Does the IRS reject your 2290 return? Did you know the reason for the rejection? IRS Form 2290 rejections occur mostly when you 2290 Form with errors. The IRS sends back the mail by providing a reason for rejecting the return. Immediately you need to correct the error and retransmit it to the IRS to avoid penalties.
Getting tensed? We will let you know how to fix Form 2290 rejections. Additionally, we will provide you the major reasons for rejecting your HVUT reason. So, that you can avoid it when filing 2290 Form. You’ll also get to know about the best ways to avoid Form 2290 rejections.
Why the IRS Rejects Your 2290 Return?
Every tax year, most of the HVUT returns gets rejected by the IRS. This may be due to some technical errors, or form filing errors. Among them, some errors can be avoided. The IRS rejects 2290 Tax Return for the following reasons:
Mismatch of EIN & business name
As per the IRS rules, EIN used to identify the business entity when filing tax returns. So, if you provide business details that don’t match with business information provided on EIN, the IRS may reject your return. Moreover, if you provide an incorrect EIN or file Form 2290 with a new EIN, the IRS rejects the tax return.
The IRS may reject the e-filing request if you file Form 2290 with the same VIN more than once in the same tax year. Furthermore, the IRS notifies the trucker that “duplicate filing exists”.
Incorrect bank account details
As we know, you need to provide bank account details when you’re paying HVUT electronically to the IRS. So, in such a case, if you provide an incorrect bank account number, the IRS may reject your 2290 return.
What happens if your 2290 HVUT return is rejected?
If you have an e-filed Form with incorrect information, the IRS may reject your 2290 return. Furthermore, if you forget to correct the information and re-transmit it to the IRS within the deadline, the IRS may impose a penalty. The penalty for not submitting a corrected return within the due date includes a fee of 4.5% of the total tax due. In addition to this, the penalty accrues on a monthly basis for up to five months. So, to avoid 2290 rejections is by pre-filing Form 2290. Pre-filing helps to correct the errors and re-transmit them to the IRS within the deadline and helps in avoiding unnecessary penalties.
What to do if you receive a rejected Form 2290?
Nowadays, it has been common to receive a rejected 2290 return from the IRS. Firstly, you must check the error that occurred on the form after receiving rejected form through the mail. After identifying the error, ensure to correct the information that you have provided incorrect on the previously filed return. Re-file Form 2290 back to the IRS electronically. As we know, re-filing corrected forms online is more convenient than paper filing. Additionally, online filing enables instant audit checks and helps in minimizing error filing HVUT returns.
How to prevent your Form 2290 from getting rejected?
Given below are the list of reasons that helps you to avoid making mistakes and prevents your Form 2290 from getting rejected:
- EIN is mandatory to complete 2290 Form and pay truck taxes to the IRS. So, you can’t replace your EIN with SSN. Make sure to apply for new EIN 2 weeks before filing tax returns.
- VIN used to identify vehicles when sold, stolen, destroyed. It is a unique 17-digit code with a combination of alphabets and numbers. So, if you enter any one digit incorrectly your return may be rejected. Ensure to provide correct VIN.
- Routing Transit Number is important when you’re paying 2290 truck taxes using the Electronic Funds Withdrawal method. So, be sure that you’re providing the correct routing transit number of your bank.
What is the best way to avoid 2290 rejections?
As we know, filing Form 2290 can be a little confusing which leads to human errors. The best way to avoid 2290 rejections is by filing online with an IRS-trusted e-file provider. E-filing provides an instant error check feature that checks your form for errors once you have completed your filing. Additionally, it consumes less time to rectify the error. After completion of the error check, the filers can fix the errors which have occurred and transmit the tax return to the IRS. Given below are the advantages of the instant error check feature when e-filing HVUT return:
- The chances of IRS 2290 rejections are very low.
- You can easily fix the errors within no time.
- Ensures you fill in all the required information.
Finally, ready to e-file 2290 HVUT return? Form 2290 Filing is the best among all the e-file providers. Choose us for hassle-free filling and instantly receive 2290 schedule 1. With our instant error check software, the mistakes are minimized and transmitted to the IRS 100% accurately.