Trucking professional comes with its own set of challenges including administrative ones, the first one being applying for Employer Identification Number (EIN) application. The Internal Revenue Service (IRS) issues a unique nine-digit number referred to as EIN which identifies your business for tax purposes. Regardless of your structure; sole proprietor, LLC, or corporation, an EIN is required to open business bank accounts, hire employees, manage tax payments, and particularly, Sole Proprietor, LLC business tax filings, including Form 2290 for Heavy Vehicle Use Tax (HVUT).

Benefits of Having An EIN for Trucking Business

Your truck business may seem small with just one driver, but the IRS regards it as an entity instead of a person. This means, a social security number for any filings becomes outdated. This Includes 2290,Federal tax documentation requires an EIN. Irrespective of the business’s working structure. The process is free and available through the IRS website. The EIN becomes the tax ID of the business for all federal tax documentation for the business, employment tax, and HVUT.

The Connection Between the EIN and 2290 Filing

Form 2290 is the form used to report and pay the HVUT that applies to trucks of 55,000 pounds or more that operate on public highways. Each filing requires the requester’s EIN since the IRS cannot process filings that use SSN; only bank or government sensitive documents may. It is highly advisable to get your EIN at least two weeks prior to filing since the verification systems around the IRS take a long time to recognize, or flexibly, scan for new numbers. Your 2290 filing can easily be rejected without an valid EIN which could ultimately delay your filings to get the vehicle tags or operate legally.

Guidelines for Smooth Processing of EIN and 2290 Processing

Avoid using the synonym that the IRS operates with sensitive documents bearing unique serial identifiers- EIN. Likewise, for enhanced compliance with registration requirements, the vehicle’s identification number or VIN must be accurate as well- the identification themselves pose no obstacles. The documents associated with incorrect identification facilitate bypassing document registrations. Hence many of the trucking’s operating entities employ authorized e-file providers to submit their 2290 forms electronically- this gives them the distinct advantage of rapid submission and nearly instant provision of stamped Schedule 1 which is of utmost importance for the DMV clearance procedures.

Note: For more information, visit IRS website