Though truckers are cautious in e-filing form 2290, some situations lead them for late filing. This results in the payment of the penalty. Are you a driver filing form 2290 after the due date? Are you prepared to pay the penalty?
The heavy highway vehicle use tax (HVUT) starts its filing session from July 1st and the due date to file taxes for the complete year without penalty is 31st of August. Filers face penalties for late payment or filing. Let’s glimpse through how to get 2290 tax penalties waived?
What are the HVUT Penalties?
Before we think about abandoning HVUT penalties, let’s understand what an HVUT penalty is. The HVUT penalties are imposed by IRS for truckers failing to file form 2290 and making late payments. Penalties are also imposed for filing fraudulent and false returns. Along with penalties, interest rates are also charged for late payments.
HVUT penalty rates
For truckers who failed to e-file or pay HVUT tax should understand the penalties imposed.
- The penalty for late filing IRS form 2290 by the due date will be 4.5% of the complete tax due. There will also be an increase in the penalty each month for about five months.
- For not filing tax and payment before the deadline, the HVUT penalty for late payment is 0.5% of the complete tax amount.
- There is also an interest charge of .54% every month.
With these rates, the initial HVUT payment is $550 and enhances to $700 in five months.
How to avert penalties?
Do you know that truckers can avoid paying penalties? Penalties are indeed imposed for filing a return late and also for making a late payment. But by providing a proper reason for not filing HVUT, penalties are avoided. Hence filings that are complete after the due date with extensions and reasonable causes help avoid penalties.
Getting Penalties and Interest Waived Off?
There are possibilities for penalties and interests to be waived off specifically for first-time filers. To waive off the interests and penalties, you just need to call the IRS and explain to them to avoid additional fees. They do this for particular tax forms.
Penalty relief is possible by drivers by sending a letter to the IRS explaining the reason. There is no necessity to attach explanations while filing returns. Along with federal penalties, registrations of vehicles are also suspended in few states as HVUT payment proofs aren’t made. For states with HVUT non-compliance penalties are more costly.
Apart from all these penalties are avoided by requesting an extension for form 2290. A letter is written explaining the complete reason for the delay and sent to.
Department of treasury
Internal Revenue Service
Cincinnati, OH 45999-0031
For truckers unaware of such details may find this beneficial. Make sure to log into Tax2efile.com and e-file form 2290 before the deadline to avoid penalties. E-filing is simple and easy with just a few clicks and payment in minutes. The stamped Schedule 1 is received in minutes. Why delay and pay penalty when Tax2efile.com assists you in HVUT filing.