Penalties for delay in filing HVUT Form 2290

Heavy Highway Vehicle Use Tax (HVUT) filing starts from 1^st July and the deadline to file taxes for the full tax year without penalty is 31^st August. If the filing gets rejected then it is the responsibility of the filer to correct and resubmit it and get the Schedule 1 before the deadline. If your Form 2290 filing or payment is late then you will have to face penalties that will be over the taxes that you owe.

HVUT Penalties

If you failed to submit your Form 2290 filing or HVUT payment before the deadline then IRS will send you a notice with the penalty. However, if you can provide satisfactory reasons for the delay then IRS may waive the penalty or reduce it. Please make sure to provide your explanation for the delay during filing. It is up to the IRS to accept or reject the reason and decide on the penalty. There are penalties for making false or fraudulent returns too specially related to the gross weight category and mileage.

Penalty calculation

Taxseer2290 system is not authorized by IRS to calculate the Penalties and the filers can normally file the form 2290 through us even after the deadline. IRS calculates the penalties after going through the explanation of the reason for delay and the following rules to calculate the HVUT penalty are employed:

The normal penalty is 4.5% of the taxes due after the due date. Thereafter, the penalty accrues each month at the rate of 0.5% of the total tax due up to 5 months. There is a provision of additional interest of 0.54% per month on the total tax owed.

Effect of late filing on vehicle operation

Your vehicle tags are only renewed by the DMV after you present them the IRS stamped schedule 1 (The proof of the HVUT payment). If you have not filed form 2290 and received the schedule 1 within the deadline then you are operating your vehicle illegally and this has other repercussions including suspension of your vehicle registration.

E-file HVUT Form 2290 with Taxseer2290

You just have to sign up at www.taxseer2290.com and select the Start Filing option. The e-file wizard will guide you step by step to complete and submit the error-free filing. The Schedule 1 is emailed to the registered email address and this can be printed and presented to the DMV to get the vehicle tag renewed. The 10 step e-filing process is listed below:

·         Step1:  Add the business information

·         Step 2: Select the form type (HVUT Form 2290) from the list

·         Step 3: Select the begin month of the vehicle for filing. If filing for the whole tax year then select July as the begin month.

·         Step 4: Enter the vehicle detail under taxable, suspended or credit vehicles option

·         Step 5: Enter the IRS payment out of the 3 available options 1) Direct debit from Checking/Saving account 2) EFTPS 3) Through Check/Money Order

·         Step 6: Accept to the IRS Disclosure term

·         Step 7: Designate third party information who can discuss this e-filing with the IRS

·         Step 8: Review the filing information

·         Step 9: Pay Taxseer2290 for the service charge and submit for e-filing

·         Step 10: Taxseer2290 e-files and emails the IRS Stamped schedule 1 to the registered email. Alternatively, the user can download the Schedule 1 and the completed form 2290 from the Taxseer2290 online screen. Read More

About Taxseer2290

Taxseer2290 is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Form 2290, Form 8849 (Claim Credits for overpayments), and the Form 2290 Amendments. As part of our commitment to make e-filing easy and convenient, we are always available and you can contact us over the phone at 240.780.6153. You can also reach us via live chat or email us at support@taxseer2290.com.

10 top mistakes to avoid during the HVUT Form 2290 e-file

It is not fun to spend time and effort to complete and submit the online HVUT form 2290 and later on come to know that the e-file has been rejected by the IRS system or incorrect Schedule 1 has been issued due to incorrect data entry. Taxseer2290 provides a very user friendly HVUT form 2290 e-filing solution driven by the wizard to guide the users step-by-step to complete and submit the HVUT form 2290 e-filing. The clear instructions at each step provide great e-filing experience which can be performed by users without any formal training. Sometimes the best designed software are also handicapped if mistakes are made during the data entry process and Taxseer2290 has sporadically faced these issues which has prevented us from achieving the target of 100% error free e-filings. 

This blog provides a detail discussion on the top 10 mistakes often reported by the users during sign up with Taxseer2290 and performing e-filing. The following sections would help users understand the intricacies of HVUT e-filing and avoid any mistakes that could delay the e-filing process, prevent filing rejections and prevent the delivery of the IRS stamped Schedule 1 within minutes of the order submission:

1.       Mistyping email address during sign up: Sign up is a very simple process on Taxseer2290.com and the user can just enter their first & last name, email address (for user id), and a password to open an account. Some users inadvertently type the incorrect email address (e.g., someabc@gnail.com instead of someabc@gmail.com) in the user id field and complete the sign up process. With the entry of incorrect email address, all emails sent related to registration confirmation, invoice, and the Schedule 1 are sent to the incorrect address. If the incorrect email address is non-existent then the email server receives the information and the admin is notified about this. Admin contacts the account holder and corrects the email address after consultation. There are different ways to handle this situation but currently Taxseer2290 has chosen to not add any complexity during the sign up process. 

2.       Selecting incorrect user type during sign up: Some users select the user type as “Tax Professional” instead of “Only Me” option during the Sign up process. There are additional steps required to be performed by the Tax Professionals including entering the Paid Preparer Tax Identification Number (PTIN). The users who are not tax professional get stuck due to this selection as PTIN is a required field for Tax Professionals and they have to contact the Taxseer2290 admin to change the user type.

3.       Business Name & EIN mismatch: The Business Name, EIN, and the address should match with the IRS record stored in their file. In the event of a mismatch, the e-file is rejected and reasons are correctly displayed to the user. The users are notified about the rejections through emails containing steps to resubmit the rejected filing free of cost. Alternatively, the user can see the error message and the resubmission option in the Taxseer2290 dashboard screen. You can call the IRS help-desk directly to verify your business information.

4.       E-filing within 2 weeks of receiving a new EIN: For new EIN, IRS recommends users to wait for atleast 2 weeks before e-filing form 2290 as it takes around that many days to update the new EIN in the e-file system. Any submissions done before the 2 weeks period are generally rejected and the users are notified about this rule from IRS and asked to come back after 2 weeks and resubmit their order free of cost and receive the Schedule 1.

5.       Incorrect Filing Year: You can efile form 2290 for the current & previous tax year as well as pre-file the form for the next tax year and so correctly choose the tax year otherwise this could lead to complications.

6.       Incorrect Begin Month: If you are paying the HVUT taxes for the vehicle for the whole year then you should select July as the begin month. If the vehicle was bought any time in the tax year after July then the month the vehicle was put on the road will be the begin month. Taxseer2290 automatically calculate taxes on the vehicle based on the Begin Month and the Weight Category. It automatically prorates the taxes if the Start Month falls after July. If the user incorrectly enters the Begin Month then the incorrect taxes are calculated during Form 2290 e-filing. Special efforts are required to correct this mistake and it should be avoided in the first place.

7.       Incorrect VIN: Due to the complex format of the VIN, the users often make mistakes while entering the 17 characters and due to that the incorrect VIN is reported on the IRS stamped Schedule 1. You don’t have to worry though as you can e-file for the Form 2290 amendment to correct this situation.

8.       Incorrect weight Category: Choosing the wrong weight category during e-filing leads to incorrect tax calculation and this means incorrect filing. The user has to file for amendment – weight increase to fix this issue and this costs time and effort.

9.       Incorrect filing type: If the vehicle is filed under suspended vehicle category even though the mileage on the vehicle in the previous tax year was more than 5000 miles (7500 miles for agricultural vehicle) then the user has to file for amendment - mileage increase to correct the filing. Penalties can be imposed by IRS on the truck operator for misreporting the filing type.

10.   Incorrect Bank Account# / Routing #: Entering the incorrect bank account# and routing# leads to e-file rejection and the user has to resubmit the filing after correcting the values.

These aforementioned issues can be easily avoided by carefully reading the instructions shown in the online screens to prevent any delay in e-filing and receiving the IRS stamped Schedule 1. Taxseer2290 is committed to provide a good user experience during e-filing and suggest the users to use the FAQ provided on the www.taxseer2290.com website or contact our chat support in case of any confusion.

About Taxseer2290

Taxseer2290 is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 2290, 8849 (Claim Credits for overpayments), and 2290 Amendments. As part of our commitment to make e-filing easy and convenient, we are always available and you can contact us over the phone at 240.780.6153. You can also reach us via live chat or email us at support@taxseer2290.com.

4 Common Reasons Why Form 2290 e-File Gets Rejected

Taxseer2290 provides a very user friendly e-filing solution driven by the wizard to guide user step-by-step to complete and submit the filing. Taxseer2290 provides all possible validations to prevent the users from entering incorrect data so that the HVUT e-filing is accepted by the IRS system. However, there are some data issues that cannot be validated by Taxseer2290 and only IRS system can validate and reject the filings. The top four common mistakes during e-filing form 2290 are discussed below though they can be easily avoided if the user proactively gets the accurate date from the required source before filing:

1. Business Name & EIN mismatch: The Business Name, address, and EIN has to match with what the IRS has on their file. If there is a mismatch then the e-file is rejected with the proper error message. The users are notified about the rejections through emails containing steps to resubmit the rejected filing free of cost any number of time till the e-file is rejected. Alternatively, the user can see the error message and the resubmission option in the dashboard screen. You can call the IRS directly to verify your information.

2. E-filing within 2 weeks of receiving a new EIN: For new EIN, IRS recommends users to wait for atleast 2 weeks before e-filing form 2290 as it takes around that many days to update the new EIN in the e-file system. Any submissions done before the 2 weeks period are generally rejected and the users are then notified about this rule from IRS and asked to come back after 2 weeks and resubmit their order free of cost and receive their Schedule 1.

3. Duplicate filing: If the user files the same vehicle in the same tax year more than once then IRS system rejects the e-filing with the error message “Duplicate filing exists”.

4. Incorrect Bank Account# / Routing #: Entering the incorrect bank account# and routing# leads to e-file rejection and the user can resubmit the filing after correcting the account information.

Make sure to carefully read all instructions provided on the screen and enter the information considering the aforementioned issues so that rejections can be avoided and there will be no delay in e-filing and receiving the Schedule 1. Taxseer2290 is committed to provide a good user experience during e-filing and we suggest the users to use the FAQ provided on the website or contact our chat support in case of any confusion. Read More

About Taxseer2290

Taxseer2290 is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 2290, 8849 (Claim Credits for overpayments), and 2290 Amendments. As part of our commitment to make e-filing easy and convenient, we are always available and you can contact us over the phone at 240.780.6153. You can visit my Site: https://www.taxseer2290.com/HVUT.html . You can also reach us via live chat or email us at support@taxseer2290.com.