Form 2290 E-filing: How to Prevent Rejections
E-filing your Form 2290, or Heavy Highway Vehicle Use Tax Return, is the easiest and quickest method of filing your return and receiving your Stamped Schedule 1. It's not unheard of for a return to be rejected by the IRS, however, and a rejected return can delay and frustrate you, particularly if you're in need of your Schedule 1 to register your vehicle.
As a 2290 e-file service provider, we've noted the most prevalent causes of rejection. By taking especial care to notice these nuances, you can have your return accepted on the first attempt.
The EIN Mismatch: Your Most Common Culprit
This is reason number one for denials. The Employer Identification Number (EIN) you provide on your Form 2290 will exactly match the business or individual's name linked to that EIN on file with the IRS.
Issue: You typed the proper EIN, but the business name is slightly off. For instance, "John Smith Trucking" versus "John Smith Trucking LLC." The IRS system is extremely fussy.
Solution: Recheck your business name with your IRS EIN confirmation letter. If you recently submitted an application for a new EIN, it may take as much as two weeks before it becomes active in the IRS e-file system. You might have to wait until you can effectively file.
The VIN Vexation: One Wrong Character
The Vehicle Identification Number or VIN is your car's identifying number. Your return will be rejected by the IRS system if one incorrect character in the VIN exists.
Issue: A misspelling, like confusing an "O" with a "0" or an "I" with a "1."
Solution: Slowly and carefully write down the 17-digit VIN from your title or registration. It's a good practice to have someone else double-check it for you. A few e-file providers include a VIN validation check to assist in avoiding these mistakes prior to submission.
The Taxable Gross Weight and First-Used Month Mix-up
Your tax value is based on two things: the taxable gross weight of the vehicle and when, in the tax period, it was first put on a public road. The incorrect choice of either of these can result in a rejection.
Problem: The most frequent error is the incorrect choice of "first-used month." For cars that are used at the start of the tax year (July 1), the first-used month is always July. Another error is the under-reporting of the gross weight, which leads to an inaccurate tax calculation.
Solution: Make sure to choose the right month your car was initially placed in service for the tax year. Look at your car's gross weight rating and make sure to choose the right tax class.
The Duplicate Filing Fiasco
The double filing of the same return is not only perplexing but will also trigger an automatic rejection of the second filing.
Problem: You e-filed your return, but you didn't get an immediate confirmation, so you attempted to re-file using a different provider or by mailing it.
Solution: Wait it out. Once you e-file, you'll get a confirmation from your provider, then the IRS acceptance or rejection notification. If you fail to receive the latter, get in touch with your e-file provider's customer support rather than re-filing.
The EFTPS Payment Problem
If you're paying your tax via the Electronic Federal Tax Payment System (EFTPS), you need to have the payment scheduled properly.
Issue: You have filed your Form 2290 but haven't scheduled a payment via EFTPS, or the payment information (such as the tax type or tax period) doesn't match the filed return.
Solution: When you use EFTPS, make certain your payment information is the same as that on your Form 2290. Make your payment individually after your return has been accepted. The E-file provider does not make the EFTPS payment, so be sure to do it yourself, doing it correctly.
By being aware of these easy pitfalls, you can go through the Form 2290 e-filing process confidently. A little attention to detail will save you a lot of time and trouble.
