Owner-operators or trucking companies must keep abreast of the tax compliance as well as registration obligations. An important obligation in this regard is the Form 2290, also known as the . It is necessary for the truck registration in the International Registration Plan (IRP). In this blog, we will look at how compliance with Form 2290 impacts IRP registration and the importance of such compliance to truckers.

What You Need to Know About Form 2290 and It’s Intent

For the IRS-mandated tax form, the vehicle owner of gross weight 55,000 or more needs to prepare a Form 2290 to report and make payments for their Heavy Vehicle Use Tax (HVUT). This tax is intended to help maintain U.S. highways and is valid for one year. Each year in July, truck owners should submit forms for the period up until June the next year.

Definition of International Registration Plan (IRP)

The International Registration Plan (IRP) is an agreement between U.S. states and Canadian provinces for the allocation and collection of fees for commercial vehicles operated in more than one jurisdiction. An annual fee is collected from the truck owners based on “apportioned mileage” in each state or province.

Implications of Form 2290 Compliance on IRP Registration

Payment of HVUT Handles IRP Registration Fees

One of the most important integrations between Form 2290 with the IRP registration is that every single state needs an evidence of HVUT payment made before handing out new or renewed IRP registration documents. The truck owners need to show a compliance certificate evidencing payment of a stamped Schedule 1 they received after the IRS has accepted their claim.

Consequences of Non-Compliance Toward IRP Registrations

Failure to pay on Form 2290, as directed, can hinder or even obstruct new registrations of IRPs. This means that a particular trucker might legally be unable to use their truck over state borders. This results in more penalties and loss of revenue.

Increased Form 2290 Penalties and Fines

If a truck owner does not file Form 2290 before the 31st of August of any given year, the IRS imposes defaults. Defaults for form 2290 can worsen and become expensive over time making it harder to renew an IRP registration during that time.

E-Filing Has Helped to Streamline the Process

Since it is mandatory to show proof of HVUT payment in IRP registration, it is advisable for truckers to e-file Form 2290. This method enables faster processing by the IRS, which usually takes minutes, and the e-stamped Schedule 1 is automatically available for submission when needed for the IRP renewal.

Procedures to Ensure Compliance with Form 2290 and IRP

• File Form 2290 on time : Target date is August 31 of every year.
• Make use of IRS approved e-filing services : This enables faster processing and immediate access to proof of payment.
• Stamp Schedule 1 should be readily available : It will be required for IRP renewal.
• Do not forget your IRP renewal deadlines : There may be slight variances from state to state.
• Track changes in tax laws : Non compliance with regulatory changes may result in fines and delays.

Compliance with Form 2290 directly corresponds with IRP Registration and legal trucking activity between states. Filing on time coupled with keeping proof of payment allows for easy renewal processes without incurring expensive fees. Truckers can reduce the burden of maintaining compliance with business operations uninterrupted through e-filing Form 2290.

To get your Schedule 1 in zero time, use an online service that can assist you with Form 2290 e-filing.

Note: For more information, visit IRS website