Important points to understand about e-filing Form 2290

Who requires to file form 2290?

Every the person in whose name a heavy vehicle (gross weight of 55000 lbs or more) is registered, and is using the vehicle on the public highway, must file form 2290 heavy vehicle use tax return. A person includes an individual, partnership, corporation, or any other type of an organisation such as educational, non-profit, charitable etc.

How long does it take?

Once form 2290 has been submitted online at www.form2290.com, it just takes minutes to approve by the IRS. Once accepted by the IRS, they will give a schedule 1 with E-file and Received date water stamped on it (watermarked). That shows your business name, EIN – address and VIN number of all vehicles reported on the form 2290.

There are a few important topics, which would be useful while e-filing form2290, we would explain here to get more information.

First Used Month:

Many tax filers get confusion about First Used Month. First, the used month is the month when the owner or taxpayer has started using the vehicle the first time during the tax year. Selecting the first month of use e-filers can prorate the tax amount on form 2290. Here is an explanation with a specific example.

For instance, John has purchased a truck in December 2018 and did not use till February 2019, and started using the truck very first time on public highway in February 2019 then February is the first used month for that vehicle. If John has driven the truck to home from the dealership using the public highway in the same month of purchase, December 2018 then December is the first used month.

Final Return:

‘Final Return’ option on the form 2290 is for people who are filing for the last time and closing their business and do not have a vehicle to report on Form 2290 next year. Many tax filers, who are not closing their business, however, by checking this option they are making mistake unknowingly.

Short VIN (Less than 17 characters):

The Vehicle Identification Number (VIN) can be obtained from the registration, title, or actual vehicle. Generally, VIN is 17 characters made up of numbers and letters. In 1981, the National Highway Traffic Safety Administration of the United States standardized this 17 characters VIN format. To avoid confusion between 0 and 1 they removed letter I, O and Q from the VINs. If a vehicle is older than 1981, it may have a letter I, O or Q in the VIN or may have less than 17 characters. In this case, while e-filing aform 2290 online, the IRS system does not accept the letter I, O and Q in VIN. For that, they have recommended replacing these letters with X. And if VIN is less than 17 characters then add Xs at the end of the VIN to make it 17 characters.

Logging Vehicle:

People often get confused with logging vehicle option while e-filing form2290. They do check the option as a logging vehicle through their vehicle is not a logging vehicle. They think logging mean e-log or register log when here the logging is as defined below;

• A vehicle that is used exclusively to transport the products harvested from the forested site or exclusively to transport the products harvested from the forested site to and from locations on a forested area (public highways may be used during transporting from one to another location in a forested area)

• A registered highway motor vehicle (as per the law of the state or states, where the vehicle is required to be registered,) used exclusively to transport harvested products from the forested area. In addition, such registered vehicles do not require special tag or license plate to identify as a logging vehicle to transport harvested forest products.