It’s extremely important for every truck owner or operator in the U.S. to file the IRS Form 2290 on time because this is the way they can stay compliant with the requirements and avoid penalties. Nevertheless, the most common problem many filers encounter with Form 2290 is its rejection. The knowledge of the most frequent causes of rejection will not only help you not to commit mistakes but also will save your time, money, and nerves.

Incorrect EIN or Business Name Mismatch

A mistaken EIN or the situation when the business name in the registration with the IRS does not bind any number are some of the top reasons for Form 2290 rejection. Even trivial mismatches like a small 'and' in place of an ampersand can decline the proposal, which then gets rejected. To eliminate this, confirm that both the EIN and business name you are using are exactly identical to the data that the IRS has on record. If you are an EIN applicant, then remember that it can take the IRS up to 15 working days to approve the e-filing system.

Duplicate Filing for the Same Vehicle

There is also the case where the Form 2290 is turned down because the filer has sent it more than once for one vehicle in the same tax period. This usually occurs because the filers are not aware of the approval of the first submission and attempt to resubmit the file with minor changes or mistakes. To prevent duplicate filing, verify the Vehicle Identification Number (VIN) and inspect your previous filings before submitting a new one. Don't forget that the process isn't complete until you have the necessary confirmation.

Invalid Vehicle Identification Number (VIN)

Another reason for rejection is entering an incorrect VIN on Form 2290. So, VINs are 17-character alphanumeric codes even one false character will make the filing rejected. Be sure to verify each and every VIN before the actual filing, and think about utilizing software that can do the VIN format check, thus reducing the risk.

Filing Before IRS Systems Are Ready

A situation where most people file the Form 2290 returns early in the year when the tax e-filing season starts, but they get it rejected only because the IRS portal is not open for the new tax year. Usually, the IRS is opening the filing season for the new HVUT period on July 1. Be sure to submit during the correct window to avoid your filing being rejected due to prematurity.

How to Avoid Rejections: Best Practices

To avoid rejection, be in the habit of confirming once more all the data you've entered before hitting submit. What's more, an e-file provider should not only be reputable but should also make use of the real-time IRS record-verifying system. In addition, have a checklist of necessary information such as EIN, VIN, and taxable gross weight. Filing early within the IRS-approved window also gives you time to fix any issues before deadlines. Being a little meticulous will help you avoid a lot of problems as far as getting your Form 2290 is concerned.

Note: For more information, visit IRS website