During the month of August most people generally relax in the heat to the sound of a chorus of buzzing crickets making a rich summertime melody, only made sweeter by the fact that fall is around the corner. Soon they can enjoy cooler temperatures and pumpkin spice flavored everything.
However, this isn’t the case for hard working transportation professionals, because they have to face the Heavy Vehicle Use Tax (HVUT) Form 2290 deadline by August 31st before they can fully unwind.
So What Exactly is Heavy Vehicle Use Tax?
The Heavy Vehicle Use Tax is an annual fee assessed on heavy vehicles operating on public highways with a registered gross weight of 55,000 pounds or more. The taxes collected are used to build, maintain, and repair public highways all across the nation.
Those who have to file include anyone, like a trucker for example, who operates a taxable highway motor vehicle that has a registered gross weight equal to or greater than 55,000 pounds and is required to be registered in their name under state, District of Columbia, Canadian, or Mexican law at the time of its first use period.
The current HVUT period runs from July 1, 2017 to June 30 2018 and Form 2290 is due on the last day of the month following the month that drivers first use their heavy vehicles. For example, if trucker first uses their vehicle in September then their Form 2290 will be due by October 31st. Because the majority drivers used their trucks in July, it is considered to be their first used month for the tax period, which is why August 31st is the major HVUT form 2290 deadline.
The penalty for not filing IRS Form 2290 by the August 31st deadline includes a fee of 4.5% of the total tax due and it accrues on a monthly basis for up to five months. Plus, the penalty for not making a HVUT payment includes an additional monthly penalty of .5% of the tax due, along with a monthly interest charge of .54%. This can cause the amount owed to grow rather quickly, and in some cases, the driver’s license can be suspended.
If you wait until the last minute to file and your form is rejected then it’s up to you to correct it and retransmit it to the IRS in time, otherwise, you will face late filing penalties. To help you get your Form 2290 accepted the first time, here at ExpressTruckTax, we have put together a list of reasons why Form 2290s are rejected so you can avoid making these mistakes.
Common Reasons For Form 2290 Rejections Include…
You Have A Common EIN Error
You need an EIN or Employer Identification Number to complete your Form 2290. There’s no way around it. Once you place your SSN in place of your EIN on your form then it will instantly be rejected.
If you need an EIN go apply for one with the IRS now, because it takes about two weeks for them to become updated in the IRS’s system and your form can get rejected during that time. Even though you’ll get your EIN instantly when you apply for one, you have to wait for it to become active before you can file.
You also need to make sure that your business information matches the information that you have on file for your EIN with the IRS. If they don’t match then your form could get rejected. You can verify your information with the IRS by calling 1-888-829-4933.
Your Form Couble Be A Duplicate
Each VIN (Vehicle Identification Number) can only be filed for once during the HVUT tax period. Duplicates will be rejected, so make sure that you’re filing for the current tax period which runs from July 1st, 2017 to June 30th, 2018. If you accidentally filed for the previous tax return then it’s a duplicate.
You also need to make sure that you enter your VIN correctly. If it’s one character off then your form could get rejected. If your form is rejected, for this reason, don’t panic, you can quickly and easily file free VIN corrections with ExpressTruckTax.
Your RTN Might Have An Error
You can pay the amount of HVUT you owe to the IRS through direct debit or electronic funds withdrawal, and that process involves providing your bank account number and RTN (Routing Transfer Number).
If you enter this information with as little as one character off the IRS will not be able to debit the funds and your form will be rejected. This is also the case if you do not have enough funds in your account to cover the full amount.
Enter your information, which can be found on one of your checks correctly. If your form is rejected for the incorrect RTN or insufficient funds simply edit your form and retransmit it or choose a different payment method.
When Filing Your Form 2290…
ExpressTruckTax.com is your best e-filing option. You can follow the step-by-step guide to instantly complete your form and receive a copy of your stamped Schedule 1 within about 15 minutes of filing. Plus, ExpressTruckTax makes it incredibly easy to file amendments, edit your form, make free VIN corrections and more.
Also, with the ExpressTruckTax app, you can file from any location at any time right from your smartphone or tablet. Meaning you can file even if you’re out on a trip!
Another great way to instantly file is by calling TSNAmerica at 803.386.0320 to have a representative file for you, over the phone. By making one call you’ll have your 2290 filed and you will receive a copy of your stamped Schedule 1 via email.
We’re Here To Help
If you need any assistance contact dedicated, US-based, ExpressTruckTax support team Monday- Friday from 8 AM to 7 PM EST at 704.234.6005. We’re also available via live chat and offer 24/7 email support at firstname.lastname@example.org.
Allison Barfield is a trucking blogger from the small town of Rock Hill, SC. After graduating from the University of South Carolina with a degree in media arts, she found herself to be drawn to the trending topics in the trucking industry and aspires to write articles worth honking about. Follow her on twitter – Alli McTrucks.
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