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Filing an IRS Form 2290 is undoubtedly one of the most crucial activities conducted by truckers, owner-operators, and trucking companies that own heavy motorized vehicles with a gross vehicle weight exceeding 55,000 pounds. The form is commonly referred to as the Heavy Vehicle Use Tax or HVUT form, and it is in fact a requirement towards maintaining the infrastructure of the roads in America. And there is rejection of Form 2290, which can often be more prevalent than expected, resulting in further delays, fine, or penalty. The good news? Most reasons for rejection arise from easily avoidable errors. Here, we discuss common mistakes truckers make with the filing of Form 2290 and how you can prevent it.
The most common reasons for Form 2290 rejection are an incorrect Employer Identification Number or a mismatched EIN and business name. IRS will not accept Social Security Numbers for Form 2290. So, if you are new to filing or you have recently established your trucking business obtain EIN. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: Use an EIN that's at least 15 days old since newly issued EINs may not be in the IRS processing system. Your business name and name in the IRS must be an exact match to avoid discrepancies.
The other area is the Vehicle Identification Number. A VIN is the unique 17 character code for a vehicle, and with one wrong digit or letter, the form 2290 will get rejected. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: Before you submit make sure to triple-check the VIN for every car listed. The VIN is case-sensitive so look out for both capital and small case letters. You can check on your registration documents or even in your fleet management software if you have some.
Form 2290 is submitted on an annual basis and also the proper tax year and filing period need to be selected. The wrong filing under an incorrect tax period is a very common mistake and this will be declined as well. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: Ensure that you choose the tax year; even the date of the filing should be accurate. The tax year for Form 2290 runs from July 1 to June 30, and all vehicles that are used on public highways during the period must be filed with the IRS by August 31.
One shockingly frequent mistake is failure to sign or authorize payment of the taxes due. Whether you file electronically or file your form on paper, the IRS won't accept your return if you don't sign your form or complete a payment authorization. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: If you are an e-filer attach your 5-digit PIN issued by the IRS or use appropriate e-signature credentials. Also, ensure all payment information are accurate: whether you are paying through debit/credit or bank account withdrawal.
Calculation mistake in Heavy Vehicle Use Tax is yet another reason why certain claims are rejected. There are errors that tend to arise when the filers fail to add, subtract, account for vehicle weight, suspension claim, or months in use. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tips: Use the IRS's HVUT calculator or an online tax preparation service to ensure precision in your computations. If you claim a suspended vehicle which operates less than 5,000 miles a year for commercial vehicles, make sure you claim the proper suspension otherwise you would be paying for more.
Duplicate Filings: Truckers unknowingly file Form 2290 multiple times for a single vehicle in one tax year. The IRS will reject all such duplicate filings, which will unnecessarily create confusion or delay. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
TIP: If unsure whether your return is submitted, wait until the IRS responds. Most e-filing providers provide current status updates and other controls to avoid filing twice.
Missed deadlines are also another reason for rejection. The deadline for Form 2290 is August 31, but if a vehicle is placed into service after July, then the due date will be the last day of the month that follows the month the vehicle was first used in. The resultant is rejections and, yes, penalties most of the time. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: Before the deadline, mark important filing deadlines on your calendar, and don't wait until the last day to file. E-filing is sure to expedite processing, in addition to obtaining confirmation of receipt of return or amended return, which is always great when you have the least time.
Although filing Form 2290 through e-filing is considered to be the quickest and most effective means, it comes along with its own set of problems. Technical glitches like system errors or internet connectivity issues may lead to the submission not being complete or entirely rejected. If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: You should only use an e-file provider who is recognized by the IRS. In case you experience a technical problem, go ahead and contact customer support as soon as possible so that that gets sorted well before the deadline. Do not forget to make a copy of your form.
If the payment method you use (for example bank withdrawl or credit card) is incorrect, or if there are not sufficient funds in your bank account, the IRS will disallow the form in light of non-payment of the tax owed.
Tip: Verify that your payment information is accurate, and the bank account has sufficient funds to cover the HVUT. You can also file on an installment basis if you don't have the full payment when filing. However ensure that you make the installment payments in time so that you don't face late fees.
You will not be needing to panic over what mistakes you might make at the time of filing Form 2290. From ensuring your EIN matches the records in the IRS to verifying VINs, such minutiae are vital steps that save you time, money, and stress. If the processing of your Form 2290 is returned, do not panic. Identify the mistake, correct it, and resubmit the form as soon as you can. Care and attention towards the service provided while e-filing will ensure the smooth flow of business for your trucking venture
Note: For more information, visit IRS website
