Quick HVUT Compliance Guide For Trucking Businesses & Preparers

Quick HVUT Compliance Guide For Trucking Businesses & Preparers

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

Quick HVUT Compliance Guide
Quick HVUT Compliance Guide

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

File Your Form 2290 With Ez2290

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