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Understanding the Heavy Vehicle Use Tax Form 2290

For many people, the tax season is a time of extreme stress and even some great worry; then there is a tax season that is almost continuous, this is especially for some of the larger businesses that have fiscal years. It is because of this that the IRS has started to make their tax forms easier to understand; this is the case with the 2290 Tax Form.

As with anything and everything that relates to taxes there are forms that must be filled out properly and filed in a timely manner; form 2290 is no different. Form 2290 or the Heavy Vehicle Use Tax is an excise tax and the 2290 form has due date that are to be complied with and without delay or question.

Why is the Heavy Vehicle 2290 Tax so important?

Let us think about the hundreds and hundreds of miles of the US’ highways that cover the US and these vast amounts of infrastructures that are vitally important in assisting people to commute and the businesses that go about their daily tasks that involve transportation. These infrastructures require a constant and albeit, exhaustive amount of maintenance just to ensure that all of the US’ commuters can use them without any issue or problem preventing them to get where they need to and at any given time. Unfortunately, this usage also creates a large amount of wear and tear on these infrastructures that leaves these roads in such a state of disrepair that constantly need to be fixed and maintained; if you ever had to drive on a bumpy road that is peppered with potholes then you already understand what a headache these roads are and you know how important it is to keep them from being in such a state.

In order for these roads to be fixed and maintained to ensure that they remain in a good condition, the government has created a system of taxes and put it in place for this on-going reason. Trucks, buses and other heavy vehicles have the great ability to cause the most damage you see to these roads because of their incredible weight, which is why the HVUT Form 2290 is so important.

What are the Due Dates for the HVUT 2290 Form?

The due dates for filing a Form 2290 must be filed for each month as a taxable vehicle is first used on public highways during the current tax period; the current tax period begins on July 1 of each year and ends on June 30 of the following year. The Heavy Vehicle Use Tax or HVUT Form 2290 has to be filed by the last day of the month that follows the month of its first use; these IRS 2290 filing rules apply regardless of when you are going to pay the tax or you are reporting suspension of the tax.

What are the Penalties?

Any vehicles that are used or acquired beyond the month of July, it must be understood that you are liable for the tax for the prorated tax period that you are responsible for. It is imperative that you file a Form 2290 as well as pay for the tax by the last day of the month after the month you have first used the vehicle or vehicles.

There are a number of penalties that all must know about and understand. The penalty for not filing an IRS Form 2290 by the 31st of August each year they are due is equal to 4.5% of the total tax that is due; this amount is assessed on a monthly basis by up to five months of the tax season for these vehicles. For those who are late in filing who do not make an HVUT payment will also be penalized with an additional monthly penalty that is equal to 0.5% of total tax that is due; on top of that there will be an additional interest charge of 0.54% per month that will be accrued.

There are also penalties for HVUT non-compliance for states and they are even more costly than what most might believe. The Secretary of Transportation has been given the authority to withhold up to a maximum of 25% of the state’s Interstate Maintenance Funds, if the state fails one of its periodic compliance reviews.

In the event an examiner discovers any non-compliance any and all discoveries are then presented to management in a FHWA division office; depending on the assessments that are performed by FHWA division management, the matter at hand could be brought to the attention of the U.S. DOT Office of Inspector General, as which time the OIG will launch an investigation. Once an investigation is opened, the compliance review report will be placed in a delayed mode; this is due in part to the information that is presented within the report may be used as evidence during the investigation.

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