Whether after a loss of some kind, a breakup, or a missed deadline, a common phrase, meant to ease our frustration in the heat of the moment, is: “It isn’t the end of the world.” This sentiment is a good one that puts things into perspective. However, in some cases, while it may not be the end of the world, it can be—or become—a pain in the neck, and if we can avoid it, we should!
One deadline that truck owners need to keep on your radar is filing IRS Form 2290 to pay the Heavy Vehicle Use Tax (HVUT). Missing the Form 2290 deadline can result in significant consequences, like penalties and disruptions for you, but there are steps you can take to mitigate the damage and avoid the pain.
Let’s explore the Form 2290 deadline, the consequences of missing it, and some steps to take if you do happen to miss it.
When exactly is Form 2290 due? In short, the 2290 due date is August 31st (unless the IRS extends it due to the 31st falling on weekends, and/or Labor Day) for vehicles operated year over year. The exception is for newly purchased vehicles that go into service after the month of July. In this case the due date is the last day of the month after the vehicle is first put into service on public roadways. For example, a vehicle purchased and put into use in September, the Form 2290 deadline would be October 31st.
Missing the 2290 deadline begins with late fees, which come in two forms: failure to file and failure to pay. The failure to file incurs a penalty of 4.5% of your total tax liability, while failure to pay tacks on an additional .5% penalty. Note that these penalties are imposed by the IRS as a percentage of your tax liability.
In addition to the fines mentioned above, truck owners may be subject to interest fees on overdue taxes, which will accumulate until the amount is paid in full, meaning the sooner you pay, the better—do not delay!
Missing the deadline can cause issues with vehicle registration. Perhaps this is why many mistake the 2290 deadline as being the same as their registration deadline; it’s not (as noted above, it’s August 31)! If you miss the deadline, they will require proof of payment (of the HVUT) to register your truck and keep it legally operational.
This is an accountability mechanism to ensure HVUT payment. Since the Federal Government requires those who use heavy vehicles on public roadways to pay the HVUT, if you don’t pay them the tax for using your truck on the road, they don’t want to grant the registration sticker that allows you to use your truck on the road.
Again – it’s not the end of the world if you miss the Form 2290 deadline, it’s just a headache. Here’s some steps to take to minimize the pain factor.
Even if you can’t afford to pay the full tax amount right now, file Form 2290 immediately and pay whatever amount you can. This will prevent further penalties and interest from accumulating – in some cases saving over $100 in penalties. This approach is also recommended by the IRS. As noted above, the penalty for failure to file is nine times higher than the failure to pay.
Ensure that you pay the taxes due, along with any accrued fines or interest, to avoid further complications with the IRS. You can calculate your penalties with our online penalty calculator. Depending on your situation, you may be eligible for a payment plan.
If you have a valid reason for missing the deadline, you may be able to request penalty abatement from the IRS, reducing or eliminating certain fines.
To avoid the Form 2290 late filing penalty and, instead, pocket that money for reinvestment into your business, put together a game plan now. This starts with determining when you need to file Form 2290 and pay the HVUT, highlighting it on your primary calendar and setting aside the money for the tax.
Using a tax reminder service to remind you of upcoming deadlines is wise and working with a tax professional is advised. In a case where you know that you’ll need some extra time to file Form 2290, you can submit a detailed request in writing to the IRS, which explains why the extension is necessary. We advise doing this at least 60 days before the deadline to allow for processing and response time.
Although missing the 2290 deadline may not be the end of the world, it certainly doesn’t make your life easier, so let’s never forget! That’s where we come in at i2290; we make the process of filing Form 2290 and paying the HVUT fast and simple.
With i2290, you can enjoy the convenience of e-filing your return from anywhere with internet access, saving time and money, while reaping the additional benefits of easily accessible digitally maintained records for seven years, filing VIN corrections and weight increase amendments for free, and access to a world-class customer service team.
Create an account with i2290.com today and answer a few questions about your vehicle and your business. Then for a small fee, we will do the calculations for you and generate your stamped Schedule 1 in a matter of minutes!
Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re properly filing and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.
We're confident that your experience with INSTANT 2290 will be the best Form 2290 e-filing you've ever had. If for any reason you are not satisfied, just contact support for a full refund. No questions. No conditions. Create your account to get started!
