Form 2290 for the IRS needs to be filed for all people who own trucks that weighs over 55000 pounds and use the US highways for at least 5000 miles per year. The IRS 2290 tax needs to be filed from 1st July every year. The United States of America has one of the most complex highways in the world. The roads are constantly under the pressure of heavy trucks as well as bad weather. These factors lead to a lot of damage and repairs become necessary. The form 2290 exists for this very reason; the tax money is transferred to service contractors who deal with repairs throughout the year. Failing to file the tax only leads to more complications and hefty fines.
Requesting credit from the IRS
You may request a credit from the IRS against your form 2290 that you have filed for the following reasons. For vehicles that were destroyed, sold or stolen before June 1. A credit can be claimed for the tax paid against the next Form 2290. To claim this you need to fill Form 8849 of the IRS. For vehicles that were used for less than 5,000 miles during the taxable period a credit of tax can be paid from the first Form 2290 in the next tax window. A complete refund of money cannot be claimed, all taxes can only be forwarded to the subsequent tax periods. Keep a receipt of the form 8849 with your driver at all times.
A credit cannot be claimed before the end of the Form 2290 tax period. If you are claiming credit in the month of August in 2015, you will have to wait until 1st July 2016 when the next tax window opens to initiate your claim. However, the form must be filled before June 30, 2016 if you have any claims.
Do note that you should file for credit only if you genuinely are eligible to receive credit due to valid reasons. Many people try to bend the laws to evade taxes, and if you are caught you may be held responsible leading to fines or imprisonment or both. File the paperwork properly and keep everything organized.
There are far easier ways to initiate claims against the IRS. One of them is to use the help of online service providers who take care of all IRS 2290 paperwork and ensure all claims for your credit are placed on time. You will not have to worry about forgetting dates or missing any paperwork as these agencies take complete responsibility and you can rest assured that you will get your credit forwarded to the next tax window. Requesting credit from the IRS is a long process and an online service provider saves you from all the hard work and paperwork. Every single procedure can be completed directly at home, saving the time and effort needed to go to the IRS office and standing in a queue for hours just to get your credit claim. E-file Your 2290 Form Now http://www.Etax2290.com
If you are the driver or an owner of a heavy highway vehicle, it is really important that you pay for taxes on this vehicle under penalty of interest fees, fines, or criminal imprisonment. To that end, several responsible taxpayers file form 2290 and pay the taxes on their heavy highway vehicle when it is due, typically by August 31st every year, or a month after they have begun employing the vehicle. But what happens when you’ve paid the taxes on a vehicle that you don’t have anymore?
What are Some Reasons Why You Don’t Have the Vehicle Anymore?
Some reasons for no longer having a vehicle include if the truck has been stolen before June 1st, if the truck has been damaged before June 1st and not in use since, or if the vehicle has been sold. If these circumstances have befallen your heavy highway vehicle and you’ve already paid the fees accompanying IRS form 2290, you’re entitled to request a credit from the IRS.
How Do You Request a Credit From the IRS?
To request a credit from the IRS on form 2290, you must fill out some other forms. To claim excess credit, use Form 8849, Claim for Refund of Excise Taxes, and Schedule 6 (Form 8849), Other Claims. There is a chart provided on the IRS website as a worksheet for determining how much the IRS owes you. If you require assistance with these forms, it’s best to seek help with a tax professional. Otherwise, you can eFile online with all of these forms, and there is provision in each line for sold, damaged, or stolen vehicles.
Are There Other Reasons to Request a Credit from the IRS for Form 2290?
There is a chance that you could have overpaid due to a mistake in tax liability previously reported on Form 2290. To make this claim of over payment, use Schedule 6 (Form 8849). You can also file for a credit if your vehicle used 5,000 miles or less, or if your farm vehicle used 7,500 miles or less. There is a chart for evaluating mileage on the IRS website and instructions for filing with form 8849.
If you’ve overpaid the taxes on IRS Form 2290, you are entitled to a credit. While it may not seem ideal to file more paperwork to get your money back, it was still wise of you to have filed and paid on time. There are a few reasons for you to get a credit back, money that you rightly deserve and should file for.
If you are operating trucks on the state road ways then you must be well aware about the federal tax form 2290 which needs to be filed with the IRS. The tax form 2290 is a heavy vehicle use tax and is levied on all vehicles which weigh more than 55,000 pounds and use the public highways.
Why is it So Important to File Federal Tax Form 2290?
All tax receipts collected by the IRS from the form 2290 are forwarded to various public highway maintenance and construction groups which carry out road repairs. As the USA has one of the most elaborate and complex roadways in the world, it requires a lot of looking after; in fact most of the road ways get damaged frequently as hundreds of thousands of vehicles use them every year. Weather activities such as hail, snow and rain can cause them to get damaged which need to be fixed quickly. Heavy vehicles such as trucks in particular leave many dents and breaks in the roads due to their sheer weight which is why the IRS requires all truck owners to file the federal tax form 2290.
Are There Penalties Implemented for Not Filing Form 2290?
Yes, the government considers any infractions vis-à-vis tax form 2290 as a serious breach and has punitive measures in places in order to prevent them from happening. It is highly advisable that you file your federal tax form 2290 on time every time, failing which can lead to hiked interest rates, adverse effect on your or your business’s credit score, fines and even imprisonment. The following are penalties for late filing of tax form 2290. (more about it here Etax2290.com)
- All HVUT payments need to be paid by the 31st of August, failing which an interest of 4.5% is levied on total tax due which is assessed on a monthly basis for up to 5 months.
- Additionally, people who do not make their payments on time will also have to pay a 0.5% penalty on a monthly basis.
- Certain states also reserve the rights to revoke vehicle registration should the driver be unable to produce proof of filing tax form 2290.
- Finally, if you are found using creative means to avoid paying HVUT payments, hefty fines may be implemented, and in some cases you may even be incarcerated.
As you can see, it is not a good idea to default on filing your federal tax form 2290. With that said, you should know that there is an easier way to file your HVUT tax without needing to fill out extensive paper works or even waiting for days on end. The tax can be filed online using special software which is far easier, painless and quicker than traditional methods. The IRS’s EFTPS (Electronic Federal Tax Payment System) allows you to complete all your payments online and in a few minutes. Simply fill out your business, personal and vehicle information into the software and send it to the IRS who will return your stamped Schedule 1 in a few minutes of having received your tax info.
- Paying Heavy Vehicle Use Tax – Why 2290 Tax Online is the Way to Go? (irstrucktaxinfo.wordpress.com)
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- IRS Form 2290 E-File – What is it? (irstrucktaxinfo.wordpress.com)
If you are operating a business which relies on heavy transportation then you would without doubt might heard of the Form 2290. The IRS Form 2290 is an important tax instrument which is used for collecting information about your truck(s) and file tax on them. As a truck operator, you can use this form for filing your heavy vehicle taxes on a single truck or an entire fleet. While the main purpose of this form is to help you file your taxes on time and properly, it also acts as a proof of payment with the Department of Motor Vehicles which can restrict the registration of your vehicle(s) should it not receive confirmation that you have paid your dues.
Finally, receipts collected on these forms are used to finance various public highway projects and also maintain them properly. In fact, the Form 2290 plays a pivotal role in helping the IRS operate and maintain the roads of this nation.
What Is IRS Form 2290?
The IRS’s Form 2290 is an excise tax which is levied on heavy vehicles which operate on public highways. If a vehicle weighs more than 55,000 pounds and will be used for more than 5,000 miles, it will need to be filed with the IRS via Form 2290.
How The Form 2290 Works?
The IRS Form 2290 itself is broken down into two parts – the Form itself and Schedule 1 which needs to be stamped by the IRS before you can register your vehicle with the DMV. You are required to fill in your vehicle, personal and your business information in the form and file it to the IRS which then verifies the information and returns a stamped Schedule 1 back to you. Remember that the tax year as far as the Form 2290 is concerned is not the same as the calendar year and lasts from July 1 to June 30.
The Easiest Way for Filing Form 2290
While regularly you can file your Form 2290 using postal mail, these days the IRS has made their e-filing services available for everyone which makes filing Form 2290 a breeze. E-Filing allows you to file your Form 2290 with the IRS through a web portal; the process is simple and extremely easy. Besides helping you save time in both filing Form 2290, the IRS also returns you your Schedule 1 stamped within a few minutes of you having submitted your Form as against a few days which is the case of regular postal service. You can also save your own, your business’s and your vehicle’s profile online complete with their weight and every other relevant information which makes organizing your taxes effortless. Finally, if you accidentally make a mistake or need to change some information on your Form, you simply have to log in, make the required amendments and submit the new form; the IRS will receive the information immediately and send you the revised Schedule 1.
With online tax payment, filing Form 2290 becomes easy so give it a try; in fact if you are running a big trucking operation with over 25 trucks, then you are required by the IRS to use their e-filing service.
Form 2290 is a standard form for filing the tax return to the Internal Revenue Service, an entity of United States Department of Treasury. IRS being a Government body will be responsible to fix and collect the tax from the citizens of the United States who owns heavy vehicles which are deemed to fall under the Form 2290 category.
Not all the heavy vehicles will fall under the scope of Form 2290. Only those trucks whose weight is 55,000 pounds or more will be eligible for paying the tax amount to the IRS. Anything less than the prescribed weight, say like, if the vehicle weighs even 54,999 pounds, you will not be under the scope of form 2290. Form 2290 Electronic filing can be made by paying the tax online.
IRS will have track of the owners who owns the truck which comes under the scope of 2290 IRS tax form. If anyone fails or neglects paying the tax, the IRS will consider the issues seriously and will send a notice to each owner who is found guilty in not paying the tax on time. If owners receive a notice, they will have to file a separate form 2290 with the penalty.
The Tax period is from 1st of July to 30th June. This tax period is the regular tax period scheduled by IRS and vehicle owners need to pay the tax during the tax period. Tax amount depends on several factors and varies as and when particular factor falls under the scenario.
Factors affecting the Tax amount:
There are 3 prime factors which varies tax amount
1) The month of first use of the vehicle – The tax gets calculated from the month when the vehicle is used first on the highways. If the vehicle is purchased at the initial tax period i.e. in July, the owner will be liable to pay full tax amount for the entire tax period. If the vehicle is purchased after July, then the tax needs to be calculated from the month when the vehicle is used first. In this case the tax amount will be reduced or partial tax amount need to be paid for the remaining tax period.
2) Vehicle Category – The vehicles are categorized by the IRS based on the purpose of its usage and the status of the vehicles. The tax amount varies depending on the category.
3) Weight of Vehicle – The weight matters in calculating the tax amount. As the weight increases more than 55,000 pounds, the amount of tax also increases.
Not only the corporate companies, Limited companies who run the transportation business also need to file form 2290, even the individual owners need to pay the tax.
Who are treated as Disregarded entities?
A Qualified subchapter S Subsidiaries (QSubs) and eligible single-owner are treated as disregarded entities. They can file the form 2290 as usual but they are eligible to claim the refunds, credit to the IRS. They need to submit their EIN for filing.
The filing happens based on the tax payer’s TIN number. Keep the EIN and TIN ready for the filing purpose.
Schedule 1 –
Once you do form 2290 electronic filing successfully, the IRS will issue the receipt i.e. Schedule 1. This acts as a proof of the payment made and the copy can be used further in registering your vehicle in any state of the US.
In search of the Mediators who helps in E filing?
Just to discharge all the responsibility of the E filing, you may need assistance. Contact Etax2290.com for the entire E Filing service. We are masters in form 2290 electronic filing and have many clients across the US. Any queries with regards to the 2290 IRS Tax form will be addressed by us.