What is a 2290 and Do I need one

Lately, our team has been receiving a lot of questions on the 2290 form, otherwise known as the Heavy Use Vehicle Tax Form (HVUT). It is a form so many of us need, without even knowing it!

We thought, with the new tax year for these opening up just around the corner, on July 1 of 2022, when could be a better time to give you guys the?TRUTH?on the 2290 than right?NOW?!

Let’s start with the basics, and walk before we run, so to speak.?

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What is it for??

The 2290 form is required to be filed to the Internal Revenue Service for all vehicles that are operated on public highways that are registered at or above?55K lbs.?

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Who is it for??

A lot of you have asked, “We are a small company, we only have a couple of trucks, do we have to do a 2290?”?

The plain answer is yes. No matter the size of your company or your fleet, it is always dependent on the vehicle weight. Even single vehicle owner/ operators fall into this requirement, so don’t feel singled out!?

We all have to pay to play!

What if our company leases the vehicle from a leasing company or a carrier company??

That is a great question, and one that is very common. Let’s clear up the confusion on this!?

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The owner of the truck is required to pay the tax.

Basically, if you are leasing the vehicle then the title remains with the carrier or leasing company until you actually purchase the vehicle and you become the legal owner on the title.?

When you go to file your 2290 form, we strongly encourage you have your FEIN (Federal Employer Identification Number), even if you are a sole proprietor or another business type and you routinely file taxes with your SSN.?

If you need help attaining a FEIN, our team at Eclipse DOT can help facilitate this process and get you pointed in the right direction.

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When do I have to file by??

Take a guess? January 1st? Same time as your income taxes and it needs to be by April, every year??

Well, you would be wrong!?

It is actually a form that is valid from July 1st?to June 31st?of the following year. So that would mean that this year, all of us needing a 2290 form to be filed will need to refile this form in July of this year and no later than August 31st, as that is the FINAL due date.?

How do I file??

Our age of digitized business activities has its upsides, and being able to E-file your taxes seems to be a popular favorite. The third party providers, verified and trusted by the IRS, make it as easy as can be to get these filings completed.?

In fact, you just need to know your VIN, your first month of use, the FEIN, and the weights you want to register your vehicles at!?

A lot of these third party websites will direct you right to the IRS payment terminal, so you can file and pay and get it all done seamlessly.?

What does that mean?

You can get all of this completed without having to worry about hunting down an envelope, buying a book of stamps, finding the correct IRS address (because God knows there a zillion IRS addresses to choose from and only one or two will get you want you need), and then fighting the traffic to get down to post office!?

But with that being said, it is YOUR responsibility to pay that tax to the IRS. The third party does not collect your tax payment the majority of the time, so ensure you make a note of the amount you owe to the IRS before you finish the filing process!?

A lot of third parties will ask in what variety you prefer your ‘Schedule 1 Watermarked 2290’.?

A lot of them even offer email delivery and will get it to you within a few minutes of completing the process.?

What is it going to cost me??

Your 2290 payment to the IRS may not be the same as your buddy’s payment to the IRS. And that is just fine!?

The IRS calculate your tax by what weight your vehicle is registered at and how many miles are driven annually. So yes, it would make sense that even last years payment might differ a little from this year’s payment.?

But the good news is that for those of us running trucks year round, the price per unit can be a small price to pay to stay in compliance and avoid the headaches that come with failing to comply with federal regulations and the FMCSA!

However, with all of that being said, there are a few different payments you can expect to pay.?

1. The payment for services rendered by the third party.?
2. The payment to the IRS.?

And then, the third optional payment is for the cocktail you purchase to celebrate successfully finishing your 2290 taxes for the year!

Samuel H. Martinez