Basic 2290 Information for all Owner Operators
First things first. And the first thing that you need to do is go to the IRS Website and apply 24/7. Click Here for the IRS Website and apply for a FREE Employer Identification Number called an “EIN” IF YOU DO NOT ALREADY have one; or, to look up an old one you may have forgotten about.
You will need that 10 days in advance of paying your 2290 heavy use tax on your tractor. I would recommend that you apply as a Sole Proprietor for now. If you choose to incorporate later you can always either apply for another EIN or ask them to use the one you are applying for now as your corporate number.
First, the reason that you don’t need to worry about this if you are a Lease Purchase Driver is that your Carrier deducts 10.58 from your Settlement on a weekly basis for you and submits it to the IRS for this tax.
Why?? As a Lease Purchase Driver , you are an Independent Contractor, and literally an Owner Operator in business for yourself. See Article on Why New Owner Operators Fail and Succeed: Click Here
If you were to apply to most any Truck Company as a Truck Owner with your own Tractor to lease on with them, you would need a bill of sale for your Tractor purchase, and a copy of your PAID in FULL 2290 IRS form, which would have cost you $550.00 annually out of your pocket.
Again, let me reiterate, if you are a Lease Purchase Driver your trucking company, your Carrier, has already paid the Heavy Vehicle Use Tax on your tractor out of their pocket and is simply recouping it form you at a small weekly, affordable amount from you that equals $550.00 per year.
The same is true of all the other up-front costs you would have needed to be able to pay for if you had your own Tractor already, were already an Owner Operator.
So, please just relax and enjoy the Article and realize that you will learn and know more than most Semi-Tractor Owner Operators out there today if you take time to consume all the material we have provided for you here. Sincerely, Buck Williams, Owner Operator Recruiter since 1995.
Form 2290 (Heavy Highway Vehicle Use Tax or HVUT)
Who must file:
You must file Form 2290 and Schedule 1 for the tax period beginning July 1 and ending June 30 if a taxable highway motor vehicle is registered or required to be registered in your name under State, Canadian or Mexican law at the time of its first use during the period and the vehicle has a taxable gross weight of 55,000# or more.
You’ll need an EIN, Employer Identification Number if you don’t already have one. Click here for the IRS website to apply.
When to file for new operations or purchases:
Form 2290 must be filed for each month a taxable vehicle is first used on public highways during the current period July 1 –June30. The Form 2290 must be filed by the last day of the month following the month of first use.
Example: John uses a taxable vehicle on July 1 John must file Form 2290 by August 31, for the period beginning July 1, through June 30.
Example, continued: John purchases a new taxable vehicle on January 3. The vehicle is required to be registered in his name. The vehicle is first used in January. John must file another Form 2290 reporting the new vehicle by February 28, for the period beginning July 1 through June 30.
Please keep in mind that if you mail the payment in, it may possibly take the IRS 4-6 weeks to return your stamped receipt to you.
Your stamped receipt is needed to obtain new plates or renew your base plates for your truck. However, you can make the payment at any IRS office in person and walk out with your paid receipt. To find an IRS office in your area visit http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 and click on the state.
You should obtain a Employer Identification Number (EIN) to use for your 2290 filing. If you don’t remember your EIN# or if you are not sure if the number is still good, you can call the Form 2290 help line at 1-866-699-4096 and the IRS will look it up for you.
If you are new to the business, and you don’t have an EIN#, you can apply for one on-line at www.IRS.gov and click on Businesses, then click on Employer Identification Numbers (it’s on the left hand side of the page under “Topics”) for more information.
Please take the time to study the Owner Operator Trucking Tutorial: Click Here