As an owner-operator or a trucking firm you would already be aware of the form known as Form 2290-the Heavy Highway Vehicle Use Tax Return-paid on any highway-use vehicle that weighs 55,000 pounds above. It is calculated on the number of miles your truck is assumed to travel on public highways during the tax year. However, if you have overestimated the mileage and paid extra, you can recover that amount. In this article, we will guide you about how to file for Form 2290 refund over mileage of overestimation.

What is Mileage Limit Form 2290?

The Heavy Vehicle Use Tax is the other tax for which the IRS has to be paid. These taxes are payable by vehicles those have covered more than 5,000 miles or in case of agricultural vehicles more than 7,500 miles during any statute vehicle period. If your truck covers less mileage than the estimated threshold then you're paying more than what you should. By filling the Form 2290 if you filed for tax and then you come across that you have covered less mileage than the threshold limit you are liable for a partial refund of overpaid mileage.

Filing a Refund for Overestimated Mileage: The Step-by-Step Process

Eligibility to file refund

This is determined by whether your vehicle clocked under 5,000 miles (or 7,500 miles in agricultural vehicles) during the same tax period when you had initially filed Form 2290. The mileage had been overestimated.

Apply for a refund once you are eligible, such as when your vehicle had clocked under 5,000 miles (or 7,500 miles in agricultural vehicles) for the same tax period when you filed Form 2290.

Filing Form 8849 for Refund

An overestimated amount of miles traveled will require you to file a Form 8849, Claim for Refund of Excise Taxes to recover the HVUT paid. You will specifically use the Schedule 6 of the Form 8849 that is titled as "Other Claims." Here is how you can do it:

You can download Form 8849 and Schedule 6 from the IRS website. Or, almost all e-file platforms have offered to file the same electronically, especially for your convenience.

• List Schedule 6 Fill out Schedule 6. Indicate the overpayment and the reason for the refund; you might have overstated your mileage, for example. This, again, as exactly as possible to prevent delay in processing.
• Elaborative Overestimation: This should be an elaborate form of how the mileage for your vehicle ended up being less than what you had put down. For example, if the truck was serviced for less months than you had estimated or that there was a reduction in activities occasioned by unforeseen events, you write this in the form.

Documentation to Be Prepared

Any refund requires some form of supporting documentation. Thus, ensure to have the following:

• Record of Original Payment for Form 2290: Retain evidence that an original payment was made when filing Form 2290.
• Mileage History: You are allowed to maintain a record of mileage for each of your trucks. These should indicate that, indeed, your truck covered less than the 5,000 miles (or 7,500) used for this tax year. You may be required to produce these records as part of your claim.

Submit Your Claim

Once you have completed Form 8849 and Schedule 6 with any supporting documentation, you can file electronically or by mail. Faster: E-file Most tax preparation providers enable users to e-file their claims. The IRS tends to process all e-filed claims before those filed on paper.

By Mail: If you decide to mail your claim, submit it by mail to the address provided in the instructions for Form 8849. Important: The mail option will take a bit more time to process.

Wait for Refund

Filing Time It normally takes 4 to 6 weeks for the IRS to process a refund claim. They will pay you by cheque or via direct deposit depending on which method you have selected when you filed the return.

Keep abreast of where your refund status is by following up on the status of your request. In case you submitted electronically, most e-filing sites will provide you with a way to track how it is going. If you sent it by mail, you can wait a couple weeks and then contact the IRS for any further information.

Overestimation Avoidance Hints

• Keep Tracking Mileage Regularly: Keep tracking the mileage of your truck throughout the entire tax year so it doesn't happen for you to overestimate miles for Form 2290. You can even use the services of some fleet management software or even GPS tracking devices so you can automatically log your mileage.
• File an Amendment Early: If you find out that you have overstated your mileage for the year, you may file an amended Form 2290 before the end of the tax period in order to correct the error well before that could have occurred had you to seek a refund later.
• Engage a Tax Professional: If in your opinion you cannot estimate miles for your fleet, hire a tax professional or accountant who is familiar with trucking taxes to avoid most common errors.

Over-estimating your mileage on Form 2290 results in overpayment of tax, but the IRS does offer a transparent manner in which to obtain the overpayment. Using this guide as a reference will help you recoup the overpayment and keep your trucking business in the black. Stay vigilant about tracking your mileage and keeping up those records so there are not more opportunities for this type of problem in the future, and consider using a qualified tax professional to make things easier.

Note: For more information, visit IRS website