If you own a heavy vehicle with a taxable gross weight of 55,000 pounds or more, you must file the IRS form 2290, so you can receive your IRS watermarked Schedule 1 copy, which acts as proof of your HVUT payment.
But why do you need proof of payment and how does it help you stay compliant? Let’s take a look.
Understanding the Importance of Form 2290 Schedule 1
An IRS watermarked Schedule 1 is an important document that you must carry with you at all times. Especially, when you are on the road or while visiting your state DMV center. Let’s take a look at some of them:
1. A stamped Schedule 1 acts as a proof of HVUT payment.
Every year, truckers need to file their form 2290 and pay the HVUT tax if their vehicles weigh more than 55,000 pounds. When you’ve paid your HVUT tax, you will receive an IRS watermarked Schedule 1 which is a proof that you have paid your dues.
2. You need a stamped Schedule 1 to use your vehicle on public highways.
You need to have the IRS stamped Schedule 1 copy with you to drive your heavy vehicle on the United States highways. If you don’t have a Schedule 1 copy, you will either have to pay a fine or get arrested by the police.
3. You need HVUT proof of payment for entering into the United States.
The U.S. Customs and Border Protection requires you to produce a proof of payment for entering a Canadian or Mexican vehicle into the United States. This is important for carriers who deliver cross-country freight.
Without a Proof of Payment, you will not be permitted to operate your vehicle on the United States highways. In case you don’t have the Schedule 1 copy with you, a photocopy of form 2290 with Schedule 1 attached to it and a copy of both sides of the canceled check can be used as proof of payment (1).
4. A stamped Schedule 1 is required to register or renew your vehicle’s license plate and insurance tags.
If you drive a taxable vehicle on American highways, you need to renew your vehicle’s license plates and tags with your state’s Department of Motor Vehicles (DMV).
For this purpose, you will need to mail a copy of proof of payment of HVUT (but keep the original) and the required renewal fee. You will also need to submit your proof of payment to register or renew your vehicle for the International Registration Plan (IRP), International Fuel Tax Agreement (IFTA), or Unified Carrier Registration Program (UCR).
If the HVUT is paid electronically, submit either:
- A copy of the electronic receipt of the HVUT Schedule 1 showing the dated e-file watermark; or
- A copy of the IRS payment confirmation screen with a copy of the HVUT showing fees paid per vehicle filed.
5. You need a Schedule 1 to lease or sell your vehicle.
If you wish to lease your vehicle, you must provide the IRS watermarked Schedule 1 copy to the company or individual you are leasing it to. A Schedule 1 copy not only lets them know that you are tax compliant, but also allows them to produce proof if they get pulled over on the highway.
A Schedule 1 copy is also required if you intend to sell your truck to someone else. You must hand over the copies of your latest IRS watermarked Schedule 1 so that the buyer will also be aware of the period the tax has been paid and when he/she must begin paying the HVUT return.
6. You need an IRS-watermarked Schedule 1 to report the suspension of HVUT tax.
You will need a Schedule 1 copy to report any/all vehicles for which you are reporting tax (including an increase in taxable gross weight) and to report the tax paid for suspended vehicles by category and Vehicle Identification Number (VIN).
7. You need a Schedule 1 to claim a refund for overpaid tax dues.
If you’ve overpaid your HVUT tax and would like to file a refund claim, you need to produce the IRS-watermarked Schedule 1 proof of payment to apply for the same.
How Long Will it Take to Receive Your Form 2290 Schedule 1?
E-filing is the fastest way to receive your IRS stamped Schedule 1. You will receive your Schedule 1 in a matter of minutes after filing your 2290 return. Manual filers will receive their form 2290 upto six weeks after form filing.
When you e-file your 2290 return through an e-filing service provider like eForm2290.com, you will receive your stamped Schedule 1 on your registered email address. A copy of the Schedule 1 will be generated and stored on eForm2290.com’s database for later download.
Information Required to Receive Form 2290 Schedule 1
To submit your Schedule 1, you must have the following details:
- Employer Identification Number (EIN): It is a unique 9-digit number that is used to identify taxpayers who file business tax forms by the IRS. It is also known as Federal Tax Identification Number.
- Business Name and Address: You will need to enter the name and address of your business, including the ZIP, state, and country.
- First Used Month (FUM): The FUM refers to the first month that you drove your vehicle on US public highways during the tax year.
- Vehicle Identification Number (VIN): A VIN is a 17 character number that is used to identify individual vehicles by the automotive industry.
- Taxable Gross Weight Category: If your highway motor vehicle has a taxable gross weight of 55,000 pounds or more, then it is a taxable vehicle. The taxable gross weight determines the weight category and how much tax you need to pay.
- Suspended Vehicle (if any): If you own a heavy vehicle with a taxable gross weight of 55,000 pounds or more, but has not exceeded the 5,000 miles limit (7,000 miles for agricultural vehicle), then it is considered a suspended vehicle.
Receive Your Schedule 1 in Five Simple Steps
To receive your Form 2290 Schedule 1, you must:
- Register or login to a form 2290 e-filing service provider.
- Enter business details and EIN.
- Select form 2290 tax year.
- Enter vehicle details and other information.
- Pay service fee and submit the form.
After submission, the IRS will process your form and you will receive your Schedule 1 in minutes.
A stamped Schedule 1 is an important document that you will need when operating your vehicle, for various tax proceedings, and for several other purposes.
Now that you are familiar with the importance of Schedule 1, ensure that you print multiple copies of your form 2290 Schedule 1 and carry at least one copy with you at all times.
To receive your form 2290 instantly, e-file your form 2290 with an IRS approved e-filing service provider like eForm2290.com who offers fast, easy and safe e-filing services.