The Internal Revenue Service (IRS) is the authority that can administer federal tax laws. The IRS is responsible for performing three main types of functions:

● Tax return processing,
● Taxpayer service, and
● The enforcement.

In addition to the points mentioned above, the IRS conducts various kinds of criminal investigations and calculates various kinds of qualified retirement plans.

If you own a heavy vehicle weighing 55,000 pounds or more, you must file 2290 tax, an IRS tax form. Heavy Vehicle Use Tax (HVUT) return is a federal excise tax that has to be imposed on all the vehicles that are operating on public highways.

These kinds of tax collections are used for the maintenance activities of the highways. An IRS Stamped Schedule 1 copy which acts as proof of payment, is required for tags and vehicle registration at the Department of Motor Vehicles (DMV).

You can apply for the form online and offline, but e-filing Form 2290 proves beneficial for those who want to receive their watermarked Schedule 1 instantly.

How to File 2290?
IRS Form 2290 can be filed in two ways:

The electronic mode:
One can very easily go with the option of filing Form 2290 electronically through an IRS-approved e-filing service provider. When filing for 25 or more vehicles, it is mandatory that you e-file your form 2290.

The paper-based mode:
One can even go with the option of manually filling the form 2290 and mailing the completed form to the Department of Treasury, Internal Revenue Service.

How to E-file Form 2290 HVUT Return?
Let’s take a look at the steps for filing form 2290:

Step 1: You need to gather the entire set of information like the Employer Identification Number (EIN), Vehicle Identification Number( VIN), vehicle’s taxable gross weight, and first used month. It is important to ensure that your e-file name matches your EIN name for consistency.

Step 2: You need to choose a 2290 e-file service provider and file the tax according to the specific set of processes. For this, you also need to review the list of participating software providers to select the best one as per the overall needs and requirements.

Step 3: You also need to choose the payment option like credit or debit card. One can also pay 2290 online through net banking or electronic funds withdrawal. To pay using the electronic portal, people need to enroll on the platform, which might take around 7 working days.

The IRS Form 2290 for Heavy Vehicle Use Taxes (HVUT) has to be filled each year before the date of August 31. The current tax period for heavy highway vehicles begins on July 1, 2021, and will end on June 30, 2022

What are the details required for filling form 2290?
You need the following information:
● Business name and address
● Employer Identification Number
● Vehicle Identification Number
● Vehicle’s Taxable gross weight
● The first month of use of vehicle

Who needs to file Form 2290?
The following parties must file the heavy highway vehicle use tax:
● Owner of a truck with a gross weight of 55,000 pounds or more.
● Limited Liable Company (LLC) who have one or more heavy vehicles registered under their business.
● Owner/operator of a vehicle used for 5000 miles (7500 miles for agricultural vehicles) and above.

Who is exempted from 2290 highway tax?
You are exempted from form 2290 in the following scenarios:
● Eligible single-owner disregarded entity (a business that remains independent from its owner for tax filing purposes).
● Qualified QSub (treated as a subsidiary of the parent corporation).
● Dually registered vehicles.
● Logging vehicles.
● Government-owned vehicles
● Vehicles designed for non-transport purposes.
● Fire trucks, ambulances, and other vehicles used for emergency services.
● Vehicles not used on highways.
● A vehicle operated under a dealer’s tag, license, or permit.
● Vehicles used for the welfare of the Indian Tribal Community.

Final Thoughts
Finally, we know that knowledge is an asset and possession of it is always fruitful. And in matters concerning taxes and return statements, knowledge and research is mandatory. The key to reliable sources and information saves you from making mistakes while filling Form 2290.

E-filing of the form is easy and convenient as it is quick and hassle-free. The person filing this online gets his/her copy of documents much earlier than others.

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