If you are operating trucks on the state road ways then you must be well aware about the federal tax form 2290 which needs to be filed with the IRS. The tax form 2290 is a heavy vehicle use tax and is levied on all vehicles which weigh more than 55,000 pounds and use the public highways.
Why is it So Important to File Federal Tax Form 2290?
All tax receipts collected by the IRS from the form 2290 are forwarded to various public highway maintenance and construction groups which carry out road repairs. As the USA has one of the most elaborate and complex roadways in the world, it requires a lot of looking after; in fact most of the road ways get damaged frequently as hundreds of thousands of vehicles use them every year. Weather activities such as hail, snow and rain can cause them to get damaged which need to be fixed quickly. Heavy vehicles such as trucks in particular leave many dents and breaks in the roads due to their sheer weight which is why the IRS requires all truck owners to file the federal tax form 2290.
Are There Penalties Implemented for Not Filing Form 2290?
Yes, the government considers any infractions vis-à-vis tax form 2290 as a serious breach and has punitive measures in places in order to prevent them from happening. It is highly advisable that you file your federal tax form 2290 on time every time, failing which can lead to hiked interest rates, adverse effect on your or your business’s credit score, fines and even imprisonment. The following are penalties for late filing of tax form 2290. (more about it here Etax2290.com)
- All HVUT payments need to be paid by the 31st of August, failing which an interest of 4.5% is levied on total tax due which is assessed on a monthly basis for up to 5 months.
- Additionally, people who do not make their payments on time will also have to pay a 0.5% penalty on a monthly basis.
- Certain states also reserve the rights to revoke vehicle registration should the driver be unable to produce proof of filing tax form 2290.
- Finally, if you are found using creative means to avoid paying HVUT payments, hefty fines may be implemented, and in some cases you may even be incarcerated.
As you can see, it is not a good idea to default on filing your federal tax form 2290. With that said, you should know that there is an easier way to file your HVUT tax without needing to fill out extensive paper works or even waiting for days on end. The tax can be filed online using special software which is far easier, painless and quicker than traditional methods. The IRS’s EFTPS (Electronic Federal Tax Payment System) allows you to complete all your payments online and in a few minutes. Simply fill out your business, personal and vehicle information into the software and send it to the IRS who will return your stamped Schedule 1 in a few minutes of having received your tax info.
- Paying Heavy Vehicle Use Tax – Why 2290 Tax Online is the Way to Go? (irstrucktaxinfo.wordpress.com)
- What is the Purpose of Filing IRS Form 2290? (irstrucktaxinfo.wordpress.com)
- IRS Form 2290 E-File – What is it? (irstrucktaxinfo.wordpress.com)