Every truck that weighs 55,000 pounds or more has to pay HVUT, i.e., Heavy Vehicle Use Tax. The taxation period starts from 1st July and ends on 30th June next year, for which the person needs to file 2290.
There might be some people thinking, what if the person purchases a new vehicle or swapped it? Is there any requirement to transfer Form 2290? The answer is yes.
You can transfer your form 2290 to the new vehicle. The tax will be calculated on the first used month of the vehicle.
So, if you purchased a new vehicle, you must file a 2290 form and pay the HVUT return by the last day of the month following the month of first use.
For example, if you have purchased a vehicle in November and need to transfer your form 2290 to the new truck, you need to do it by 31st December.
Step-by-step Instructions to Transfer Form 2290 to New Truck
To transfer form 2290 to a new vehicle, you need to follow certain steps. Let’s take a look.
Step 1: Create an account on an e-filing service provider’s website. If you already have an account, log in by entering your details. You will need to enter your name, business information, and EIN.
Step 2: To start filing, select the form and enter the first used month of your vehicle. The first used month is the month you drive your new vehicle for the first time on US public highways.
Step 3: Enter the taxable vehicle details for your new vehicle, such as your VIN and the gross weight of your vehicle. Also, mention if it is a logging vehicle. Save the details and skip to the page of credit vehicle information.
Step 4: Enter the information about the credit vehicle. This will help you receive a prorated refund on your previously paid HVUT tax. Enter the VIN, gross weight of the vehicle and loss event.
Under the loss event, you must specify if your vehicle was stolen, destroyed, or sold and provide the necessary evidence to substantiate your claim. For example, if you sold your vehicle, you will need to provide a bill of sale.
Step 5: Once you have reviewed all the details, make the payment and submit your form. The IRS will process your return, and you will receive your new stamped Form 2290 Schedule 1 within minutes.
Common Mistakes to Avoid While E-filing Form 2290
To avoid any hassles during the transfer of your form 2290, it is very important to be aware of the common mistakes people make while e-filing Form 2290. Let’s take a look at them.
- Incorrect VIN or EIN: For the submission of Form 2290, both EIN and VIN play a crucial role. Whenever you start your e-filing process, make sure you enter the correct numbers.
Even the displacement of a single letter can lead to the rejection of form 2290 by the IRS. Hence, ensure you enter both these numbers correctly.
- Reporting the taxable vehicle under the wrong category: If your vehicle has traveled less than 5,000 miles on the highways with the taxable weight, then the category of your vehicle will fall under suspended vehicles.
It will help you save a lot of time, money, and effort when you enter the right vehicle category.
- Incorrect filing year: Another common mistake done by many people is that they enter the incorrect filing year. During 2290 filing, it is important to file for the appropriate tax period to avoid any complications while filing.
- EIN is not registered: For filing form 2290, EIN is very important. If you do not have EIN, you must apply for it and wait for it to be updated in the IRS system.
Do apply for EIN at least one month before the filing of form 2290 so that your EIN becomes activated and registered in the IRS database.
- Wrong First Use Month of the vehicle: If the person enters the wrong First Use Month of the transferred vehicle, it will get rejected by the IRS. This rejection can lead to a delay in the filing of tax that increases the chances of penalty.
If the person wants to transfer form 2290 or file them most appropriately, it will be great to take help from an e-file service provider. Such platforms will provide you with all the details regarding e-filing form 2290 so that there are minimum chances of error and penalty to the user.