If you own a heavy vehicle with a taxable gross weight of 55,000 pounds or more, then you must file form 2290 and pay the Heavy Vehicle Use Tax (HVUT).
What Is Form 2290?
If you wish to avoid any trouble with the IRS and wish to safely drive your vehicle on US public highways, then filing form 2290 is crucial.
Form 2290 is a tax return that owners of heavy highway vehicles must file for the year. The form can be used to pay taxes on vehicles with a gross weight of 55,000 pounds or more. It can also be used to claim suspension from tax if the vehicle is expected to be used for 5000 miles or less.
You can now file and pay your Heavy Highway Vehicle Use Tax (HVUT) online. Once you submit, a Schedule 1 will be provided to you through the website as your receipt for this Heavy Highway Vehicle Use Tax.
The Process of Filing Form 2290
The process of filing Form 2290 online is quite simple and easy as given below:
- Create a New Account
Current customers can login to their account and start filing the form. New customers will need to create an account and file once they have completed the form.
- Enter Vehicle Info
After filling the personal details, you need to fill your vehicle's information. Moreover, you need to carefully enter the vehicle number to avoid any faulty filling of the forms.
- Now Start Filling
Now you can start filling the form with all the details including taxation, tax period, and other valuable information. In the end, select the mode of payment.
The road tax applicability for these vehicles is the same as the general rule of applicability of motor vehicle tax.
Who needs to file Form 2290?
Every person who owns an active heavy-duty vehicle that is based on diesel or any other liquid fuel or any other powered vehicle needs to check Form 2290 due date and fill the form on time. For this, they need to submit the gross weight and other relevant documents.
The use of motor vehicles in a rural area or an urban area requires the filing of Form 2290. Also, many finance companies charge heavy vehicles use tax. Moreover, Form 2290 is an annual income tax return form that is used by the owners of used heavy vehicles to pay income taxes. The taxpayers filing Form 2290 can opt for a one-time filing scheme.
What are the penalties for not filing Form 2290?
IRS imposes penalties for failing to file taxes on or before the due date. There are also penalties for filing false or fraudulent tax returns. Interest is also charged on late payment, which can be a real headache if it starts to build up.
If you are filing HVUT for the whole tax year, then the penalty for failing to file IRS Form 2290 by August 31st is equal to 4.5% of total tax due, assessed on a monthly basis up to five months. Late filers not making an HVUT payment also face an additional monthly penalty equal to 0.5% of total tax due. Thus, it is important to timely file Form 2290.
Once you have the IRS access to your tax returns, you will also have peace of mind knowing that you have done your best to avoid unnecessary penalties for failing to file your tax returns correctly.
Below are some of the benefits of filing Form 2290 online.
- By using an e-file service provider to file form 2290, you will be able to have a convenient and easy filing experience. Most e-file providers offer several value-added services such as free VIN correction and refiling.
- Unlike paper-filing where it takes around 6 weeks to receive your IRS stamped Schedule 1 copy, e-filing ensures that you receive your proof of payment within minutes. Most e-filing service providers also provide different modes to make HVUT payment securely through the website.As soon as the IRS receives form 2290, they will print a copy of the form for you. You do not have to spend time and effort collecting your documentation from the various offices, and or, trying to fill and fill them out correctly. The payment process is fast and easy. The IRS website states that the software takes approximately 2 hours to issue your payment once you submit the form.