Use Form 8849 to claim a full HVUT refund of the overpaid excise taxes from the IRS with these simple-to-follow Form 8849 refund claim instructions.
If you own a single truck or a categorically heavy vehicle, which was taxed beyond its mileage usage or utility period, or if the taxes have been paid in excess to reduce the tax burden in the future, then you can claim a refund of the excess tax amount that you have paid in advance to the IRS.
If your vehicle has been suspended from taxes but you’re still being taxed for a suspended vehicle, you can claim a refund for the same and reduce your tax burden.
Additionally, if you accidentally report the wrong year, or the wrong First Used Month, or the wrong weight of the vehicle, then you may have to undertake an additional tax burden per your reports.
If you see yourself agreeing with any of the above scenarios, chances are that you’re either looking at amending your reports or requesting the IRS to process a refund for the taxes you have already paid.
While filing HVUT 2290 Amendment may be useful to correct the misreported vehicle information, only a credit claim request will help you communicate to the IRS that there was an excess payment of taxes, which needs to be refunded.
So, today, we will be looking at the easiest way to claim a complete refund of the overpaid excise tax – HVUT tax paid in advance.
When You Overpay HVUT Taxes
Large trucking businesses have their accounting teams manage the HVUT payments. Intending to comply with the IRS and reduce tax risk, accounting teams tend to over-estimate the HVUT tax and pay the taxes respectively.
Paying additional tax initially may seem like a burden, but it actually helps companies stay compliant. Unlike underreported taxes, over-reported taxes do not hurt your tax records. However, when the IRS observes that you have made excess payment of the tax, they will process a refund per their fair tax policy, popularly known as the Taxpayer Bill Of Rights.
On the off-chance of the IRS omitting to do so, you can communicate your case to the IRS and claim the refund for the excess tax you have paid.
Using Form 8849 To Claim HVUT Refund
If you have been in the trucking industry long enough, you must know that the IRS encourages taxpayers to follow certain refund protocols to claim the respective tax refunds.
Form 8849 is used to claim the refund of excise taxes paid by an entity or an individual. Providing information about your business, vehicle(s) for which you have paid the excess tax, vehicles that have been suspended from taxes, Employer Identification Number (EIN), Vehicle Identification Number (VIN), and other vital information must be entered in the form to help IRS identity your case and process the refund.
Further, attaching the necessary schedule to help support your claim will work in your favor.
Form 8849 & Types Of Refund Claims
Note: All the schedules listed below are downloadable files for research and understanding purposes only. Do not use them for paper filing.
Any of the above excise tax scenarios are valid to claim a refund from the IRS.
Suspended Vehicles & 8849 Refund Claims
Sometimes, the IRS may wrongfully tax entities or individuals for vehicles that are suspended from taxes. In such cases, the taxpayer can exercise their right to claim a refund of the tax paid on the suspended vehicle. The IRS will only refund the amount for the period in which the vehicle remains suspended from tax.
For example, if you have been paying taxes for your vehicle from 2008 to 2019, but you have requested the IRS to suspend your vehicles from HVUT tax in 2020 as your vehicles no longer categorically match the HVUT tax policies. If the IRS continues to tax your vehicle even after suspension and requires you to pay the tax, then you may pay the tax and claim a refund on such excess tax paid.
In this example, you will be able to claim a refund of the excess tax paid from 2019-2021 (now), the period in which your vehicle remains suspended.
Easily Claim Form 8849 Refunds With EZ2290
While it is easy to keep a track of the refund claims for one vehicle, more often than not, businesses with large fleets have to claim refunds for multiple vehicles at once. So, tracking and addressing the refund concerns can be complex.
But with a smart and convenient e-file processing platform like EZ2290 will be able to ease things and help you claim your HVUT refunds efficiently.
We help trucking businesses comply with the IRS tax policies and enable simple and easy-to-use tools, which make way for convenient filing and accurate reporting.
You too can claim your HVUT refund quickly with EZ2290 by your side (even if you did not file with us before!)
All you have to do is Sign Up Here and create your FREE EZ2290 account
Set up your business profile and provide the necessary business and tax information
Fill up Form 8849 or have our support team assist you
Understand the significance of a vehicle identification number in HVUT e-Files and learn how to eFile Form 2290 VIN Correction accurately with 5 quick tips.
Businesses within the trucking industry understand the importance of Form 2290 VIN Corrections. If you’re not familiar with the term or if you’re new to HVUT taxes, understanding Form 2290 is really essential.
To help you understand what a VIN Correction is, let me give you a quick background on a vehicle identification number, otherwise known as “VIN”.
Defining Vehicle Identification Number (VIN)
A vehicle identification number is assigned to every vehicle to identify it with a unique code. A vehicle identification code cannot be random. It has to follow a standardized sequence to denote the geographical origin area, the manufacturer’s details, and other vital vehicle information.
Role Of A VIN In HVUT Taxes
A vehicle identification number helps the IRS tax the current owner of the vehicle. Even if a vehicle has multiple owners, they all are severally required by law to file and pay their taxes with an exception to a few cases.
For Form 2290, which essentially deals with Heavy Vehicle Usage Tax, any vehicle that weighs 55,000 pounds or more is taxed by the IRS according to its gross taxable weight and mileage utility.
Now, owner-operators, truckers, fleet owners, trucking companies, and businesses within the trucking industry tend to operate with heavy vehicles that fall within the HVUT laws.
So, they are required by law to file their 2290 forms and pay the HVUT tax every year. If you’re a fleet owner or a trucker, you too are required to report the vehicle identification number, vehicle weight, mileage utility, and other information in Form 2290 and submit it to the IRS.
What Is A 2290 VIN Correction?
A 2290 VIN Correction is a form, which must be filed by the vehicle owner or their assigned designee if the previously filed 2290 return has been rejected for reporting an incorrect VIN. A 2290 return can also be rejected if you miss reporting a VIN in Form 2290.
How Would The IRS Know That I Reported An Incorrect VIN?
You see, a 2290 return, once submitted, will be meticulously reviewed by several checkpoints at the IRS office. The IRS has a record of all the vehicle identification numbers and their respective owners.
As soon as they receive your 2290 return, the IRS immediately scans the database to look for the VIN/Name combination you have entered in the form.
It is essential to ensure that you report the vehicle identification number and the vehicle owner’s name accurately. This is one of the most crucial defining factors of HVUT taxes.
Why Would The IRS Reject A 2290 Return For An Incorrect VIN?
Example scenario: Let’s assume that you have reported an incorrect VIN and you’ve submitted it to the IRS. Let’s also assume that the IRS did accept your incorrect VIN (they never miss an incorrect VIN FYI, but this is a hypothetical scenario. So, stay with me on this).
And let’s assume that the VIN you have entered does not exist in the IRS database, then the IRS will conduct a thorough background check to confirm if the vehicle exists.
Upon research, if the IRS concludes that the VIN doesn’t belong to you; your return will be rejected.
Now, let’s assume that the IRS accepts an incorrect VIN that you’ve reported. Let’s also assume that the reported VIN belongs to another taxpayer. You’re practically paying someone else’s taxes (when you should be paying yours).
And let’s assume that this taxpayer happens to have a notorious non-compliance history, lo and behold, you have just scored the attention of the IRS and heavy penalties + serious consequences (think imprisonment).
By trying to fabricate someone else’s VIN as yours; you have committed identity theft. And these unlawful practices are not tolerated by the IRS.
So, for your own peace of mind, follow the simple and lawful procedures laid out by the IRS, and correct an incorrect VIN by filing Form 2290 VIN Correction.
Note: It is important to understand that the IRS is more focused on filers reporting the information accurately than on assessing penalties. Having said that, if the IRS does find inaccurate reports or false positives, be prepared to receive notices and be on their non-compliant taxpayer’s list.
When Do You File A 2290 VIN Correction?
When the IRS rejects your 2290 return citing an incorrect VIN or missing VIN, then you are required to file a 2290 VIN Correction for the previously filed form 2290 return. If you happen to realize that you have reported an incorrect VIN after you have received Schedule-1, you still have the scope to file a 2290 VIN Correction.
By filing a VIN Correction, you are communicating to the IRS that there may have been a mistake in the previous reports.
Do note that you’re filing VIN Correction for vehicles that are already listed in your Schedule-1. New vehicles (that are not listed in Schedule-1) must be reported with a new Form 2290.
The following section will help you understand the right way to eFile Form 2290 VIN Correction and gives you some tips to prevent file rejections.
5 Quick Tips To E-File Form 2290 VIN Correction Accurately
e-File Form 2290 VIN Correction – 5 Quick Tips To Boost Accuracy.
Tip 1:Select ‘VIN Correction’
As seen in the image below, mark the VIN Correction box to clarify that you are filing a 2290 VIN Correction. If you do not select this box, the IRS will treat this as a new file, which leads to duplicate reports.
Tip 2:Validate Your VINs
Before you enter the corrected VIN in the form, be sure to quickly run the VIN through any authorized VIN Check tool. This will help you validate the VIN and report the correct information in the form. It will also help you decide if you need to file a VIN Correction or a 2290 Amendment.
Free VIN Check tools that help decode and validate your VINs
As you can see from the Form 2290 excerpt below, you have to enter the correct vehicle identification number in the “VIN You Are Reporting” column and enter the category of the vehicle in the column on the right. Do not enter the VINs for vehicles that have already been reported correctly in Schedule-1.
Schedule 1 of Form 2290
Tip 4: Enter The Correct EIN
There must be no disparities in the EIN reported in your previous return and the 2290 VIN Correction. If you are a tax professional filing a VIN Correction on your client’s behalf, be sure to validate the EIN before you enter it in the VIN Correction form. Do note that you and your client will be held accountable if there are disparities in the EIN reported in a 2290 VIN Correction form.
Tip 5: Correct All Incorrect VINs At Once
Before you submit your correct VINs, be sure to review your Schedule-1 and run all the VINs through a VIN Check tool to verify if the VINs are valid and report appropriately. If you see that one or more VINs need to be corrected, report all VIN corrections in a single Form 2290 VIN Correction and submit the form to the IRS. Avoid duplicate filings and reports.
e-File Form 2290 VIN Correction With EZ2290
EZ2290 is an IRS-authorized e-File provider, enabling businesses with convenient HVUT e-Files and tax compliance.
Apart from helping truckers and businesses with 2290 e-Files, we also provide tax compliance support to help you re-File your rejected returns at no additional cost.
You can securely e-File a 2290 VIN Correction in 4 simple steps with EZ2290.
Businesses within the trucking industry understand the essence of HVUT compliance. A compliant business means sustainability and consistency.
With many businesses still recovering from a harsh 2020, not complying with the IRS would result in unwarranted penalties and interests.
So, be it a trucker or a trucking business, compliance is no longer a requirement – it’s a necessity. The rise in demand for compliance is directly proportionate to the ugly aftermath of noncompliance.
If you’re here, then you must also be desperately looking for a guide or some sort of help to navigate through the HVUT Form 2290 and its filing process.
So, let’s get to it.
What Is Form 2290?
Form 2290 is an IRS informational return used to figure and pay heavy vehicle tax. The IRS defines a heavy vehicle as any vehicle used for commercial or agricultural purposes weighing 55,000 pounds or more.
Tax professionals or the filer must report the vehicle information, such as the mileage utilized in a year, weight of the vehicle, vehicle identification number, and other such information.
The IRS uses the tax reports to interpret the highway utility and the tax received on highway infrastructure and development programs.
Origin Of Form 2290
Form 2290 dates back to 14th July 1986 when the FHWA (Federal Highway Administration) published a final rule implementing the requirements of the statute – Enforcement of Heavy Vehicle Use Tax in the Federal Registrar.
Form 2290 is since used to report the maximum weight and size of the vehicles utilizing the federal highways for commercial and non-commercial purposes.
For a taxpayer operating a trucking business, Form 2290 is used to report the vehicle information to communicate to the IRS about the purpose of use, the weight of the vehicle, mileage usage, period in which the vehicle was first used, taxable constituents, and other information.
This allows the taxpayer to figure and pay the tax per the HVUT tax norms, helping with HVUT compliance.
From The Perspective Of The IRS
All the information reported in the 2290 form is used to validate its credibility to ensure the accuracy of reports. The reports are further used to analyze and interpret the federal highway usage, damage caused by the heavy vehicles, investments in federal highway development programs, and concluding the pending projects and related decisions.
Additionally, the IRS maintains the database of the existing, new, and old trucking businesses and taxpayers in the industry to evaluate trends and compliance regulations.
Who Uses Form 2290?
Form 2290 must be used by the following individuals and entities.
Truckers
Trucking partnerships
Trucking companies
Owner-operators
Agricultural transporters
Heavy-duty transporters
Internal trade transport entities
Commercial goods transport entities
Please note that vehicles other than trucks that meet the HVUT criteria are also treated as heavy vehicles by the IRS and will be taxed accordingly. Taxpayers and entities alike must participate in the voluntary compliance program and contribute their share of taxes to help enhance the federal highway infrastructure of the country.
Form 2290 Taxable Gross Weight
The IRS has set up a transparent tax computation process in order to tax a vehicle according to its taxable gross weight as follows.
Tax Computation Table
Logging Vehicles
Vehicles that are used to transport forestry goods and trees to and fro from the harvest locations are called Logging Vehicles. Forestry goods and trees tend to be very heavy and logging vehicles are used for their immaculate strength and safety in transit.
A heavy load = additional pressure on the highway surface, which leads to eventual damage. Hence, Logging vehicles are taxed slightly higher than non-logging vehicles.
Exceptions For Form 2290
Certain individuals and entities are exempt from reporting with Form 2290, which are as follows.
The Federal Government
The District of Columbia
A state or local government
The American National Red Cross
A nonprofit volunteer of the Fire Department, Ambulance Association, and Rescue Squad
An Indian Tribal Government but only if the vehicle’s use involves the exercise of an essential tribal government function
A mass transportation authority created under a statute that gives it certain powers normally exercised by the state
Qualified blood collection vehicles used by qualified blood collection organizations
You are required to fill all the fields that apply to you and provide the most accurate information. If you are unsure about the information you’re about to report, it is probably best to approach a tax professional or get support from our Tax Support Team here. This voluntary compliance approach will save you from being penalized for fraudulent or incorrect filings.
HVUT Form 2290
Name: This one can be a bit tricky. Always note that the IRS is not asking for your name. The IRS is asking the name of the business/entity on behalf of which you’re filing Form 2290. You can check if the name/TIN combination is correct by conducting a quick TIN check with the IRS. If the TIN/Name combination matches, then you can enter the name per the IRS records in this form.
EIN: Employer Identification Number is a special identification number assigned to employers and businesses. Validate your EIN before you report it in the return.
Address: Enter the operational address of your business per the IRS records. The IRS tracks your tax and compliance history by contacting the local tax authorities. When you enter the ZIP and address, the IRS will contact the authorities of the local area specified.
Check If Applicable:You can see that there are certain boxes, which you can select if they apply to you.
If you are amending a previous 2290 return, then you can select the ‘Amended Return’ box.
If you are filing this return to correct an incorrect VIN previously reported, then select the ‘VIN Correction’ box.
If the operational address of your business has changed, then amend your business address by selecting the ‘Address Change’ box.
If this is your final 2290 filing; if you no longer own a taxable heavy vehicle or wound up your business, then you must select the ‘Final Return’ box.
Part I Of HVUT Form 2290
Form 2290 Part – 1
Enter the year in which the vehicle was first used by you or your workers for commercial purposes. For example, if the period in which you first used the vehicle was in July 2020, then enter 202007 in the first line of the right column.
If your vehicle was subject to an additional tax liability for increased weight in the filing period, then the additional tax amount imposed on your vehicle must be entered in line 3 of the right column.
Now calculate the sum of line 2 and 3 and enter the final tax amount in line 4 of the right column
If you have overpaid your taxes, then you have a tax credit. Enter the tax credit amount in line 5 of the right column.
Now, deduct the amount entered in line 5 from line 4, and enter the remainder amount here. This is the tax amount that you owe.
After this, you can select the method by which you plan to pay the tax you owe.
Part II Of Form 2290: Statement In Support Of Suspension
Form 2290 Part – 2
7) Declare whether the suspended vehicles that you have used on public highways are for agricultural or regular use.
8.A) Declare whether the suspended vehicles were subject to tax in the previous tax year. For 2020-2021, the previous filing year is 2019-2020. Check if your suspended vehicles were taxed in the 2019-2020 tax year.
8.B) Enter the vehicle identification numbers of the vehicles that were not subject to tax in the 2019-2020 tax year.
9) Declare the ownership transfer of suspended vehicles that were not subject to tax in 2019-2020 by entering the vehicle identification numbers, name(s) of the vehicle owner(s), and the date of ownership transfer.
Third-Party Designee:If you want another individual to be involved to discuss the details entered in the return with the IRS, then select the box in this section and furnish the Designee’s name, Personal Identification Number of the designee, and their phone number. If not, select ‘No’ and leave this section blank.
Sign Here: The taxpayer or the preparer has to make their declarations and furnish the signature to confirm that the information reported in the form is valid.
Paid Preparer Use Only: If you have hired a tax preparer, then he/she must provide the required information and provide their signature in this section.
Tax Computation: Form 2290
Tax Computation Table
Logging Vehicles are vehicles that are used for transporting forestry goods and trees. Vehicles Except Logging are vehicles that are used for transporting products not related to forestry.
Heavy vehicles used for commercial transport are considered Vehicles Except Logging in the HVUT tax lingo.
Enter the number of vehicles in each of the columns as applicable to your business and calculate the tax.
For example, if you own 1 vehicle that weighs 55,000 pounds and another vehicle that weighs 65,000 pounds. Just type the number of vehicles (not the tax amount) in columns 3(a) and 3(b).
Now, calculate the tax by multiplying Column 1 or Column 2 with Column 3.
Enter the total amount in the last box of Column 4.
Schedule 1 Of Form 2290
Schedule 1 of Form 2290
There are 2 copies of Schedule 1 in every 2290 form. You must fill, complete and file both the forms to the IRS. However, only one of the copies will be stamped by the IRS and sent back to you as Proof Of Payment. You must document Schedule 1 for future use and reference.
Box-Wise Instructions For 2290 Schedule-1
Enter your business name in the ‘Name’ box
Enter the operational business address with the zip code
Enter the EIN assigned to you or your business (must be in consensus with the IRS records)
Enter the period in which the reportable vehicles were first used.
Enter the vehicle identification number and the category of each taxable vehicle in the Vehicles You Are Reporting box.
Summary Of Reported Vehicles
Enter the total number of vehicles you’re reporting for the current filing period in Row A
Enter the total number of vehicles in Category W on which the tax is suspended in Row B
Now, deduct the total number of Category W vehicles from the total number of vehicles reported and enter the final number in Row C.
For example, if you have reported a total of 9 vehicles, and only 1 vehicle is suspended from the tax liability (Category-W Vehicles), then the total number to be entered on Row ‘C’ would be ‘8’.
How Do I Fill Out Form 2290?
You can type the information into an electronic version of the form and print it out to mail by paper. Alternatively, you can e-File with minimal effort. If you are using a smart e-Filing tool like EZ2290 for your HVUT filings, then you can complete the entire process of completing and eFiling in less than 15 minutes.
The most important thing here is to have all the required information by your side (regardless of the filing method you choose). It will fasten up your filing process and minimize errors in reporting.
How Do I File Form 2290?
You can file Form 2290 by paper or through electronic filing methods. While traditional paper filing takes more time to complete and process, the electronic filing comes with several automated advantages, which fasten up your e-Filing process.
Easily e-File Form 2290 Online With EZ2290
EZ2290 brings to you the smoothest 2290 e-filing experience. Receive the IRS-stamped Schedule-1 in just 4 easy steps. Further, our Smart Tax Calculator gives you an approximate estimate of the total tax you owe.
Truckers and trucking businesses must be filed the IRS Form 2290 for Heavy Vehicle Use Taxes (HVUT) every year by August 31st for the current tax period for heavy highway vehicles begin on July 1, 2021, and ends on June 30, 2022.
For Previous Tax Years
Use the following table to determine the due date for vehicles purchased and used in the current and previous filing periods.
If The Vehicle Is First Used During This Period
File Form 2290 And Make Your Payment By
Enter This Date On Form 2290, Line 1**
July
August 31
YYYY07
August
September 30
YYYY08
September
October 31
YYYY09
October
November 30
YYYY10
November
December 31
YYYY11
December
January 31
YYYY12
January
Last day of February
YYYY01
February
March 31
YYYY02
March
April 30
YYYY03
April
May 31
YYYY04
May
June 30
YYYY05
June
July 31
YYYY06
IRS Form 2290 Schedule 1
Schedule-1 of Form 2290 is proof of payment of the HVUT tax. This document is issued by the IRS with the official acceptance stamp. Schedule-1 must be documented and can be used as evidence for payment proof when amending returns. Additionally, Schedule-1 also comes in handy when you want to request suspension of tax for a vehicle.
What Is Form 2290 Amendment?
It is important to note that Form 2290 Amendment is not a separate form. You can report the amendments you want to make through Form 2290 by selecting the “Amended Returns” box. You can only file an amendment for previous returns.
You can file an amendment for your previous returns in the following scenarios.
Increase In The Taxable Gross Weight Of The Vehicle
If the weight of your vehicle increases during a tax year, you must file an amendment to communicate to the IRS about the change in the vehicle weight. Increased vehicle weight = Increased tax liability.
Suspended Vehicles Exceeding The Mileage Use Limit
Regular heavy vehicles are limited to use 5000 miles (7500 miles for agricultural vehicles) in a tax year. If the vehicle exceeds this mileage use limit, then the same must be communicated to the IRS through 2290 amendment.
VIN Correction
If you have reported an incorrect VIN in the previous returns, then the 2290 amendment must be used to correct the VIN. An incorrect VIN may increase the risk of file rejections citing noncompliance.
In Conclusion
The IRS is strict about HVUT compliance since HVUT is one of most important sources of generating revenue for the state. Complying with these regulations would allow the businesses to maintain tax transparency and enjoy the perks of being a compliant business, while non-compliant businesses will have to look forward to a taxing future.
While the traditional paper filing method is time taking and requires a professional by your side, smart e-Filing platforms like EZ2290 are enabling businesses to comply easily and e-File for a large number of vehicles in a few minutes.
Convenience is the only way forward for trucking businesses with large fleets that want to comply.
Learn the best way to ensure HVUT compliance for your business with the IRS-authorized HVUT Form 2290 compliance tool – EZ2290.
Often trucking businesses find themselves in the midst of tax obligations and non-compliance notices. If your business has received at least one IRS notice in the past couple of years, then it’s essential that you pay attention to your tax files and compliance operations. This will help you avoid further notices from the IRS.
Understanding 2290 Hindrances
Accelerating tax compliance is a breeze once you figure out the main culprits that are slowing down your tax processes.
For example, if you’ve been filing a lot of 2290 Amendments or VIN Corrections, then it is pretty obvious that VIN validation and vehicle information reviews need special attention from your end.
The first thing to do to ensure compliance for your trucking business is to make sure that you are reporting the right information in your tax forms. And for this, you must use VIN Validation and TIN Matchingtools.
Practicing these checks helps you ensure the information you’re reporting for all your vehicles and business is correct and valid per the IRS records. If the information is incorrect or historic, you can further update the records by filing a 2290 Amendment and report the correct information.
Vehicle Information & Its Impact On HVUT Taxes
The taxable gross weight of the vehicle and mileage utility determine the category in which your vehicle falls. The vehicle category, period of first use, along with the vehicle identification numbers, taxable gross weight, and mileage usage is reported to communicate to the IRS about the vehicle. These factors are crucial for taxing.
However, you may have to bear some penalties of noncompliance if you underreported or misreported or delayed reporting the information through 2290 returns.
To streamline your 2290 e-files,sign up with IRS-authorized compliance enabling tool like EZ2290. Accelerate your e-files and manage your IRS communications easily with this tool.
Additionally, you can bulk e-File, address rejected files and IRS citations, and get personalized tax assistance for your unique HVUT tax issues.
Addressing IRS Notices & Rejected Returns
The IRS may reject your returns if the information you have reported is not valid or does not match their records. The IRS may also reject your returns if you do not furnish the correct vehicle identification and taxpayer identification numbers.
When rejecting the returns, the IRS will also cite the reason for rejecting the returns and the instructions to accelerate the re-filing process.
However, certain reject citations can be a bit complex to understand and need an expert approach to resolve.
To accelerate the re-file process, you can get in touch with our tax support team and we will review the rejected returns and the reasons cited by the IRS to address the issue and resolve it, helping you re-file at no additional cost.
If the cause of delayed returns is reasonable, the IRS may further reduce the penalties or lean towards a settlement.
Ensuring HVUT Compliance
While tax tools and compliance support can be of great help when streamlining your HVUT e-files, HVUT compliance is something that can be achieved with diligent efforts and a responsible approach.
However, bringing systemic changes to your internal review processes, checkpoints, and an organized schedule for HVUT filing season can further help streamline your compliance operations.
EZ2290 can also help you with scheduling your Form 2290 filings and receiving IRS-stamped Schedule 1 (proof of payment).
Start Your HVUT Compliance Journey With EZ2290
EZ2290 helps you transmit your e-files to the IRS securely in just seconds. You can manually send your returns to the IRS or leverage our managed services to accelerate your HVUT compliance.
Thousands of truckers use EZ2290 every month to ensure compliance for their businesses. You too can e-file your 2290 returns easily with EZ2290 in 3 simple steps.
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.
Explore the purpose and uses of Vehicle Identification Number + tips to correct a previously reported incorrect VIN.
A vehicle identification number is a subject of keen interest to many. This is especially true for businesses and self-employed individuals within the transportation and trucking industries, where a vehicle influences the operational aspects of the business.
A vehicle identification number to a vehicle is what a social security number is to a citizen of the country – it’s a means of identity.
And today, we’re about to delve into the origin of vehicle identification number, its purpose, uses, and how it impacts certain tax files.
Additionally, you will find some useful resources and tips to correct a vehicle identification number, which you may have reported incorrectly in your previous files.
So, let’s get to the good stuff.
What Is Vehicle Identification Number (VIN)?
A vehicle identification number is a unique identification code assigned by the vehicle manufacturer in a standard format as authorized by the Automobile Manufacturers Association. This unique identification code consists of letters and numbers, which must not be used by another vehicle.
Origin Of The Vehicle Identification Number
Before the VIN was standardized by the Automobile Manufacturers Association, there was no one standard for vehicle identification. In fact, the first VIN was introduced in 1954 after the U.S. government requested the U.S car manufacturers and Automobile Manufacturers Association to create a standardized vehicle identification code for security purposes.
Prior to this, the states used motor numbers to identify and track vehicles. However, this method was not reliable as the motor number would change if the motor was replaced or destroyed, leaving no means to recognize the vehicle.
From 1954 to 1980, all vehicle identification numbers contained between 11-17 characters. However, in 1981, all vehicle identification numbers were standardized to 17 characters, making it easy for the authorities and buyers to verify the history of the vehicle.
What Is The Purpose Of Vehicle Identification Number (VIN)?
A VIN was standardized and streamlined to help everyone acknowledge the unique identity and existence of a vehicle. Be it a car, truck, van, motorcycle, or bus, every vehicle’s unique identity is recorded, stored, identified, and verified for security purposes.
From a federal perspective, a VIN helps with:
Identifying the manufacturer of a vehicle
Validating and imposing a tax on each vehicle in a country
Collecting the tax from the current vehicle owner(s)
Identifying vehicles that were involved in anti-national activities
Tracing the individuals who owned a vehicle involved in suspicious/unlawful activities
Identifying vehicles and vehicle owners who were involved in serious traffic violations
Identifying vehicles and vehicle owners who were involved in crime scenes
How To Read A Vehicle Identification Number (VIN)?
Vehicle Identification Number (VIN)
A VIN can be read and interpret to understand the background of the vehicle.
First Character Of The VIN
The first character of the VIN can help you understand the geographical origin of the vehicle (the geographical location in which the vehicle was manufactured). The actual geographical area of the manufacturer may be different, but this is the primary location in which your vehicle was manufactured.
Use the following table to understand the geographical origin of your vehicle.
A to H = Africa
J to R (except O and Q) = Asia
S to Z = Europe
1 to 5 = North America
6 or 7 = New Zealand or Australia
8 or 9 = South America
The Last 6 Characters
The last 6 characters of the VIN denote the serial number of the vehicle. These characters play a crucial role in making the VIN unique.
Similarly, each character holds a unique purpose to decode and interpret the origin of a vehicle.
Luckily, we have vehicle history tracking tools like this, which help us view the complete history of the vehicle, right from the date of origin, manufacturer details, vehicle model, to NHTSA recalls and complaints.
These details and reports help decode the background of the vehicle, allowing you to file more accurately. You can also Generate A Random VIN and conduct a VIN Check to see if the details match. Give it a try!
What Is Form 2290 VIN Correction?
Businesses within the transportation industry tend to own large fleets. It is essential for trucking businesses and owner-operator truckers to record and identify the vehicle identification numbers to file and pay HVUT taxes appropriately for the vehicles they own.
If filers report an incorrect VIN, the IRS requires them to correct the incorrect VIN previously reported, and file a 2290 VIN Correction to correct and report the VIN.
For example, say that you are reporting HVUT taxes for 15 trucks with Form 2290. But the IRS rejects your files citing Incorrect VINs reported for some 5 vehicles, you must report the correct VINs by filing a 2290 VIN Correction.
Alternatively, if, after submitting your 2290 forms, you may have realized that you have reported incorrect VINs for one or more vehicles, then you must wait until they get back to you, and then file a 2290 VIN Correction to report the correct VINs.
Sending duplicate returns may work against you.
Tools & Tips To Correct Your VIN’s With 2290 VIN Correction
Use the following tools and tips to correct your VINs and file your 2290 returns accurately.
VIN Lookup/VIN Check
VIN Lookup, or more commonly known as VIN Check, allows you to search and validate the VIN. You can search the VINs to get a little perspective about a vehicle. Apart from 2290 files, VIN Checks are also helpful when you’re about to make a new purchase.
VIN Decoder
Similar to VIN Lookup, VIN Decoding tools like this help you decode your vehicle identification number, allowing you to gather more information about your vehicles, such as their size, weight, measurements, mileage history, and much more. This information is crucial when filing your form 2290 VIN Corrections.
VIN Audit
If you’re a fleet owner, you must know by now that the filing season is one of the most stressful times of the year. However, a VIN Audit provides comprehensive reports about your vehicles from a verified VIN Auditor. This further helps reduce inaccurate reports, enabling you to achieve compliance.
When Should I File a VIN Correction?
The IRS may accept or reject your 2290 returns. If the IRS rejects your returns, it will also cite the issue with a deadline (before which you must correct and resubmit your returns). If not complied with, the IRS will exercise its power to impose penalties.
If the IRS cites incorrect VINs and rejects your 2290 returns, it’s time for you to pay attention to your VINs and file with Form 2290 VIN Correction.
It is important to understand that 2290 VIN Correction is not a separate form. However, it must be filed separately by electing the ‘VIN Correction’ option as seen in the figure below.
HVUT Form 2290
Correcting your VINs may seem complicated if you do not have a tax professional by your side. This is why EZ2290 offers free VIN Correction services to EZ2290 users.
Free VIN Corrections For EZ2290 Users
With this free service, you can select a previous filing in which the VINs were reported incorrectly, and re-file with the corrected VINs in just a few minutes.
Further, our tax team is available to provide you the necessary support to ensure the accuracy of reports and help you file the 2290 VIN Correction with the corrected VINs to the IRS.
How Do I File a VIN Correction With EZ2290?
Follow the steps below to easily file a VIN correction with EZ2290.
Step 1:Sign up here for free or log into your account
Step 2: Go to your EZ2290 dashboard, and select the IRS-rejected files
Step 3: Elect ‘VIN Correction’ on the 2290 return, and furnish the required vehicle information
Step 4: Review and validate your corrected returns
Step 5: Submit to the IRS
Once the IRS accepts your submission, you will receive the IRS-Stamped Schedule 1 instantly. This digital version of the Schedule 1 must be saved for documentation and authorization purposes.
Something as simple and small as a vehicle identification number holds the power to get your 2290 returns accepted or rejected by the IRS.
This is why; many tax advisors, tax specialists, and even the IRS encourage filers (businesses and self-employed individuals alike) to review their reports thoroughly before they file them.
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.
Understand the significance an HVUT Form 2290 holds in the current economy. Find out if your business is required to report with Form 2290.
Businesses in the transportation industry operate with heavy vehicles. Heavy vehicles are more likely to wear and tear the national highways. This is why businesses that operate with vehicles weighing equal to or more than 50,000 pounds (gross) are required to communicate to the IRS that they are law-abiding businesses operating within the regulations levied by the Federal Highway Administration (FHWA), Department of Transportation.
By complying with the rules and paying taxes on time, businesses are also communicating to the IRS that they are working towards building the economy.
But for the context of our blog, let’s talk about businesses and owner-operators in the trucking industry. We’ll address questions along the lines of “How are trucking businesses affected? What would happen if the businesses did not comply with the rules?”
What Is Form 2290?
Form 2290 is an informational return that exclusively deals with Highway Vehicle Use Tax (HVUT). For starters, trucking businesses use highways for commercial and non-commercial purposes, for which they are liable to pay the tax.
HVUT Form 2290 is one such return that allows these businesses to communicate to the IRS about their vehicles, miles utilized, and other such vital information, on which they are taxed. This means that businesses are liable to pay the taxes for utilizing the highways for heavy-duty.
Businesses submit Form 2290 in electronic or paper filing methods to report to the IRS. On the off-chance of businesses not complying with these rules, the IRS would penalize the businesses heavily and the businesses may be taken “off the road” (literally).
Origin Of Form 2290
According to this document published on the Federal Register, HVUT was established by Congress per the Surface Transportation Assistance Act of 1982.
Further research also suggests that this law was brought in place to impose a higher tax on vehicles and owner-operators that were utilizing the national highways but were causing double the damage due to the heavyweight of the vehicle.
This resulted in expending to recover the highways from the damage caused by heavy vehicles.
To put it simply, businesses were (and still are) taxed more for their share of the utilization of the highways, and the taxes are collected to recover the damage caused to the highways and develop the federal national highway infrastructure.
Form 2290 & Significance In HVUT Compliance
The Office of Highway Policy Information reports that HVUT played a major role in funding U.S transportation. In 2019 alone, the HVUT helped generate more than 1.285 Billion in Federal Highway Trust Fund (HTF) revenue.
This means that trucking businesses are contributing towards the federal highways infrastructure by filing their 2290 HVUT returns on time and paying the taxes appropriately.
In 1985, states were required to verify proof of payment as a condition of registering heavy trucks subject to the HVUT. This resulted in a 41% surge of revenue in 1986, where the HVUT revenues grew by a whopping $154 million.
This shows that the HVUT was a smart move made by the Congress and it’s helping to develop the highway infrastructure in the country, even to this day.
Form 2290 is a unique tax form, which requires businesses to report information about the business, such as the taxable gross weight of the vehicle, vehicle identification number, details about the previously suspended vehicles, and other essential information about the vehicles owned by the business or the owner-operator.
Businesses That Must Report With Form 2290
HVUT compliance is a mandatory practice for profit-making and non-profit organizations alike. However, there are a few individuals and organizations that are exempt from filing and paying HVUT as follows.
The Federal Government
The District of Columbia
A state or local government
The American National Red Cross
A nonprofit volunteer
Fire department
Ambulance association
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
The IRS encourages businesses to maintain tax discipline by furnishing 2290 forms for each period in which the vehicle was used. If the mileage limit exceeds, the businesses have to report the same in the 2290 form.
Similarly, if the weight of the vehicle increases or decreases during a period, it must be reported to categorize their vehicle according to its revised weight.
Using EZ2290 To E-File Form 2290
EZ2290 is a powerful and secure e-filing platform specializing in HVUT compliance. Thousands of businesses use EZ2290 to e-file form 2290 for each filing period. You can file for the current as well as previous filing periods with EZ2290.
We recommend having all the required vehicle and business information ready with you before you get started with the e-filing process. This saves you time and effort.
EZ2290 enables businesses to e-file with Form 2290 in 3 easy steps.
You will receive the IRS-Stamped Schedule-1 a few minutes after successfully submitting the forms to the IRS.
Paying your taxes may seem a bit painful because you’re paying the money for a cause of which you’re not aware. But now you are aware of the cause and you understand that the federal highway infrastructure is dependent on every tax dollar that comes out of your pocket.
You must take pride in the fact that you’re a law-abiding citizen and business when you report accurately and file your returns on time. You’re helping build the economy by doing your bit and that’s enough.
In the modern lingo; taxes are the contribution made by a business or an individual for a local or federal cause.
Having said that, taxes are taxes.
Maintaining discipline in this sphere is extremely important because returns that are not filed and taxes not paid have serious repercussions.
