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.
A simple guide to help you understand, prepare, and e-File Form 2290 for the tax year 2020-2021.
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.
Calculate the total 2290 you need to pay for the current filing period and enter the final amount in the 2nd 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.
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.
Learn how the 2290 Amendment plays a huge role in ensuring HVUT compliance and “correcting” previously misreported information for trucking businesses.
When we were younger, we had an eraser by our side to correct or erase our mistakes. Just when we thought that we could handle how to write with a pencil, our parents and teachers decided to switch it up with a pen.
This is an indirect gesture to tell you that you are not allowed to make the same mistakes that you once did because you have grown up and you have learned a lot along the way.
Now try applying the same logic to filing your taxes.
It’s not going to work.
Human errors are common.
We see a lot of credible businesses making the simplest mistakes before all hell breaks loose. It is that critical to be accurate, especially when you are dealing with numbers.
And what’s a better subject than taxes when it comes to talking about numbers?
2290 Amendment: A Second Chance For Compliance
The IRS leaves room for businesses to correct any previously misreported information on the HVUT returns.
Information such as the vehicle identification number, taxable gross weight of the vehicle, miles utilized, and other intricate details can be corrected through Form 2290 Amendment.
So, let’s understand this beacon of hope for trucking businesses – 2290 Amendment.
What Is Form 2290 Amendment?
It is important to note that the 2290 Amendment is not a separate form. The 2290 form has a checkbox that must be selected if the filer is opting to make corrections to the previously reported information.
By selecting the checkbox, the filer is communicating to the IRS that the previously reported information may be historic or misreported.
Filers are required to file the 2290 Amendment by paper or electronically to “amend” the previously reported information with the latest one.
How Do You Use 2290 Amendment
2290 Amendment can be used in 3 key scenarios, which are as follows.
#1: When The Taxable Gross Weight Of The Vehicle Increases
Let’s say that you bought a vehicle in January 2021. You have been using this vehicle for commercial purposes and it weighs about 66,000 pounds.
However, in February, your vehicle was required to carry an extra load of 6000 pounds, and it’s been the same since.
This pushes the taxable gross weight of the vehicle from 66,000 to 72,000. You must report such an increase in the weight through the 2290 Amendment.
Why?
Owner-operators or businesses are taxed according to the taxable gross weight of the vehicle with which they operate.
An increase in the weight of the vehicle means that the vehicle is more likely to add pressure on the highways, and it’s more likely to utilize the highways.
An increase in the taxable gross weight of the vehicle puts the vehicle in a new category and the vehicle will be taxed according to its revised weight.
So, if the taxable gross weight increased on 1st February 2021, the same must be reported on 2290 Amendment and submitted by 31st March 2021
Let’s look at another scenario.
#2: When The Vehicle Exceeds The Mileage Use Limit
It is essential to note that there are some mileage limitations in place, which regulate heavy vehicle activity on highways. The IRS specifies that the mileage limit for a non-agricultural vehicle is 5000 miles and 7500 miles for agricultural vehicles.
Let’s take the same example. Since the load of the vehicle has changed, it means that the vehicle has to go to more warehouses located in different cities or states to drop the load.
Assuming that the vehicle’s previous mileage limit was 4500 miles, but it increased by 800 miles, then the gross mileage for the total period (from February 2021) would be 5300 or more. This shows us that the mileage use limit has been exceeded and the owner(s) have to pay the tax for the extra miles.
Do note that the tax must be paid in full regardless of the number of owners a vehicle has. So, if the mileage use limit was exceeded on 1st February 2021, then the same must be reported on the 2290 Amendment and submitted by 31st March 2021.
#3: VIN Corrections
A vehicle identification number is a unique number assigned to each vehicle for identity and activity tracking purposes. Many buyers verify the vehicle identification number to check the vehicle’s history and prior activity.
A quick VIN Lookup helps us understand if the vehicle was involved in any suspicious or unlawful backgrounds. Further, VIN Lookup also helps us understand the entire history of the vehicle, right from the day it was first bought by your seller – which helps you understand the real monetary value of the vehicle.
2290 Amendment allows fillers to correct a previously misreported Vehicle Identification Number.
A typical vehicle identification number comprises 17 digits with a combination of letters and numbers. However, some VINs are smaller. A VIN Lookup helps you understand if you have the right VIN or if the VIN is accurate.
Businesses that enter an incorrect VIN can amend and report with the correct VIN through 2290 Amendment.
Previously, VIN correction or Amendment was only possible through paper filing. However, the IRS is now encouraging filers to opt for electronic methods.
How 2290 Amendment Helps With HVUT Compliance
In layman’s terms, the 2290 Amendment is sort of like a second chance for businesses to correct the incorrect information previously reported. By filing the 2290 Amendment, businesses are communicating to the IRS that they are serious about reporting accurately. This shows the intent of the filer to report with the latest information.
It also helps the IRS tax the businesses that are utilizing the highways more frequently, which in return, helps develop the transportation and highway infrastructure of the country.
How Trucking Businesses Are Ensuring HVUT Compliance In 2021
Businesses like you are being smart about taxes. They are choosing smart solutions that facilitate easy 2290 e-filing.
EZ2290 helps businesses ensure HVUT compliance by providing secure 2290 e-file service and 2290 Amendments in the most convenient way.
You too can join thousands of businesses to ensure HVUT compliance for your businesses.
You can do all of this in just 3 simple steps.
Step 1: Create your free EZ2290 account here or log into your account
Step 2: Complete your 2290 form
Step 3: Submit
If you aree-filing Form 2290, you will receive the IRS-Stamped Schedule-1 a few minutes after successfully submitting the forms to the IRS.
If you want to amend a previous filing, you can go to your dashboard and select the period for which you want to file the amendment. Alternatively, you can get assistance from our tax support team here.
EZ2290 brings you some of the most-demanded features, which make e-filing 2290 a cakewalk.
Trucking businesses are preparing to file the HVUT form 2290 for the tax year 2021-2022. So,here’s your complete guide to filing Form 2290 before the due date + tips for easy IRS compliance.
After a bitter 2020 and restricted road activity, businesses in the trucking industry are picking up the pace and looking forward to the HVUT filing season in 2021-2022.
If you are an owner-operator or work with a trucking business, you must know how much the trucking industry was impacted because of the Covid-19 global pandemic.
Several businesses came to a halt and others were permanently closed as they were unable to sustain the choked-up economic scenario.
With the Covid-19 regulations and a possible second wave in place (which may need the governments to declare an emergency), filing your 2290 forms may seem like the last thing you want to do. However, not filing your taxes can do more damage than good.
You may know by now that the IRS is focused on ensuring compliance and regulating for-profit organizations, and it is not going to stop anytime soon. This approach is in consensus with the general penalty assessment rules.
This brings us to the subject at hand – HVUT Form 2290 and how truckers and trucking businesses should approach their tax filings in the tax year 2021-2022. When should you file and how to go about it.
Find all the answers here.
But before you skip to the due dates, here’s a blurb on Form 2290.
About Form 2290
Form 2290 (view here) is an IRS informational return, which must be filed by owner-operators and businesses in the trucking industry. You are required to file Form 2290 if the taxable gross weight of the vehicle weighs 55,000 pounds or more.
When Is Form 2290 Due For 2021?
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.
Form 2290 Due Dates For Vehicles First Used On Public Highways
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
How Much Does It Cost To File Form 2290?
The cost to file Form 2290 depends on the number of heavy vehicles on which you’re liable to pay the tax + weight of the vehicle + any pending penalty. For example: Let’s assume that you own 1 truck and started using it in July 2020. Say that the taxable gross weight is 55,000 pounds. In this case, you are liable to pay $75.00 as Heavy Vehicle Use Tax by 31st August 2021.
How Do I Pay My Heavy Duty Tax?
The IRS is encouraging businesses and individuals alike to e-file Form 2290 to pay Heavy Highway Vehicle Use Tax on vehicles that have a taxable gross weight of 55000 pounds or more.
Businesses can file by paper or electronically in a few simple steps. However, if you are planning on e-fling your 2290 taxes, then we recommend EZ2290 for its simple-to-follow e-filing process and a minimal processing fee. You can estimate your HVUT taxes with EZ2290’s Smart Tax Calculator.
Enter the required business and vehicle information to calculate tax and report.
Submit To The IRS
Submit your returns to the IRS through our secure e-filing platform.
Get IRS Stamped Schedule-1 Instantly
Receive the IRS Stamped Schedule-1 within minutes of successful submission.
IRS Form 2290 Stamped Schedule 1 (Proof for Payment)
Paper filing requires a lot of effort to prepare and mail the files. You may not know if the IRS has reviewed your files unless they process and send you the IRS-Stamped Schedule-1. This entire process may take between 2 days to 2 weeks.
However, when you choose to e-file your HVUT forms, you will instantly receive the IRS-Stamped Schedule-1 after successful submission.
The IRS-Stamped Schedule-1 is proof of receipt of tax payment by the IRS. You can use this to document and track your 2290 filings.
What Is The Penalty For Late Filing Of Form 2290?
Delayed tax filings accrue interests. The IRS imposes a 0.54% penalty on the total tax you owe, which is assessed every month until the total tax + interest is received in full. An additional 0.5% interest is also accrued every month.
For example, if you owe $100 as HVUT taxes, then the final tax amount would accrue a 0.5% penalty + 0.5% interest for every month.
Please note that the interest will keep accruing until you pay your taxes, be it days, months, or even years.
However, the IRS also provides relief to filers who have a valid reason for delaying the 2290 files and tax payments. Find more information on penalty relief on 2290 files directly from the IRS here.
IRS Form 2290 Instructions – The simplest guide to read and eFile HVUT Form 2290 for trucking businesses and self-employed truckers.
It doesn’t matter if you’re a regular filer or new to HVUT taxes, filing IRS Form 2290 is something that you have to be hands-on with if you want to stay on the road, especially if you’re in the trucking industry.
Businesses and truckers alike file Form 2290 with the IRS to report their vehicles with specific vehicle information, such as Vehicle Identification Number (VIN), Mileage Usage Limit (MUL), First Use Month (FUM), category of the vehicle, and so on.
If you’re a beginner or new to HVUT taxes, then this guide will be useful when reading the IRS 2290 Form. It will also help you get a little perspective on the subject.
Form 2290 Instructions: Before You Get Started
Here’s a little something to help you understand HVUT in a much simpler way. There are a variety of elements that make up an HVUT form. So, I’m going to break these elements down into comprehensive blocks so you understand their purpose and significance individually and severally.
What Is HVUT – Defining HVUT
HVUT is an acronym for IRS Form 2290. HVUT stands for Heavy Highway Vehicle Use Tax. HVUT tax applies to vehicles that weigh 55,000 pounds or more and utilize the highways for commercial, non-commercial, and agricultural purposes.
Here’s a link to the current revised version of the IRS Form 2290Return🡪HVUT 2290
Heavy Highway Vehicle Use Tax Form 2290
As you can see, the HVUT Form has several fields, including Name and Address. This is where you will have to enter your “Doing Business As” name or your business name, followed by your business address.
‘Check If Applicable’ On HVUT 2290 Return
This section of the form has 4 options, which each individually hold a unique purpose of filing as follows.
Address Change
When you select this box, it means that you are filing the form to change the address of the business. The address you enter will be updated across your IRS records. You may be required to attach a proof of address to support this change.
Amended Return
Select this box if you want to amend any of the information you have previously reported with Form 2290, such as:
Increase in the taxable weight of the vehicle
Exceeded mileage use limit
VIN Correction
Select this box if you have previously reported an incorrect VIN on Form 2290. By filing this VIN Correction, you are helping the IRS track the vehicle’s history and related information.
Final Return
Select this box if you no longer have any taxable vehicles to report.
Employer Identification Number (EIN)
Entering the Employer Identification Number (EIN) will help the IRS identify your business and the tax records associated with this EIN.
Vehicle Identification Number (VIN)
The VIN helps the IRS track the tax records associated with the vehicle’s identification number. It also helps the IRS track the ownership transfer and details of the vehicle owners.
Taxable Gross Weight
A vehicle has to weigh a minimum of 55,000 for the HVUT tax to be applicable. The taxable gross weight of the vehicle may vary at any time. It is important to enter the accurate weight so that the IRS can tax the vehicle appropriately.
Form 2290 Part I
Form 2290 Part I – Figuring The Tax
Part I of the HVUT Form 2290 deals with calculating the actual tax you owe to the IRS.
This section requires you to have certain information by your side when entering the information. Inaccurate information entered will result in inaccurate tax figures, which leads to file rejections and penalties.
So, be conscious of the numbers you’re entering and make sure that you have the latest information available with you.
Line 1: Month Of First Use
Also known as First Use Month (FUM), the Month of First Use is a field on Form 2290 which requires you to enter the month in which the heavy vehicle was first used. For example, if you purchased a vehicle in January 2021 and started using the vehicle in February 2021, then you must enter February 2021 in the HVUT form.
Line 2: Tax
This field requires you to calculate and enter the total tax you owe to the IRS on all your vehicles. For this, you have to make use of the particulars available on Page 2 of the form and derive the total. The final amount must be entered in the ‘Tax’ field on Page 1.
Logging Vehicles
Logging vehicles are vehicles that are exclusively used for transporting forestry goods such as lumber, wood, paper, forage, and more. Logging vehicles also benefit from a 25% reduced tax liability as opposed to non-logging vehicles.
So, if you own a logging vehicle, your vehicle will be taxed at $75 on an average as opposed to $100 (for non-logging vehicles). In Form 2290, you have to enter the number of Logging Vehicles you own and calculate the tax.
For example; 10 Logging Vehicles x $75 = $750 🡪 your tax amount
You will be able to calculate as such on page 2 of Form 2290.
Used Vehicles
Enter the successive month after the purchase has been made.
For example, if you bought a used vehicle from a seller in June 2020, then you must enter July 2020 in your HVUT Form.
Further, the buyer is not liable to pay tax for the first use month (driving the vehicle from the seller’s location to the buyer’s location) of the tax period.
It is important to note that the title and change in ownership have to be documented and submitted to the IRS appropriately for careful verification. This would help the IRS to stop taxing the seller and start taxing the buyer. A copy of the seller’s stamped Schedule 1 would be useful in such a scenario.
Line 3: Increase In The Taxable Gross Weight Of A Vehicle
The weight of the vehicle can change due to increased load, which categorically changes the tax liability on that vehicle. When the gross taxable weight of the vehicle increases, you will have to pay additional tax for the increased weight.
The same must be reported with Form 2290 Amendment.
If the weight of the vehicle has increased in the current month, then the Amended return must be filed by the end of the successive month.
Line 4: Total Tax
Total Tax is the sum of the tax you owe on each vehicle and the additional tax you owe on every vehicle on which the gross taxable weight has increased.
So, the total of the tax you owe to the IRS on logging and non-logging vehicles + the additional tax you owe on vehicles for which the gross taxable weight has increased = Total Tax.
Line 5: Credit For Tax Paid
If you have previously claimed a refund from the IRS for excess tax paid, then such an amount will go here. If the amount has been credited to you, then such an amount will be deducted from the total tax you owe to the IRS.
If you do not have any refund claim credits, then leave this line empty.
Line 6: Balance Due
The total tax you owe (minus) the total credit you have claimed through refund claims is your total balance due.
You have to pay the balance due to the IRS.
For online tax payments, you can eFile Form 2290 with EZ2290, where you have several payment options, including debit/credit cards, digital wallets, and other fund transfer options.
Form 2290 – Part II – Statement in Support Of Suspension
Form 2290 – Part II
Part II of the 2290 HVUT Form helps you report vehicles that are suspended from tax, transfer of ownership, sale or purchase of the heavy vehicle, and related information. It is extremely useful in defining the current vehicle owner and claiming any credits for prepaid taxes.
Line 7: Tax-Suspended Vehicles
This section helps you report any vehicles (reported on this form) that are suspended from tax. Vehicle owners are not required to pay taxes for tax-suspended vehicles but have to file the forms for compliance purposes.
Line 8: Suspended Vehicles For The Last Year
Vehicles that have been suspended in the previous tax year must be reported in Form 2290 in the current tax year.
Even though you do not have to pay taxes for the suspended vehicle, it is essential to file and report the vehicle for compliance purposes. Further, vehicles that have more than one owner must be reported as well.
Line 9: Sale Or Transfer Of The Suspended Vehicle
If the suspended vehicle has been sold or transferred to a new buyer, then such a change in ownership of the vehicle must be reported with Form 2290.
When the ownership transfers to a new buyer, so do the tax liability. The seller has to file and pay taxes for the period until the date of ownership transfer.
Third Party Designee
A third party designee is an individual or an entity other than you and the IRS. The taxpayer (you) is in control of authorizing a certain individual or an entity to be a third party designee to discuss your tax reports with the IRS.
If you have authorized someone to communicate with the IRS on behalf of you regarding your tax reports, then you must furnish their name, personal identification number (PIN), and contact information. The IRS will reach out to them as and when required.
Signature – Sign The Form 2290
The taxpayer is required to sign in this field to confirm that they are aware of all the information reported in the form and its validity. By signing here, you are agreeing to comply with the IRS and their successive protocols if the information reported is found inaccurate or incomplete.
Paid Preparer Use Only
Businesses with large fleets hire paid preparers who take care of the tax forms and filings on behalf of the company. In such a case, the paid preparer must furnish the required information in this field, such as their name, contact information, name of their firm, contact information of the firm, and other information.
Even though the paid preparer is signing the return, the taxpayer is ultimately responsible for the accuracy and validity of the information reported in the returns.
Page 2: Tax Computation Table On Form 2290
Taxable Gross Weight Categories (A-V)
Vehicles are categorized according to their taxable gross weight. When the weight of the vehicle changes, the category of the vehicle also changes, resulting in a change in tax liability.
The following table will help you understand the taxable gross weights and vehicle categories of Non-Logging Vehicles.
Vehicle Category
Taxable Gross Weight (lbs)
Form 2290 Tax Amount (Approx)
A
55,000
$100.00
B
55,001 – 56,000
$122.00
C
56,001 – 57,000
$144.00
D
57,001 – 58,000
$166.00
E
58,001 – 59,000
$188.00
F
59,001 – 60,000
$210.00
G
60,001 – 61,000
$232.00
H
61,001 – 62,000
$254.00
I
62,001 – 63,000
$276.00
J
63,001 – 64,000
$298.00
K
64,001 – 65,000
$320.00
L
65,001 – 66,000
$342.00
M
66,001 – 67,000
$364.00
N
67,001 – 68,000
$386.00
O
68,001 – 69,000
$408.00
P
69,001 – 70,000
$430.00
Q
70,001 – 71,000
$452.00
R
71,001 – 72,000
$474.00
S
72,001 – 73,000
$496.00
T
73,001 – 74,000
$518.00
U
74,001 – 75,000
$540.00
V
Over 75,000
$550.00
Taxable Gross Weight Categories (A-V) For Non-Logging Vehicles.
The following table will help you understand the taxable gross weights and vehicle categories of Logging Vehicles.
Vehicle Category
Taxable Gross Weight (lbs)
Form 2290 Tax Amount (Approx)
A
55,000
$75.00
B
55,001 – 56,000
$91.50
C
56,001 – 57,000
$108.00
D
57,001 – 58,000
$124.50
E
58,001 – 59,000
$141.00
F
59,001 – 60,000
$157.50
G
60,001 – 61,000
$174.00
H
61,001 – 62,000
$190.50
I
62,001 – 63,000
$207.00
J
63,001 – 64,000
$223.50
K
64,001 – 65,000
$240.00
L
65,001 – 66,000
$256.50
M
66,001 – 67,000
$273.00
N
67,001 – 68,000
$289.50
O
68,001 – 69,000
$306.00
P
69,001 – 70,000
$322.50
Q
70,001 – 71,000
$339.00
R
71,001 – 72,000
$355.50
S
72,001 – 73,000
$372.00
T
73,001 – 74,000
$388.50
U
74,001 – 75,000
$405.00
V
Over 75,000
$412.50
Taxable Gross Weight Categories For Logging Vehicles.
Tax Computation Columns
Tax computation columns allow the taxpayer to calculate, figure, and assess the tax amounts for each vehicle according to the period in which they were first used.
Column 1 – Annual Tax
Vehicles weighing 55,000 pounds or more that were used during July of the tax period are reported in this column. They are taxed for the entire tax year from July of the previous year to August of the current year.
Do note that the newly purchased vehicles used in July of the last year must be reported by August of last year. The vehicles will be taxed after the 2290s have been submitted in the previous year.
Column 2 – Partial-Period Tax
Vehicles that were first used after July must be reported in this column. This means that the vehicles are taxed partially. Enter the number of vehicles you own in the logging and non-logging columns to figure the tax amount.
Column 3 – Number Of Vehicles
Enter the total number of vehicles that you’re reporting from a particular category from A to V.
Column 4 – Amount Of Tax
To derive the tax amount, you must multiply the number of vehicles you own with the annual tax, as shown below.
Tax Computation Table
Schedule 1 of Form 2290 – Schedule 1 For Heavy Highway Vehicles
Each 2290 HVUT Form comes with 2 copies of Schedule 1. You will have to fill both copies of Schedule 1 in order to complete your 2290 Form. The additional, second copy of Schedule 1 is used by the IRS, in which they confirm the tax payment with an authorized stamp.
The stamped Schedule 1 is sent back to the taxpayer and must be documented to maintain a record of all your transactions with the IRS. It also comes in handy when you want to claim any tax credits from the IRS in the future.
Schedule 1 of Form 2290
Instructions To Complete Schedule 1 (Form 2290)
This is the easiest part of the 2290 Form filling yet the most important one as well. This is where businesses report their vehicles associated with vehicle identification numbers (VINs) and the category of the vehicles, respectively.
Form 2290 (Schedule 1) Business Details
This is where you will enter the business information, such as the name of your business, operational address, and the employer identification number (EIN) or TIN.
Part I – Vehicles You Are Reporting
Enter the vehicle identification numbers of the vehicles you’re reporting. Be sure to search and validate the VINs before you enter them here to avoid misreporting your VINs.
Part II – Summary Of Reported Vehicles
Enter the total number of vehicles you’re reporting on Row ‘a’.
Enter the total number of vehicles that have been suspended from tax on Row ‘b’.
Now, deduct Row ‘b’ from Row ‘a’ and you have the total number of taxable vehicles.
How To Pay The Form 2290 Tax
You can pay Form 2290 using different ways. EFTPS, Credit or Debit Cards, Check or Money Order, and Payment Voucher.
Electronic Federal Tax Payment System (EFTPS)
You can pay through EFTPS, where you will have to use your Social Security Number or TIN and the Personal Identification Number to log in to your account. It’s a 24×7 service and everyone who has the credentials can make use of this free service and pay their taxes online or by reaching out to the IRS telephonic support.
If you’re choosing this method, then you must select ‘EFTPS’ from the payment methods available on Line 6 of Form 2290.
Credit Or Debit Card Payment
You can also pay your taxes by opting to pay with your credit or debit cards. If you’re choosing this method, then you must select ‘Credit Or Debit Card’ from the payment methods available on Line 6 of Form 2290.
Check Or Money Order Using The Payment Voucher
If you plan on filing by paper, then you must fill out the Payment Voucher in Form 2290. You cannot send cash to pay your taxes. You will have to attach a check.
Form 2290-V – Payment Voucher
Furnish Form 2290-V with the required information, such as your EIN, the total tax amount, business name and address, date, and more. Do not attach cash with this voucher. Just attach your check, but do not staple it.
Send Payment Voucher with your 2290 HVUT Form and both copies of Schedule 1.
Form 2290-V Payment Voucher
If you are eFiling, you do not need to file the Payment Voucher or the Schedule 1 as you would be choosing to make the tax payment online as well (it’s just more convenient that way).
Easily eFile 2020-2021 Form 2290 Online Using EZ2290
Alternatively, you can also pay the HVUT tax easily by registering with an IRS-authorized eFile provider like EZ2290. Register with your email and phone number and your account will be generated automatically.
eFile Form 2290 In 3 Simple Steps With EZ2290
Create your business profile
Select the 2290 Form you want to eFile
Submit Form 2290 to the IRS
You can make the payment conveniently by choosing from the available payment options.
Filing HVUT Form 2290 is one of the most complex tasks if you’re not informed about the reporting procedures, but one of the easiest jobs if you have a simple guide (like this blog) by your side.
Be sure to validate the information you’re reporting in the form to avoid file rejections and penalties. IRS records every detail you have entered in the form to identify, track, and maintain your tax history. So, the more accurate your reports, the longer your trucks stay on the road.
