As a result, they miss out on reporting some critical information. Be it vehicle category or tax suspension details.
So, before you start preparing your 2290 tax returns, take a couple of minutes out of your precious time and use the following checklist to gather the information needed.
This will enable you to prepare and file your 2290 forms much more efficiently.
EIN or TIN
The Month of First Use
Vehicle identification number
The gross weight of the vehicle
Vehicle logging status
Tax suspension details
Number of vehicles for which you’re reporting
Pay Attention To EIN/TIN And Legal Name
The taxpayer identification number or employer identification number is assigned by the IRS to business entities. It’s used for identifying a business with a designated code – the TIN.
Now, trucking companies must report their EINs or TINs in the “EIN” box of the 2290 form and specify the legal name or the doing business as (DBA) name.
This allows the IRS to identify and validate your 2290 reports quickly and effectively.
However, some trucking companies, in a hurry to submit their 2290 forms by the deadline, omit TIN reporting, which results in file rejections and TIN discrepancy assessments from the IRS.
Remember to verify your TIN and legal names before you report them on any IRS form. This will save you from B-notices and incorrect TIN penalties (up to $250 per incorrect TIN reported).
Report Tax Suspension Details
You don’t have to pay HVUT for vehicles that are suspended from HVUT. However, you still need to report the vehicle details to retain the tax suspension status.
So, let’s assume that you own a couple of trucks that utilize the highways within the 5000-mile limit. You don’t have to pay HVUT for this. But you need to report this information in the HVUT form.
However, when your vehicles exceed this 5000-mile limit, the tax suspension status will be revoked, and you will have to start paying HVUT from that period.
The same reporting rules apply to agricultural vehicles as well. However, for agricultural vehicles, the mileage use limit is 7500 miles, exceeding which would require the truck owners to pay the HVUT.
Figuring Out Your HVUT Tax
Use the “tax computation” section on Page 2 to calculate your taxes.
If you’re filing for non-logging vehicles (non-agricultural vehicles), then just review the weight of your vehicles and enter the number of vehicles. Calculate the tax by multiplying the tax range by the number of vehicles.
For example: 2 trucks weighing 56,000 pounds x $122 (annual tax) = $244 (amount of tax)
Now, check if you have any vehicles that were reported for an increase in the taxable gross weight.
If you have paid additional tax for such vehicles, then add the additional amount to the computed tax amount as derived above. The sum is the total tax you owe.
Alternatively, you can just skip calculations and just focus on reporting your vehicle information with EZ2290.
You see, EZ2290’s dynamic HVUT calculator calculates the tax in the background as you enter the vehicle information, giving you peace of mind.
Just focus on reporting, we will take care of the tax computations.
EZ2290, Powered by Zenwork, Inc., is an IRS-Approved eFile provider for Form 2290 filings. This blog provides informative articles on Form 2290 compliance, expert tips, insights, engaging stories related to truck drivers and trucking regulations.