Hey there truckers, Hope you are reading this article with high spirits this New Year. No wonder misconception might arise within yourself due to our repeated HVUT deadline alerts. We are not trying to mock you with repeated deadline alerts. Federal law states that HVUT Form 2290 must be filed on a Vehicle by the last day of the month following the month of its first use. Continue reading
The Form 2290 HVUT tax returns are due by the end of this month for vehicles that are into service beginning December 2017. Penalties for HVUT non-compliance are serious money; it is equal to 4.5 percent of total tax due, assessed on a monthly basis up to five months. Late filers who don’t make an HVUT payment also face an additional monthly penalty equal to 0.5 percent of total tax due. Additional interest charges of 0.54 percent per month accumulate as well. Continue reading
Federal law requires that you create an EIN for doing business as a truck owner. This fact is applicable even for truck owners who are apparently business owners by default. Federal law states that a tax payer must require an EIN before proceeding with few federal tax filings including the Form 2290, The Heavy Highway Used Tax Form.
You can apply for an EIN either by filing an SS-4 application or by logging on to the IRS website https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein.
Tips on Business Names:
When you complete the process to receive your EIN, and choose the type of business, you will also have the chance to choose a Doing Business As name, also referred to as a DBA name. While this name remains attached to the EIN, it is important to note that it is NOT the legal name of the entity.
Should you create an EIN as a sole proprietor, your name is the legal name of the entity. If you go through an incorporation process, the name on your papers of incorporation is the legal entity name. Be sure to use the legal entity name when filing tax forms, such as the heavy vehicle used tax form 2290.
Listing out your Business under the right category:
Most HVUT tax payer’s questions during creating their account with www.truckdues.com is
Under which category should I report my business?
I am an owner operator, I don’t own a business. What do I type in there on the business name section?
Types of businesses which basically encounters this scenario by far are as follows:
Many owner/operators are sole proprietors. To be a sole proprietor, you do not have to do anything other than obtain your EIN. No paperwork, no legal fees to establish a legal entity, no stress over what type of business to be.
So why wouldn’t everyone do it this way? Sole proprietors remain personally liable for lawsuits files against their businesses. That means if you have an accident with a motorist, and they sue your business, in fact they are really suing you.
Also, sole proprietors pay taxes on the earnings from the business on their 1040, or personal tax form. You may find advantages in the other legal structures to minimize some of those taxes.
Limited Liability Company (LLC)
Yet another famous structure with owner/operators, the LLC creates a legal structure separate from the personal assets of the owner(s). LLCs also allow the debt from the business to be kept separate from personal obligations.
While that reduces the amount of stress you may have from fear of lawsuits or bankruptcy in your business harming your personal situation, the taxation remains similar to a sole proprietorship for a single owner. So the profit or losses of the business are the same as those of the owner.
In case if the LLC is formed by a group of partners, the taxation will resemble that of a partnership
A partnership can be similar to either of the first two options above. You can enter into a partnership where each partner acts as a sole proprietor, or you can construct the partnership as an LLC.
Unless made under an LLC, a partnership does not provide relief from liability for lawsuits. The taxation of profits or losses goes on the 1040. Benefits of partnership include spreading some of the risk and combining the different skills of two or more owners to provide a better service or product to customers.
An S corporation has shareholders. Like an LLC, an S corporation is an independent legal structure separate from the shareholders to separate personal assets from business assets. Owners must still report their income from the S corporation on their individual taxes, but in this case that eliminates the need to report them at the corporate level, preventing double taxation.
There are also certain requirements to qualify as an S corporation:
- Have only allowable shareholders.
- Have no more than 100 shareholders.
- Be a domestic corporation.
- Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).
A C corporation shares similarities with an S corporation, but has a few important differences. There is no limit to the number of shareholders. The corporation also pays tax on the corporate profits, while shareholders pay tax on dividends or capital appreciation, should they sell their stock at a profit. Shareholder also may not deduct a loss based on their ownership of stock in a corporation that posts a loss.
Should you have any more questions than this, Please feel free to reach our support team @ (347) 515-2290 [9. AM through 5 PM, Central Standard Time including weekends and all major federal holidays] or write us: email@example.com or Live chat with our support team for instant help.
New Year is right around the corner. Many people hold parties at home or attend special celebrations to celebrate the upcoming New Year. In many cities, large scale public events are held. So it is always be a good feeling for us to be among the crowd during gatherings for an occasion like New Year. Witness a Parade to feel more live and enthusiastic.While you could find a New Year’s Eve party nearly anywhere you go, some cities definitely do it better than others. You may certainly consider check these below celebrations out. Continue reading
Attention truckers, The IRS e-File servers will be shut down due to Scheduled annual maintenance by 11:59 A.M Eastern Standard Time. Any E-Filed tax return during this maintenance period will place your tax returns on hold until the IRS officially recommences full operations which is not expected to happen until the 1st week of January 2018.
The IRS on-line servers will go off-line every year right after Christmas since they had to upgrade the servers to improve functionality and to make the servers adoptable to accept Future Year’s tax returns. i.e., (For the Period beginning July 1st, 2018 through June 30th, 2019)
This sounds to be good however, this could be a real hindrance when we have situation to E-File our Pro-rated tax returns for the Period beginning December 1st, 2017 through June 30th, 2018. Form 2290 must be filed on a vehicle by the last day of the month following the month of its First Use. On this basis Form 2290 is due by December 31st, 2017 for vehicles first used since November 2017.
Truckers, please take this article into serious consideration and we hope that you have already e-filed your tax returns. Else, you might want to wait until the IRS recommences their Full operations. Also, Truckdues.com will not hold any responsibility for the delay in processing any tax returns which were filed during this maintenance period.
Please feel free to reach our support team @ (347) 515-2290 [9. AM through 5 PM, Central Standard Time including weekends and all major federal holidays] or write us: firstname.lastname@example.org or Live chat with our support team for instant help.
Less than 4 days to go and it’s Christmas once again! We bet you are already shopping gifts for your loved ones. One must seriously consider that not everyone gets a chance to stay with their loved ones during holidays like Christmas. Well, for truckers who work really hard to serve our nation’s needs it’s hard for them to get a great opportunity to spare time to think what would be bottom-line thought to plan ahead for Christmas 2017. Hence, for those who have a Trucker of your life, kindly consider gifting few items which would ease their hard working journey. Continue reading
Hello there truckers, How’s it going. Well you might be wondering if this article is about a HVUT deadline, the answer is a YES. Much as we’d all enjoy planning how to celebrate this Christmas Eve, we ought to stay aware of the HVUT tax deadline. Cause we got a near term tax deadline by Dec 31st for vehicles first used in November 2017. Continue reading
We have come across this question from our truckers almost on daily basis, how do I transfer my 2290 from my old truck to the new? When they say an old truck, technically the vehicle will no longer be in their possession as they might have replaced that vehicle with a new truck due to many reasons likely mechanical wear & tear, electrical system failures & so on.
However the 3 options for which you would be able to claim credits & refunds on. Respectively: Continue reading
Hello there Truckers, Now through this article we’re here with a piece of information for you. Every year during the Christmas eve, the IRS plans to shut down their e-file servers due to scheduled maintenance in a motive to basically upgrade their servers where it would allow them servers to process and accept future tax year’s with no hassle (For the Period beginning July 1st, 2018 through June 30th, 2019).
Yes you read that right… December 31st, 2017 would be the deadline to E-File Form 2290 for vehicles first used since Nov 2017. If you may refer to the IRS rules, Form 2290 must be filed on a vehicle by the last day of the month following the month of its first use. So this deadline must be considered very seriously only when if you had any recent addition to your fleet during Nov 2017. Continue reading