Form 2290 Archives - Page 10 of 12

Quick HVUT Compliance Guide For Trucking Businesses & Preparers

Posted on August 20, 2021 - 9:03 am by Sandeep

A quick guide to help trucking businesses and paid preparers with their 2290 e-files + tips to improve reporting accuracy.

The filing season is one of the most crucial times for businesses. For trucking businesses, however, filing season has paramount importance as noncompliance could mean that the trucking business could be off the road.

Trucking businesses pay hefty fees to licensed CPAs to calculate and prepare their HVUT 2290 returns accurately. While this is a smart move, the reporting or calculation inconsistencies could be further streamlined with an organized approach.

The following guide will help you attain HVUT compliance while ensuring reporting accuracy. Feel free to use this guide in the order of your reporting priorities.

Review Due Dates & Penalties

Before you or your preparer starts working on your e-files, it is essential to understand the timelines you have to work with. For example, you can approach your 2290 returns with a comprehensive viewpoint if you have at least 3-4 months before the due date.

If you’re looking at the due date in a couple of weeks, the process has to be accelerated to meet the compliance requirements before or by the due date.

Do note that the due date for submitting your IRS HVUT 2290 returns is August 31, 2021, for the tax year 2021-2022.

And by the time you come around to reading this guide, you will have very little time to work with it. In such a case, you have to gather all the required information at once before you start entering the information in the forms.

Validate TIN & Business Name

IRS is paying special attention to TIN discrepancies in light of heightened AML/KYC risks. If you’re a licensed preparer working with a number of clients, it is absolutely essential that you verify the tax details of your clients and report the information accurately before you proceed to other steps.

If you do not have a TIN/EIN, you can use your social security number to report your vehicle information on the 2290 return.

Take advantage of the IRS TIN Matching program or accelerate your bulk TIN Matching with Tax1099.

Do note that the IRS reserves its right to reject returns if you report an incorrect taxpayer identification number or employer identification number.

Tax Calculation

The taxable weight of the vehicle, logging status, and the month of first use must be derived clearly before you start calculating the HVUT tax for a heavy vehicle.

Calculate your HVUT tax approximately with our Smart HVUT Calculator for free.

For newly purchased vehicles, the 2290 return must be filed in the successive month after the first use.

For example, if you have started using your new heavy vehicles in March 2021, then you must file the IRS 2290 returns by the end of April 2021.

If the IRS has approved any tax refunds, the refund amount can be deducted from your total tax and the product of that is your tax payable.

Vehicle Weight & Logging Status

A vehicle has to weigh at least 55,000 pounds or more for it to be qualified for HVUT taxes. Since the weight of the vehicle could change due to mechanical and loading changes, the tax burden will also change simultaneously.

The vehicle must utilize the federal highways for it to be qualified for HVUT and if any of your heavy vehicles do not meet the criteria, you can request for suspension of taxes.

The logging status of your vehicle will bring you lower rates of tax. If you have logging vehicles; meaning, if you are utilizing the vehicles for transporting forestry goods, the tax rates will be slightly lower.

VIN Verification

Vehicle identification number plays a significant role when the IRS has to tax your vehicles. If you enter a wrong VIN, the return will be rejected. For this, you have to submit a VIN Correction to report the correct VIN.

Validate VINs here

In the unlikely situation of the IRS accepting a wrongful VIN, the tax burden (no matter how high) has to be borne by your trucking business. However, such instances are pretty rare since preparers and businesses alike go through plenty of paperwork and registration forms to confirm the official vehicle identification number of a vehicle.

Accelerate 2290 E-Files With IRS Authorized eFile Provider – EZ2290

If you haven’t started your 2290 e-files yet, you should do so quickly with EZ2290.

The IRS deadline for HVUT Form 2290 is fast approaching, and there is very little time to prepare your returns and submit the forms before the deadline.

EZ2290 is an IRS-authorized agent accelerating 2290 e-files with its automated features, smart calculations, multi-device accessibilities, penalty prevention programs, free VIN corrections, and free re-files for rejected returns.

Learn all about EZ2290 here

You can also opt for Full Service to have us prepare and file your 2290 forms in bulk before the deadline.

Contact Support For Full Service

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IRS HVUT Form 2290 Due Dates For 2021-2022 Tax Year

Posted on August 19, 2021 - 1:46 pm by Sandeep

Here’s your go-to guide to help accelerate your 2290 e-files before the IRS HVUT deadline and improve your 2290 reporting accuracy.

As the HVUT filing season is nearing its deadline, trucking businesses are in a rush to file their 2290 returns with the IRS. Having a handbook by your side will help you prevent filing delays, improve reporting, and accelerate submissions.

This simple guide has been prepared to help trucking businesses, fleet owners, owner-operating entities, and self-employed truckers with their 2290 filings.

Please note that this is a simple guide to help you with the overall process. If you are looking for comprehensive procedures and complex tax assistance, you can reach out to our customer success teams here, who provide live assistance to registered and non-registered users. If you haven’t registered with EZ2290 yet, create your free account now and start your 2290 e-Files today.

Before You Start Preparing

It is important to gather the required information for your 2290 tax reports before you start entering the information in the returns.

Have a licensed CPA or an accountant help you get the required tax and vehicle information, such as the taxpayer identification number (TIN), the number of heavy vehicles, their weights, vehicle categories, tax suspension information, mileage usage, and more.

This information plays a huge role in your 2290 reports.

Addressing Outstanding HVUT 2290 Reports

If you haven’t paid your HVUT taxes for the previous period(s), or if you are awaiting certain responses from the IRS, or if there are any pending returns from previous periods, or if you have been penalized in the past, it is worth spending some time on these instances first.

Pending or outstanding HVUT submissions can be cumulatively submitted along with the current period’s returns. However, some vehicle tax information, such as tax suspensions, final reports, unaddressed penalties + interest, and more can make a significant difference in the total tax you have to pay for this year.

Understanding Vehicle Categories

Vehicles are primarily categorized according to their taxable weight and logging status. However, the tax will differ according to other instances, such as tax suspension and exemption status. Further, agricultural vehicles and credit vehicles are subject to lower tax rates. These factors have to be considered when approaching your truck taxes.

Vehicle Weight Calculation

It is important to derive the actual taxable weight of your vehicle before you enter the details on your 2290 returns. You do not have to do any complex math to calculate the tax estimate.

All you have to do is check if the vehicle is 55,000 pounds or more. If the weight is 55,000 or more, then your heavy vehicle is required to be reported with 2290 HVUT forms.

Calculate your HVUT tax easily in a couple of seconds with EZ2290’s Smart Tax Calculator. Enter the weight, month of first use, and the logging status of your vehicle, and you will see the approximate tax you have to pay.

If you are a registered user of EZ2290, our dynamic platform automatically calculates the tax as you enter your vehicle details on your 2290 e-returns. The information entered in the fields is processed in real-time so that you have accurate figures to work with.

Tax Information Validation

When reporting your heavy vehicles, it is absolutely important to ensure that there are no TIN discrepancies. It is worthy to note that the IRS will reject your returns if the furnished TIN or EIN information does not match their official records. You can validate the TIN/EIN information in real-time with the IRS TIN Matching service from the official portal here or use trusted tools like Tax1099 TIN Match service for better and faster results. Only enter the tax information after thorough verification. This comes in extremely handy for paid preparers who prepare the tax returns on behalf of their clients.

Vehicle Information Validation

Similar to a TIN, the vehicle identification number of your highway truck has to be verified per the official records to check the status of the vehicle and assess the scope of the tax.

Entering the wrong VIN will result in the returns being rejected by the IRS due to incorrect information. VIN Lookup will help you validate the vehicle details and report accurately. You can verify your VINs online using VIN lookup tools for free. Use Ez2290’s free VIN corrections feature by filing a form 2290 amendment.

Form 2290 Due Dates & Deadlines For 2021 -2022

The IRS requires taxpayers to file their HVUT returns by paper or through electronic methods by August 31 of each year. The deadline for submitting your 2290 forms to the IRS for the 2021-2022 tax year is August 31, 2021.

If you have purchased a new vehicle, the 2290 returns have to be submitted by the end of the successive month, denoting the month of first use.

For example, if you first started using a vehicle in March 2021, then you must report the same by the end of April 2021 to ensure HVUT compliance.

Form 2290 Rejections & Amendments

The IRS can reject your HVUT 2290 forms if the tax or vehicle information reported is not accurate. There are a variety of reasons why a return could be rejected, including but not limited to the following citations.

Incorrect tax information
Incorrect vehicle information
Incorrect VIN
Return submitted after the deadline with no prior notice or requests

Or any other reason.

Addressing the rejected returns at the earliest is the quickest road to compliance. To amend the incorrect information reported, the taxpayer has to file the 2290 Amendment and furnish the corrected information.

Learn more about Form 2290 amendments here

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Here’s What The IRS Wants You To Know About HVUT Compliance In 2021

Posted on August 17, 2021 - 11:58 am by Sandeep

Here are a few recommendations made by the IRS to help taxpayers with truck tax compliance.

Businesses are preparing their 2290 truck tax returns as the 2290 deadline is fast approaching. The IRS has officially issued a statement on the 2290 due date, which aims to provide some important clarity for new and old truck taxpayers. The statement is focused on regulatory reporting, tax compliance, and business compliance.

The following will discuss the IRS recommendations and advice extracted from the statement and other latest newsroom updates to help small truck businesses and fleet owners with their truck tax reporting.

Not sure if you need to file/pay your HVUT taxes? You can take this interactive interview from the IRS to determine if you need to pay and file HVUT tax for your trucks.

These essential compliance practices will help businesses with preparing, filing, and managing their IRS filings and communications.

Furnish The Most Accurate Vehicle Information

Self-employed truckers, fleet owners, trucking businesses, owner-operator trucking businesses, and other registered trucking businesses are all responsible for furnishing the most accurate vehicle, tax, and business information in the 2290 tax returns in good faith. The reported information is used to assess the business compliance status and cross-checks other compliance review protocols.

If the information reported is inaccurate or not in alignment with the reporting requirements, the returns will be rejected for inconsistencies and non-compliance.

It is also important to note that hiding the real information of your business/vehicles is treated as tax evasion and the IRS is free to assess monetary and civil penalties on such individuals/entities and conduct unannounced audits.

To avoid such extreme situations, the IRS advises trucking businesses to follow the 2290 filing instructions and get help from the IRS online assistance resources.

You can also get tax assistance from EZ2290’s support team here at no additional cost.

Review Your Truck Tax Reports

The IRS encourages taxpayers to thoroughly review and validate the information reported before submitting the returns to the IRS. Internal audit processes will help fasten the file acceptance and streamline the verification processes, allowing you to complete your tax obligations quickly.

Multi-level reviews mean multiple checks on the reported information. These internal reviews help you examine the information reported and validate it in accordance with the necessary documentation or records, improving your reporting accuracy.

TIN/EIN verification, VIN Lookup, and vehicle category verifications cannot be missed when reporting heavy vehicle tax information in the federal tax form, 2290.

Verify Your IRS-Authorized E-File Provider

e-Filing methods are recommended by the IRS when a taxpayer has to submit more than 25 forms to the IRS.

If you are e-filing, it is important to ensure that you are filing with platforms or companies that are actually authorized by the IRS.

Check if your truck tax e-file provider is registered with the IRS here and here.

By following this quick step, you will be able to verify your e-file provider and file your returns with them confidently.

You will be able to find EZ2290 listed as an authorized agent of the IRS here.

eFile Form 2290 Before Deadline

IRS 2290 Deadline Is NOT Related To Vehicle Registration Date

The latest statement released by the IRS is alerting the taxpayers on the correlation between the registration date of the vehicle and the IRS deadline. It is essential to note that the date of registration of the vehicle will not change the 2290 filing due date.

Further, if businesses are reporting newly registered vehicles, then businesses have to specify the date on which the vehicle was first used on the highways.

Here’s a quick table to help you understand the due date logic for 2290 HVUT forms.

If the vehicle is first used during	eFile 2290 and pay tax 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

eFile Form 2290 Securely With Ez2290

Expect Delays In Paper File Processes & Expedite Requests For Copies of Schedule 1

If you’re e-Filing, you can probably ignore this step.

If you are paper filing, you need to know that the IRS is short on staff for manual reviews due to the current pandemic situation. The paper files will be processed at a slower pace. However, the IRS assures taxpayers that all files, paper and electronic, will be reviewed as fast as possible.

Paper filers need not submit duplicated returns if they did not receive a response from the IRS. Taxpayers can request copies of schedule 1 per these instructions from the IRS. Expect slight delays for expedite requests as well.

For accelerated 2290 processing, the IRS recommends electronic filing.

FAQS For Truckers From The IRS

Note: When you eFile with EZ2290, you receive a digital copy of the IRS-stamped stamped Schedule 1 instantly.

Start Filing Your Form 2290

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5 Smart Tips For 2290 Filings: 2290 Due Dates, HVUT Compliance & More

Posted on August 13, 2021 - 12:21 pm by Sandeep

Here’s how a few smart diligent steps could help you accomplish HVUT compliance and ensure reporting accuracy for your 2290 returns.

Trucking businesses and self-employed truckers are preparing their HVUT 2290 tax forms as the IRS 2290 deadline ( August 31, 2021) are on the horizon. While the IRS encourages taxpayers to file their returns before the deadline, they also stress the importance of reporting accuracy to help taxpayers prevent file rejections and assessments.

Intending to ensure HVUT compliance, many businesses are approaching their HVUT tax files with strategic planning and advanced tech stack solutions. This is to establish 2290 reporting accuracy and submitting the files before the IRS deadlines.

The following will discuss in detail some smart tips that accounting teams, truckers, and trucking businesses follow to ensure HVUT compliance for their businesses.

Tip #1: Planning HVUT Reports

Businesses that choose to plan their tax reports are more likely to achieve their tax goals than those that don’t. This is because of the focus they put on organizing the tax returns and reports that need additional attention.

For example, refund claims penalty assessment reviews and rejected returns will likely take more time than the regular 2290 reports of a tax year.

Further, planning your HVUT reports and tax forms in order of priority and due dates will help you accelerate your reporting operations and ensure compliance. August 31, 2021, is the due date for filing IRS Form 2290 for the 2021-2022 tax year.

Additionally, having a licensed CPA or better, a whole team of tax experts by your side through the filing season will help you better approach your tax reports.

eFile Now Your Form 2290!

Tip #2: Addressing 8849 Refund Claims, Tax Suspensions, Rejected Returns, 2290 Amendments, VIN Corrections & More

Trucking businesses with large fleets have a lot to review and address before they file their tax returns. And when they do submit the required forms, the returns can be rejected by the IRS for inconsistencies.

8849 Refund Claims, Tax Suspension Requests, Rejected Returns, 2290 Amendments, VIN Corrections, and the like need additional coordination and attention to comply with the tax reporting requirements.

In such cases, it is better to have dedicated teamwork on returns with complex tax issues and have separate teamwork on your new reports. This way, you are optimizing your reporting process without compromising on accuracy or due dates. This approach also simplifies your organizational workflow and accelerates productivity.

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Tip #3: 2290 Audits

New or previous, all tax reports have to be thoroughly audited before submission to ensure that all the vehicle, tax, and business information is reported accurately. Defining focus groups for audits or even better, outsourcing your prepared tax returns for lifecycle audits will help you gain insights on your reports.

IRS-authorized agents like EZ2290 provide end-to-end 2290 solutions that could help you report and audit your tax returns better. Learn all about the EZ2290 Full Service here.

Besides, when your prepared returns are audited by a fresh pair of eyes, you are more likely to address any issues that may arise and submit error-free tax returns to the IRS.

If outsourcing your audits is not on your agenda, you can try creating multi-level audits within the organization. This could help you improve your reporting accuracy and help you spot certain tax problems at various levels that need additional focus.

Tip #4: Tax Details Verification

Tax details, such as the Taxpayer identification number (TIN) or employer identification number (EIN) and the names associated with these business identification numbers have to be validated against the official records of the IRS before filing the returns. This practice helps prevent file rejections.

Apart from TIN Matching or EIN Matching, businesses also have to pay attention to vehicle information, such as the taxable weight of the vehicles, month of first use, vehicle identification numbers (VINs), mileage use limit, and more. This information is intricate when reporting vehicle-specific information in the 2290 return. VIN Lookup tools like NICB’s VIN Check will help you verify the vehicle and tax details, enabling you to validate the vehicle information before entering the details on the 2290 returns and VIN correction forms.

Tip #5: Bulk Files (Choosing API Solutions)

As businesses expand, they have very little time on their hands to sit and review their tax information and eventually report them. When businesses find themselves unable to accommodate the pressing tax priorities, they tend to rely on API solutions that offer bulk filing options.

If you’ve made up your mind about bulk files, you must make sure to provide all the necessary information from your end to the concerned API team. Withholding your tax reports or information will result in 2290 reporting inconsistencies. This could eventually lead to filing rejections from the IRS. 10,000+ businesses in the U.S. are choosing to file with a reliable full-service enabler like EZ2290 to e-file 2290 returns in bulk. With seamless integrations, penalty prevention programs, smart tax calculators, dynamic user experiences, free VIN corrections, free re-files for rejected returns, bulk uploads, and more features, businesses can rely on EZ2290 for bulk files and lifecycle truck tax solutions.

Learn More About Ez2290

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Useful Blog Links

IRS Resources

Updated: Form 2290 Instructions From IRS (PDF)
eFile Requirements: IRS Instructions (Revised July 2021)
IRS 2290 Due Dates (Updated)

HVUT E-File: What Are The Penalties For Late Filing Of HVUT Form 2290

Posted on July 26, 2021 - 12:34 pm by Sandeep

Here’s what happens when you file your 2290 HVUT forms late and the penalties + interest on late filing of HVUT forms.

It’s a word that scares most businesses because being penalized is not just a financial liability but also a reputational liability. Businesses try their best to not be associated with this word and put their best efforts forward to comply with the IRS.

It is essential to understand that there are different types of penalties and not all penalties necessarily put an end card for your business.

The penalties assessed by the IRS for delayed 2290 filings vary according to the intent, cause of the delay, tax liability, and other factors.

But what’s the scope of penalty for delayed HVUT filings?

How much does your business have to pay should you be penalized?

And what’s the applicable interest rate?

Learn all about this and more as we take you through the subject.

What Are Form 2290 Penalties?

Just like any other penalty, HVUT Form 2290 late filing penalties are assessed and imposed by the IRS on the HVUT tax you owe. These penalties are assessed when you miss the annual deadline to file your HVUT forms.

The taxpayer (individuals and entities alike) is required to pay these penalties and interests in order to stay compliant. When ignored, the penalties + interest rates will continue to pile up and the IRS will be forced to take more severe measures per the tax laws of the state.

The penalty and the measures taken by the IRS will differ depending on the severity of the case.

Why does the IRS penalize for late filing, you ask? The answer is pretty simple – Noncompliance.

When a business fails to file its tax forms or delays the filing (by months and years), it sends a message that the business is trying to hide the income and evade taxes.

However, it is essential to note that late filing by a few days or weeks will be accepted by the IRS with reasonable causes and evidence. But when a company or an individual willfully delays filing in order to hide income or evade taxes, there are consequences.

What Is The Penalty For Late Filing of Form 2290?

Some businesses in the past had to pay as much as $3 Million in penalties and the business owners were imprisoned on the account of tax evasion and tax fraud.

While this is an extreme case; trucking businesses that aim to comply with the IRS must strive to file their 2290 HVUT forms before or by the deadline specified by the IRS.

Here’s a quick bullet list to understand the penalty + interest system followed by the IRS for delayed 2290 filings and missed filings.

Penalty will start accruing a day after the due date
Penalty for delayed filing would be 4.5% of the unpaid tax (assessed every month for 5 months after the due date)
Penalty for failure to filing would be 5% of the unpaid tax that you owe to the IRS (assessed every month after the due date until you file)
The interest is levied upon each return that you failed to file before the due date
The penalty and interest will continue to pile up until you file the forms to the IRS

Form 2290 Extension To Avoid Penalties

If you miss the deadline, expect the IRS to assess inevitable penalties. However, the IRS makes an exception for taxpayers that have requested an extension in advance and does not penalize such taxpayers for delayed filings.

Further, taxpayers that are claiming a refund from the IRS will not be penalized by the IRS.

Do note that the IRS is only excusing the penalties in such cases, not the actual tax you owe.

Learn more about late filing and penalty rules from the IRS here

You can request an extension of the deadline and provide a valid reason for the delay in the filing by writing a letter to the IRS at the following address:

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999-0031

First-Time Penalty Abatement For Form 2290

If you have been penalized for the first time and if you have not been penalized in the last 3 years and have a clean tax compliance history, you can request the IRS to waive off your penalty with the IRS Penalty Abatement Form 843.

Taxpayers have to fill the form with some basic information, followed by providing a valid explanation for the delay or failure to filing Form 2290 before or by the deadline.

If the IRS agrees that your explanation is valid and in good faith, it will waive off the penalty in part or whole (depending on the severity of the case).

If you have a history of delayed filings or being penalized by the IRS, an abatement request may not work in your favor.

However, if you have a clean tax history, your chances of abatement approvals are higher.

Due Date For HVUT Form 2290 In 2021

Businesses and self-employed truckers alike have to submit their HVUT Form 2290 to the IRS by August 31^st of the current filing period (2020-2021).

The current tax period for HVUT filing begins on July 1, 2020, and ends on June 30, 2021.

For newly purchased vehicles, businesses have to file the HVUT Form 2290 by the end of the successive month of first use.

For example, if you purchased a vehicle in Jan 2021 and started using it in Jan 2021, then you must file HVUT Form 2290 by the end of February 2021.

Simplified HVUT 2290 E-Filing With EZ2290

EZ2290 is an IRS-authorized 2290 e-Filing platform trusted by 10,000+ trucking businesses across the U.S.

EZ2290 can help you in the following ways

E-file HVUT Form 2290
Follow-up with the IRS for Penalty Abatement
E-file and pay due taxes
Send e-filing extension requests
Re-file rejected returns
Correct previous HVUT forms
Manage your IRS communications

EZ2290 comes with many smart quirks and features

Free VIN Corrections
Free Retransmissions
Automatic Tax Calculations
Bulk Data Upload
Penalty Prevention
Secure E-Filing Experience
Device Compatibility & Mobility
Timely Tax Support

EZ2290 will securely transmit your returns to the IRS, giving you peace of mind.

We also send email reminders to all our subscribers and keep them posted on due dates and new tax updates.

Subscribe to our email reminders & updates here

Start e-filing with EZ2290 now.

Do not pay us anything until you decide to submit your returns to the IRS. Get started by creating your FREE account today.

Taxable Gross Weight Of The Vehicle Increased? Here’s How To Report It On IRS Form 2290

Posted on July 23, 2021 - 10:33 am by Sandeep

Find the easiest way to report a change in the taxable gross weight of your heavy highway vehicle on HVUT Form 2290.

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, this exhaustive 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.

Useful Links

Latest: IRS Form 2290 Instructions

Read & eFile HVUT Form 2290 Easily

Calculating Tax For Increased Vehicle Weight

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.

But to get started, you have to create your very own EZ2290 account (it’s free).

Step 1: Select The Previous 2290 Filings

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.

Provide the VIN of the vehicle for which you’re amending the details.

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.

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HVUT Compliance: How To Re-File Rejected Returns?

Posted on July 21, 2021 - 2:31 pm by Sandeep

How To Re-File Rejected Form 2290 Returns

Learn how to re-file your rejected Form 2290 returns + tips to establish HVUT compliance.

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.

Incorrect VIN
Incorrect TIN/EIN
Incorrect First Use Month (FUM)
Incorrect Mileage Usage
Non-Compliance Citations

However, rejected returns can be addressed according to the severity of the citation raised by the IRS

If you have filed your returns in bulk, then you have to spend even more time correcting your returns and submit them.

So, let us take you through the process of re-filing rejected 2290 returns after addressing the issues cited by the IRS.

Incorrect VIN

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.

Incorrect TIN/EIN

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.

You can use Tax1099’s Real-Time TIN Matching program to validate your TINs.

Do note that the IRS assesses severe penalties for each TIN discrepancy.

Incorrect First Use Month (FUM)

The IRS will check your returns and your seller’s returns (because hey! Everyone is filing their returns to the IRS).

Since vehicle purchases are asset purchases, the transactions will be reported on Form 8949, which reports all capital assets.

Most likely, your seller will also file their 1099 forms to show that they have made some gains by selling their asset.

This information will be checked by the IRS to validate the transaction.

If you have reported an incorrect or wrongful month of first use, your returns will be rejected for false reporting and tax evasion.

To avoid this, report the correct month of first use.

Let’s say that you bought the vehicle in January 2021 and started using the vehicle in February 2021 then you must enter Feb 2021 in your returns.

Incorrect Mileage Usage

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.

Non-Compliance Citations

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.

VIN Corrections: 3 Smart Tips For Reporting Correct VINs On Your 2290 Returns

Posted on July 19, 2021 - 1:09 pm by Sandeep

Here are the 3 most important tips you will need to accurately report your vehicle identification numbers (VINs) on HVUT Form 2290.

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.

Submitting Your 2290 VIN Corrections With EZ2290

EZ2290 is an IRS-authorized HVUT compliance enabler, helping over 10,000 trucking businesses to report their truck taxes and stay compliant.

You can easily eFile Form 2290 VIN Correction with EZ2290 in just 3 simple steps.

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.

The Importance Of VIN In HVUT Compliance

Posted on July 16, 2021 - 2:14 pm by Sandeep

Here’s how a vehicle identification number plays a huge role in ensuring HVUT compliance for your trucking business.

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.

eFile Your HVUT Form 2290

Related Ez2290 Blogs:

How EZ2290 Helps You Achieve Complete HVUT Compliance

Posted on July 15, 2021 - 1:25 pm by Sandeep

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.

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.

Useful Link – Complete HVUT Compliance For Your Trucking Business With EZ2290

Online Help For HVUT Form 2290

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.

Useful Resources

Online Help For Rejected 2290 Returns

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.

Useful Resources

Online Help To eFile 2290 Amendments

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.

Useful Link

Everything You Need To Know About IRS Form 2290 Amendment

Complete Tax & Compliance Support With EZ2290

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

Start eFiling 2290

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.