FAQ - Frequently Asked Questions

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.

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.

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.

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.

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

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.

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

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.

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.

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.

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

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.

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.

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.

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

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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

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

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.

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.

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.