On daily basis we are told by customers that they are new to trucking having just purchased their first truck and now they are being asked to file this 2290. They have no clue what is and what its for. All they want is to startworking but they need the 2290 first. With new beginnings there comes a time when you are confronted with having to get over some obstacles. Starting a new trucking business is no different. 2290Tax.com has compiled a list of common errors for first time e-File users that facilitate and ease some of the confusion when filing a Form 2290 for the first time.
– Common Errors –
2290 Due Date
2290 tax is based on the IRS fiscal tax year and not the customers vehicle registration dates. It is a common misconception to believe your 2290 is due the same month your registration tags are due. In truth the Form 2290 is due on August 31st of every year or the month after the vehicle is placed in use for first time.
Social Security Number
Electronic filings of the 2290 tax require the use of an Employer Identification Number. Social security numbers are not accepted in place of an EIN. To put it simply you can not use your security number on an electronic filing of the 2290; don’t do it because it will not work. Instead apply to get a new EIN on irs.gov. It is simple and free to apply. New EIN’s are accompanied by a 2 week delay. Meaning your number is not active until two weeks after it is issued.
It is crucial the name on your 2290 matches the name associated with your EIN. A mismatch causes IRS rejections halting completion of the 2290 filing and further extending the time when you can legally start using your truck. Call the IRS 2290 hotline at 866-699-4096 to verify the name associated with your EIN if you are unsure.
Suspension & Logging
On the Form 2290 e-Filing you will come across the words Suspension and Logging the trips up most first time users. Suspension of a vehicle means the unit travels less than five thousand miles a year (July – June ) qualifying it for exemption of the tax. Meaning its suspended from the tax or tax exempt, but because of its 55k or more weight classification it still needs a 2290 filed for registration purposes. Suspension is most common in agriculture based vehicles. Classifying a vehicle as logging means it is a heavy use vehicle that exclusively carries forestry material. As in it only carries things from the forrest like trees, logs, or lumber. Logging vehicles receive a separate taxation classification.
VIN & Bank Information
Be sure to double and triple check your information before it is submitted to the IRS on the electronic form. All Vehicle Identification Numbers and bank information like your routing number account numbers can only be verified by you the taxpayer. Correction of a VIN or bank information will add steps to your 2290 process.
There are many weights associated with your truck. The problem that arises with this is using the correct weight to select on the 2290. The weight required on the Form 2290 is the gross weight. Gross weight is the weight registered with DMV. In simple terms the gross weight is the truck and trailer fully loaded weight.
Electronic Federal Tax Payment System is one three payment option offered for your 2290 tax. It is not a method to pay with debit or credit card. A card option is not yet available for payments on the 2290 tax. Do not select EFTPS unless you have an account with IRS. EFTPS is government run site where you can login into your account and schedule tax payments. By selecting EFTPS it does not mean your payment will be taken by credit or debit card.
Filing the Form 2290 is free of charge if done directly with IRS. You can directly file with IRS if you personally visit and IRS office or the 2290 is mailed to the IRS. Electronic filing of the form is done only with a third party that is approved by IRS to file forms at a cost. Cost vary per company.
Now that you’ve gone through some common errors for first time e-file users you can feel more confident in the e-File process. Call us with any questions. Help Line: (888) 802-4299 – Phone: (909) 596-0050
Written by Yesenia Carrillo