Form 2290 or the Heavy Vehicle Use Tax (HVUT) is an excise duty which is levied on highway vehicles which have a gross weight of 55,000 pounds or more. If you have a trucking business then you will be well aware of this tax; however few people know just how important it is to pay the tax on time. Here is a short summary on why you need to be paying this tax on time.
Due Date for Filing Form 2290: The Form 2290 tax must be paid on each month starting from the date a vehicle which fits the description is first used on a public highway during the current period. The current period begins on July 1st 2013 and ends on June 30th 2014. So your HVUT must be filed by the last day of the month following the month you first used your vehicle. These filing rules also apply whether you are actually paying the tax or reporting its suspension.
Even if you have acquired a taxable vehicle on a month other than July, you will be liable for the prorated tax period and file the Form 2290 by the last day of the month after the month you first used your vehicle.
In case the due date for filing the Form 2290 falls on a public holiday, Saturday or Sunday, you should file it immediately on the next business day.
Avoid Delays by Filing Your Form 2290 Tax Online
With all that goes on in your business, chances are you just might happen to overlook your filing deadline every now and then. Know that tax filing is a serious business and even slight transgressions and delays can have an adverse affect on your credit score, not to mention, even make you liable for penalties. Fortunately, there is an incredibly easy way to ensure that you pay your taxes on time every time. Form 2290 can now be filed online using the IRS’s e-filing services which allow you to file the form through an online channel. There are various advantages to filing the Form 2290 tax online besides just being on time; your records are kept in one easy to access place, any input errors you make can be immediately corrected and the whole process takes a few minutes to complete, including receiving your completed Schedule 1 from the IRS.
Penalties for Late Filing
The IRS has various penalties in place for late filing of the Form 2290:
1. The penalty for failing to file Form 2290 by 31st August is equal to 4.5% of total tax due, assessed on a monthly basis for up to 5 months.
2. Persons who do not make good on their HVUT payments will also have to pay an additional monthly payment of 0.5% penalty.
3. Some states may even revoke the registration of vehicles if you are unable to produce proof of HVUT payments.
4. If an individual is found evading his/her HVUT filing and/or payment, the penalties can range from fines to incarceration.
Clearly it’s a good idea to keep your Form 2290 payments up to date. You can very easily do so by filing your Form 2290 tax online; the process is simple and all you are really required to do is provide some basic information about yourself, your business and your vehicles.