Common Mistakes in Form 2290 that Lead to IRS Rejections

Submitting Form 2290 for Heavy Vehicle Use Tax is an important task for every truck owner but a simple error could lead to rejection from the IRS. Such mistakes can cause much anxiety, and incur penalties and delays, especially for time critical businesses. By understanding the common mistakes that people make, and the ways to mitigate them, the filing process can be very smooth for everyone.

EIN is Wrong/ Missing

Most commonly, IRS rejection is caused by a wrong or no EIN submission. The IRS requires an EIN, however it must also match their records. A Social Security Number (SSN) or a new EIN that is less than 15 days old can cause issues. The simple way to avoid this issue is to make sure the EIN is correct and all words in the business name are in the proper case. If an EIN is in the process of being acquired, then filing has to be postponed.

VIN Errors

Another area of frequent error is the submission of wrong vehicle identification number, e.g. VIN. Even a typo, partial submission, or wrong form can lead to rejection.

A singular error involving your VIN can ruin the entire filing since they are unique identifiers for your vehicle. Thus, always use an e-filing service that checks VINs as well as double checking each VIN with the registration of your vehicle. This will help to mitigate any mistakes.

Filing During The Incorrect Tax Timeline

Form 2290 is only accepted if it has been filed for the correct tax timeline, meaning from July 1 to June 30 during the next year. A common slip up leading to rejection is selecting the ‘wrong period’ or forgetting to specify it on your form. Also, the month which your vehicle was used for the first time has to be identified correctly. These details need to be double checked and the tax period needs examining before the submission of the form.

Tax Calculation Errors

A miscalculation concerning the HVUT amount can lead to rejection so be careful. How much tax a vehicle pays is dependent upon the vehicle’s taxable gross weight and the month of the first usage. If these inputs are wrong then, the totals are guaranteed to be incorrect. One surefire way to avoid such mishaps is by using IRS-approved e-filing services that automatically compute taxes based on parameters supplied. If self filing, make sure to confirm your calculations with the IRS tax tables.

File with Precaution to Avoid Rejections

Rejections are usually caused by small mistakes that are avoidable upload which include, wrong calculations, incomplete information, and incorrect records.

Conduct a complete review of Form 2290 before submission so that the risks can be avoided. An e-filing service lowers the risk of mistakes by checking your entries, reminding you of deadlines, and ensuring compliance with the IRS. Taking care of the details beforehand may require additional effort but will save you from wasting time, money, and unnecessary stress later on. You will be able to file for your heavy vehicles without any hassle.

Note: For more information, visit IRS website