All truckers and fleet owners are pretty much aware of the Heavy Vehicle Use Tax (HVUT). IRS Form 2290 is a mandatory tax form that should be filed by truckers who own heavy vehicles weighing 55,000 pounds or more.
Form 2290 can be filed both manually and online. If you own more than 25 vehicles, it is mandatory to file form 2290 online. As a truck owner, it is crucial to keep yourself updated about all the procedures and guidelines that must be followed when filing form 2290. Clear all the exemptions related to IRS form 2290 and some of them are vehicles owned and operated by the federal government, vehicles owned and operated by the District of Columbia, or by a local governing authority or the state, vehicles used for emergency services like ambulances, fire vehicles, etc. and many more. If you are a truck owner, it is very important to know whether you fall in the exempted category or not. Having knowledge on a good level of this tax is important. If you are not aware make sure to visit the official website of the HVUT 2290 tax form for a clear understanding of this concept. Also, before applying make sure to know the whole procedure so that you do not make any mistakes.
For manual filing, you have to visit the IRS office and fill all the forms all by yourself. Also, in the manual procedure, you will get a schedule 1 copy after a while. Whereas in the online procedure, you need an authorized IRS service provider. They will help in making the whole process a lot easier and will reduce the complications if any. They are aware of all the technicalities and calculations, so they will help you with everything from start till end. Make sure to calculate the exact due date so that you don’t get late to file it. Also, re-check everything to avoid any rejection chances.
If you are planning to file for this tax, the following steps will help you out in how to file out a form 2290:
- Business details– The first section asks for the basic details of your business which includes your name, address, EIN, ZIP code, city and state code. It will also ask for the number of employees. Also, you can make changes in this section related to address, VIN, amendment return etc. You can skip this part if you are not making amendments. Make sure to file the right details as any mismatch will lead to rejections.
- Signing authority details– Enter name, title and other details along with your pin number. The pin number is a 5-digit number which will act as an electronic signature while e-filing your 2290.
- Calculating the tax– The tax is calculated based on the month you are filing, taxable gross weight (if it increases, it falls in another category) etc. Also, you can claim the credit if your vehicle is stolen, destroyed or driven less than 5,000 miles or 7,500 miles in case of agricultural vehicles.
- Computing HVUT taxes– Now the tax is based on the taxable gross weight and the number of vehicles. The category of the vehicle weight starts from 50,000 pounds to 75,000 pounds. The tax computation has 4 columns- annual tax, partial-period tax, number of vehicles and amount of tax.
- Schedule 1– Once you are done with all the formalities, you will receive two copies of watermarked schedule 1 which will act as proof. One copy will be issued by the IRS and keep another copy with yourself which is called 2290 stamped schedule 1.
- Summary– In the end, you will get a summary of all the number of vehicles reported including all taxable and suspended vehicles by former numbers. Also, after filling all the details, the former has to sign the disclosure in the end for consent. While signing add your address, EIN, name and date.
- If paying by cheque or money order-If you pay HVUT by check or money order, use Form 2290-V payment voucher and send it with other documents. This form requires name, EIN, first used month, address, and the tax amount.
So, this is the step-by-step process of how you can fileIRS form 2290. Make sure to consider the form 2290 due date so that you do not miss the filing deadline. You can also pre-file form 2290 to avoid last-minute filing rush.
Find a trustworthy IRS authorized e-file service provider who assists you with all your form 2290 filing needs. Several e-file service providers also offer value-added services such as free re-filing and VIN correction to make your filing experience easy and convenient.