Filing taxes can be a very dull task for anyone, but truck owners and operators have the worst times of it as they must continually comply with Form 2290. Heavy Vehicle Use Tax, or HVUT, is a mandate in which vehicles that weigh more than 55,000 pounds have to comply with yearly, and Form 2290 is how you report and pay the tax. However, perhaps the biggest headache for truckers is rejection of Form 2290 due to an e-filed return. Not only do these rejections lead to delayed filing but also to penalties, extra paperwork, and much frustration. Here are some important tips and tricks that will help you avoid these headaches by preventing Form 2290 rejections during e-filing.
Among the popular reasons for rejection of Form 2290 is errors with EIN.
Generally, the IRS requires that your EIN should be at least 15 days old when you submit Form 2290. If your EIN is pretty new, wait until the processing time has been completed before you submit it. Your business name must be the same that the IRS has on record for your EIN. This slight error, such as an abbreviation or missing punctuation, can give the IRS an excuse to reject your form.
Pro Tip: Run your EIN and business information through the IRS database before submitting your Form 2290.
The most common cause for rejections is your mistake with the Vehicle Identification Number, VIN. VINs are very lengthy, so there's always a tendency to misspell one digit or get wrong one letter and digit. Keep in mind that every vehicle has an identifier of its own, so it is a must that the VIN be correct.
Pro Tip: Carry a copy of your truck's registration or insurance documents with you in case you need reference when filling up your VIN to avoid having typos.
When filing Form 2290, you must identify the correct taxable gross weight category for your vehicle. This category determines the amount of HVUT due. If the wrong one is chosen, there is likely a mismatch in tax calculation that would trigger rejection. It's very important to know the total weight of your truck with the trailers when loaded.
Pro Tip: Check the truck's registration documents or consult with your fleet manager to know the weight category your truck falls in.
Form 2290 is due annually for the July 1st to June 30th cycle. However, if you do go out to buy a new vehicle, you can file in the first month that you use the highway. Then you can be rejected for missing the deadline to submit your form either with an incorrect filing period or just plain missing it. So, be watchful of due dates so that you don't get charged penalties or rejectance.
Pro Tip: Input reminders in your calendar or tax-filing software that remind you of upcoming deadlines.
The tax calculated will be automatically rejected by the IRS if the amount received is different from the tax calculated. Check again the correctness of your tax calculation depending on the category of your truck and ensure also that the payment method you have chosen is acceptable. For this writing, among the methods of payment accepted by the IRS include EFW, EFTPS, check, or money order.
Pro Tip: Select a reliable and efficient e-filing website that will calculate the tax dues based on the information you provide.
If you submit several forms regarding the same vehicle and tax period, then it may be rejected. It is possible that you may have submitted the form more than once accidentally or even with the motive of correcting a previously submitted Form 2290 that has not been processed by the IRS as yet. If an error is found after submitting, then wait for the IRS response before re-filing or amending.
Pro Tip: Save your Form 2290 submission and email confirmations for your records to avoid confusion.
Submit your form as is, emptying the mandatory fields or providing less than required information, and you are guaranteed to get your form rejected. Make sure that all aspects of the form are reviewed thoroughly before submitting.
Pro Tip: Take a short step back and look over your Form 2290 with fresh eyes, or get another colleague to crosscheck it for you before you hit the submit button.
The choice of a reliable, IRS-approved e-filing company makes all the difference between acceptance and rejection. Most reliable e-filing portals offer automated checking so that most errors in common occurrence are pointed out even before submission. Sometimes you can check for EIN and VIN directly through the IRS databases for instant verification.
Pro Tip: Keep reading reviews and compare features of different e-filing platforms. Choose one that you think fits your needs because you invest your money in what is reliable to avoid a headache in the long run.
Although e-filing automatically reduces the amount of paper generated, for your own record-keeping purposes, you should keep both electronic and hard copies of your submissions, confirmation numbers, and payment receipts. It may prove useful in case of technical errors, disputes over payments, or an audit from the IRS.
Pro Tip: Organization of Form 2290 documents and communications with the IRS will be greatly aided if you maintain a separate folder for each tax year.
Filing form 2290 does not have to be a nerve-wracking exercise. Even precautionary measures like double-checking your EIN, VIN, and other business details can cut down the rate of rejection to a large extent. Preventing errors with the date of filing, sums paid, and correctness of the form can also avoid a delay and penalty. Finally, in case everything goes wrong, investment in a good electronic filing provider is sure to bring you a smile on your face as you are getting through within the prescribed standards of the IRS.
You will be able to file your Form 2290 easily with this process, and you can attend to the things that matter most to you—keeping your trucking business rolling. The next time you sit at your desk to file that Form 2290, take a couple of minutes to double check those important details and you'll be off to an easy and successful submission!
Note: For more information, visit IRS website