Heavy Vehicle Use Tax (HVUT) applies to vehicles with a taxable gross vehicle weight of 55,000 pounds or more. This annual tax is paid in advance (like insurance) and the IRS Form 2290 is due the last day of August each year. But what happens if you file your Form 2290 and realize later that it has an error? In many cases, vehicle registration authorities will require a corrected Stamped Schedule 1 before a registration can be renewed.
An amendment is a fast and easy way to correct an error on a 2290 return that has already been accepted by the IRS. There are three types of Form 2290 Amendments to correct the most common errors or changes during the tax year:
- Increasing vehicle’s taxable gross vehicle weight
- Updating a suspended vehicle to taxable if it exceeds the mileage use limit
- Correcting miskeyed VIN numbers on the Schedule 1
Below, we’ll walk you through everything you need to know to determine if you should file an amendment on your Form 2290.
When To File A Form 2290 Amendment
Taxable Gross Vehicle Weight Increase
One instance where you may need to file a Form 2290 Amendment is if the taxable gross vehicle weight (GVW) of your vehicle increases during the tax period, causing the vehicle to fall into a new category. Most increases to the taxable gross vehicle weight occur when a kit is applied to a vehicle increasing its weight or capacity, or when a vehicle registration authority deems the GVW should be greater than what is shown on the Stamped Schedule 1 you present for your vehicle registration. In cases where the vehicle’s updated taxable gross vehicle weight falls into a greater weight category, a Form 2290 Amendment must be filed and the additional tax must be paid for the period. File the amendment by the last day of the month following the month in which the weight increase occurred.
The increase in tax due is essentially the difference between the increased tax amount and the former tax amount. If the weight increase occurs in the middle of the tax year, then that difference is prorated for the number of months remaining in the tax year. For example, if a vehicle was originally filed as weight category “A”, paying $100 in tax for the year, and was increased to weight “V” which has a tax liability of $550 for the year, the full year difference is $550 – $100, or $450. If the increase occurred in January, then the increased tax is due for the remaining months of the tax year (January – June) which is 6 months. Since 6 months is only half of the year (6 months / 12 months in a year), the tax due would be $450 X (6/12), or $450 * 0.5, which is $225.
The best way to ensure you have correctly amended a 2290 return for a weight increase is to use a reputable 2290 e-file provider with software that will produce accurate tax calculations and correctly complete all amendment details. An added benefit of using e-file is that you will receive your corrected stamped schedule 1 within minutes of e-filing.
A Suspended Vehicle’s Mileage Limit Is Exceeded
Another instance where a Form 2290 Amendment is necessary is when a vehicle that was filed as Suspended on a Form 2290 (meaning the vehicle was expected to drive less than 5,000 miles on public highways) exceeds the 5,000 mile mileage limit (for agricultural vehicles, that limit is 7,500 miles). The mileage use limit applies to the total mileage a vehicle travels during a period, regardless of the number of owners, and the tax becomes due as soon as a suspended vehicle exceeds that limit.
Filing this amendment will produce an updated Stamped Schedule 1 for use with vehicle registration. It also waives any late penalties as long as it is filed no later than the last day of the month following the month in which the vehicle exceeded the mileage limit.
A Vehicle Identification Number (VIN) is a unique serial number used by the automotive industry to identify individual motor vehicles. It is always best to accurately enter your VIN when you file your Form 2290 to avoid delays with registering and the need to file an amendment. However, in the case where you miskey a VIN number on your return, you can file a VIN Correction amendment. This amendment has $0 tax liability since you have presumably already paid your tax for the vehicle. The result of this type of Form 2290 Amendment is a corrected Stamped Schedule 1 showing the correct VIN so you can register your vehicle.
When You Can’t Use An Amendment
Not all information can be filed with an amendment; sometimes, it takes a more drawn out process requiring IRS assistance to get an issue resolved. This could happen if you file for the wrong tax year, which is more common than you’d think. Choosing the right year on Form 2290 is challenging, as the tax is paid in advance with an odd fiscal year (July 1 – June 30). Another scenario where an amendment won’t cut it is if you file with the wrong business name or address, which could create issues with IRP and state vehicle registration offices. For that reason, it’s important to pay attention to accuracy.
It’s not that you cannot get these mistakes corrected, but since there is no amendment transaction to correct them, you will need to call the IRS for help. There are normally long hold times and the corrected Stamped Schedule 1 may take days or weeks to arrive.
File Your Heavy Highway Vehicle Use Tax Return With INSTANT 2290
Filing the Heavy Highway Vehicle Use Tax return is made simple when you e-file at i2290 where you can file any type of Form 2290 Amendments for free if your return was e-filed at i2290. With i2290, you can file from anywhere with internet access, view your documents whenever you choose, and receive a stamped Schedule 1 in a fraction of the time it would otherwise take. And if you need help with any part of the process, our support team is always happy to help. Ready to get started? Create an account with us today!
Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re making the correct amendments and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.