Email support@hopes2290.com
TimingsMonday - Friday 7:00 am CST to 08:00 pm CST
For the owners and operators of trucks, timely submission of Form 2290, the Heavy Highway Vehicle Use Tax Return, is paramount. Incidentally, this is a form that is filed to report and pay taxes on heavy vehicles that ply on public highways. The funds realized are then channeled towards upkeep as well as development of America’s roads network. This tax return has to be filed by the last day of the month following the month when the vehicle was first used on public highways within that tax period. There are severe consequences involved in missing this deadline like penalties, interest charges and IRS problems.
The IRS can penalize you if you don’t file Form 2290 by the deadline. Normally, late filing attracts a penalty of approximately 4.5% of the total tax owed per month for up to five months. This means that waiting longer to file results in higher fines. Alternatively, there will be another half percent penalty applied on late filings where there is failure to remit tax due along with them which is levied at a rate of 0.5% per month out of all unpaid money amounts respectively. These penalties can mount up very quickly and raise the cost of compliance significantly.
Also, in case you filed Form 2290 lately, the Revenue Service must charge interest alongside penalties. The interest rate is based upon federal short-term plus three percent and it is calculated daily which means that payment procrastination till filing date results into much more interest payable to IRS over time as compared with prompt settlement of amounts due concerning taxation obligations and this accumulation elevates these costs further; remember that interests continue accruing until all fees have been settled completely: do not think they stop once you are done with calculations and preparing your books!
Besides, it is also bad for your company activities if you file Form 2290 late. For instance, you must have a stamped Schedule 1 from the IRS to complete registration of your vehicle with the Department of Motor Vehicles (DMV). This means that without timely filing of Form 2290, you will not get the stamped Schedule 1 and this may hinder the registration process for your vehicle thus impairing its operability within the confines of law. Other than delay in registration, late filing might alert IRS about suspicious tax returns and other economic activities carried out by your business.
To avoid facing negative consequences for late filing of Form 2290, you need to be proactive and organized. For instance, setting up reminders for important tax deadlines and considering e-filing will help speed up the submission process. E-filing also enables you to receive a prompt confirmation from IRS that your form has been received thereby minimizing the risk of delays. In case you felt that there is no way you can meet the deadline, then it would be advisable that you discuss with IRS immediately on time for its advice. However, in other instances, one can plead their case and seek penalty abatement depending on whether they provide reasonable causes or not. This way, you’ll save money in penalties and continue doing business effectively as they come due by making sure your tax return is filed promptly
Note: For more information, visit IRS website
