Every US citizen must 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 their taxes by the Form 2290 deadline.
Generally, the deadline to submit the HVUT 2290 form is August 31 of each year. The IRS recommends that all of its taxpayers file their returns electronically to avoid rejection of Form 2290 and to make filing easier. For a more convenient process, it would be best to file Form 2290 two weeks before the due date. This will help to avoid the risk of being penalized.
The Tax Administration charges a fine in the two cases listed below:
- Failing to File Form 2290: If a person fails to file Form 2290 by the due date, they will be penalized. The IRS collects 4.5% of the unpaid tax in case of late filing, which can increase up to 25% if the person continues to delay filing the tax return every month.
Users can submit a time extension request and can provide a valid reason why they did not file their tax return on time. A beneficiary will receive a watermarked IRS Schedule 1 only if they file Form 2290 and pay HVUT tax.
- Failure to Pay Tax: If you file Form 2290 but do not pay the amount of tax due, you will be penalized. The tax is determined based on the gross taxable weight of the vehicle and its first month of use (FUM).
- A bounced check: If your check bounces due to insufficient funds in your bank account, you could be penalized.
Taxpayers should consider all of these factors before filing Form 2290 and paying taxes. The late tax filing penalty begins after August 31 and is charged at 4.5% of the total tax due and continues to increase for up to 5 months until the individual pays the tax.
For example, Charlie has a 60,000 pound vehicle. This means that he has to pay HVUT. The amount of tax he owes is $250, which he must pay by August 31. If Charlie pays after August 31, she must pay an additional 4.5% of $250, which equals $11.25. Now the total tax due is $261.25.
Even those who file late also face an additional penalty of 0.5% of the total tax due. So make sure you pay your taxes and file Form 2290 on time. After paying only this tax, the person will be given a certified form 1 that will serve as proof that the tax has been filed on time.
If you file your Form 2290 late or make a mistake filing your tax form, you should file it as soon as possible and resubmit your return with the correct information. If you can’t pay taxes or file Form 2290 on time, you should write an extension letter to the IRS with a valid reason. The only condition for the extension is that it cannot be longer 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 Form 2290 and pay the HVUT tax. To make the process easier, choose an IRS-approved e-filing partner and receive your watermarked IRS Schedule 1 instantly.
Also read – Ways to save on taxes
Categories: How to
Source: HIS Education