What happens if you do not complete the Form 2290 details on time?

Form 2290 can also be referred to as Heavy Vehicle Use Tax or HVUT in the trucking world. This is a very important piece of tax paperwork that needs to be completed every year by U.S. truck owners and operators. Any U.S. truck owner that has a vehicle that weighs more than 55 thousand pounds will need to submit the Form 2290 with IRS on a yearly basis. For vehicles that are in service in July, the deadline for filing the form is generally August 31st. What will happen if you are unable to satisfy the deadline? Here’s is a quick look at what you should know.

What happens when the Form is filed late?

In the case that you did not pay your tax dues timely before the Form 2290 deadline, you are penalized for not completing the Form on time. This becomes 4.5% of the total due amount and is charged every month for 5 months. On top of that, if you failed to pay HVUT on deadline, a new penalty of half a percent is charged together with other interest costs of 0.54% every month. The sum being charged can increase drastically in these cases, so it is a good idea to pay as early as possible and try to avoid great costs.

Effect on registering your vehicle

If the Form 2290 deadline is neglected, it can also remain troubling when you try to register the vehicle to your name.

Prior to renewing the registration of a truck, most states need a stamped Schedule 1 from the IRS confirming full payment of HVUT. If you do not have this proof, you risk registration delays which can be problematic for your operations and revenue.

How to fix a late filing:

The optimal strategy to take when you miss a deadline is to the IRS as quickly as possible, alongside Form 2290. The IRS does allow truckers to e-file Form 2290 to expedite the processing time and get the stamped Schedule 1 as soon as possible. If you have a valid reason for missing the deadline, you can contact the IRS and explain your case – it’s possible that you may get some relief from the penalties.

Avoiding Future Late Filing:

If you are looking to evade missing deadlines in the future, the best strategy would be to create reminders or use an approved e-filing software that notifies you for deadlines. Since filing deadlines are strict, many people prefer to file pro-actively. This will ensure that you avoid fines, the truck is operational, and the IRS rules are followed.

Missing the deadline to file Form 2290 can result in significant costs and operational lags. However, by making a point to promptly file and pay the due amount, these challenges can be mitigated.

To prevent needless expenses, ensure you never miss a filing deadline, as it helps your business function seamlessly.

Note: For more information, visit IRS website