The necessity of filing IRS Form 2290 cannot be any clearer: an EIN is always necessary in the process of filing the return for Heavy Highway Vehicle Use Tax or HVUT. This applies even to a single owner-operator operating as a sole proprietorship and without current employees.

A taxpayer is not allowed to use their Social Security Number to file Form 2290. If any attempt is made to file using an SSN, the IRS will reject that return.

The Mandatory EIN Requirement

The IRS strictly enforces the use of the EIN for reporting the Heavy Highway Vehicle Use Tax for a number of very important reasons, which revolve around separating personal and business tax data.

• Business Identification: This EIN is used to identify a trucking business or commercial entity. Although the owner-operator may be one person, for HVUT filing purposes, operation of a heavy vehicle (55,000 pounds or more) is considered a business activity.
• Security and Privacy: The IRS prefers using the EIN for commercial tax forms like Form 2290, so the personal security of the individual is maintained by limiting the exposure of a highly sensitive SSN.
• System Integrity: Since the EIN is consistent for all business filings, this makes the information in the IRS processing system more uniform and decreases errors that may cause delays and audits.

What Owner-Operators Must Do

If you're an owner-operator and don't have an EIN, you need to apply for one right away, without first attempting to file Form 2290.

• How to Apply: An EIN is available free of charge from the IRS website. It's a pretty quick process in most cases, and can be done online in minutes.
• Waiting Period: The EIN is provided immediately, but it actually takes two to four weeks for the IRS systems to fully establish the new EIN and its corresponding name in their system. Filing Form 2290 before the completion of this waiting period will often result in a rejection based on a name/number mismatch.
• Compliance is tied to EIN: The stamped Schedule 1 the essential proof of payment needed for truck registration-is issued and tracked based on the EIN and the corresponding VIN of the taxable vehicle.

Consequences of Filing with SSN

Filing with an SSN or with an incorrect EIN has the same outcome, and that is: the Form 2290 is rejected formally.

• No Stamped Schedule 1: The owner-operator will not receive the IRS-stamped Schedule 1 without an accepted return.
• Delayed Registrations: Without this proof of payment, the state DMV will reject or suspend the truck registration, thus rendering the vehicle illegal to operate on the public highways and creating lost revenue.
• Penalties: If the HVUT deadline is missed on account of waiting for the right EIN to get activated, the taxpayer will be liable for IRS penalties for late filing and late payment.

All owner-operators are required to have a valid and active EIN in order to file Form 2290 smoothly and prevent costly delays.

Note: For more information, visit IRS website