The 2025 Form 2290 filing season brought important lessons for fleet owners, owner-operators, and compliance professionals. Understanding this year’s trends and challenges around heavy vehicle use tax (HVUT) can help you avoid pitfalls and prepare for a smoother experience next year.

Key trends & changes

• E‑filing: The IRS requires e-filing for anyone reporting 25 or more vehicles, but strongly encourages all filers to use e-file for faster processing and immediate access to your watermarked Schedule 1. E-filing also reduces errors and speeds up DMV registration. Accepted e‑files immediately trigger delivery of watermarked Schedule  1—underscoring the advantage of swift, paperless filing.
• Updated filing systems: The IRS released new XML schemas and business rules for 2025, affecting software providers and filers using digital tools. Ensuring your provider uses the current software is crucial for successful submissions.

Common mistakes & delays

• EIN/name mismatches: Your e-filed name must match your Employer Identification Number (EIN) exactly. Mismatches are a common cause of rejected filings. If you need a new EIN, apply early—IRS systems can take up to four weeks to update.
• VIN and taxable weight errors: Double-check vehicle identification numbers and taxable gross weights. Mistakes here can delay your Schedule 1 and DMV registration.
• Watermark legibility failures: Physical Schedule 1 printouts sometimes display illegible watermarks, which can delay DMV registration. IRS guidance emphasizes verifying watermark clarity before submission.

Practical takeaways & preparation tips

• Start early: File by the last day of the month after first use of the vehicle. For annual fleet reporting, submit by August 31. Early filing gives you time to fix errors.
• Confirm your EIN and name: Make sure your EIN is active, your name matches IRS records, and digits are exact to prevent rejection of your filing.
• Double-check VINs & weight entries: Before filing, verify each VIN and taxable gross weight against vehicle documentation to avoid processing delays.
• Leverage e‑file providers: Utilize IRS‑approved software or providers. E‑filing ensures faster acknowledgement and receipt of Schedule  1, saving you from DMV paperwork bottlenecks.
• Update software: Ensure your vendor has the most current version.
• Verify Schedule  1 watermark clarity: On acceptance, print Schedule  1 and test watermark visibility. Reprint with fresh ink or a better printer if needed to meet DMV requirements.

Final thought

The 2025 season underscored how diligence, preparation, and digital tools streamline the Form 2290 process. By staying ahead of e‑file requirements, software updates, and common errors — or printing issues — fleet owners and compliance teams can avoid delays, reduce penalties, and ensure smooth registrations in 2026.

Stay ready: Mark your calendars, validate all data, and align with approved e‑file systems to turn next July’s filing into a smooth, penalty‑free process.