While conducting any business it is important for the owners to be aware of every legal formality they fall under. If you are in the trucking business, you must be aware of IRS form 2290 and the Heavy Vehicle Use Tax (HVUT). The 2290 form is a tax form that must be filed by anyone who owns a heavy vehicle weighing 55,000 pounds or more and has run 5,000 miles or above in the odometer.
2290 tax: Here is What You Should Know
If your odometer is showing 5000 miles or above (7,500 miles for agricultural vehicles), then you must file form 2290 and make the HVUT payment before the deadline.
Filing 2290 Tax Online
If you choose to file 2290 tax form online, then you need to follow the below steps :
- Get registered: To e-file form 2290, you need to register an account with an e-file service provider. You need to provide your email id, contact number, and name. Make sure that you double-check the details to avoid any errors as you will receive notifications, reminders and important updates in your email address and mobile number.
- Details regarding your business: Once you complete the registration you have to jump to the next step, i.e., business related details. This means you have to enter details like the country and state in which you are conducting your business, ZIP code, name of the business along with the address.
- Details of the authority that will sign: The next step is to fill up the contact number and name of the person who will be the signing authority. You will also need to provide the designation of that person whom you are entering as a signing authority.
- Details of the third party: In the case of any third-party designee, you need to enter the required details such as their name and contact number. In case there is no such involvement, then you can skip ahead by selecting ‘no’.
- The type of filing: The taxpayers have to select the type of filing tax as there will be two options available – single truck and multiple trucks.
- Other business details: The next step is to provide additional business information. You can select the option if it matches with your business, or you can add the details of your new business as well.
- Other details of filing: Next, enter the tax period, FUM (First Used Month), and specify if it is your final return
- Details regarding your vehicle: Provide details of your vehicle. You mention the type of vehicle you are having, the gross weight of your vehicle, VIN, and the tax amount.
- Summary of the tax details: It is important to review the details before finally submitting it to avoid any errors on your form which could lead to IRS rejection of your form 2290.
- Choose the mode for the payment: After completing all the above steps, you will need to choose the payment mode for your HVUT payment. .Mainly there are four options available for taxpayers: check/money order, debit or credit card, Electronic Funds Withdrawal (EFW), and Electronic Federal Tax Payment System (EFTPS). You can choose any mode that you feel convenient with as it will be your choice only.
- Tax payment:So, once you choose the mode of payment, you will need to proceed with further steps based on which payment method you choose. After completing the payment, you will need to pay the filing fees of your e-filing service provider and submit your form 2290.
- Get yourForm 2290 Schedule 1: After paying the fees the next is to get your Form 2290 Schedule 1. Your IRS stamped Schedule 1 copy serves as proof of your HVUT payment.. Once the form and payment are accepted and processed, you will receive Schedule 1 on the email id that you have mentioned in your registration.
So, these above-discussed points are the steps involved in filing your 2290 tax form online. If you choose the manual mode of paying tax, then the steps will differ and there will be more formalities involved. So, pay your tax now before the deadline to avoid any penalty.