July 2021 - EZ2290

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

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

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

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

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

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

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

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

And what’s the applicable interest rate?

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

What Are Form 2290 Penalties?

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

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

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

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

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

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

What Is The Penalty For Late Filing of Form 2290?

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

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

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

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

Form 2290 Extension To Avoid Penalties

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

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

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

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

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

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999-0031

First-Time Penalty Abatement For Form 2290

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

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

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

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

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

Due Date For HVUT Form 2290 In 2021

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

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

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

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

Simplified HVUT 2290 E-Filing With EZ2290

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

EZ2290 can help you in the following ways

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

EZ2290 comes with many smart quirks and features

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

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

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

Subscribe to our email reminders & updates here

Start e-filing with EZ2290 now.

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

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

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

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

Every now and then, trucking businesses encounter an increase in the weight of the vehicle due to an increased volume of transportable material or changes made to the vehicle.

This additional weight is added to the taxable gross weight of the vehicle, which increases the tax liability on the vehicle. This increased weight must be reported to the IRS through Form 2290 Amendment.

But there’s more to weight amendment than just a number.

In this blog, we will be discussing the heavy vehicle weight calculation, why did the IRS decide to tax vehicle owners for additional vehicle weight, and ways to report these changes through HVUT Form 2290.

Determining The Weight Of The Vehicle

The IRS states that a vehicle has to weigh at least 55,000 pounds or more for it to be qualified for Heavy Highway Vehicle Usage Tax.

According to FHWA, the gross taxable weight of a vehicle is determined by adding the following weights.

The actual unloaded weight of the vehicle fully equipped for service.
The actual unloaded weight of any trailers or semitrailers fully equipped for service customarily used in combination with the vehicle.
The weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers customarily used in combination with the vehicle.

The sum of the above three weights gives us the gross taxable weight of a federal vehicle.

However, the gross weight will change if any of these three weights change.

Further, this exhaustive explanation from the Federal Highway Administration (FHWA) will help you understand the weight and tax calculation regime in detail.

However, as a taxpayer, you must know that there is something fundamental about the tax levied on heavier vehicles.

Vehicle Weight & Tax Liability

This Enforcement Publication from the Federal Register suggests that the relationship between the weight of a highway vehicle and the tax liability is directly proportional. The heavier the vehicle, the more pressure the vehicle would put on the road, causing more damage and wear and tear to the road.

Federal Highway Administration (FHWA) is an authoritative body of the U.S. government that constructs, maintains, and preserves federal highways.

The authority states in the publication that when heavier vehicles utilize the federal highways, they also cause more damage to the highways than regular vehicles due to their extreme weight.

And when the roads are damaged due to the heavyweight of the vehicle, the repairs and reconstruction costs also arise, which called for a Heavy Highway Utility Tax (HVUT).

Tax funds collected from the truckers and trucking businesses through HVUT are used to develop the federal highways and spent on related welfare activities.

This is why both the IRS and FHWA are strict about reporting heavy vehicles and collecting the tax.

How To Report Increased Taxable Gross Weight Of The Vehicle On Form 2290?

Let’s say that you bought a vehicle that weighs 55,000 pounds on March 1, 2021, and started using it in the same month.

In such a case, you report the First Month Of Use in your 2290 return and file the form by the end of April 31, 2021.

Now, due to a mechanical change made to the vehicle and the additional load that your vehicle has to transport, the weight of your vehicle changed from 55,000 pounds to 65,000 pounds.

Since you have already filed the 2290 return for the previous weight: 55,000 pounds, you are required to file a 2290 Amendment for the increased weight and pay the additional tax for the 10,000 pounds.

The tax is calculated according to the following 2290 tax computation regime.

Useful Links

Latest: IRS Form 2290 Instructions

Read & eFile HVUT Form 2290 Easily

Calculating Tax For Increased Vehicle Weight

According to FHWA, you will have to pay an additional $22 for every 1000 pounds that your vehicle gains in a period.

Circling back to our example; your vehicle reports 10,000 pounds as additional taxable gross weight.

Now, let’s divide the 10,000 pounds with the 1000 pounds base, which would give us a product of 10.

So, the additional tax would be $22 x 10 = $220

Here’s a tabular representation to make things easier.

Gross Taxable Weight	Heavy Vehicle Use Tax Rates
Below 55,000 lbs	No tax
55,000-75,000 lbs	$100 plus $22 per 1,000 pounds over 55,000 lbs
Over 75,000 lbs	$550

So, you will be required to pay $220 as an additional tax for the increase in the taxable gross weight of the vehicle.

Report Increased Gross Taxable Vehicle Weight With EZ2290

Taxpayers are required to file a 2290 Amendment to report an increase in the weight of the vehicle.

Due to the ongoing pandemic and the restrictions it brings with it, the IRS is encouraging businesses and truckers alike to choose e-filing methods to submit their returns.

With EZ2290, you can easily submit your 2290 returns and amendments in 3 easy steps.

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

Step 1: Select The Previous 2290 Filings

Users that have e-filed HVUT Form 2290 with EZ2290 can directly select their previous 2290 submission from their dashboard.

New users that haven’t previously e-filed with us can still use our 2290 Amendment e-file services to submit their amended returns.

Step 2: Complete Your 2290 Amendment

Furnish your tax and business information, such as your business name, TIN/EIN, address, and other information.

Most importantly, do not forget to select ‘Amendment’ in the form. Otherwise, your form will be treated like a regular submission, which will complicate the process.

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

Validate the information thoroughly before you proceed to the next step.

Step 3: Submit To The IRS

Securely transmit your e-returns to the IRS through our 256-bit end-to-end encrypted platform. No more worrying about data privacy and data interception.

A digital copy of your e-files will be saved to your account for documentation purposes. You can retrieve these files at any time. Explore EZ2290.

Related Blogs From Ez2290

HVUT Compliance: How To Re-File Rejected Returns?

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

How To Re-File Rejected Form 2290 Returns

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

Imagine this; after spending hours and days preparing your 2290 returns, you finally submit your returns to the IRS only hours later, you receive a notice which tells you that your 2290 returns have been rejected citing incorrect information or non-compliance.

Not only have your efforts gone in vain, but you also have to repeat the filing process all over again (depending on the reason for rejection).

And you’re not only worried about re-filing your rejected returns but the pressure is on to report the information correctly and comply this time around.

If you do not address your rejected files, your business will be assessed for neglect and “willful disregard”.

This is a common scenario for a lot of truckers and it happens way more often than one would like to admit.

It is essential to understand that your 2290 returns can be rejected for any of the following reasons.

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

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

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

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

Incorrect VIN

If you have reported incorrect VINs on your 2290 returns, your returns will be rejected by the IRS. VIN is a unique identification number designated for every vehicle. VINs are used by the IRS to track the tax history associated with the number.

If you have reported incorrect VINs on your 2290 returns, you can file a Form 2290 VIN Correction, which is exclusively used to address the incorrect VIN reporting.

After providing the necessary business and tax information, enter the correct vehicle identification number of the vehicle.

But before you enter it, be sure to verify and validate the VIN to ensure that you are reporting the correct VIN.
Try these (1, 2) authorized VIN validation tools to search and verify your VINs.

Incorrect TIN/EIN

If you have reported an incorrect TIN or EIN or if you have reported a historic TIN/EIN that no longer holds validity, then your 2290 returns will be rejected.

TIN or EIN is a unique business identification number that is used by the IRS to track the tax and compliance history of the businesses.

When you enter a TIN/EIN in any of the returns, the IRS checks the TIN and the name associated with that number against its own records to validate the details.

If the provided TIN/EIN does not match the records, the IRS will reject the returns.

To counter this issue, you can follow a quick real-time TIN Match regime, which helps you acknowledge the TINs or EINs that are valid and good, and the ones that are not.

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

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

Incorrect First Use Month (FUM)

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

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

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

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

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

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

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

Incorrect Mileage Usage

Trucks use the federal highways primarily for transporting heavy shipments.

Each highway vehicle is given approximately 5000 miles per year, and 7500 miles if it’s an agricultural vehicle.

The more miles your vehicle uses, the more it is utilizing the federal highways, which causes wear and tear and damages the roads.

This is why the FHWA (Federal Highway Administration) introduced the HVUT bill, which enforces the trucking businesses to pay more taxes if they are exceeding the mileage limit.

If you have exceeded your miles and did not report the additional miles on your 2290 returns, your forms will be rejected and penalties may also be assessed per each violation.

To address this, all you have to do is report the current miles utilized by your vehicle in a tax year. You can use our free smart tax calculator to estimate the HVUT tax you owe on each vehicle according to its weight, logging status, and miles.

Non-Compliance Citations

Noncompliance comes in many forms and businesses are mercilessly audited if the IRS notices that the business is involved in tax evasion and fraudulent activities.

When the IRS rejects your HVUT 2290 returns citing noncompliance, the issue cannot be taken lightly.

Businesses that are issued a non-compliance notice are under the radar for tax evasion, defying workplace safety norms, fraud, unverified resources and documentation, criminal history, and other violations.

If you have a poor history of filing returns or paying taxes, or if you do not have substantial evidence to support the lack of will to file your taxes and pay them, the IRS may penalize your business for each such violation.

Usually, the IRS issues a notice before it assesses a penalty. And when that notice is also disregarded, the IRS will track down the founders, executives, and other personnel.

To say the least, noncompliance costs businesses a hefty check (1,2,3,4).

HVUT tax funds are one of the largest revenue-generating sources for the FHWA. These funds are spent on constructing and maintaining the federal highways. These funds are also spent on related welfare activities.

Trucking businesses that want to stay on the road and do not want to risk losing their businesses to non-compliance must file their HVUT returns and related business tax returns on time.

Re-File Rejected Returns With EZ2290 In 3 Easy Steps

If you’re a registered user of EZ2290, you can go to your EZ2290 dashboard and view your IRS communications or check your e-filing history. Transactions that have been rejected by the IRS will be highlighted to help you address the issues at an accelerated pace.

If you’re not registered with EZ2290, you can still utilize our services to e-file your rejected 2290 returns conveniently. Sign up here to get started.

Follow the steps below to address your rejected returns and re-file them at no additional cost.

Step 1: Understand The Issue(s) Cited

If the issues cited are something as simple as incorrect tax or business details, you can create a new form and enter the new and updated information correctly.

Alternatively, you can get some tax assistance online from our EZ2290 support team. Go ahead and call or chat with one of our support executives. We’re familiar with the issues cited by the IRS and we’re trained to provide you with the required tax and compliance resolutions quickly.

If the IRS has cited multiple issues implying noncompliance, we recommend speaking to our tax experts here.

Step 2: Validate

Once you’re through reporting the details, do take some time to review your forms.

Validate the tax and vehicle details, such as TIN/Name combination, vehicle identification number, mileage utilized, and more.

Once you are confident that the newly furnished information is accurate and correct, proceed to the next step.

Step 3: Re-File 2290 Securely Online With EZ2290

You can re-file your rejected 2290 returns online with EZ2290.

Our end-to-end encrypted platform allows you to transmit your e-returns to the IRS directly.

Your data is protected and cannot be intercepted by anyone.

Do note that EZ2290 does not charge you for re-filing rejected returns. Re-files are absolutely free.

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

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

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

When it comes to reporting your federal highway vehicles to the IRS, there is only one qualifier that defines the uniqueness of your vehicle and it’s known as the Vehicle Identification Number or VIN.

And it’s a pretty important one.

Submitting HVUT 2290 return without specifying your Vehicle Identification Number is the perfect recipe to get your files rejected.

Reporting your vehicle identification on your 2290 return is important. Period.

But there is more to it.

VINs save most taxpayers from scams and straining tax liabilities.

Here’s how.

Scenario #1: Reporting VINs For Used Vehicles

If you’re reporting a vehicle identification number for a used vehicle that you just bought, then you might want to check if the seller also sold you the tax burden with the vehicle.

New truckers and fleet owners are sometimes lured in with suspiciously good deals on used vehicles. But once the deal has been closed and the money has been paid, the tax burden surfaces, which brings with it a chaotic wave of tax reporting and worse penalties.

Some sellers price their vehicles at a low price point because they no longer want to deal with the taxes they owe on that vehicle.

And worse, some sellers do not file or pay taxes on their vehicles at all, and when you buy a vehicle with such a complex tax history, you ultimately have to bear the entire tax liability.

And at this point, the “good” deal doesn’t seem that good.

Scenario #2: Reporting Incorrect VINs

Now, in a different scenario, if you do happen to land a good deal but report your vehicle identification number incorrectly, you are in trouble.

Reporting an incorrect will not only result in rejected files but the IRS can also assess noncompliance measures, including unannounced audits and penalties.

But all’s not gray here.

Fleet owners are aware of the dangers of misreporting or not reporting their vehicle identification numbers. So, they depend on certain “hacks” and measures that verify the vehicle identification number.

So, today, we will be introducing you to a tri-step regime to help you report the correct vehicle identification number on your HVUT Form 2290.

Identifying Your VINs Before Reporting

In order to understand if you are actually reporting a VIN that belongs to the vehicle you own, you need to identify the vehicle identification number of the vehicle.

Vehicle identification numbers are a combination of alphabets and numbers. Not all VINs are long, some VINs can be short. This is because of the standardization of the vehicle identification number format. Read more about the history of VINs here.

A vehicle identification number will give away the original geographical location of the manufacturer, model number, and other details about the vehicle.

You can decode the vehicle identification numbers with the help of this detailed read on identifying VINs from EZ2290 without depending on a VIN Lookup tool. If you need additional help, a simple and free VIN decoding tool like VIN Decoder from NHTSA will help you view the details about the vehicle. This will further accelerate identifying the correct VIN that belongs to your vehicle.

Validating Your VINs Before Reporting

Check your vehicle identification number with an authorized VIN Lookup tool such as NICB VIN Check. VIN Validation gives you an inside view of the vehicle history.

Right from checking any public records of accidents in which the vehicle was involved, insurance coverage status and disputes, legal cases, to criminal history in correlation with the VIN you’ve entered, and other important details – VIN validation helps you make well-informed purchases and tax decisions.

Further, all these details help you understand if the vehicle is even worth the effort and the money you are spending.

What’s more? VIN Validation helps you derive your tax liability.

If the previous owner did not pay the taxes or if they paid their taxes in part, you might have to pay those taxes once the ownership changes.

For this reason, the IRS encourages taxpayers who bought used cars to accurately specify the month of first use.

This way, vehicle owners can be taxed appropriately.

Verifying Your VINs Before Reporting

Similar to VIN Validation, VIN Verification is a process where you check if the vehicle identification number and details that you own match the records of the IRS and federal authorities.

When you’re verifying the VIN, be sure to enter the correct VIN characters into the search tools. And be careful and conscious of reporting the correct VIN.

Accurately specifying the month in which your vehicle was first used saves you from straining tax burden.

Submitting Your 2290 VIN Corrections With EZ2290

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

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

Step 1: If you are registered with EZ2290, you can log into your account and select the previous 2290 files from your filing history.

If you haven’t used EZ2290 to eFile your 2290 returns, you can still eFile your 2290 VIN Corrections. Sign up here to create your free EZ2290 account and get started.

Step 2: Provide the correct EIN/TIN. This must match the details you have provided in your original 2290 returns.

Step 3: Verify your VINs and report the correct vehicle identification numbers.

You can securely submit your 2290 VIN Corrections to the IRS after furnishing the required information per the above steps.

Do note that Form 2290 VIN Corrections must be used to report only the VIN Corrections.

If you want to amend other tax or vehicle details, you must file a separate return.

The Importance Of VIN In HVUT Compliance

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

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

As businesses dive into the 2290 filing season, they keep important HVUT checklists by their side to stay compliant with the IRS. Like any good business practice, keeping a follow-through checklist for VINs is a good idea.

However, what is even more important than just reporting the vehicle and tax information is to validate the said information. Unvalidated reports mean you’re unsure of the information that is being reported.

And these inaccurate reports increase the risk of noncompliance, which will be flagged by the IRS and may even lead to penalty assessments for VIN discrepancies.

To avoid such unpleasant situations, trucking businesses need to check their vehicle identification numbers and the tax records associated with that number. This practice helps businesses avoid inaccurate reports and stay compliant.

That’s not all.

A vehicle identification number has a greater significance than a primary identity metric for vehicles. It protects your business from the additional tax burden, liability assessments, accelerates 2290 reporting, and does much more.

Today, we will be discussing the significance a VIN holds in HVUT compliance.

Tax History Associated With VIN

IRS, insurance companies, lending companies, and buyers use vehicle identification numbers to track the associated tax history. This means, if you did not file your truck tax for a year or if you have been penalized in the past for noncompliance, it can be tracked with the help of a vehicle identification number.

Unlike VIN lookup tools that taxpayers use, IRS, insurance, and banking institutions validate your VINs against authorized databases, which help them view the entire tax history and transactions associated with the VIN.

Further, VINs help the lending companies and federal authorities understand if the vehicle owner has been compliant with the HVUT tax regimes.

HVUT Tax Liability Assessment

If your truck has been wrongfully taxed, one of the reasons could be that the previous owner did not pay their truck taxes and proceeded to sell their truck to you at a “really good” price point.

Most likely the seller was planning on transferring the tax burden to you, which increases your tax liability and if left unaddressed, gets worse.

This is why 2290 reporting requires the owners of used trucks to report the month in which they first started using the truck in the HVUT form. The month of first use, along with the vehicle identification number and tax information must be reported.

This information is used to track the associated tax history and tax liability, based on which the IRS can assess penalties on the original owner and reduce the tax liability on the new owner.

Tax Suspension

HVUT is levied upon trucking businesses that own trucks weighing 55,000 pounds or more and utilize the federal highways to operate their trucks. However, if your truck no longer meets this criterion, you can request for suspension of tax on your vehicle.

To do this, you will need the vehicle identification number, which allows the IRS to identify the vehicle and the tax history associated with it. If the IRS observes that the reporting history is compliant and the vehicle no longer meets the HVUT criterion, then your vehicle will be suspended from HVUT taxes.

HVUT 2290 Reporting

Vehicle identification numbers are essentially used to identify the trucks that are using the federal highways. The IRS cross-validates the HVUT tax history associated with the VIN for all the previous and current owners of the vehicle. This way, every owner of the same vehicle is liable to pay their share of the HVUT truck tax per their tax periods.

But wait, there’s more. When vehicle owners want to request a transfer of title, or when they want to claim certain tax credits from the IRS on the excise tax paid, or when a trucking business wants to claim the insurance on a vehicle that has been destroyed, damaged, or stolen, the vehicle identification number is one of the most important identifiers, which enables all parties to take the necessary steps to address refund claims and transactions.

eFile Your HVUT Form 2290

Related Ez2290 Blogs:

How EZ2290 Helps You Achieve Complete HVUT Compliance

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

Learn how the HVUT compliance enabler, EZ2290 helps trucking businesses like you and how to get the HVUT to support your business’s essential needs.

Every year, thousands of trucking businesses and self-employed truckers file HVUT Form 2290 to comply with the regulatory and tax compliance guidelines of the IRS to stay on the road.

With many business owners being new or unaware of the various approaches to stay compliant, we have put together helpful information, resources, and help center links to enable businesses and self-employed truckers to access relevant HVUT information.

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

Online Help For HVUT Form 2290

Heavy Vehicle Usage Tax (HVUT) is a relatively simple concept wherein a vehicle is taxed if it weighs 55,000 pounds or more and utilizes the federal highways for commercial and non-commercial purposes.

HVUT is one of the most significant contributors to generating Federal Highway Trust Fund (HTF) revenue for the U.S. This is why the IRS is encouraging truck and fleet owners to choose voluntary compliance.

While HVUT is a simple filing process, it comes with several complexities, which require extra effort and attention to retain reporting accuracy and compliance.

Useful Resources

Online Help For Rejected 2290 Returns

When you eFile 2290 Form with EZ2290, your returns undergo multiple reviews to avoid non-compliance citations or inaccurate information. However, your returns can be rejected if the IRS notices errors in your reports.

2290 returns can be rejected for many issues, such as incorrect VINs, incorrect EIN/TIN, historic information, inaccurate reports, or compliance negligence.

When the IRS rejects your 2290 returns citing a particular issue or inconsistencies, you must address the issue at the earliest in order to avoid penalty assessments.

Get help from our 2290 support team here to fix your rejected returns and re-file the rejected returns at no additional cost.

Online Help For VIN Corrections

Vehicle Identification Numbers are designated identifiers, which qualify the uniqueness of your vehicle. A vehicle identification number is a unique combination of alphabets and numbers.

Before you purchase a vehicle, it is important that you validate the Vehicle Identification Number to track the vehicle history. Spending a good amount of time to vet the VIN will help you understand if your seller is pricing the vehicle reasonably.

If you have reported an incorrect VIN in your HVUT 2290 returns, then you can correct the information by e-filing a Form 2290 VIN Correction.

The process is easier than you may think and you can complete it in less than 3 minutes.

Get help from our customer support team here to find resolutions to your VIN Correction queries.

Useful Resources

Online Help To eFile 2290 Amendments

Essentially, you are required to file a 2290 Amendment when you have to report an increase in the taxable gross weight of your vehicle and/or if your vehicle exceeds the mileage use limit.

The change in the vehicle’s weight changes its tax category. If the weight increases, the taxpayer has to report and pay the additional tax for the additional weight.

Similar to the weight, if the vehicle is utilizing the federal highways and exceeding its mileage usage limit, then the additional mileage utility will be taxed.

A 2290 Amendment is a separate form that must be filed by the end of a succeeding month from change to avoid citations from the IRS.

If the vehicle’s weight decreases and falls below the lowest tax category, the vehicle ceases to be qualified for HVUT taxes. In such a case, you must request suspension from HVUT taxes.

Useful Link

Everything You Need To Know About IRS Form 2290 Amendment

Complete Tax & Compliance Support With EZ2290

EZ2290 helps trucking businesses of all sizes to achieve HVUT compliance through its digital tax solutions.

Right from simplified e-file solutions to remote accessibility control, automatic tax calculations, free VIN corrections, free re-files for rejected returns, compliance management, penalty prevention programs, and more, businesses can e-file and establish compliance through our dynamic platform. Explore More Features

Start eFiling 2290

You can reach out to our support team at any time, for any queries, here.

EZ2290 HVUT Full Service For Large Trucking Businesses

Businesses that work with large fleets and have little time to schedule their 2290 reports should leverage our cost-effective API services.

You can outsource your 2290 e-files and compliance tasks to our teams and we will coordinate with you to prepare, validate, and e-file your returns on your behalf. Get Full Service For 2290 eFiles.

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Here’s Why Trucking Businesses In 2021 Are Choosing EZ2290 For 2290 eFiles

Posted on July 14, 2021 - 1:04 pm by Sandeep

EZ2290 is an authorized HVUT compliance enabler, helping 10,000+ trucking businesses in the U.S.

Maintaining tax compliance for your trucking business is not easy. With new and smarter tax solutions making appearances in the market every week, businesses are left confused about their options.

It’s always a tie between the solutions that work best for their unique tax compliance activities and the ones that provide a seamless experience. But the overall expected experience is a balance of these two elements. And it’s quite natural for trucking businesses to aim for these experiences.

Trucking Businesses & Federal Highways: An Overview

Trucking businesses with large fleets operate on and through the federal highways. If they’re not complying with the regulations of the FHWA and the IRS, they will be off the road overnight.

The dynamic nature of trucking businesses forces the businesses to purchase new vehicles and let go of the old ones. This coupled with the reporting requirements laid out by the IRS does not make it easy for trucking businesses to “just comply”. However, compliance is not something that should be compromised.

And why would you want to take that road anyway? Establishing tax and regulatory compliance puts your business in the good books of the IRS and other federal agencies, giving your business a much-needed reputational boost, and helping you find the right investors.

But the root of finding the perfect solution goes way under.

Trucking Businesses, IRS, And Tax Compliance

‘Pay your taxes or perish’ seems to be the new mantra of the IRS and it’s for a good, or rather, a fair reason.

HVUT generates significant funding for transportation. These funds are used to develop, construct, and maintain the federal highways to reduce accidents, crashes, and other vehicle incidents.

You can read the full details, benefits, and purposes of HVUT tax funds here.

Every trucking business must be responsible and acknowledge their operational utility regarding the federal highways and hold themselves accountable for their share of utility. This is not us preaching, this is what the IRS wants you to know.

And by paying taxes on time and reporting accurately, businesses can establish a healthy ground within the compliance sphere, while contributing their fair share.

Finding The Right HVUT Compliance Solution For Your Business

It is expected of a tax compliance platform to provide solutions that address the inevitable tax problems of the trucking businesses. But a solid solution is just not enough anymore because trucking businesses are looking for smart experiences that are fundamentally driven by compliance.

EZ2290 is an IRS-authorized e-file provider trusted by 10,000+ trucking businesses. All our e-file solutions are designed to accelerate your reporting accuracy, tax calculations, tax and business validation regimes, amendments, tax refund processing, and other compliance elements.

The following e-file solutions are specially designed to provide your trucking business a smart and compliant e-filing experience.

Penalty Prevention

Be it TIN discrepancies, incorrect VINs, inaccurate reports, delayed or no filings, the IRS assesses hefty penalties on trucking businesses that fail to comply with the regularized tax regimes.

A penalty prevention program from EZ2290 is a set of protocols, which are designed to help businesses to overcome noncompliance.

With timely email reminders, smart e-files, real-time TIN match and address validation protocols, automatic tax calculations, bulk filing options, virtual documentation, and time-saving processes, businesses can easily leverage our e-filing solutions and prevent being penalized by the IRS.

Bank-Grade Security

Tax reports involve sensitive business information and data. It’s meant for the eyes of the business and the IRS only. And we want to keep it that way.

EZ2290 is powered by the 256-bit end-to-end advanced encryption standard. We also regularly ‘scan’ the virtual funnels to weed out any data interceptors and data threats. This way your data is secure and safe with us at all times.

This means your 2290 returns are securely transmitted to the IRS without any interruptions.

Automatic Tax Calculations

EZ2290’s Smart Tax Calculator is an in-built calculation system, which allows businesses to calculate the tax they owe.

You can access the EZ2290 smart tax calculator here and view the 2290 tax you owe for the current period.

Further, when you are entering the tax information on your 2290 returns, our platform starts calculating the HVUT tax automatically, helping you view the total tax you owe as you add in your vehicle information. This also allows you to check the tax break up and pay the amount appropriately.

Stat 2290 eFiles Online

Free VIN Corrections

Vehicle identification numbers are a combination of letters and numbers designated to a vehicle to qualify its uniqueness. If you have reported incorrect VINs in your previous files, the IRS may reject your reports citing inaccurate vehicle information.

EZ2290 helps you with reporting the correct VINs by providing free VIN Corrections. If you have filed with EZ2290 previously, you can select your previous filings and follow the VIN Correction steps.
If you’re a new user, you can eFile 2290 VIN Correction by creating a new form and submit it to the IRS.

Useful Links

Paperless Storage

EZ2290 is a smart platform designed to meet the varying needs of trucking businesses. When you have a number of trucks to report, the manual process of entering the data and verifying it can be tedious.

Our paperless storage allows you to upload your vehicle data in just one click. Your data will be saved securely and can be accessed when you want EZ2290 to automatically populate your 2290 returns. This way you save time and effort.

Further, a digital copy of all your documentation and communications with the IRS will be stored on our servers. You can retrieve the files should you need the documents or proof of communication for any purpose in the future.

Free Re-Files For Rejected Returns

The IRS may reject your 2290 returns if you did not furnish the correct information or if you did not provide sufficient information. These two seem to be the most common causes of file rejections. But the reason for the IRS rejecting a particular return differs for each case.

Fortunately, the IRS cites the reason for rejection and provides a measure to address the issues cited. Now, all you have to do is address the issues cited by taking the specified measures and re-file the corrected returns.

For example, if the IRS rejects your returns citing incorrect tax information, it means that you may have reported an incorrect TIN/Name combination.

If your 2290 returns have been rejected for any reason, you can start fixing the issues by following the guidelines specified by the IRS or contact our customer success team.

Our tax support and compliance specialists will assist you to address the rejected returns and help you re-file the now-corrected files successfully. You can re-file your rejected returns at no additional cost.

Live Tax Support

You don’t have to worry about fending for yourself when you’re hit with a notice from the IRS. We combine our vast experience in the tax compliance industry with smart technology to deliver successful and compliant experiences for your trucking business.

Our customer success team is equipped with smart tax technicians who will take care of your tax issues and compliance management regimes effectively.

Right from helping you sort out your HVUT taxes and providing verified guides, resources, and necessary information, to actually filing your tax forms on your behalf; we’re with you through it all.

Contact EZ2290 Customer Success Team

EZ2290 For Your Trucking Business

As an authorized e-file provider of the IRS, we’re equipped with smart tax solutions, the right tax experts, a reliable support team, resources, and other associated solutions, which allow you to breeze through the tax season every year.

To address the initial perspective of finding the perfect balance between solutions that work best for your unique tax compliance activities and the ones that provide a seamless experience, EZ2290 is everything you need in this smart era of tax and business compliance.

And if you disagree, we totally understand.

But we would also nudge you to give it a fair try.

Explore Ez2290 & eFile Form 2290 For 2021-2022

Understanding HVUT Form 2290 Schedule 1 & 5 Super Easy Tips To Get It Instantly

Posted on July 1, 2021 - 8:16 am by Sandeep

Learn the significance 2290 Schedule-1 holds in HVUT compliance + 5 easy tips to receive IRS Stamped Schedule-1 instantly.

When we buy food online or go to a restaurant and order some food, the seller provides a receipt – a piece of document that contains the items for which you have placed the order, and the payment details. Once you have made the payment, the receipt is stamped as ‘paid’. This denotes that the payment was successful.

Now, try applying this logic to your HVUT taxes. By paying your HVUT taxes to the IRS, you are transacting with the IRS. But how would you know that the IRS has acknowledged your payment?

That’s when Schedule-1 comes into the picture.

What Is Form 2290 Schedule 1?

Broadly, Schedule-1 is a tax form used by the filer to report the vehicle identification numbers (VINs), the month in which the vehicle was first used, business information, EIN, and other details.

Every Form 2290 comes with two copies of Schedule-1. Both copies of Schedule-1 must be filled and submitted by the filer.

However, only one of the submitted copies will be returned to the filer by the IRS after the submission and tax payment have been acknowledged.

This returned copy is treated as ‘Proof of Payment’ of the taxes.

Once the IRS validates and approves your reports, a copy of Schedule-1 is stamped by the IRS as ‘Accepted’. This little stamp means compliance for businesses.

Hence, businesses and tax professionals alike try their best to get the IRS-Stamped Schedule-1 on the first try.

Why Should I Use Schedule 1 (Form 2290)?

Filers must use Schedule-1 to ensure the accuracy of reports and HVUT compliance.

You see, 2290 Schedule-1 reports the vehicle identification numbers (VINs), Employer Identification Number (EIN), the period in which the vehicle was first used, and other business details.

Schedule-1 helps the IRS validate the information reported and track the vehicle tax history.

Essentially, all the VINs reported on Schedule-1 are verified by the IRS to check if the previous vehicle owners addressed their vehicle tax liabilities. The EIN/Name combination is also validated to check if the details match the IRS records.

Who Must File Form 2290 & Schedule 1?

Trucking businesses, fleet owners, and tax professionals who are filing Form 2290 on behalf of their clients are required to file Form 2290.

Vehicles must weigh 55,000 pounds or more to be categorized as ‘Heavy Vehicles’. Heavy vehicles that are used for commercial and agricultural purposes must utilize a mileage of 5000 miles or more, and 7500 miles or more (for agricultural vehicles) in a year.

Apart from trucking businesses, any individual or entity that uses heavy vehicles, such as vans, trucks, carriers, and other vehicles for transportation of goods or material, must file and report with HVUT Form 2290, and document Schedule-1 as ‘Proof of Payment’.

Useful Link: See Who Is Exempt From HVUT Filings

Form 2290 Schedule 1 Instructions

Name & Address

On the face of it, this field may seem very simple. But it is important to know that the IRS is not asking for your personal information here. The IRS is asking for the ‘Doing Business As’ name or the name of the business. The address field must be completed with the business address (operational location).

Vehicle Details

Schedule 1 requires you to enter the vehicle identification numbers of each vehicle for which you’re reporting with Form 2290. The category of the vehicle must also be reported next to the VIN section (as seen in the image above) to communicate to the IRS about the category in which each of your vehicles falls.

Schedule 1 (Form 2290) – Month Of First Use

Do note that you are reporting vehicles that are already registered. Vehicles that are not registered or vehicles for which the status of registration is not clear must not be reported in Schedule-1.

It is also important to understand that the ‘Month of First Use’ is for the period in which the vehicles were first used. The month applies to all the vehicles you’re reporting. For example, if you have started using the vehicles in July 2020, then you must report it as ‘202007’.

Schedule 1 (Form 2290), Consent To Disclosure Of Tax Information

This section of Form 2290 allows you to confirm that you have tried your best to furnish the most recent and accurate information to ensure compliance.

By signing in this section, you are allowing the IRS and assigned parties to review the confidential information you’re reporting.

This step is especially crucial when you outsource your 2290 e-Filing to third-party service providers or tax professionals who manage your e-files on your behalf.

5 Tips To Get IRS-Stamped Schedule-1 Instantly

Accurate Reports

Ensure that you enter the validated and verified information. Any inaccuracies in reports will result in rejected submissions, repetition of the filing process for corrections, and even penalties.

Tax Transparency

Maintain tax transparency when reporting your vehicles to the IRS. Hiding your vehicle information in order to reduce your tax liability will have a counter effect. You will end up being penalized by the IRS, making you pay double or even triple the amount of the original tax you owe.

TIN Matching

Search the IRS database to validate the TIN/Name combination that you’re about to report in the form. If you are a tax professional, it is essential to validate your client’s information. If you’re a business, verify your details against the IRS records just to be sure.

VIN Validation

If you have reported an incorrect VIN previously or if you’re not sure about the validity of the VIN, then you must most definitely practice VIN validation. A quick VIN Lookup allows you to check if you have the right VIN or if there are any errors.

Tax Discipline

It is common knowledge that not practicing tax discipline will result in rejected submissions and penalties. Being penalized by the IRS does not look good on your business profile, and may lead to missing out on potential investors (because no one wants to associate with a non-compliant business).

How Can I File Schedule 1 (Form 2290) Online With EZ2290?

You cannot file Schedule-1 as a separate form. However, you must attach both copies of the completed Schedule-1 with Form 2290 and submit the same to the IRS.

Once submitted, the IRS may accept or reject your submission after a meticulous review process.

You can file Form 2290 online through EZ2290 – an IRS-authorized e-file service provider.

Secure and encrypted e-files
E-file for multiple vehicles at once easily
Smart Tax Calculator to instantly calculate your HVUT taxes
Instantly receive IRS-Stamped Schedule-1
Tax assistance for rejected files at no additional cost
Uninterrupted service and 24×7 support

Calculate Your HVUT Taxes Now

Stamped Copy Of Schedule 1 As Proof Of Payment

With paper files, you receive the ink-stamped Schedule-1.

When you e-File with EZ2290, you will receive the IRS-stamped Schedule-1 within minutes after successful submission. You will receive an electronic copy of Schedule-1 with a digital watermark of the IRS stamp, aligned to the center of the document. Download and print out the document.

If you want Schedule-1 for a previous submission, you will have to send a written request to the following address: Internal Revenue Service 7940 Kentucky Drive Florence, KY 41042-2915.

This IRS-stamped Schedule-1 is accepted by the Department of Motor Vehicle (DMV) for vehicle registration and allows you to operate your vehicles on the public highways.

What To Look For In Form 2290 Schedule 1 Stamped Copy?

The IRS stamp is a watermark and it contains the date on which your submission was received by the IRS. Do not accept a Schedule-1 from any e-file provider when there is no Date Of Receipt.

A Schedule-1 (Proof of Payment) without the IRS-stamp + date of receipt is not valid and will not be accepted by any authority (including the IRS).

Further, compare the VINs and vehicle category listed in the stamped Schedule-1 with your original submissions. All the information in the IRS-Stamped Schedule-1 must be the same as the information reported in the original submission.

Any discrepancies must be brought to the attention of the e-file processor and the IRS immediately.

IRS Form 2290 is the single most important form for HVUT compliance. Schedule-1 is the only way to confirm if the IRS has received your submissions and payments. It is essential to document a copy of the stamped Schedule-1 for future references and submissions.

Schedule-1 also plays an intricate role in claiming tax refunds, tax suspension, and other legal assessments.

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