicle exceeds this mileage use limit, then the same must be communicated to the IRS through 2290 amendment.
VIN Correction
If you have reported an incorrect VIN in the previous returns, then the 2290 amendment must be used to correct the VIN. An incorrect VIN may increase the risk of file rejections citing noncompliance.
In Conclusion
The IRS is strict about HVUT compliance since HVUT is one of most important sources of generating revenue for the state. Complying with these regulations would allow the businesses to maintain tax transparency and enjoy the perks of being a compliant business, while non-compliant businesses will have to look forward to a taxing future.
While the traditional paper filing method is time taking and requires a professional by your side, smart e-Filing platforms like EZ2290 are enabling businesses to comply easily and e-File for a large number of vehicles in a few minutes.
Convenience is the only way forward for trucking businesses with large fleets that want to comply.
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