Tax Form 2290 is about heavy highway vehicle use, and this may apply to you if you drive a truck with a gross weight of 55,000 pounds or more. Typically, the 55,000 pound threshold does not include vans, pick up trucks, or panel trucks, and others exempt from this tax include trucks that are stolen, damaged, or sold, or those used for 5,000 miles or less and farm trucks that are used 7,500 miles or less. If you find that your truck meets the requirement for filing for tax form 2290, take a look at these tips so that you know that you’re filing appropriately.
When is the Filing Due and Grace Period?
Truckers and owners of heavy highway vehicles need to filed by September 3, 2013 if they put vehicles on the road beginning July 2013. Almost every year, the filing due date is August 31st but in 2013, it’s on a Saturday and the following Monday, September 2nd, is Labor Day on which offices are closed for the holiday. It is recommended that you eFile as it is fast and efficient. Efiling is required for truckers or owners who are filing 25 or more vehicles.
Do You Pay When You File?
Payment is required on the same day you file the 2290 tax form. You can use an electronic funds withdrawal if you eFile, or you can send a check or money order using Form 2290-V sent to Internal Revenue Service, P.O. Box 804525, Cincinnati, OH 45280-4525. Payment is dependent on the tax of the vehicle and how many vehicles you have. You may be required to pay more if the vehicle you have has surpassed the mileage limit for the period. You may have to pay more if you’ve added to the vehicle and it weighs more, classifying it under a different category.
What If You Don’t Pay or Don’t Pay Enough?
If you don’t pay or don’t pay enough, the penalty for not paying with the 2290 form by September 3rd 2013 is 4.5% of the total tax amount due, assessed monthly up to 5 months. Until you file, you face an additional monthly penalty equal to .5% of the total amount due. These numbers climb, and until you pay it off, you will be charged .54% per month in interest fees.
Are There Other Penalties for Avoiding Payment?
Your registration will be suspended in some states if they see you are avoiding payment. Other penalties include fines up to or over $2000, and imprisonment under the criminal charges of noncompliance. As each state has governmental compliances, they take this tax very seriously and will punish truckers and owners that do not comply, as the state itself doesn’t want to be fined.
If you are a trucker or an owner of a heavy highway vehicle, it is extremely important that you file on time. Your smallest inconvenience are fees and increased interest rates. More serious penalties include fines and imprisonment, and likely a trial in which the state levies the investigation of your accounts to a jury who may convict you of a crime. If you serve the time, you will lose your civil liberties and privileges. It’s much better to pay the taxes with form 2290, instead of avoiding payment and changing your life for the worse.