August 2021 - EZ2290

Quick HVUT Compliance Guide For Trucking Businesses & Preparers

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

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

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

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

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

Review Due Dates & Penalties

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

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

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

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

Validate TIN & Business Name

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

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

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

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

Tax Calculation

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

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

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

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

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

Vehicle Weight & Logging Status

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

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

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

VIN Verification

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

Validate VINs here

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

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

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

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

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

Learn all about EZ2290 here

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

Contact Support For Full Service

Related Blog Posts From Ez2290

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

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

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

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

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

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

Before You Start Preparing

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

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

This information plays a huge role in your 2290 reports.

Addressing Outstanding HVUT 2290 Reports

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

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

Understanding Vehicle Categories

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

Vehicle Weight Calculation

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

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

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

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

Tax Information Validation

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

Vehicle Information Validation

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

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

Form 2290 Due Dates & Deadlines For 2021 -2022

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

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

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

Form 2290 Rejections & Amendments

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

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

Or any other reason.

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

Learn more about Form 2290 amendments here

Need a tax expert’s help? Talk to us now.

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Also, Read Other Useful Blog Posts From Ez2290

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

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

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

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

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

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

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

Furnish The Most Accurate Vehicle Information

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

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

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

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

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

Review Your Truck Tax Reports

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

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

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

Verify Your IRS-Authorized E-File Provider

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

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

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

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

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

eFile Form 2290 Before Deadline

IRS 2290 Deadline Is NOT Related To Vehicle Registration Date

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

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

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

If the vehicle is first used during	eFile 2290 and pay tax by	Enter this date on Form 2290, Line 1*
July	August 31	YYYY07
August	September 30	YYYY08
September	October 31	YYYY09
October	November 30	YYYY10
November	December 31	YYYY11
December	January 31	YYYY12
January	Last day of February	YYYY01
February	March 31	YYYY02
March	April 30	YYYY03
April	May 31	YYYY04
May	June 30	YYYY05
June	July 31	YYYY06

eFile Form 2290 Securely With Ez2290

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

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

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

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

For accelerated 2290 processing, the IRS recommends electronic filing.

FAQS For Truckers From The IRS

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

Start Filing Your Form 2290

Related Ez2290 Blogs

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

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

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

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

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

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

Tip #1: Planning HVUT Reports

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

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

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

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

eFile Now Your Form 2290!

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

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

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

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

Sign Up Now For Free!

Tip #3: 2290 Audits

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

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

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

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

Tip #4: Tax Details Verification

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

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

Tip #5: Bulk Files (Choosing API Solutions)

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

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

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