How to renew form 2290 for tax year 2023-24?
Every year thousands of truckers, trucking businesses and owner-operators prepare to file their heavy highway vehicle use tax. HVUT tax is reported using federal form 2290. Users must renew their form 2290 by filing a fresh one every year.
Filing your form 2290 and paying your tax is important as you need to provide a proof of tax payment at the DMV to update your vehicle registration and tags. Complying to federal tax also helps you avoid IRS penalties.
Who needs to file Form 2290?
Every owner-operator, trucker or trucking businesses who owns and operates a heavy highway vehicle needs to file form 2290 and pay the HVUT tax. There are two conditions that vehicles need to meet to become tax eligible:
- Your vehicle must weigh 55,000 pounds or more (75,000 pounds or more for agricultural vehicles)
- Your vehicle must cross 5,000 miles limit in the given tax period (7,500 miles for agricultural vehicles)
When do you file Form 2290?
Form 2290 filing season begins from July 1st, 2021. You must file your form 2290 before the deadline of August 31st, 2021. If you want to file form 2290 for a new vehicle purchased after the month of August, you must file form 2290 tax on the last day of the month following the month of first use.
Alternatively, you can use the due date calculator tool on eForm2290.com where you can enter the first use month of your new vehicle and find out when your form 2290 is due. First use month is the month in which you used your vehicle on American highways for the first time.
How do you file Form 2290?
There are two ways to file your form 2290:
- e-Filing: e-Filing is the most preferred and easiest way to file form 2290. You need t o register an account with an e-filing service provider like eForm2290.com and file your return through it. The IRS has made it mandatory to e-file 2290 returns if you are filing for more than 25 vehicles.
- Manual filing (paper filing): Manual filing requires you to file the physical copy with the IRS. To do this, the user needs to get a copy of the form 2290 from the IRS office and fill out the details manually. Once filled out, you need to mail to the IRS address along with the check/money order.
What details are needed to file Form 2290?
You need to following details to renew your form 2290:
- Business name and address
- Employer Identification Number (EIN)
- Vehicle Identification Number (VIN)
- First used month
- Taxable gross weight of the vehicle
- Type of vehicle (suspended/taxable)
- Details of signing authority
How to renew form 2290 with eForm2290.com?
Step 1: Login to your eForm2290.com account using your email address. If you do not have an account, register for one.
Step 2: Enter your business name and address, EIN, ZIP code, city, state and country along with tax period, first used month, vehicle type, VIN, gross weight, and tax amount. Make sure that the Business Name and EIN match as per the SS-4 copy.
Step 3: Review the filing information before submission and select the mode of payment (EFW, EFTPS, Debit/ Credit Card, check/ money order) to pay the filing fees.
Step 4: Get IRS watermarked Schedule 1 on your registered email address. You can also download it from the dashboard.
What happens if you don’t renew your form 2290?
The penalty for not filing 2290 on time is 4.5% of the unpaid taxes for each month; or part of a month that a tax return is late. Penalty will start accruing a day after the tax filing due date and will not exceed 25% of your unpaid taxes.
- A failure-to-file penalty may apply if you did not file Form 2290 by the tax filing deadline.
- The failure-to-file penalty is 5% of your balance due for every month (or part of a month) in which your taxes go unpaid.
- You will not have to pay a late-filing penalty if you can show a reasonable cause for not filing.
Final Thoughts
Form 2290 should be renewed annually as it helps you stay tax compliant and avoid penalties. IRS authorized e-filing service providers like eForm2290.com makes it considerably faster and easier for you to renew your form 2290 without getting tangled up in tax legislations and jargons. What’s more, you can file your form 2290 online at the comfort of your home or while on the road and drive worry-free! Get started today and renew your form 2290 today.