Individuals must file Form 2290 and Schedule 1 of the tax period that begins spans between 1st July to 30th June of the tax year, if they own a taxable highway motor vehicle that needs to be registered with the IRS. Filing this IRS Form 2290 before the deadline helps save a lot of money, but petty small mistakes while filing the form keeps extending the filing date and invites unwanted trouble. Here are the most common mistakes with Form 2290, that are to be avoided while filing Form 2290.
Common mistakes to avoid while filing Form 2290
Form 2290 is required to be registered by individuals, corporations, partnerships, and other organizations if they want a heavy vehicle weighing 55,000 pounds or more to be registered in their name. The penalty for failing to file Form 2290 by 31st August of the financial year is 4.5% along with the tax. Thus it is important to avoid mistakes and file the form on time. Common mistakes to avoid while filing this Form are as follows.
- Wrong Vehicle Identification number:
The Employee identification number and the vehicle identification number are vital for filing Form 2290. It is important to be specific with these two numbers, and even if a single character is misplaced, then the Form will be considered invalid and rejected by the IRS.
- Errors with the month and year:
Most people tend to pre-file Form 2290 online and tend to select the current year and not the next year. Also, people have to choose an accurate first used month when the truck is first used on the highway during the tax year. For example, if the vehicle was first used in July, then you have to file Form 2290 by August 31.
- Problems with Employee registration number registration:
New employees and people with new EIN face this problem frequently. It can take about ten business days to update the new EIN with the system of the Internal Revenue Service. Thus, before starting to file Form 2290 Online, people have to make sure that they have a valid EIM to apply. Also, their IRS account should have activated the EIN file before accepting the 2290 registration.
- Problems with the signature:
Any discrepancies with the authorized signature of the vehicle holder should be avoided. The best alternative is to use a five-digit authorized signature code to avoid errors.
- Discrepancies in business name and address:
Several returns on the file are owing to the mistakes in the business name and address. As it is the most common error it is best to double-check the name and the address before submitting the form with the IRS.
The IRS form 2290 calculations can be quite tricky as they are based on the weight of the device. But there should not be any mistakes with these calculations and the best way to avoid them is to file them online through a credible agent.