IRS HVUT 2290 form is due by August 31, 2022. If you’re in a rush to prepare your 2290 forms before the deadline, here are 4 mistakes you’ve got to avoid prior to filing.
If you’re reading this, you’re probably in a rush to prepare your 2290 forms before the IRS deadline on August 31, 2022.
If that’s the case, follow this guide with the box-wise instructions on 2290 form reporting.
Also, use this checklist to review your 2290 forms before you eFile.
And if you have drafted your 2290 forms already, this is a good point of reference to check if you’ve made these mistakes and correct them before you file your HVUT 2290 forms with the IRS.
So, let’s get started.
4 Mistakes You’ve Got To Avoid On Your 2290 Forms
Here are 4 rookie mistakes you’ve got to avoid when filing your 2290 forms.
Reporting Incorrect/ Invalid Vehicle Identification Numbers (VINs)
The vehicle identification number or VIN is a key piece of information in your 2290 reports.
If you miss reporting the VIN, but report everything else, the IRS will likely accept your 2290 forms. This is because the IRS does not keep a track of your VINs.
However, you will need to file a fresh 2290 form for the VINs you forgot to report and pay the HVUT due separately on these vehicles.
Further, your Schedule 1 (both copies of which are to be filled by the filer), will be reporting incorrect information. The cross-verification process could be a bit confusing if you’re working with a large fleet.
It’s essential to check that the vehicle identification numbers are validated before they’re reported on your 2290 returns.
Use free online VIN checking tools to validate your VINs.
Reporting Incorrect EINs
This is one of those mistakes you’ve got to avoid at all costs.
Reporting an incorrect Employer Identification Number (EIN) can result in not just file rejections, but penalty assessments from the IRS.
Currently, the IRS is assessing a minimum of $270 penalty for every incorrect EIN/TIN reported. The penalty + interest can go higher if you’re filing for multiple trucking businesses.
TIN discrepancies in general are very expensive mistakes and can cost your business greatly.
Use IRS real-time TIN matching to validate your EINs and prevent TIN discrepancy penalties.
If you’re a paid preparer, it’s even more important to verify your clients’ EINs. Don’t neglect this step. Your reporting mistakes, however honest they might be, shouldn’t cost your clients more money.
Reporting Incorrect Month Of First Use
The IRS taxes your vehicle in accordance with the month of first use.
If you bought the vehicle in, say, May 2022, and started using the vehicle in the same month, then May 2022 is the month of first use.
If you bought the vehicle from a seller who hasn’t paid the tax due on the vehicle until May 2022, and you’ve assumed that the tax must have been paid for that period, then you could be penalized for not paying taxes.
Once the title changes, essentially the ownership changes, which means that the new owner is responsible for paying the liabilities due on the vehicle (including taxes).
Similarly, if you’ve failed to pay the tax due on the vehicle after the title change, then the IRS could penalize you for failing to pay the taxes owed.
Always attach paperwork with your 2290 forms if the tax has been paid already by the previous owner.
And if you’ve paid excess HVUT, you can claim a refund from the IRS by filing Form 8849.
Forgetting To Report Tax Suspension Details
If the mileage use limit of your vehicle is less than 5000 miles (for regular vehicles) and 7500 miles (for agricultural vehicles), then your vehicle is suspended from 2290 HVUT taxes.
The tax-suspended vehicles must be reported on Form 2290 with the VINs and mileage use limit information.
The filer needs to declare that the information provided is true and accurate, and may even attach proof to support the claim.
If you do not report this information and continue to operate the tax-suspended vehicle on highways, the state transport authorities and the IRS could prohibit your movement until you provide sufficient paperwork.
It’s just easier to report and file your 2290 returns with the tax-suspended vehicle information to avoid trouble with the IRS.
Check the above information to review and correct your 2290 forms thoroughly before you file your HVUT returns with the IRS.
BONUS: Avoid THIS Mistake At All Costs When Filing Your 2290 Forms Online
Once you’ve reviewed your 2290 forms, don’t be in a rush to eFile your 2290 returns with just anybody.
Your 2290 forms report important information about your company, and it’s important to not compromise the privacy of your business information.
And because you’re in a rush, it’s plausible for you to give into the gimmicks and wicked tricks of bad actors online who want to take advantage of your urgency.
Always file your 2290 forms with an IRS-authorized eFile provider to avoid compromising your business privacy.
In the wrong hands, your business information can be stolen or, worse, it can be fraudulently used as a tool to extort huge amounts of money.
You can prevent all of this by following a simple trick. Verify if someone is really an authorized 2290 eFile provider by checking this list from the IRS.
If they do not exist in this list, then they’re clearly not authorized to provide the eFiling services.
Alternatively, you can just skip this step and eFile your 2290 returns with EZ2290.
EZ2290 is an IRS-authorized eFile provider (you can verify us with the link above), trusted by 10,000+ trucking businesses like you.
- 256-bit bank-level secure & encrypted eFile experiences
- Free 2290 VIN Corrections
- Free Re-files for rejected returns
- Convenient payment options to pay your HVUT online
- Priority 2290 tax support
And much more.
The IRS Form 2290 is due by August 31, 2022.
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- Name Error In IRS Form 2290: How To Do Name Correction On HVUT Form 2290?
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- How To Calculate The Taxable Gross Weight Of A 2290 HVUT Truck?