As an owner-operators or fleet manager cutting costs can always be rewarding. There’s nothing like saving a dime here and there to increase profit margins and to have more savings in the bank. However, when it comes to truck taxes you have to pay the amount you owe. Unfortunately, there isn’t much wiggle room, but we do know a few ways you can save before and after filing.
How To Save On Your 2290?
Use Discounted Prepaid Credits
This first tip mainly helps those with multiple vehicles to file for because our sister company, ExpressTruckTax, makes it easy to save on bulk filing. Simply take advantage of their wallet feature to purchase prepaid credits for the 2290 Forms you need to file.
Each credit provides a 10% discount for filing fee, not on the amount of Heavy Vehicle Use Tax you owe. So, with the more you file, the more you save. Plus, the credits save you time, because instead of having to hunt down your credit card and entering your payment information you can simply pay with your prepaid credit.
To get prepaid credits create a free ExpressTruckTax account, log in and you’ll see your wallet in the top right corner. Click buy to purchase the amount you need. The wallet will always display the number of available credits you have.
Remember To File Form 8849
Form 8849 is the Refund or Claim of Excise taxes form. It’s used to claim credits or refunds on Form 2290 for vehicles that were destroyed, stolen, or sold. It’s also used to claim credits or refund on vehicles that are suspended.
A suspended vehicle is one that does not exceed 5,000 miles (7,500 for agricultural vehicles) during the current tax period. The current tax period doesn’t end until June 30th, so make sure your vehicle doesn’t exceed the mileage limit by then.
The thing to remember about Form 8849 is that you can’t file it until you’ve filed your Form 2290 and paid the full amount of Heavy Vehicle Use Taxes you owe. Then all you need to file is your name, address, and EIN.
Be sure to include the information for the vehicle you’re claiming a refund on, and details such as why. Include if your vehicle was destroyed, sold, or stolen with the date that the incident occurred.
Be Prepared and File On Time
Give yourself enough time to file. If you wait too close to the deadline problems could surface. For example, you need an EIN or Employee Identification Number to file. If you don’t have then you can apply for EIN with the IRS, but it takes about 15 days for new EINs to become active in the system and forms can be rejected during this time.
ExpressTruckTax will let you know immediately if your form is rejected and why, so you can make any corrections and retransmit your form, but if you wait until the deadline you might not be able to make your corrections in time, resulting in missing the deadline.
You don’t want to get hit with the penalties involved with filing late. If you fail to file by August 31st the penalty is 4.5% of the tax due and it accrues on a monthly basis for up to 5 months. If you don’t pay the amount of Heavy Vehicle Use Tax you owe by the deadline then you’ll face an additional penalty of .5% of the amount owed per month. Trust us, you’ll save by filing on time!
We’re Here To Help
If you have any questions regarding your 2290 please don’t hesitate to ask. Remember that you can pre-file now with ExpressTruckTax and file over the phone with TSNAmerica at 803.386.0320 to instantly get your stamped Schedule 1. Contact the dedicated TruckLogics support team Monday – Friday from 8:30 AM to 5:30 PM EST at 704.234.6946. We’re also available via live chat and offer 24/7 email support at [email protected].