Understand the significance of EIN in your Form 2290 filings.
The Employer Identification Number or EIN is a taxpayer identification number (TIN) assigned to self-employed individuals and businesses.
It’s common knowledge that TINs (or EINs in this context) are assigned to businesses by either the Social Security Administration (SSA) or the Internal Revenue Service (IRS).
When businesses have a designated EIN, it basically represents their “identity”. Hence, the self-explanatory term “employer identification number”. This number or code is assigned to businesses or employers for the sole purpose of identification.
EINs are used for a variety of purposes. For example, when you file your tax returns or pay your taxes, EINs are used to identify and track the history of filings.
Similarly, EINs are also used to check the legal standing status of the business per the official records of the IRS.
For example, when you apply for a business loan or sign an agreement with a new investor, furnishing your EIN along with your company’s identification details is mandatory.
If you’re a trucking company owner or an owner-operator, you will need to furnish the EIN and legal name of the business in IRS Form 2290.
This will ensure that your 2290 tax filings correlate with the taxpayer identification number, and helps the IRS tax a specific business appropriately.
Without a TIN or an EIN, your 2290 filings (or any tax filings for that matter) will be rejected by the IRS.
The following discussion will primarily focus on EIN and its significance in 2290 filings.
Let’s get started.
- EIN In Form 2290 Reporting
- Advantages Of Reporting EIN On Form 2290 Accurately
- How To Report EIN or TIN On IRS Form 2290?
- How To Correct A Wrong TIN Entered In Form 2290?
- How EZ2290 Helps
EIN In Form 2290 Reporting
The Employer Identification Number or EIN is a nine-digit number assigned to business entities by the IRS. Your good practices should include reporting a valid TIN or EIN on Form 2290 to stay compliant with the IRS.
Just like any other IRS return, the 2290 form also requires the filer to report the EIN on Form 2290. Without which, the 2290 return stands invalid and will be rejected by the IRS.
If you’re a preparer, then you probably file IRS 2290 Form for multiple businesses. It’s ideal to rely on Real-Time IRS TIN Matching to prevent reporting incorrect TINs or EINs on your clients’ 2290 forms.
Advantages Of Reporting EIN On Form 2290 Accurately
- Helps prevent file rejections.
- Helps prevent TIN discrepancy penalties from the IRS.
- Helps prevent B Notice assessments.
- Helps the IRS tax your business appropriately.
- Helps identify taxable businesses (if you own multiple businesses).
- Helps track your filing history easily.
- Helps correct previously misreported returns.
- Helps with managing and tracking refund claims (if any).
- Helps amend your 2290 tax information appropriately.
How To Report EIN or TIN On IRS Form 2290?
Employer Identification Number is to be reported on Form 2290 and Schedule 1.
The vehicle information you report on your 2290 tax return, such as the vehicle identification number, month of first use, mileage use limit, tax suspension details, and other information is linked and identified with the employer identification number reported on Form 2290.
If you have paid HVUT tax on your heavy vehicles, then you’re bound to pay a certain amount of tax. Upon stamping and issuing the Schedule 1 (proof of payment), your tax payment is confirmed by the IRS.
The EIN is reported on both copies of Schedule 1 by the preparer or the filer to confirm and approve the “proof” of payment.
How To Correct A Wrong EIN Entered In Form 2290?
- Note that the EIN once assigned to a business entity does not change or renew.
- If the entity has been legally dissolved or if the ownership changes, a fresh EIN will be assigned to the entity.
- A new EIN issued by the IRS takes about 2 weeks to be added to the IRS database. In the meantime, if you try to report and file your returns with the freshly issued EIN, your returns could be rejected citing “invalid” EIN or “unknown EIN records”.
- If the EIN remains unchanged but the name of the business entity changes, then such a name change should be reported by filing a fresh 2290 form.
If you’ve reported an incorrect EIN on Form 2290 or Schedule 1, then you must correct such a report at the earliest by filing a new Form 2290 and attaching an explanation for the fresh filing, specifying “EIN Correction”.
You may even need to pay the tax amount again. However, you can request a refund for the same by filing Form 8849 and attaching the necessary proof to back up your claims.
How EZ2290 Helps
Reporting your EIN accurately is extremely important because it helps you avoid trouble with the IRS.
Similarly, it is essential to file your 2290 tax returns with an IRS-authorized eFile provider like EZ2290.
This helps you avoid fraudulent schemes designed to steal your business information.
With EZ2290, you can:
- eFile IRS Form 2290 online
- Pay your HVUT tax online conveniently
- Amend your 2290 vehicle information
- eFile 2290 VIN Corrections for FREE
- Re-file rejected returns for FREE
- eFile 2290 returns in bulk
Other Useful Reads From Ez2290 Blog