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Though E-File is the preferred way to go about completing form 2290 it certainly does have its share of questions, and having seen over a decade of tax returns let’s now take a look at the most general and frequently asked questions.
Yupp!! You got that right. It’s time for another round of questions and answers! So let’s begin:
1. Why is E-filing recommended by the IRS?
E-file (Electronic filing) is THE fastest way to receive the IRS Stamped Watermarked Schedule – 1 copy. Completing tax returns online is recommended by the IRS as taxpayers receive their stamped copies back in a few minutes. It is also mandatory to E-file when reporting 25 or more vehicles.
2. Who should file Form 2290?
Form 2290 should be filed on any vehicle with a combined gross weight (weight of the tractor, trailer, and maximum load) of 55,000 lbs or above.
3. When is this due?
The tax period always starts midyear from July 1st and ends on June 30th the following year. The deadline to have a 2290 renewed is August 31st. This also varies if you are reporting a new vehicle, for new trucks the deadline will be the last day of the month following the month the vehicle was first used.
4. Can I use a SSN/DBA to e-file this form?
The IRS will not accept a SSN/DBA when form 2290 is filed online, instead, you will have to use an EIN (Employer Identification Number) and the registered business. You can also apply for one online by visiting the IRS website https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
5. Can I report for tax exemption?
Yes, you certainly can, any vehicle that does not exceed 5000 miles (7500 miles in case of an agriculture vehicle) can be reported under the suspended/exempt category. These vehicles will not have any tax amount due to the IRS.
6. What if a mistake was made on my 2290, can that be corrected?
There are amendments that you can file to get the errors corrected, the following are the different types of amendments listed by the IRS.
- VIN Correction: A VIN Correction return is filed to correct any mistakes made on the VIN. A maximum of three characters can be corrected and once completed you will also receive an updated stamped copy with the right VIN on it.
- Increase in Taxable Gross Weight: The tax amount you owe to the IRS is based on the vehicles gross weight, if there is an increase on the vehicles total gross weight you can file an amendment to get this corrected, on completion you will also receive an updated stamped copy with the correct weight category listed.
- Suspended vehicles exceeded mileage use limit: If the vehicle was initially reported as suspended/ tax-exempt and down the line does exceed 5,000/7,500 miles then the vehicle will be considered as taxable and will owe tax dues to the IRS.
7. How do I make a payment to the IRS?
The IRS gives taxpayers three payment options:
- EFW or Direct Debit (Electronic Funds Withdrawal): This option allows the IRS to directly debit your checking account.
- EFTPS (Electronic Federal Tax Payment System): eftps.gov is a federal website that taxpayers must be registered with to login and schedule tax payments.
- Pay Check or Money Order: Tax payments can also be made by mailing in payments in the form of a check or money order. You can also refer https://www.irs.gov/filing/where-to-file-your-taxes-for-form-2290 for information on the mailing address.
Note: Effective from January 2020 the IRS no longer accepts a Debit or Credit card payment http://blog.tax2290.com/alert-irs-credit-debit-card-payment-option-no-longer-available-to-pay-the-hvut/
8. I bought a new vehicle, can the taxes paid on the old truck be transferred?
The remaining tax amount for the unused months can be transferred if the old vehicle was sold, destroyed or traded. In the case of a sold/traded vehicle, the IRS will also require the buyer information. Credits can only be transferred if the new vehicle is listed as a taxable vehicle.
9. Can I claim a refund on the taxes paid to the IRS?
The IRS allows you to claim a refund by filing Form 8849 Schedule 6, refunds can be claimed for an Overpayment of taxes, Sold, Destroyed or Stolen Vehicles and if the taxable vehicle did not exceed 5,000 miles. Once accepted the IRS will mail you a refund check in about 21 business days.
10. I keep receiving letters from the IRS however I am no longer in business and have no trucks?
If you are no longer in business you will need to file a Final Return, this is done to let the IRS know that you will not be filing form 2290 and by doing this they will also stop mailing you reminders.
We hope that these questions and answers do help both new and existing users in filing form 2290 for the upcoming tax deadline. Form 2290 is due by March 2, 2020, for any new vehicles first used in January. Do file on time to stay compliant with the IRS and to avoid any penalties for late filing.
For any assistance feel free to reach our help desk @ 866-245-3918, you can also drop us an email to support@taxexcise.com or just use the LIVE Chat option available on our website.
Happy Trucking!!