You are required to submit Form 2290 for the Heavy Vehicle Use Tax if you have a business that registers or engages in the operation of heavy vehicles on public highways. Even though the tax amount is determined by your vehicle's weight and mileage, other truckers are worried about Form 2290 filing fees. Knowing these costs enables you to plan properly and select a filing method that works best for you. In this article, we will discuss the factors affecting the amount you will incur as you work through filing Form 2290.
To start with, IRS tax amount should not be confused with filing fees . The IRS or e-filing tax refers to the actual HVUT that you owe based on the weight of your vehicle. That amount is non-adjustable, and you are obliged to settle it directly with the IRS. On the contrary, filing fees constitute the discount or amount you pay for using an external e-filing service to prepare and submit Form 2290. These fees cover the convenience, speed, and support provided by the e-filing service but are separate from the IRS tax.
Form 2290 e-filing fees broaden outwards to as high as $50 and can be as low $9.90 depending on the features offered by a service provider. Below is a generalization of the breakdown.
Paper filing , as its name suggests, allows for charges submitted via IRS not to incur a fee. With that said, its major downsides would be more time consuming, higher chances of human errors and many more. If you wish to steer clear of paying for charges incurred via e-filing, a few IRS-authorized e-file providers serve the purpose of allowing new users free trials or during off-peak seasons. Additional requirements include placing a restriction on the allowance to only single vehicle filings and removing services such as VIN corrections.
Although it may seem like filing with a paper forms is the cheapest option available, lots of truckers will argue that it takes longer and is not as convenient as e-filing , which is why many prefer it despite having to pay a fee. E-filing enables you to swiftly receive your stamped Schedule 1 , which means you don’t have to worry about manual errors and waiting for the documents in the post. And best of all, the majority of e-file providers offer services that assist with reminders for deadlines, VIN changes, and customers service.
Take note when budgeting for the Form 2290 filing , as you must prepare for the IRS tax, the filing fees for your selected option, and add both together. Compared to paper filing, e-filing is much simpler, but can cost around $9.90 to $50 depending on the service. Always remember, there is considerable value in comparing different providers on cost and service features. And remember, incompliance with the HVUT rules and regulations is critical if you intend to keep your trucks operational.
Note: For more information, visit IRS website