Tax payment is the primary responsibility of every citizen. So, if you are a resident of America and into the truck business, you need to know about the Heavy Vehicle Use Tax (HVUT) and the IRS form 2290.
If you have a heavy vehicle registered in your name that weighs 55,000 pounds or more, you must file form 2290 online and pay the HVUT return. While filing the form, you must provide all the information regarding your business, vehicle, and the person in authority.
HVUT Payment
You can file your form electronically and pay the HVUT amount via a trusted e-file service provider. There are multiple options available to pay the tax.
Some of the most used payment options are Electronic Fund Withdrawal (EFW), Electronic Federal Tax Payment System (EFTPS), Debit/ Credit card, and money order.
While the last two payment modes are common, people usually get confused between EFW and EFTPS payment methods. Below we break down how they work.
Electronic Fund Withdrawal (EFW)
EFW is a direct debit method where the money is directly debited from your bank account towards the HVUT payment. EFW proves to be a convenient option for many people.
For this mode of tax payment, you need to provide the following information:
- Bank account information
- Routing number of the bank account
EFW is convenient and free of cost. It is one of the safest and easiest modes to pay your HVUT return if you do it through a trusted IRS authorized e-file service provider.
When you pay via EFW, it takes around 24-48 hours for the money to get debited from your bank account. However, you may experience a slight delay if you make payments on a holiday or weekend.
Your HVIT return will be settled on the date of the return or when you file your form 2290. To know the status of your EFW transaction, you will need to contact the IRS or check your bank statement.
Electronic Federal Tax Payment System (EFTPS)
EFTPS is a free tax payment service provided by the US Department of Treasury. This type of tax payment mode allows the person to pay the IRS tax up to 120 days in advance, eliminating any chance of missing the tax payment deadline.
For online enrollment of EFTPS, you need to enter the following details:
- Employer Identification Number or your Social Security Number, depending on whether you enroll as a business or individual
- Bank account number and routing number
- Name and address as per IRS tax documents
For this type of payment, the taxpayers need to visit the EFTPS website and follow the instructions for enrollment. Once you enter the required details and submit, you will receive a PIN via mail within 7 business days. You can then use your PIN to log in to your account to use the EFTPS service.
EFW Vs. EFTPS
There are many differences between EFW and EFTPS. Some of the points are stated below:
- EFW offers a single-step tax payment, whereas EFTPS tax payment can be done through the internet or over the phone after you receive your PIN.
- EFW is free of cost, but the payments cannot be made on the weekends. On the other hand, EFTPS is also free and is available 24*7.
- EFW requires commercial software, a paid preparer, or IRS Free File to transfer the funds, unlike EFTPS that does not require any software (1). In the latter payment mode, a person has to visit the official website to make the payment.
Final Thoughts
Both EFW and EFTPS are safe and efficient ways to pay your taxes. You can choose any method of tax payment based on your convenience. However, ensure that you pay your HVUT amount before the form 2290 due date to avoid any penalties from the IRS.