The Federal heavy Vehicle Use Taxes (FHVUT) are reported and paid to the IRS on the heavy highway vehicles using IRS Tax Form 2290. This is an annual tax and paid for the 12 months period between July 2021 through June 2022. For this current tax period the 2290 taxes were already due and paid by August 31, 2021 on heavy highway vehicles that is used from July 2021. For the other vehicles that is used for the first time in this current tax year after July would have a partial period tax or pro rated 2290 taxes calculated on its first use month. For vehicles that is first used in October 2021 since July will have the due date this November 30, 2021.
The IRS Tax Form 2290 is validated when it is filed with the IRS using the EIN – Employer Identification Number against the Business Name as issued by the IRS during the registration process, this EIN is mandate to complete a 2290 taxes electronically. Name Control Rejections are quite common these days by the IRS on all the new Employer Identification Numbers Issued by the IRS for businesses that enrolls with the IRS. This is a new notification sent out by the IRS on the delay in accepting and updating heir system. The IRS will not accept the Doing Business As – Name, dba name as a legal business name.
Delay in Processing Newly Applied for Employer Identification Number (EIN)
In the latest IRS release to the software developers and transmitters, the IRS has states as below on the issues with new EIN and name control rejections on IRS Tax Form 2290.
There was an issue with Business Rule R0000-922-01 erroneously rejecting newly applied for Employer Identification Numbers (EINs) that were assigned on or after September 17, 2021.
R0000-922-01 – Filer’s EIN and Name Control in the Return Header must match data in the e-File database, unless “Name Change” or “Name or Address Change” checkbox is checked, if applicable.
The delay with the IRS MeF System process of updating the Employer Identification Number (EIN) files has been fixed and live now.
So the new EIN which has to hold the returns from processing were already submitted with the IRS and got it through, in in case you were missed out then please reach out to our help desk and have this submitted with the IRS for processing.
So let us also understand some of the basics about Name Control here…
What is a name control?
A name control is a sequence of characters derived from a taxpayer’s name that is used by IRS in processing the tax return filed by the taxpayer. It is important that the combination of name control and taxpayer identification number (TIN) provided on an electronically filed return match IRS’s record of name controls and TINs.
A name control is established by the IRS when the taxpayer requests an Employer Identification Number (EIN). The IRS creates the name control from the legal name listed on the Form SS-4, Application for Employer Identification Number.
When a 2290 tax return or extension is filed, the IRS checks whether a name/TIN combination is correct by matching it against a file containing all employer identification numbers (EIN) issued by IRS. The name control listed on the 2290 tax return or on the extension is then compared to the name control on the IRS file. If it matches the name control with the IRS records, it is considered to be correct.
Why is the name control important?
In e-file, a taxpayer’s Employer Identification Number (EIN) and name control in the Return Header must match the data in the IRS e-file database. If the EIN and name control do not match with the records at the IRS end, the 2290 tax e-filed return will be rejected.
How Your Name Control is Assigned
When you applied for your Employer Identification Number you provided the name of your business, which is used to assign your name control and will remain so unless you request a name change. If you did not use a business name and instead used your individual name, your name control will be the first four letters of your last name.
For example, John Q. Public applied for an EIN using John Q. Public and did not use a business name. The name control assigned would be PUBL. If your last name has fewer than four characters, your name control is your last name.
For example, Jane Doe would have a name control of DOE. If you applied for your EIN using a business name, the name control is assigned from the first four characters of your business name.
There are some special rules for name controls:
- The ampersand (&) and hyphen (-) are the only special characters allowed in the name control.
- The name control can have fewer, but no more than four characters.
- Spaces or blanks are not part of a name control. For example, the name control for Joe Doe Trucking is JOED.
- The word “The” at the beginning of your business name is not used in your name control.
- Blanks may be present only at the end of the name control.
- Do not include “dba” as part of the name control.
How can I determine my corporation’s name control using the Business Name Control matrix?
The name control consists of up to four alpha and/or numeric characters. It can be determined from the information specified on the first name line. Generally, the name control is derived from the first four characters of the corporation name. An ampersand (&) and hyphen (-) are the only special characters allowed in the name control. The name control can have less, but no more than four characters. Blanks may be present only at the end of the name control.
Note: Do not include ”dba” as part of the name control. The initials stand for ”doing business as”.
Business Name Control Valid Characters:
Numeric (0- 9)
Special Business Name Control Rule:
If an invalid character is used in the name line, drop the special character from the taxpayer’s name. Example: Joe.com should be “JOEC”. Another example is 4U.com. The name control should be “4UCO”.
Business Name Control – Examples
Name Control Rule
Sumac Field Plow Inc.
11th Street Inc.
P & P Company
Y-Z Drive Co
John Hackberry PA
Derive the name control from
The Willow Co.
When determining a corporation’s
Read more about the name control and the regulations on business name and employer identification numbers click here.