What is the Penalty for Filing 2290 Late?
The penalty for not filing 2290 on time is 4.5% of the unpaid taxes for each month; or part of a month that a tax return is late. Penalty will start accruing a day after the tax filing due date and will not exceed 25% of your unpaid taxes.
- A failure-to-file penalty may apply if you did not file Form 2290 by the tax filing deadline.
- The failure-to-file penalty is 5% of your balance due for every month (or part of a month) in which your taxes go unpaid
- You will not have to pay a late-filing penalty if you can show a reasonable cause for not filing
TABLE OF CONTENTS1. Form 2290 penalty2. HVUT due date3. When are you liable for penalty?4. Calculating fines for not filing 22905. Concept of HVUT penalty relief6. Request for extension7. Assistance on Form 2290 Penalty8. First time penalty abatement rule9. Non-compliance with states
HVUT 2290 Filing Due Date
The due date for filing your HVUT tax is August 31st. The IRS recommends taxpayers to e-file as it reduces human errors and allows for faster processing. If you are paper-filing your Form 2290, you need to file at least two weeks ahead of the deadline so it reaches the IRS on time.
When does the IRS charge a penalty?
The IRS will charge you penalty if you:
- Fail to file Form 2290
If you don’t file your tax return and pay the HVUT tax on or before the due date, the IRS will charge a penalty. You can apply for an extension of time to file by stating a reasonable cause for non-filing. If the IRS accepts your reason, you will be able to e-file Form 2290 and receive your stamped copy without having to pay a late payment fee
- Fail to pay proper estimated tax
If you don’t pay the full tax due for the year with your quarterly estimated tax payments, or through withholding when required.
- Check is dishonored
If your bank doesn't honor your check or other forms of HVUT payment that you opted for.
How do we calculate form 2290 penalty?
The penalty for late filing of IRS Form 2290 after August 31st is equal to 4.5% of total tax due, assessed on a monthly basis up to 5 months.
For example, Bob had to pay an HVUT tax of $250. But he failed to file him form 2290 and pay his HVUT tax by August. Bob’s penalty would be:
$250 x 4.5% = $11.25
So Bob’s total tax due with the penalty will be $261.25
Late filers will also face an additional monthly penalty of 0.5% on top of total tax due and an additional interest of 0.54% per month will also accrue.
Therefore, if you do not file your 2290 return on time, you will be liable to pay taxes with penalty and interest, which costs you around 5% of your total tax due. It is advisable to file your tax return on time to stay on the safe side of IRS audits.
Additionally, some states will suspend vehicle registration if a proof of HVUT payment is not produced. An IRS stamped Schedule 1 (which acts as a proof of payment) will only be issued to those who have filed their Form 2290.
What is HVUT penalty relief?
You will be relieved of penalties if you can state a reasonable cause for not filing your HVUT on time. This is known as penalty relief. If Form 2290 filing is done after the due date (including extensions), you will need to attach a reasonable cause along with your filing.
How to request an extension for IRS Form 2290 filing?
Before the due date of the return, you may request an extension of time to file your return by writing to:
Internal Revenue Service
7940 Kentucky Drive
Florence, KY 41042-2915
In your letter, you must fully explain the cause of the delay. Except for taxpayers abroad, the extension may be for no more than 6 months. An extension of time to file doesn’t extend the time to pay the tax. If you want an extension of time to pay, you must request that separately.
Who to call for assistance regarding the penalty?
If you are e-filing your form 2290 through eForm2290, you can get in touch with our customer support team who will help clarify any queries on late filing or questions related to penalties that you might have. Paper filers can contact the IRS on the below numbers:
- The United States: 866-699-4096 (toll-free)
- Canada or Mexico: 859-669-5733 (not toll-free)
What is first-time penalty abatement?
First-time penalty abatement allows the IRS to remove certain penalties from your account based solely on your clean compliance history. This type of penalty abatement is not based on cause and is intended to help taxpayers who have an isolated compliance issue
To qualify for first-time penalty abatement, your record must prove that you’ve had no penalties added to or removed from your account for the past three years (except for the estimated tax penalty). You will also need to prove that you’ve been keeping up to date with all your tax payments and filings.
Penalties for HVUT non-compliance for states
The Secretary of Transportation can withhold upto 25% of the state’s Interstate Maintenance funds if the state fails to pass its compliance reviews due to non-compliance on the taxpayer’s part.
E-file your HVUT Return with Eform2290
- No need to be an expert
- Get Schedule 1 in minutes
- Safe & secure data management
It is natural to forget your taxpayer duties when you work on a tight schedule. Unfortunately, the price you pay for not filing your Form 2290 on time is way too much. The best part about choosing eForm2290 as your e-filing partner is that we send you timely reminders as you approach your filing deadline. Moreover, our value-added services and tools ensure that your tax filing experience is fast, easy, and smooth