How Highway Heavy Vehicle Use Tax (Form 2290) Benefits Truckers?

Posted by Admin on 28. March 2013 08:18

IRS Tax Form 2290 affects everyone who has ever driven a vehicle on a public road.

Many people have been on the road and at some unfortunate time ran across a pothole or a chunk of asphalt missing and had that mini heart attack that occurs when your car makes a noise you’ve never heard before. Well what most people don’t know is that the government doesn’t just pour money into the road system to keep it nice and safe, that money has to be generated. Part of it comes from individual taxes and state raised money but a good percentage of road care comes from a tax form you may not be too familiar with.

Form 2290 is the Heavy Vehicle Road Use (Excise) Tax aka Truck Tax. It must be filed by every tractor trailer or large semi vehicle yearly and this tax form helps generate a large portion of the funds used to help maintain our roadways. Day after day the roads in the United States whether it is in a large city such as New York or a small town on the beach has hundreds of cars roaming across them and many people take the condition of the roadways for granted. The roads and highways in the US are a vital part of our economy and directly impact, shipping, traveling, tourism, and general day to day business. 

Heavy vehicle operators know just how valuable road conditions can be when operating a vehicle well over a few tons. The slightest break in the road can easily cause a loss in traction in the right conditions and endanger the lives of many travelers. This is why the IRS mandates that all Heavy vehicle owner operators pay their HVUT – by filing a Form 2290. The tax season for Form 2290 usually runs from July-June and with summer quickly approaching we want to help raise awareness for this Form. Tax2efile is here to help assist you in filing your 2290 and helping maintain our roadways and avoid IRS late fees. Visit www.etax2290.com or www.tax2efile.com to file your return today and understand when to e-file IRS form 2290 and all other related details about trucker tax.

The need to know about Form 8868

Posted by Admin on 27. March 2013 03:27

The tax extension form 8868 is a form that needs to be filed with IRS by tax exempts Organizations in order to receive an automatic 3 month extension. When filing there are some things to keep in mind, the first one is focus. Focus on the information that is being entered. IRS will reject the extension if there the Organization name and EIN are not matching their system, and no one wants to receive a rejection email. Another important fact is there are two parts when filing. Part 1 is the automatic 3 month extension and Part 2 is an additional 3 months which is not automatic.

The fastest way to file the Form 8868 is to use e-file services. It’s easy and it normally takes less than 10 min. You will receive an email from IRS with their answer of either accepted or rejected. It can take about 24h-48h to receive a response from IRS, which is faster than waiting 1 week or 2 weeks for their response by mail. In case of the Form 8868 being rejected www.tax2efile.com will notify the reason of the rejection and will also offer support in the correction and resubmission without any charge.  

Unique ways to prepare your budget plan to reduce debt

Posted by Admin on 22. August 2012 03:00

Budgeting is considered to be the stepping stone to pay off your debts. If you aren’t good at managing your money, then it can be difficult to come out as well as stay out of debt. Therefore, reducing your debt as well as budgeting can help you regain control over your financial situation. In order to get a clear picture of your financial future you need to prepare a budget plan. Remember, making a personal budget plan is considered one of the keys to your finances under control. Life is not monotonous when you’re on a budget; rather it can give you chance to understand your finances. You can use the money you managed to save while you’re on budget for enrolling in a debt reduction program in order to eliminate your financial woes. 

Here are a few ways to prepare a budget in order to reduce your financial obligations: 

1. List of your current expenses: When you’re preparing a budget you need to make a list of your current expenses. You can split the categories in order to provide detail description as it can help you understand where your money is actually going. When you have separate categories for each item, then you’re prepared to decipher between what you need and what you don’t. When you use your money to buy things that you don’t need then you’re left with less money for things that you actually need. Try to separate your "need based expense" from your "nice to have expenses". If you’re aware of your financial situation you may wait to buy an expensive stuff until you save enough for it.

2. A zero based budget plan: Prepare a zero based budget plan that accounts for every single dollar you earn. The objective of a zero budget plan is to have a personal budget to attain an overall budget line of zero. Unlike a traditional budget plan where you want to save considerable amount of money; but in this plan you either have to save or spent every single dollar. You can use a free budget spreadsheet that you find online then customize it according to your situation. 

Prepare a list of your income sources as well as list your fixed monthly expenses, for instance, mortgage payment, car payment, insurance and utilities. You can prepare a list of your variable monthly expenses like groceries, gas, clothing and entertainment on the basis of your six month’s average. You can use a zero based budget approach in order to determine how every dollar is spent. You need to prioritize your goal like reducing debt until you reach a bottom line of zero. 

3. Envelope system of budgeting: You can get budgeting software in order to maintain an effective budget plan. However, buying software is always not necessary as you can use the traditional method to prepare a budge plan. You can use pencil and paper or formulate a budget plan in an excel sheet. An envelope system is considered to be a popular method of budgeting. You can divide your paychecks among envelopes designated for particular   spending categories like groceries, food and entertainment. These envelopes can help you provide updated balance information for each spending category. Therefore, it can be easier to manage your expenses proactively as well as help you keep tab on the amount you have spent in each category. 

Therefore, these are the three unique ways to prepare a budget that can help you reduce your debt with ease. Make sure you avoid dissuading from your budget plan otherwise you may complicate your financial situation. Try to prepare a realistic budget, so that you can pay off the debts and regain control over your financial situation.

Written by guest writer Patricia Garner.

How to find the perfect site to file your 2290?

Posted by Admin on 31. May 2012 21:27

There are many things to consider when filing your 2290 with the IRS. The three main concerns are the filing fee, complexity of service, and stamped schedule 1 return time. Most online services offer the same deals but a discount should not be your only deciding factor. The average customer that’s files a 2290 is a truck driver, so complexity is a big issue. Customers want a service they can understand and trust to get the job done. This is how you build a loyal customer base.

When looking for a good e-file service for your 2290, pricing is also another breaking point. Depending on the service you are looking for, filing fee prices can vary. Most companies offer a number of truck filings for specific price points. It is also good to look for a company that offers a bulk filing or a Premium Service that can get the work done for you. This is a great option because it can save you a lot of time. Also check to see if the company charges a registration fee, to setup an account.

The last and most important part when researching 2290 e-filers is the amount of time it takes to process your 2290 and receive the stamped schedule 1. Depending on the company this time can vary but should not take long. The average online service return time should be between 30 and 45 minutes. Once your return has been accepted, make sure you are allowed to receive your stamped schedule 1 in different ways. The most common ways to receive your stamped schedule 1 are email and fax.

Etax2290 is trusted by many of the largest carriers and service providers in North America for e-filing IRS Form 2290. If you have any questions, please contact us at our USA-based customer support center in Herndon, VA at 703-229-0326 or email us at support@tax2efile.com.

The Benefits of E-Filing

Posted by Admin on 31. May 2012 21:20

Deciding which method is the best for filing tax forms each tax season has become a growing issue in the trucking world as owner/operators are beginning to weigh their options of “e-filing” and manually paper filing. Since tax season is only about a month away, it may be beneficial for truck drivers and fleets to better educate themselves on the different options they have as it relates to filing their form 2290.

As the principal advocates for the modernized method of filing, we will discuss the major advantages of “e-filing.”

When completing any task relating to a citizen’s obligatory duties, there is often a wait due to the simple fact that many, if not all, citizens are responsible for filing their taxes, renewing their licenses, etc. Fond memories are rarely ever made while loitering in line at one’s local IRS office, and all can attest to at least one bad memory that transpired in such a setting. Why take out hours from your day to visit the IRS office when one can file almost instantaneously from home? E-filing offers the option of filing your Form 2290 from the comfort of your home without taking more than thirty minutes out of one’s day. Meaning that you are able to avoid waiting for your Stamped Schedule 1, paying for postage and keeping track of your tax filing process. Above all else, “e-filing” is the most feasible option because of the provided customer support that is able to walk you through the process of filing your Form 2290 from your home (quality services varies by selected tax service).

Fortunately, carriers no longer have to stress and worry about deciding how to file for the HVUT because www.etax2290.com is able to electronically file IRS Form 2290 for an extremely affordable price. ETax2290 is trusted by many of the largest carriers and service providers in North America. If you have any questions, please contact us at our USA-based customer support center in Herndon, VA at 703-229-0326 or email us at support@tax2efile.com.

Excise Tax & Returns

Posted by Admin on 31. May 2012 21:17

As one should already know, the heavy vehicle use tax is considered a federal excise tax. An excise tax is generally known as an inland tax on the sale, or production for sale, of specific goods, or more specifically, a tax on a good produced for sale, or sold, within a country or licenses for specific activities. The heavy vehicle use tax may not appear to be a tax on a good, but think about it this way- truck fleets and truck drivers must certify that they have paid the heavy vehicle use tax in order to obtain “the good,” proper licensing and registration from the state, which is pivotal for being a truck driver.

Since the heavy vehicle use tax is considered an excise tax, drivers and fleets have the advantage of receiving a tax return in the name of the HVUT. Truckers are able to file for this return through Form 8849 (Claim for Refund of Excise Taxes Return), which accompanies the HVUT-focused Form 2290. Here are a few reasons explaining why truckers are able to receive a tax refund on the HVUT: an overpayment of tax due to a mistake in tax liability previously reported on Form 2290, a pro rata refund of the tax paid on Form 2290 for a vehicle that was sold, destroyed, or stolen, any vehicle on which the tax was paid on Form 2290 if the vehicle was used 5,000 miles or less on public highways.

The refund demonstrates that the heavy vehicle use tax is not all bad due to the fact that there is, indeed, a method to receive extraneous payments back. Therefore, it is important that truck drivers and fleets maintain proper records of their Form 2290 schedule and other important exchanges of payment in regard to the heavy vehicle use tax, so that come tax return season companies can make their money back.

For those who were unaware, www.tax2efile.com is able to electronically file the respective Schedules for IRS Form 2290, www.etax2290.com and Form 8849, www.etax8849.com. ETax2290 & ETax8849 are trusted by many of the largest carriers and service providers in North America. If you have any questions, please contact us at our USA-based customer support center in Herndon, VA at 703-229-0326 or email us at support@tax2efile.com.

The Fine Line Between The HVUT & The IFTA

Posted by Admin on 31. May 2012 21:11

Right around every tax filing season, there tends to be a rise in conversation between truckers about how to go about filing the various taxes, if hired accountants are charging excessively, and what these taxes go towards. The main taxes often discussed are the heavy vehicle use tax and the international fuel tax agreement, which truckers and companies tend to confuse as the same tax and filing. These are both taxes that must be paid by all truck drivers and fleets, yet there are distinct differences between the two financial obligations.

The international fuel tax agreement was introduced to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction, specifically long-haul trucks. The carrier files a quarterly fuel tax report that is used to determine the net tax or refund due and to redistribute taxes from collecting states to states that it is due. The best way to describe the IFTA tax system is by labeling it as a “pay now or pay later” system, in which carrier vehicles credit their licensed account anytime they pay the fuel tax. At the end of the fiscal quarter, the driver completes their fuel tax report listing all miles traveled and all gallons purchased, which is then averaged to determine the driver’s tax liability. The IFTA tax relates to fuel purchased and miles traveled, while the HVUT is something a little different.

The heavy vehicle use tax is a financial obligation established to address the issue that correlates heavier vehicle road usage and destruction of national roadways. The heavy vehicle use tax strictly relates to the size of long-haul carrier trucks, since it is believed that their weight greatly erodes highways. The amount of tax paid is determined by the month the truck begins use and payment is only needed once annually before the end of the tax filing season or serious penalties are incurred.

Fortunately, carriers no longer have to worry about filing for the HVUT or being exploited by ravenous accountants because www.etax2290.com is able to electronically file Form 2290 for an extremely affordable price. ETax2290 is trusted by many of the largest carriers and service providers in North America to e-file IRS Form 2290. If you have any questions, please contact us at our USA-based customer support center in Herndon, VA at 703-229-0326 or email us at support@tax2efile.com.

Enhancing Heavy Vehicle Use Tax Compliance

Posted by Admin on 25. May 2012 06:27

As all can imagine, it is difficult for the federal government to force cooperation with the heavy vehicle use tax. Yet, it is vital to the many roadway organizations and funds that state agencies remain in compliance with HVUT standards in order to maintain and conserve our national roadways. The Federal Highway Administration of the US Department of Transportation has taken multiple proactive actions to better enhance HVUT compliance throughout the nation. Although the responsibility largely falls upon the authority of state governments to administer the review of HVUT payment, the federal government has taken steps to demonstrate the necessity for state compliance.

For instance, the FHWA authorized a legal act entitled, "The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETA-LU)," which guarantees each states’ share of funding apportionment from the Federal Highway funds will equal 90.5 percent of its overall contribution to the Highway Trust Fund. This enhances state government compliance because the vast majority of all funds contributed by states to the Federal Highway Trust Fund are returned through highway fund apportionments, so there is incentive for states to make the necessary changes to enhance HVUT compliance.

As it relates to hands-on measures taken by FHWA, the administration has: created a tri-fold brochure highlighting the importance of HVUT tax compliance that can be distributed at department of motor vehicle offices; created training modules instructing FHWA division staff on how to prepare for compliance reviews, procedures for completing the reviews, flags that indicate non-compliance, types of evasion techniques and methods used to identify specific evasion techniques; and improved guidelines for conducting HVUT compliance reviews.

Here are some things we, as citizens, can do to enhance compliance. We can pressure our state decision-makers and managers to invest more resources and time into HVUT compliance so that they can begin to obtain the best practices in HVUT compliance. We can join professional and special interest associations to get the word out by attaching the FHWA’s tax compliance brochure to member newsletters. We can take the time to understand the importance of the HVUT & ensure that it is always paid on time. And everyone can help get the word out on the importance of HVUT compliance and e-file IRS Form 2290.

What is a Stamped Schedule 1 and Why is it Needed?

Posted by Admin on 25. May 2012 06:26

First let me explain, there is a difference between your 2290 return and the Stamped Schedule 1 received when your return is accepted by the IRS. This Stamped Schedule 1 document is important because it serves a twofold purpose. When you receive your Schedule 1, whether by fax, email or directly from your local IRS department building, you will notice it has a watermark in the background. In the past the Schedule 1 was physically stamped and mailed to you, and this is where we get the name Stamped Schedule 1. Now the IRS has realized we live in a more modern time, so the stamp is done electronically in the form of the e-file IRS watermark. 

As previously mentioned the Stamped Schedule 1 serves a twofold purpose. The first importance is that it shows proof of payment for the HVUT and acceptance by the IRS. Why is this important you ask? If you cannot show proof of payment for the HVUT, you cannot drive your truck and can subsequently lose your job. This can also cause you to incur penalty charges from the IRS because you cannot prove that the tax was paid on time. The second major importance is that it is required in order to register a vehicle. The DMV also needs to see proof of the HVUT being paid before they can release the tags for your truck.

E-Filing has become more and more popular among taxpayers and tax professionals. The IRS itself recommends E-Filing as their preferred method for filing most tax forms. A leading provider of this service, for those in the Trucking or Transportation industry, is Etax2290. Instead of waiting hours for the IRS to stamp your Schedule 1 and send it back to you, Etax2290 will get your Stamped Schedule 1 within minutes of filing.

Etax2290 is trusted by many of the largest carriers and service providers in North America. If you have any questions, please contact us at our USA-based customer support center in Herndon, VA at 703-229-0326 or email us at support@tax2efile.com to e-file IRS Form 2290.

Truck Tax

Posted by Admin on 20. March 2012 03:52

Heavy highway vehicle use tax return can be used for paying tax due on highway motor vehicles used during the period with a taxable gross weight of 55,000 pounds or more. It can also be used to figure and pay tax due on vehicle for which you completed the suspension statement on another Form 2290 if that vehicle later exceeded the mileage use limit during the period. HVUT stands for heavy vehicle use tax which is an annual federal highway tax imposed on certain heavy motor vehicles, including trucks, truck tractors, and buses using our public highways. The tax applies only to vehicles with a taxable gross weight of 55,000 pounds or more.

Form 2290 is used for filing this tax and up on acceptance, IRS will provide a stamped schedule1 which is the proof of payment of tax which further can be used to register the vehicle at DMV. Vehicle Owners and Operators use etax2290.com web-tool to submit Form 2290 and receive Stamped schedule1 in minutes. The IRS encourages all taxpayers to file Form 2290 electronically for filing Heavy highway vehicle use tax Returns for 2011-2012 and prior years. Electronic filing is required for taxpayers reporting on 25 or more vehicles. The due date for filing 2011-2012 tax returns for vehicles first used in July through September is November 30, 2011.

Vehicles first used October 2011 through June 2012 will follow the normal schedule for filing with reports due by the end of the next month that each vehicle is used for first time. For example, if a vehicle is first used in November 2011, Form 2290 is due by last calendar day of next month, or December 31. Truck owners and operators can use prior 2290 schedule1 filing receipts for 2010-2011 reporting to receive their IRP Tag prior to November 2011.

All form 2290 transactions can be handled in minutes electronically with the etax2290.com service. Once form is submitted via our web-service, schedule1 with IRS stamped watermark will be processed and returned to you in less than an hour and there is no need to visit and wait in line at the local IRS field offices. Start trying the www.etax2290.com service for free. Once you enter business and vehicle information, the website provides all other necessary calculations and additional IRS data for fast, error-free, electronic reporting.

There are several different methods for sending final 2290 forms to IRS that meet needs of Truck Owner/Operators of any level, from reports on a single vehicle to large scale fleet operations, as well as solutions for third party tax providers. The www.etax2290.com website maintains a history of all business, vehicle, and prior filing information for quick and easy reporting of future year tax returns. Click on links below to IRS Instructions, and sample completed Form 2290 and IRS Stamped schedule1, to learn more and then complete your  IRS Form 2290 filing over the web in minutes with our proven IRS e-file solutions from the team at www.tax2efile.co,