How to Calculate the Penalty for Not Submitting Form 2290?

Every US citizen needs to pay taxes on time. Failure to pay taxes results in penalties. To avoid this, all HGV users who own commercial vehicles that weigh 55,000 pounds or more and have driven 5,000 miles in a given tax period must file taxes by the 2290 form due date.

Generally, the deadline to file the HVUT 2290 form is August 31 of each year. The IRS recommends that all of its taxpayers file their returns electronically to avoid Form 2290 rejection and make filing easier. For a more comfortable processing, it will be better to submit form 2290 two weeks before the deadline. This will help to avoid the risks of being penalized.

The IRS charges a penalty in two cases that are detailed below:

  • Failure to File Form 2290 – If an individual fails to file Form 2290 by the due date, they will be penalized. The IRS collects 4.5% of the unpaid tax for late filing and could increase up to 25% if the person continues to delay filing taxes every month.

Users can request an extension of time and can provide a valid reason for not filing taxes on time. User will receive IRS Watermarked Schedule 1 only if they file Form 2290 and pay HVUT tax.

  • Failure to Pay Tax – If you file your 2290 form but do not pay the tax amount by the due date, you will be penalized. The tax is calculated based on the gross taxable weight of the vehicle and its first month of use (FUM).
  • Check goes bad: If your check goes bad due to insufficient funds in your bank account, you could be penalized.
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Taxpayers should consider all of these factors before filing Form 2290 and paying the tax. The late tax filing penalty begins after August 31 and is charged at 4.5% of the total tax due and continues to increase up to 5 months until the individual pays the tax.

For example, Charlie owns a vehicle that weighs 60,000 pounds. This means that he needs to pay an HVUT. The amount of tax for which he is responsible turns out to be $250 that he must pay by August 31. If Carlos pays after August 31, he is responsible for paying an additional 4.5% of $250 which works out to $11.25. Now the total tax to pay is $261.25.

Even those who file late also face an additional penalty of 0.5% of the total tax due. So be sure of your tax payments and file Form 2290 on time. After the payment of this tax only, the person will be provided with the stamped schedule 1 that will act as proof that the person has filed the tax on time.

If you file your 2290 form late or make mistakes when filing your tax form, you should file as soon as possible and resubmit the return with the correct details. If you can’t pay your taxes or file your 2290 form on time, you should write an extension letter to the IRS with a valid reason why. The only condition for the extension is that it cannot exceed more than 6 months.

Paying taxes on time is the responsibility of every US citizen. No matter how busy you are, you should find enough time to file your 2290 form and pay your HVUT tax. To make the process easier, choose an IRS-approved e-filing partner to file your tax returns and receive your IRS watermarked Schedule 1 instantly.

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Also Read- Ways to Save Taxes

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