The Penalty for not Timely Filing Form 2290 and Details in Brief

If you drive or own a vehicle that qualifies as a heavy highway motor vehicle in the United States, you have to file Form IRS 2290 along with paying an annual Heavy Vehicle Use Tax (HVUT). If you do not file on time, there may be penalties and interest added to your total. In this blog, we will discuss the parts for late filing form 2290, how to mitigate them, and what can be done if the deadline for filing has already been missed.

What Is, and Introduction To Form 2290

The IRS tax form to file and pay the Heavy Vehicle Use Tax (HVUT) of vehicles that weigh 55,000 pounds or more and are operated on public highways is called Form 2290. The tax serves the greater purpose of highway funding and keeping the infrastructure in good shape.

Form 2290 Filing Deadline

For vehicles that were already in use in the month of July, the IRS mandates that Form 2290 must be filed by August 31 of every year. If a purchase is made later during the year, the form needs to be submitted one month after the month the vehicle is purchased.

Consequences of not Filing Form 2290 Timely

The Internal Revenue Service assess penalties with an interest charge if you do not file form 2290 within the allocated time slot or pay HVUT on schedule. Here is the vital information for your understanding:

Penalty for Not Submitting Form 2290

• Missing out on filing Form 2290 on time will land you a 4.5% penalty calculated from the tax due.
• This charge will increase per month for for up to five months. As a result, the longer the individual waits, the greater the penalty becomes.

Penalty for not paying taxes

• If the form is filed yet payment is not made, a penalty of 0.5% of the tax due per month will be issued.
• There can be other additional penalties of 0.54% monthly interest as well.

Other relative interest charges

• It is possible for many individuals to end up paying substantially more than the tax amount due to the combined failure to file and pay penalties that sit on top of the tax owed.
• In addition to unpaid taxes, the IRS will swipe their interest while charging at the federal short term rate alongside 3%.

Tips to sidestep the tax penalties for late filing:

To try and minimize the penalties, take these following techniques into mind:

• There is a necessity to file promptly. Mark calendar for August 31 so that you do not forget.
• Filing electronically (e-file): It's worth mentioning that the IRS encourages e-filing since it tends to be processed more quickly.
• Pay on time: Make sure to pay your HVUT through EFTPS, by debit/credit card, or via check/money order.
• Apply for an extension if necessary: The IRS will not allow extensions for tax payments, but you are able to extend your Form 2290 filing date wish by writing to the IRS prior to the deadline.

What to do in Case of Missing the Deadline

In case you missed the Form 2290 deadline, this is what you'll want to do next:

• Complete your Form 2290: The sooner you file, the lower your fines will be.
• Pay whatever amount possible: Even though these are smaller payments, they will also reduce penalties.
• Apply for relief from the penalty: The IRS might forgive penalties if there is a concrete excuse (e.g. natural catastrophes, health issues.)
• Reach out to the IRS: If you're unable to cover the payments in full, there is a chance you might be eligible for an installment agreement.

Late submission of Form 2290 comes with its own host of fines and irresponsible interest costs. With that said, making sure you’re aware of deadlines, e-filing, and paying on time can assist in cutting back on settling extra costs. If you missed the deadline, take steps now to offset penalties and remain within guidelines set forth by the IRS.

Note: For more information, visit IRS website