What Happens If I Miss the Form 2290 Deadline?
Annual deadline for heavy truck highway use tax (HVUT) is a significant date for truckers and owners. For those who missed the due date of August 31 to file the Form 2290, be assured that you are not alone. The most important thing is to rush to file to minimize any financial repercussions. The IRS takes stringent measures against late filings and may apply various penalties and interests on the late submission.
In the first instance, it is a failure to file penalty. Late filing will attract a charge of 4.5% of total tax due to the IRS for a month or part of a month during which your return is late, with a ceiling of 25%. In addition to this will be a penalty for failure to pay: it is a 0.5% of outstanding tax due, added monthly. In total, for every month you delay, your tax bill increases by a combined 5% until reaching maximum penalty.
Beyond penalties, interest will start accruing on the overdue tax after the original due date. This interest rate is set quarterly by the IRS and can grow over time to considerably inflate the total liability.
Operational issues can also arise from late filing of Form 2290 besides the financial penalties. Your state's DMV requires a stamped Schedule 1 to prove that you have paid your HVUT before giving a line of renewal to your vehicle. Failure to provide this document might lead to the suspension of your truck's registration, rendering it illegal for operation and potentially costing you in business.
What to do now:
The good news is that it's never too late to rectify the situation. The earlier you submit your tax return, the lower your penalties will be.
File Your Form 2290: Without any doubt, the fastest and most efficient way to submit your late return is through an IRS-authorized e-file service. On our platform, you can quickly file for the current or previous tax periods and, at the same time, calculate any penalties you owe.
Pay Your Tax and Penalties: You should pay the entire amount owed to avoid incurring any further interest. E-filing has made available options for easy payments such as Electronic Funds Withdrawal (EFW).
Get Your Stamped Schedule 1: You will immediately receive your stamped Schedule 1 as early as your e-file acceptance by the IRS. This is your proof of payment, which is needed in renewing your vehicle registration.
No deadline can put your business at risk. E-filing will ensure you get back on the road while complying with the heavy vehicle tax regulation of the IRS.
