FAQ - Frequently Asked Questions

EIN

What is an EIN number?

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is used to identify a business entity. Generally, businesses need an EIN.

When can I use my EIN?

You can use your EIN immediately to open a bank account, apply for business licenses or file a tax return by mail. However, it could take up to 4 weeks to use your EIN to file an electronic return, make an electronic payment or pass an IRS Taxpayer Identification Number (TIN) matching program.

Do I need to have my EIN to file a 2290?

Yes. Your Employer Identification Number is required to file your Heavy Vehicle Use Tax (Form 2290). You must be sure that the business name you file your HVUT under matches the business name on your EIN.

If I am a sole proprietor, will I need an EIN?

Usually if you have no employees an EIN is not required - however, if your truck weighs more than 55,000 lbs you are required to file a 2290, which means you will be required to have an EIN regardless of employee status.

Other than filing my 2290, what will I need an EIN for?

EIN's are used to open business banking accounts and to apply for business licenses. To obtain your EIN give TSNAmerica a call today!

Do I need an EIN for my LLC, which has no employees?

No, if you are the sole owner, an EIN is not necessary. However, if there is more than one owner an EIN is required. Also if you are required to file a 2290, you will be required to have an EIN regardless of employee status.

Is my EIN the same thing as a FTIN?

Yes. Your EIN (Employer Identification Number) may sometimes be referred to as a FTIN (Federal Tax Identification Number).

Who is the responsible party when obtaining an EIN?

All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the responsible party, controls, manages, or directs the applicant entity and the disposition of its funds and assets. If there is more than one responsible party, the entity may list whichever party the entity wants the IRS to recognize as the responsible party. According to the instructions for the current revision of the application, the responsible party is defined as follows:

For entities with shares or interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, responsible party is (a) the principal officer, if the business is a corporation, (b) a general partner, if a partnership, (c) the owner of an entity that is disregarded as separate from its owner (disregarded entities owned by a corporation enter the corporation’s name and EIN), or (d) a grantor, owner, or trustor if a trust.

For all other entities, responsible party is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.

What do I do if I lose or misplace my EIN?

If you previously applied for and received an EIN for your business, but have since misplaced it, try any or all of the following actions to locate the number:

-Find the computer-generated notice that was issued by the IRS when you applied for your EIN. This notice is issued as a confirmation of your application for, and receipt of an EIN.

-If you used your EIN to open a bank account, or apply for any type of state or local license, you should contact the bank or agency to secure your EIN.

-Find a previously filed tax return for your existing entity (if you have filed a return) for which you have your lost or misplaced EIN. Your previously filed return should be notated with your EIN.

-Ask the IRS to search for your EIN by calling the Business & Specialty Tax Line at (800) 829-4933. The hours of operation are 7:00 a.m. - 7:00 p.m. local time, Monday through Friday. An assistor will ask you for identifying information and provide the number to you over the telephone, as long as you are a person who is authorized to receive it. Examples of an authorized person include, but are not limited to, a sole proprietor, a partner in a partnership, a corporate officer, a trustee of a trust, or an executor of an estate.

When do I need a new EIN?

You will need a new EIN if the business entity changes from one form to another. (Example, if a sole Proprietorship changes to a partnership or corporation or vice versa). A new EIN is also needed when an existing business is purchased or inherited or in the event and individual owner is deceased and the business goes to the estate.

Can I cancel my EIN?

The IRS cannot cancel your EIN. Once an EIN has been assigned to a business entity, it becomes the permanent federal taxpayer identification number for that entity. Regardless of whether the EIN is ever used to file federal tax returns, the EIN is never reused or reassigned to another business entity. The EIN will still belong to the business entity and can be used at a later date, should the need arise. If you receive an EIN but later determine you do not need the number (the new business never started up, for example), the IRS can close your business account. To close your business account, send IRS a letter that includes the complete legal name of the entity, the EIN, the business address and the reason you wish to close your account. If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, include that when you write to the IRS at:

Internal Revenue Service Cincinnati, Ohio 45999


2290

What is the '2290'?

The 2290 is a form that is filed with the IRS on a yearly basis to report, figure and pay taxes due (if applicable) on vehicles used during the tax year with a taxable gross weight of 55,000 pounds or more.

What is Form 2290 used for?

The 2290 IRS form is used for:
  • Figure and pay the tax due on highway motor vehicles used during the period with a taxable gross weight of 55,000 pounds or more
  • Figure and pay the tax due on a vehicle for which you completed the suspension statement on another Form 2290 if that vehicle later exceeded the mileage use limit during the period.
  • Figure and pay the tax due if, during the period, the taxable gross weight of a vehicle increases and the vehicle falls into a new category. Claim suspension from the tax when a vehicle is expected to be used 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the period.
  • Claim a credit for tax paid on vehicles that were destroyed, stolen, sold, or used 5,000 miles or less (7,500 miles or less for agricultural vehicles).
  • Report acquisition of a used taxable vehicle for which the tax has been suspended.
  • Figure and pay the tax due on a used taxable vehicle acquired and used during the period.

Who is required to file Form 2290?

You must file Form 2290 and Schedule 1 for the tax period beginning on July 1 and ending on June 30 if a taxable highway motor vehicle is registered, or required to be registered, in your name under state, District of Columbia, Canadian, or Mexican law at the time of its first use during the period and the vehicle has a taxable gross weight of 55,000 pounds or more.

You may be an individual, limited liability company (LLC), corporation, partnership, or any other type of organization (including nonprofit, charitable, educational, etc.).

Disregarded entities and qualified subchapter S subsidiaries. Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. QSubs and eligible single-owner disregarded entities must pay and report excise taxes, register for excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). These actions cannot take place under the owner's taxpayer identification number (TIN). Some QSubs and disregarded entities may already have an EIN.

Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). For more information, see Regulations section 301.7701-2(c)(2)(v). Dual registration: If a taxable vehicle is registered in the name of both the owner and another person, the owner is liable for the tax. This rule also applies to dual registration of a leased vehicle. Dealers: Any vehicle operated under a dealer's tag, license, or permit is considered registered in the name of the dealer. Used vehicle.: If you acquire and register or are required to register a used taxable vehicle in your name during the tax period, you must keep as part of your records proof showing whether there was a use of the vehicle or a suspension of the tax during the period before the vehicle was registered in your name. The evidence may be a written statement signed and dated by the person (or dealer) from whom you purchased the vehicle.

Why do I need an Employer Identification Number to e-file?

The IRS no longer accepts a social security number for 2290 filings. EIN are required by the IRS in order to efile Form 2290.

What is a VIN?

A VIN is a Vehicle Identification Number. Each vehicle has a unique VIN and is required for Form 2290 for Heavy Vehicle Use tax.

As of 1981, all VINs were required to contain 17 characters and do not contain the characters I, O and Q.

How is the 'Taxable Gross Weight' Determined?

In many states this is located on the vehicle owner's registration card. This is the total weight of the vehicle and the load it is capable of hauling. For example, most 18 wheelers have a taxable gross weight of 80,000 pounds which includes the tractor, trailer and load it is capable of carrying.

How is the tax amount due calculated for the 2290?

The tax amount due is calculated based on the weight of the vehicle and the 'first used month' during the tax period. There are different weight categories specified by the IRS that range from the letters 'A through V' and range from 55,000 pounds to over 75,000 pounds. Please see page 2 of the 2290 form itself for the calculation table.

What is the tax year for the 2290?

The tax year for the 2290 runs from July 1st through June 30th of the following year.

When is the 2290 return due?

The 2290 HVUT return is due on the last day of the month following the first month used within the current tax year.

Example 1: If the vehicle has been on the road a year or longer then the 'first used month' for the current tax period would be 'July' because this is the first month the vehicle was used within the current tax period and the due date would be August 31st.

Example 2: If the vehicle was originally put into service in April then the 'first used month' will be 'April' and the 2290 due date is May 31st.

Example 3: If the vehicle was originally put into service in February then the 'first used month' will be 'February' and the 2290 due date is March 31st.

Is there a penalty for late filing?

The law provides penalties for failing to file form 2290 tax returns or pay taxes when due. There are also penalties for filing false or fraudulent returns. These penalties are in addition to the interest charge on late payments. The penalty for filing a return late or paying the tax late will not be imposed if you can show reasonable cause for not filing (or paying) on time. If you file after the due date (including extensions), attach an explanation to the return to show reasonable cause.

The penalty for failing to file IRS Form 2290 by August 31 is equal to 4.5 percent of the total tax due, assessed on a monthly basis up to five months. Late filers not making an HVUT payment also face an additional monthly penalty equal to 0.5 percent of total tax due. Additional interest charges of 0.54 percent per month accrue as well.

The IRS will only notify you by POSTAL MAIL of any applicable fees and/or interest due.

What happens if I forget to file Form 2290?

A Form 2290 can be filed at any time after the deadline has passed but the tax due may be subject to penalties and interest. The penalty for failing to file IRS Form 2290 in a timely manner is equal to 4.5 percent of the total tax due, assessed on a monthly basis up to five months. Late filers not making an HVUT (Form 2290) payment also face an additional monthly penalty equal to 0.5 percent of total tax due. Additional interest charges of 0.54 percent per month accrue as well. The IRS will notify you BY POSTAL MAIL of any late fees and/or interest.

What is a 'tax suspended' vehicle?

A tax suspended vehicle is one that has a taxable gross weight over 55,000 pounds but is driven less than 5,000 miles per year (or 7,500 miles per year if agricultural). In this case the tax is considered 'suspended' and there is no tax ($0) due but the owner must still file a 2290 HVUT return. The due dates for returns filed with tax suspended vehicles are the same as those with taxable vehicles.

What is an agricultural vehicle?

An agricultural vehicle is any highway motor vehicle that is:

Used (or expected to be used) primarily for farming purposes, and Registered (under state laws) as a highway motor vehicle used for farming purpose for the entire period. A vehicle is used primarily for farming purposes if more than half of the vehicle’s use (based on mileage) during the period is for farming purposes.

A special tag or license plate identifying the vehicle as used for farming is not required for it to be considered an agricultural vehicle.

What is a logging vehicle?

A vehicle qualifies as a logging vehicle if:

It is used exclusively for the transportation of products harvested from the forested site, or it exclusively transports the products harvested from the forested site to and from locations on a forested site (public highways may be used between the forested site locations).

It is registered as a highway motor vehicle used exclusively in the transportation of harvested forest products. A vehicle will be considered to be registered under the laws of a state as a highway motor vehicle used exclusively in the transportation of harvested forest products if the vehicle is so registered under a state statute.

In addition, no special tag or license plate identifying a vehicle as being used in the transportation of harvested forest products is required.

What is a 'Stamped Schedule 1'?

The Stamped Schedule 1 is the document that results from filing a 2290 HVUT Return. This document serves as the proof of payment/filing of the tax and is the main piece that clients need in order to obtain their tags/registration and for record keeping purposes. If a client goes into an IRS office to file the 2290 return they will receive this document back with an actual 'stamp' on it stating that it is paid and the date in which this was completed. When e-filing the client receives the same document back, however it includes an e-file watermark and received date. Either document/stamp combination is an official IRS document and can be used for all intended purposes.

What is the Schedule 1 used for?

To report all vehicles for which you are reporting tax (including an increase in taxable gross weight) and those that you are reporting suspension of the tax by category and vehicle identification number (VIN). As proof of payment to register your vehicle(s) (unless specifically exempted) in any state. Use the copy of Schedule 1 stamped and returned to you by the IRS for this purpose.

What is Form 2290-V used for?

Form 2290-V, Payment Voucher, to accompany your check or money order. Form 2290-V is used to credit your heavy highway vehicle use tax payment to your account.

Can I pay my IRS taxes with a credit card?

The IRS currently does not accept credit cards for HVUT (Form 2290) tax payments. You may pay the taxes using: (1) Electronic Funds Withdrawal (EFW), (2) Electronic Federal Tax Payment System (EFTPS), or (3) mail a check or money order.

What is Form 8849?

Form 8849 is the "Claim for Refund of Excise Taxes" form. The Form 8849 Schedule 6 can be filed to claim a refund or credit of heavy vehicle use taxes previously paid. You would use Form 8849 if:

your vehicle was sold, stolen, destroyed or for any vehicle on which the tax was paid on Form 2290 if the vehicle was used 5,000 miles or less on public highways (7,500 or less for agricultural vehicles) during the tax period (July 1–June 30).

What is a Form 2290 Amendment?

A Form 2290 amendment is used for:

Taxable Gross Weight Increases - If your taxable gross weight increases anytime during the tax period, you are required to notify the IRS.

Mileage limit is exceeded - If you go over the 5,000 miles (7,500 for farm vehicles) during the tax period, you are required to notify the IRS.

VIN Corrections - If you notice your VIN is incorrect, you can quickly and easily file a VIN Correction.

How do I update my 2290 if my taxable gross weight increases?

You can update your taxable gross weight category by filing a Form 2290 Amendment.

Does the Heavy Vehicle Use Tax transfer from one vehicle to another?

No. The heavy vehicle use taxes do not transfer between vehicles or owners. But IRS allows you to claim the credit back.

If I buy another truck after I have e-filed my 2290 for the current tax period, should I e-file my original 2290 again and simply add the new vehicle to the Schedule 1?

No. If you e-file your 2290 and list the vehicles you own on the Schedule 1, then subsequently buy one or more additional trucks, you must file a new Form 2290 listing only the new vehicles. You may file that 2290 anytime before the last day of the month following the month the new vehicle was first used on public highways.

May I file one 2290 for two trucks that I place on the road in two consecutive months?

No. The amount of tax you owe depends on the month when you first placed your trucks on the road. In this case, you should file two Forms 2290, one for each vehicle and its partial tax period, and complete a Schedule 1 for each. Your tax will be more for the truck that was placed into service first. In the next tax year, you can file one 2290 for all the trucks you will have on the road for the 12 months of the tax year; that is, between July 1 of the current year and June 30 of the following year.

What records am I required to keep for Form 2290?

You must keep records for all taxable highway vehicles registered in your name for at least 3 years after the date the tax is due or paid, whichever is later. They must be available at all times for inspection by the IRS. Also keep copies of all returns and schedules you have filed. Keep your records even if a vehicle is registered in your name for only a portion of a period. If the tax is suspended on a highway motor vehicle for a period because its use on public highways during the period did not exceed 5,000 miles (7,500 miles for agricultural vehicles), the registrant must keep the records at least 3 years after the end of the period to which the suspension applies.


Temporary Permits

When is a temporary trip permit required?

To operate in a state which is not currently registered under your IRP, a trip permit must be obtained before entering that jurisdiction. The trip permit is a temporary permit issued in place of IRP credentials for properly registered vehicles and must be obtained prior to entering the state.

When is a temporary fuel permit required?

To operate in a state you do not have an IFTA decal and license, a temporary fuel permit is required. The temporary fuel permit is a temporary permit issued in place of IFTA credentials for properly registered vehicles and must be obtained prior to entering the state.

Where can I obtain a temporary fuel or trip permit?

Some states will issue permits electronically, while others require you purchase them at the first port of entry. To learn more about how to acquire a specific permit contact TSNAmerica today!

How long are temporary permits valid?

Each jurisdiction determines the time period their permits are valid, so this will vary by state. For specific state related questions please contact TSNAmerica today!

What information do I need to get temporary permits?

This information will vary depending on the state permits are being purchased for. Most states require the basics: contact information, vehicle year, make & VIN & permit start date. Some states will require very specific information, such as insurance information or type of cargo hauled.

Can I get temporary permits if I have a temporary plate?

Yes, but the temporary plate number and the expiration date of the plate must be supplied for the temporary permit to be approved.

What if I am caught traveling without a valid trip or fuel permit and am required to have one?

When traveling without the proper credentials you may be subject to a penalty, fine or citation, depending on the jurisdiction's laws. For example, traveling in California without a valid California Fuel Trip Permit or IFTA credentials you are subject to a penalty. Penalty amounts range from $100 to $500 or more (if you owe fuel tax, the penalty may be higher than $500). You will also be required to purchase a fuel trip permit and are subject to possible seizure of your vehicle. If that occurs, your vehicle will not be released until you pay all money due the State, including any costs associated with the seizure of the vehicle. These penalties will vary by state.

What if I have applied for my IFTA license but have not yet received it? Can I haul while it's being processed or am I required to get a temporary fuel permit?

Some states issue a temporary IFTA license that can be used until you receive your permanent license - this can be used to haul and does not require you to obtain a temporary fuel permit. If your state did not issue a temporary IFTA license then you are required to get fuel permits for each state you will travel in or through before you can legally haul.

What is an Oversize Permit?

Oversize permits are required for vehicles who exceed the maximum height, width or trailer length specified by their jurisdiction. These permits may include routing information, travel regulations and restrictions and safety requirements

What is an Overweight Permit?

Overweight Permits are required when the vehicles overall weight exceeds 80,000 lbs. These permits will allow the vehicle to temporarily increase the weight. In most cases these loads must be non-divisible.

Who requires a Superload Permit?

A superload is a vehicle or combination with a non divisible load having a gross weight exceeding 200,000 pounds and/or a total width or height exceeding sixteen feet.

What are permanent and temporary route restrictions for Oversize / Overweight permits?

Permanent Route Restrictions are routes that are limited to vehicles with destinations inside those areas. This applies to all oversize and/or overweight loads up to 120,000 GVW. Temporary Route Restrictions are routes that are limited to vehicles with destinations areas inside the prescribed areas for a specific time frame. Requests can be made to travel through these specified areas, but this will usually cause at least a 2 day delay and are subject to approval on an individual basis by the state.

What is an OR Temporary Pass?

This permit is used in place of the permanent OR Weight Mile Permit. Trucking companies with vehicles over 26,000 lbs. that are conducting a single round trip through Oregon, or operating on a short-term lease agreement (10 days or less), obtain a Temporary Pass and pay weight-mile taxes for the miles traveled in the state. The company declares the maximum weight at which the vehicle will operate during the 10 day period and pays the appropriate weight-mile taxes.

Can I get a temporary permit in place of a permanent KYU number?

Yes. A 10-day permit will be issued for KY operations in place of a permanent KYU number. We do suggest that if you travel into KY more than a few times a year that you obtain a permanent KYU number since it is more cost effective to do so.

Can I get a temporary KYU if I have a dealer or temporary license plate?

No. A permanent plate number is required to obtain a temporary KYU permit.

What is a temporary NM Weight Distance Permit?

Temporary NM Weight Distance permits are used when carriers travel into NM less than a few times a year, but are a costly alternative to securing a permanent permit if travel is more frequent. These temporary permits can be obtained at the Port of Entry in NM.

What is a temporary NYHUT Permit?

A temporary NYHUT permit is used in place of the permanent permit and does not required quarterly filings. This should only be used if you travel into NY seldomly as is it not as cost effective if the carrier is a frequent NY visitor. TSNAmerica can obtain your temporary HUT for you.


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