Is There a Possibility of an Extension for Form 2290?

While some truckers may wonder whether there’s a possibility of an extension while filing Form 2290, which is mandatory for all heavy highway vehicles having a gross weight of 55,000 pounds or more, the query must be put to rest. Unfortunately, the IRS does not provide an extension for the deadline for making a filing. This implies that the forms must be filed when they are due, which is normally 31st August for those vehicles which were first used in the month of July in the tax year. Missing such deadlines usually triggers the imposition of penalties making it important to know your responsibilities as well as providing for them.

What Happens If You Miss the Deadline?

By not allowing extensions on Form 2290, the IRS has placed so many restrictions on the filing deadline. Absence of the form during filing of the Form 2290 attracts a five percent initial penalty followed by the monthly surcharge of four and half percent of the total tax due within the first five months. Any incapacity to pay the tax also attracts 4.5% tax on the first month and half a percent for every month until the tax is recoverable. The cost of these penalties can add a lot to your business in an adverse way. To circumvent this, you must make sure that Form 2290 is filed by the stipulated date even when you do not have money to settle the tax.

What Are Your Options If You Can't Pay?

The IRS does not extend the deadline for submission of the Form 2290 to anyone. However, if for example you are unable to pay all the tax amounts in full, the IRS can offer some payment alternatives. There is also provision for partial payment of the tax owed and thus, the form can still be filed before the due date. This allows one to escape the 4.5% late filing penalty, though there will still be some interest on whichever tax remains unpaid. Otherwise, it is possible that the IRS could also allow some sort of Installment Agreement for the issuance of further notice to the taxpayer. Although this should be very obvious and even without full sight of the payment of tax filed for the relief against underlying risks of penalties, it is prudent to ensure returns are on time.

Suggestions for Filing Late Returns

Particularly, try electronically submitting the Form 2290, as this will ensure that you do not miss the deadline. E-filing is also much quicker and you receive immediate confirmation of receipt making you feel better. It’s also a good idea to prepare all relevant documents like the vehicle's VIN and gross weight details long before the deadline arrives. If you worry about paying the tax due on time, this should not be a problem because you can plan in a way that will help you save some money throughout the year for the tax that is due. You will be able to stay within the deadlines set by the Internal Revenue Service and maintain your business in its right standing with the tax agency by being forward looking in your management practices.

Note: For more information, visit IRS website