Everything You Need To Know About IRS Form 2290 Amendment

Learn how the 2290 Amendment plays a huge role in ensuring HVUT compliance and “correcting” previously misreported information for trucking businesses.

When we were younger, we had an eraser by our side to correct or erase our mistakes. Just when we thought that we could handle how to write with a pencil, our parents and teachers decided to switch it up with a pen. 

This is an indirect gesture to tell you that you are not allowed to make the same mistakes that you once did because you have grown up and you have learned a lot along the way. 

Now try applying the same logic to filing your taxes.

It’s not going to work.

Human errors are common. 

We see a lot of credible businesses making the simplest mistakes before all hell breaks loose. It is that critical to be accurate, especially when you are dealing with numbers. 

And what’s a better subject than taxes when it comes to talking about numbers?

2290 Amendment: A Second Chance For Compliance

The IRS leaves room for businesses to correct any previously misreported information on the HVUT returns.

 Information such as the vehicle identification number, taxable gross weight of the vehicle, miles utilized, and other intricate details can be corrected through Form 2290 Amendment. 

So, let’s understand this beacon of hope for trucking businesses – 2290 Amendment.

What Is Form 2290 Amendment?

It is important to note that the 2290 Amendment is not a separate form. The 2290 form has a checkbox that must be selected if the filer is opting to make corrections to the previously reported information. 

By selecting the checkbox, the filer is communicating to the IRS that the previously reported information may be historic or misreported. 

Filers are required to file the 2290 Amendment by paper or electronically to “amend” the previously reported information with the latest one.

How Do You Use 2290 Amendment

2290 Amendment can be used in 3 key scenarios, which are as follows.

#1: When The Taxable Gross Weight Of The Vehicle Increases

Let’s say that you bought a vehicle in January 2021. You have been using this vehicle for commercial purposes and it weighs about 66,000 pounds. 

However, in February, your vehicle was required to carry an extra load of 6000 pounds, and it’s been the same since. 

This pushes the taxable gross weight of the vehicle from 66,000 to 72,000. You must report such an increase in the weight through the 2290 Amendment. 

Why? 

Owner-operators or businesses are taxed according to the taxable gross weight of the vehicle with which they operate. 

An increase in the weight of the vehicle means that the vehicle is more likely to add pressure on the highways, and it’s more likely to utilize the highways.

An increase in the taxable gross weight of the vehicle puts the vehicle in a new category and the vehicle will be taxed according to its revised weight. 

So, if the taxable gross weight increased on 1^st February 2021, the same must be reported on 2290 Amendment and submitted by 31^st March 2021 

Let’s look at another scenario.

#2: When The Vehicle Exceeds The Mileage Use Limit

It is essential to note that there are some mileage limitations in place, which regulate heavy vehicle activity on highways. The IRS specifies that the mileage limit for a non-agricultural vehicle is 5000 miles and 7500 miles for agricultural vehicles. 

Let’s take the same example. Since the load of the vehicle has changed, it means that the vehicle has to go to more warehouses located in different cities or states to drop the load. 

Assuming that the vehicle’s previous mileage limit was 4500 miles, but it increased by 800 miles, then the gross mileage for the total period (from February 2021) would be 5300 or more. This shows us that the mileage use limit has been exceeded and the owner(s) have to pay the tax for the extra miles. 

Do note that the tax must be paid in full regardless of the number of owners a vehicle has. So, if the mileage use limit was exceeded on 1^st February 2021, then the same must be reported on the 2290 Amendment and submitted by 31^st March 2021.

#3: VIN Corrections

A vehicle identification number is a unique number assigned to each vehicle for identity and activity tracking purposes. Many buyers verify the vehicle identification number to check the vehicle’s history and prior activity. 

A quick VIN Lookup helps us understand if the vehicle was involved in any suspicious or unlawful backgrounds. Further, VIN Lookup also helps us understand the entire history of the vehicle, right from the day it was first bought by your seller – which helps you understand the real monetary value of the vehicle. 

2290 Amendment allows fillers to correct a previously misreported Vehicle Identification Number. 

A typical vehicle identification number comprises 17 digits with a combination of letters and numbers. However, some VINs are smaller. A VIN Lookup helps you understand if you have the right VIN or if the VIN is accurate. 

Businesses that enter an incorrect VIN can amend and report with the correct VIN through 2290 Amendment. 

Previously, VIN correction or Amendment was only possible through paper filing. However, the IRS is now encouraging filers to opt for electronic methods.

How 2290 Amendment Helps With HVUT Compliance

In layman’s terms, the 2290 Amendment is sort of like a second chance for businesses to correct the incorrect information previously reported. By filing the 2290 Amendment, businesses are communicating to the IRS that they are serious about reporting accurately. This shows the intent of the filer to report with the latest information. 

It also helps the IRS tax the businesses that are utilizing the highways more frequently, which in return, helps develop the transportation and highway infrastructure of the country. 

How Trucking Businesses Are Ensuring HVUT Compliance In 2021

Businesses like you are being smart about taxes. They are choosing smart solutions that facilitate easy 2290 e-filing. 

EZ2290 helps businesses ensure HVUT compliance by providing secure 2290 e-file service and 2290 Amendments in the most convenient way. 

You too can join thousands of businesses to ensure HVUT compliance for your businesses. 

You can do all of this in just 3 simple steps.

Step 1: Create your free EZ2290 account here or log into your account 

Step 2: Complete your 2290 form 

Step 3: Submit 

If you are e-filing Form 2290, you will receive the IRS-Stamped Schedule-1 a few minutes after successfully submitting the forms to the IRS. 

If you want to amend a previous filing, you can go to your dashboard and select the period for which you want to file the amendment. Alternatively, you can get assistance from our tax support team here.

EZ2290 brings you some of the most-demanded features, which make e-filing 2290 a cakewalk. 

We’ll explore those features in detail next time!

Related Ez2290 Blogs:

What Is Form 2290? Are You Required To File It?

IRS Form 2290 Instructions For The 2021-2022 Tax Year

Vehicle Identification Number (VIN) – Here’s Everything You Need To Know

IRS Form 2290 Due Date For The 2021-2022 Tax Year