Nobody likes to pay for what they don’t use. If you only use a subscription or a service for six months out of the year, you shouldn’t have to pay for the entire year; you should only have to pay the prorated amount. Fortunately, truckers who put their vehicles in service for the first time after July can file Form 2290 prorated; they don’t have to pay for the full tax year.
Filing Form 2290 on a prorated basis is required when a vehicle is placed in service after the start of the HVUT tax year, which runs from July 1 to June 30. This ensures that truck owners and fleet managers only pay the Heavy Vehicle Use Tax (HVUT) for the months the vehicle is on the road. Understanding the process helps avoid penalties, interest charges, or registration delays with the DMV.
You can only file Form 2290 prorated under certain circumstances, which include the following:
The IRS allows prorated tax payments starting the month after a vehicle is first used on public highways. Each vehicle placed in service mid-HVUT tax year requires a separate filing, even if other vehicles were already filed under a full-year return.
The due date for a prorated return is the last day of the month following the vehicle’s first month of use. For example, if you commission your vehicle for use for the first time in the month of October, you must file your HVUT by November 30. In this case, you would have a Form 2290 prorated, only paying the HVUT for nine months (October through June), instead of the full tax year.
Missing the prorated deadline can result in late fees. Failure to file by the deadline will result in a late filing penalty of 4.5% of the total tax due, compounded monthly for up to five months. Additionally, the IRS will charge interest on top of your compounded late fees. Keeping a record of in-service dates is essential for accurate and timely HVUT reporting.
There’s a few items you’ll want to have handy before filing your HVUT, whether you’re paying for the entire HVUT tax year or you qualify for a Form 2290 prorated payment. You’ll need the Vehicle Identification Number (VIN), taxable gross weight, and the exact first-use month.
The IRS does not accept Social Security Numbers, so have your Employer Identification Number (EIN) handy; it is required to file Form 2290. The payment method must be selected in advance. Payment options include:
Calculating the prorated amount is not difficult, but it can be cumbersome. The IRS provides a tax table in Form 2290 instructions to calculate the correct amount based on first-use month and vehicle weight. Some e-file platforms make this extremely easy by prompting for the information and doing the calculations for you, saving time and ensuring that you pay the proper amount.
Tax amounts decrease the later in the tax year the vehicle is first used, but you still owe the full amount for that first month. In other words, the Form 2290 prorated amount is not calculated by days, but by months. Thus, if you first use the vehicle on November 30, you still pay for the full month of November. Special rules apply for vehicles used for logging and suspended vehicles (those under 5,000 miles annually).
You can e-file the prorated Form 2290 using an IRS-approved e-file provider or submit a paper form by mail. Most filers prefer e-filing because it results in a faster stamped Schedule 1, which is needed for registration. When filing online, the system typically calculates the prorated tax and generates a Schedule 1 after payment.
Filing with the wrong first-use month can result in IRS penalties or rejected forms. Submitting Form 2290 without an EIN or with an EIN that hasn’t been active for at least two weeks may cause delays. Forgetting to include payment or using an unapproved payment method can invalidate the filing.
Whether you are filing your Form 2290 for the full year or filing Form 2290 prorated, you want to use a service that is dedicated to ensuring that you only pay the amount you owe, while delivering spectacular service. Since our specialty is all things Form 2290, here at i2290 we have you covered, regardless of your circumstances.
With i2290, you can enjoy the convenience of e-filing your return from anywhere with internet access, saving time and money, while reaping the additional benefits of easily accessible digitally maintained records for seven years, filing VIN corrections and weight increase amendments for free, and access to a world-class customer service team.
Even if you struggle with technology, our platform is simple, straightforward, and streamlined. Our software will guide you through a short series of questions about you and your vehicle(s), then automatically calculate your Form 2290 prorated taxes for you – it’s as simple as that. Then for a small fee, we will do the calculations for you and generate your stamped Schedule 1 in a matter of minutes!
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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 properly filing and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.
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