Avoid These Common Errors to Stay Compliant and Avoid Penalties

Not meeting the deadline for filing

Some experts claim that the most common and costly error made by IRP plate users is to disregard the Form 2290 filing deadline. All vehicles that were first utilized in July are required to register the Heavy Vehicle Use Tax (HVUT) by August 31st of each year. It is a common misconception among truck drivers that the due date coincides with the renewal date of their IRP registration. A late filing will result in a fine, potential interest charges, and possibly the suspension of the vehicle's registration.

Selecting the Incorrect Month for First Use

Selecting the incorrect "First Use Month" on Form 2290 is the other frequent error. It is difficult for many IRP plate holders to distinguish between the date of the plate renewal and the vehicle's actual initial use on public roads. Since this element determines your tax period, it is of utmost relevance. If you report the incorrect month, your tax liability will undoubtedly be calculated incorrectly or may need some unnecessary adjustments.

An incorrect VIN

Although a misspelled Vehicle Identification Number (VIN) is a little mistake, it can lead to a number of issues. When comparing the 2290 form with the actual car, the IRS always uses the VIN. If an error occurs, you will be responsible for paying the cost of filing a VIN correction form as soon as possible, even if it means delaying the registration of your IRP plates. Make it a habit to double-check your VIN before signing it.

Failure to Maintain Payment Documentation (Schedule 1)

Not contesting the license suspension is one of the most frequent mistakes made by IRP plates. Because it is your duty to maintain locally the last three years of records, i.e., schedule 1 of 2290 form, in order to defend yourself against any unfair accusations, heavy vehicle owners should always be prepared to present the receipt of payment, i.e. schedule 1, whenever a DOT, IRS, or other controlling authority requests it. Many IRP users neglect to maintain a printed, stamped Schedule 1 after filing the 2290 form. In fact, the state needs this document in order to register your car. If the proof of payment is deemed invalid or there is an outstanding tax associated with it, you will not be able to use it to register for your IRP. Please keep in mind to keep a digital copy for your records in addition to the hard copy.

Selecting the Incorrect Filing Procedure

Many truckers employ the incorrect filing technique or fail to complete the proper form. There are still those people who flatly refuse to file online, claiming they have no interest in the digital age. They are unaware that all fleets with 25 or more vehicles must electronically file with the IRS. You can save more money by using the electronic approach and obtain it more quickly and securely online if you have a larger fleet. In addition to reducing account or log-in issues, authorized e-file providers streamline and expedite the filing process.

Filing the 2290 form by mail or in person using the improper technique can result in a number of issues, including missing the deadline, choosing the wrong usage month, using the wrong VINs, losing proof of payment, and utilizing out-of-date procedures. The major advantages of avoiding the previous mistakes, whether they were the ones in the example or others of a similar sort, are the time savings, the avoidance of fines, and the assurance that the renewal procedure will be hassle-free. Keep an eye out at all times, and if you want to make things easier, you may also use a reliable e-file provider.

Note: For more information, visit IRS website