Form 2290 needs to be filed only once a year and it is necessary for highways use tax which needs to be paid if a Heavy Vehicle is used. The IRS expects you to comply with specific regulations if you operate multiple heavy vehicles across U.S. public highways, and you will never run out of challenges as far as compliance is concerned. Things can get quite complex when your fleet has vehicles that were first used in different months and they posed an issue with the first month of usage. Luckily, the IRS recommends flexibility when filing Form 2290- each vehicle can be filed under its respective first month of use.

Here’s how to manage this process efficiently.

Terms of The Rule Flexibility

The filing needs to be done for every taxable vehicle individually based on what month it was first used. The tax period runs from July 1 to June 30 and needs to be followed religiously in compliance with IRS regulations. For those who plan on using different vehicles for the very first time, it’s necessary to used them minimum on two consecutive months. You will need separate Form 2290 returns for every first-used month if on partial usage. If by chance, one truck was first used in July and another in September, it is bound to be challenging for you to estimate tax needs.

Gather Accurate Details for Each Vehicle

While you prepare to begin the filing process, you need to have the Vehicle Identification Number (VIN), taxable gross weight, and first month the vehicle was put into use for each vehicle readily available. Confirm that each VIN is correct – check that each gross weight falls within the stated category. Filing with incorrect details might slow receipt of your Schedule 1 and impose fines, so accuracy is important.

Fill Out Form 2290 for Each Tax Period Individually

Because each vehicle’s tax period starts in its respective first-used month, you need to complete Form 2290 for each subgroup of vehicles sharing the same first-used month. Take, for example, if three trucks were first used in July and two more in October, you will do one filing for the July vehicles and another one for the October ones. The good news is that most e-file providers authorized by the IRS enable one account to handle multiple filings seamlessly.

Maintain Organization and Guard Your Schedule 1 As if It's Gold

Once you successfully file, you will get a stamped Schedule 1 along with each return. This document serves an important purpose: proof of payment which is requisite for vehicle registration and renewals. Store each Schedule 1 in an organized manner by vehicle or first-used month to ensure ease of access in case of audits or registration renewals. It might also help to set calendar reminders for future filings in advance to avert any missed deadlines.

Note: For more information, visit IRS website