Every truck owner whose truck weighs 55,000 pounds or more needs to pay the HVUT amount and file IRS form 2290. It is crucial that you file the form on time to avoid any late-filing penalties from the IRS.
However, there are times when the IRS could reject your 2290 form. Following are the common reasons for form 2290 rejections:
EIN and business name do not match:
If your Employee Identification Number (EIN) and business name do not match the IRS records, your form 2290 could get rejected by the IRS. EIN is a unique number that should match with what you entered on the form.
When you paper-file your form 2290, the signature is mandatory at two places i.e., the first page of part II of the form and the last page that is “Content to Disclosure of Tax Information.”
Similarly, when you e-file, you need to enter your 4-digit PIN. If the signatures are not added in the right spaces, your form will be considered invalid and rejected by the IRS.
When you file form 2290 for the same vehicle for the same tax period twice, the IRS will reject your form 2290, and you will receive an error message that states ‘Duplicate filing exists.’ So ensure that you enter correct information when you file your form 2290 the first time.
Use of new EIN:
Form 2290 can get rejected if you file within two weeks of receiving the new EIN. It takes up to 2 weeks for the new EIN to get updated in the IRS database. So, if you file your form with the new EIN before that, your form 2290 could get rejected.
If you make your HVUT payment via the Electronic Funds Withdrawal option, there is a requirement to provide the Routing Transit Number (RTN). If this RTN is incorrect, the IRS will reject your form 2290.
When this error occurs, you must re-enter the correct details and cross-verify them to receive the stamped Schedule 1 Form 2290 copy.
The Vehicle Identification Number (VIN) is crucial when filing taxes. You need to ensure that you enter the correct VIN to avoid any errors that could lead to IRS rejection. Certain e-file service providers also offer free VIN correction services if you enter the wrong VIN.
Wrong payment dates:
When making your HVUT payment, ensure you enter the correct payment date. Just make sure that the payment date does not fall on the weekend or any of the holidays. Also, ensure that you do not enter a past date.
Your payment date should be no more than 5 days from the date of filing form 2290.
Incorrect bank details:
If you choose to pay your HVUT return using any of the online modes of payment, it is crucial to fill in all the details that might be accurate and relevant, including your bank account details. Entering incorrect bank account details can lead to the rejection of form 2290.
In such cases, you need to resubmit the form with the correct details.
Tax filing is a tedious and time-consuming process. It requires you to follow the instructions to the T to ensure there are no errors.
For successful filing of your form 2290, you need to be aware of the common reasons for form 2290 rejection by the IRS. We hope the above information will help you avoid some common errors and file on time.