EIN vs. SSN & Activation Delays: What Every Form 2290 Filer Needs to Know
As an e-filer of Form 2290, we often encounter the common pitfalls that can incur delays affecting both your HVUT filing and more importantly, your access to that all-important Schedule 1.
Two of the most common mistakes involve the Employer Identification Number (EIN): failure to use it, rather than the Social Security Number (SSN), as required; and failure to understand the all-important delay in activation for newly assigned EINs.
EIN vs. SSN: The Must-Do Thing
Let's clear this first: You will not be able to use your Social Security Number (SSN) to file Form 2290. Generally, the IRS requires the filing of all Heavy Highway Vehicle Use Tax (HVUT) returns with an Employer Identification Number (EIN) instead of Social Security Numbers.
An EIN is a unique number of nine digits assigned by the IRS to identify a business entity for tax purposes, responsible for its federal tax ID. This means whether you are a sole proprietor, an LLC, a corporation, or any other business structure that runs heavy vehicles, you cannot file with anything else other than an EIN.
Basic math: It's an immediate rejection for you, and a subsequent delay for everybody else-the day your Form 2290 is filed under your SSN.
EIN Activation Delays: The Waiting Game
So you've realized that you need an EIN and have just applied. So far, so good! Do not, however, hit the e-file button for your Form 2290. A critical aspect being missed by e-filers is the delay for EIN activation.
While your EIN might be issued immediately when applying for it online, in the vast majority of cases, it may take 10 to 15 business days before the new EIN is fully operational and registered in the IRS's processing systems. Any attempt to e-file your Form 2290 prior to that will lead to the IRS system rejecting your filing with an error code saying "insufficient" or "unknown" EIN because your new EIN was not yet activated.
To avoid this depressing complication and also to guarantee a smooth road for an easy filing, grant ample time for activation of your new EIN before you e-file your Form 2290. Patience here saves tons of trouble and guarantees the timely receipt of your IRS-stamped Schedule 1 for registration of the vehicle.
