IRS Form 2290 HVUT Common Mistakes
Did your Form 2290 HVUT rejected? Do you know the reason for rejection? If your answer is “No”, then you can find out why Form 2290 HVUT gets rejected. The IRS rejects the Form when filed with errors, or fraudulent filing etc.
Getting tensed? Don’t worry! We will let you know IRS Form 2290 HVUT common mistakes and how to avoid them. We have provided a complete guidance to file your HVUT returns online error freely.
What happens if you file Form 2290 with errors?
When you file Form 2290 with errors, the IRS may reject the form and may impose HVUT penalties. In other words, the IRS rejects the form for error filing, late filing, providing wrong routing number etc. The errors in the rejected Form can be found easily and re-filed to the IRS again with no additional cost.
Given below are the major reasons to reject your Form 2290 by the IRS:
RTN rejection
When the taxpayer chooses to pay their HVUT returns using EFW option, the bank routing number is mandatory. If you enter wrong RTN, the IRS will reject the Form.
Duplicate VIN
If you have already paid the truck tax for your VIN during a tax year, and again initiating to file Form 2290 for the same VIN. In this case, the IRS rejects the form.
Missing signature
Signature is important to make the form valid. The IRS rejects the Form when the signature is not in a proper format.
What are the essential information to file Form 2290?
Vehicle Identification Number and Employer Identification Number are the two identity numbers essential when you file Form 2290 HVUT. When you start filing the form, you need to furnish these two numbers which are mandatory. Even a single replace of number or alphabet in EIN or VIN, the HVUT returns are rejected by the IRS. Hence, make sure to enter correct VIN or EIN on the Form.
Vehicle Identification Number is a unique 17-digit alpha-numeric number which includes both alphabets and numbers. This number used to identify the vehicles and pay HVUT taxes to the IRS for using public highways. One should make sure to enter a correct VIN on the Form 2290 and there are no duplicates.
Employer Identification Number are unique 9-digit number issued by the IRS and primarily used to report employment taxes. These are also called as “Federal tax ID numbers”. They never expire and are never reissued to another business.
Which category of vehicles are reported on HVUT Form 2290?
According to the IRS, a trucker is required to pay HVUT through Form 2290 by considering taxable gross weight, and mileage limit. There are two categories to report heavy vehicle using Form 2290:
Taxable vehicle
A heavy vehicle with gross weight of 55,000 pounds or more and travels more than 5,000 miles on public highways is considered as “taxable vehicle”. The truck owner of the heavy vehicle needs to pay HVUT depending on the gross weight of the vehicle.
Suspended vehicle
A heavy vehicle with gross weight less than 55,000 pounds and travels less than 5,000 miles on public highways is considered as “suspended vehicle”. There is no need to pay HVUT for suspended vehicle.
What if your EIN is not registered?
As we know, Employer Identification Number plays a dominant role when filing HVUT returns. EIN is a unique identification number assigned to an employee to pay taxes. No two individuals have the same EIN. It helps to protect your businesses identity.
When you are e-filing Form 2290 with a new EIN, you need to be more careful. As it takes 10 business days for the new EIN to be updates in the database of the IRS. Every trucker who required to pay HVUT need to apply for a new EIN one month before they start e-filing the Form. So that, it can avoid unnecessary rejections.
Significance of FUM of vehicle on Form 2290 HVUT
For instance, HVUT tax year begins from 1st July 2021 and ends by 30th June 2022. For the trucker who pay HVUT every calendar year, the first use month of the taxable vehicle is July. In case if you purchase a new taxable vehicle, then the first use month of the vehicle is a month later. To file Form 2290 and HVUT, the First Use Month of the vehicle is most essential. If any trucker enters an incorrect month in FUM box, the Form may be rejected. Make sure to file your HVUT return based on First Use Month of the vehicle.
For example: When you are paying HVUT for every calendar year, then the first use month is July. The trucker need to pay HVUT by August 31st every calendar year.
In case, if you purchased a new motor vehicle in the month of January, then your first use month is “January”. You need to pay HVUT by the end of “February”.
Important dates to file Form 2290 HVUT
Another common mistake that many tax filers do when filing HVUT returns is by entering an incorrect filing year. Every trucker must select an appropriate tax filing year when filing Form 2290. Along with filing year, the FUM of the vehicle must be entered correctly. Every tax year, the Heavy Vehicle Tax must be reported to the IRS using Form 2290 by August 31st. When the truck holder purchases a new vehicle, the HVUT is based on FUM of the vehicle.
For example: If you are filing HVUT returns for the current tax year 2021-22 and instead of entering 2021, you have entered 2020 on Form 2290. Then you will end up in paying taxes twice for the previous filed year. Even though you are still required to file HVUT returns for the current tax year.
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