HVUT Compliance: How To Re-File Rejected Returns?

Learn how to re-file your rejected Form 2290 returns + tips to establish HVUT compliance.

Imagine this; after spending hours and days preparing your 2290 returns, you finally submit your returns to the IRS only hours later, you receive a notice which tells you that your 2290 returns have been rejected citing incorrect information or non-compliance. 

Not only have your efforts gone in vain, but you also have to repeat the filing process all over again (depending on the reason for rejection). 

And you’re not only worried about re-filing your rejected returns but the pressure is on to report the information correctly and comply this time around. 

If you do not address your rejected files, your business will be assessed for neglect and “willful disregard”.

This is a common scenario for a lot of truckers and it happens way more often than one would like to admit.

It is essential to understand that your 2290 returns can be rejected for any of the following reasons. 

1. Incorrect VIN
2. Incorrect TIN/EIN
3. Incorrect First Use Month (FUM)
4. Incorrect Mileage Usage
5. Non-Compliance Citations

However, rejected returns can be addressed according to the severity of the citation raised by the IRS

If you have filed your returns in bulk, then you have to spend even more time correcting your returns and submit them. 

So, let us take you through the process of re-filing rejected 2290 returns after addressing the issues cited by the IRS.

Incorrect VIN

If you have reported incorrect VINs on your 2290 returns, your returns will be rejected by the IRS. VIN is a unique identification number designated for every vehicle. VINs are used by the IRS to track the tax history associated with the number. 

If you have reported incorrect VINs on your 2290 returns, you can file a Form 2290 VIN Correction, which is exclusively used to address the incorrect VIN reporting.

After providing the necessary business and tax information, enter the correct vehicle identification number of the vehicle. 

But before you enter it, be sure to verify and validate the VIN to ensure that you are reporting the correct VIN. 
Try these (1, 2) authorized VIN validation tools to search and verify your VINs.

Incorrect TIN/EIN

If you have reported an incorrect TIN or EIN or if you have reported a historic TIN/EIN that no longer holds validity, then your 2290 returns will be rejected. 

TIN or EIN is a unique business identification number that is used by the IRS to track the tax and compliance history of the businesses. 

When you enter a TIN/EIN in any of the returns, the IRS checks the TIN and the name associated with that number against its own records to validate the details. 

If the provided TIN/EIN does not match the records, the IRS will reject the returns. 

To counter this issue, you can follow a quick real-time TIN Match regime, which helps you acknowledge the TINs or EINs that are valid and good, and the ones that are not. 

You can use Tax1099’s Real-Time TIN Matching program to validate your TINs.

Do note that the IRS assesses severe penalties for each TIN discrepancy.

Incorrect First Use Month (FUM)

The IRS will check your returns and your seller’s returns (because hey! Everyone is filing their returns to the IRS). 

Since vehicle purchases are asset purchases, the transactions will be reported on Form 8949, which reports all capital assets. 

Most likely, your seller will also file their 1099 forms to show that they have made some gains by selling their asset. 

This information will be checked by the IRS to validate the transaction. 

If you have reported an incorrect or wrongful month of first use, your returns will be rejected for false reporting and tax evasion. 

To avoid this, report the correct month of first use. 

Let’s say that you bought the vehicle in January 2021 and started using the vehicle in February 2021 then you must enter Feb 2021 in your returns.

Incorrect Mileage Usage

Trucks use the federal highways primarily for transporting heavy shipments.

Each highway vehicle is given approximately 5000 miles per year, and 7500 miles if it’s an agricultural vehicle. 

The more miles your vehicle uses, the more it is utilizing the federal highways, which causes wear and tear and damages the roads. 

This is why the FHWA (Federal Highway Administration) introduced the HVUT bill, which enforces the trucking businesses to pay more taxes if they are exceeding the mileage limit. 

If you have exceeded your miles and did not report the additional miles on your 2290 returns, your forms will be rejected and penalties may also be assessed per each violation. 

To address this, all you have to do is report the current miles utilized by your vehicle in a tax year. You can use our free smart tax calculator to estimate the HVUT tax you owe on each vehicle according to its weight, logging status, and miles.

Non-Compliance Citations

Noncompliance comes in many forms and businesses are mercilessly audited if the IRS notices that the business is involved in tax evasion and fraudulent activities. 

When the IRS rejects your HVUT 2290 returns citing noncompliance, the issue cannot be taken lightly. 

Businesses that are issued a non-compliance notice are under the radar for tax evasion, defying workplace safety norms, fraud, unverified resources and documentation, criminal history, and other violations. 

If you have a poor history of filing returns or paying taxes, or if you do not have substantial evidence to support the lack of will to file your taxes and pay them, the IRS may penalize your business for each such violation. 

Usually, the IRS issues a notice before it assesses a penalty. And when that notice is also disregarded, the IRS will track down the founders, executives, and other personnel. 

To say the least, noncompliance costs businesses a hefty check (1,2,3,4). 

HVUT tax funds are one of the largest revenue-generating sources for the FHWA. These funds are spent on constructing and maintaining the federal highways. These funds are also spent on related welfare activities. 

Trucking businesses that want to stay on the road and do not want to risk losing their businesses to non-compliance must file their HVUT returns and related business tax returns on time.  

Re-File Rejected Returns With EZ2290 In 3 Easy Steps

If you’re a registered user of EZ2290, you can go to your EZ2290 dashboard and view your IRS communications or check your e-filing history. Transactions that have been rejected by the IRS will be highlighted to help you address the issues at an accelerated pace. 

If you’re not registered with EZ2290, you can still utilize our services to e-file your rejected 2290 returns conveniently. Sign up here to get started.

Follow the steps below to address your rejected returns and re-file them at no additional cost.

Step 1: Understand The Issue(s) Cited

If the issues cited are something as simple as incorrect tax or business details, you can create a new form and enter the new and updated information correctly. 

Alternatively, you can get some tax assistance online from our EZ2290 support team. Go ahead and call or chat with one of our support executives. We’re familiar with the issues cited by the IRS and we’re trained to provide you with the required tax and compliance resolutions quickly.  

If the IRS has cited multiple issues implying noncompliance, we recommend speaking to our tax experts here. 

Step 2: Validate

Once you’re through reporting the details, do take some time to review your forms. 

Validate the tax and vehicle details, such as TIN/Name combination, vehicle identification number, mileage utilized, and more. 

Once you are confident that the newly furnished information is accurate and correct, proceed to the next step. 

Step 3: Re-File 2290 Securely Online With EZ2290

You can re-file your rejected 2290 returns online with EZ2290. 

Our end-to-end encrypted platform allows you to transmit your e-returns to the IRS directly. 

Your data is protected and cannot be intercepted by anyone. 

Do note that EZ2290 does not charge you for re-filing rejected returns. Re-files are absolutely free.