All American citizens need to pay their taxes on time. Failure to pay taxes leads to penalties. To avoid this, all heavy vehicle users who own a commercial vehicle that weighs 55,000 pounds or more and has traveled 5,000 miles in a given tax period must pay taxes by the due date of form 2290.
Normally, the deadline for submitting HVUT 2290 form is August 31 of each year. The IRS recommends that all of their taxpayers submit their returns electronically to avoid form 2290 rejection and ease filing. To make the process more convenient, it is better to submit form 2290 two weeks before the deadline. This will help avoid the risk of being penalized.
The IRS charges a penalty fee in the two cases given below:
- Failure to File Form 2290: If a person does not file Form 2290 by the due date, they will be penalized. The IRS charges 4.5% of the unpaid tax in the case of late filing and can increase to 25% if the person continues to defer monthly tax payments.
Users can apply for an extension of time and can state good reasons for not paying taxes on time. Users will only receive the IRS 1 watermarked schedule if they file form 2290 and pay HVUT taxes.
- Failure to pay taxes: If you file Form 2290 but do not pay the tax amount by the due date, you will be penalized. Taxes are estimated based on the total taxable weight of the vehicle and the first month of use (FUM).
- Rejected Checks: If your check is declined due to insufficient funds in your bank account, you may be subject to a penalty.
Taxpayers need to take all of these factors into account before filing form 2290 and paying taxes. The late tax penalty begins after August 31 and is charged 4.5% of the total tax payable and continues to increase for up to 5 months until the person pays the tax.
For example, Charlie is the owner of a 60,000-pound car. This means he needs to pay an HVUT. The amount of tax he owes is $250 which he needs to pay by August 31. If Charlie pays after August 31, he has to pay an additional 4.5% of $250 or 11. 25 dollars. Now the total tax payable is $261.25.
Even late payers will be fined an additional 0.5% of the total tax payable. So, make sure it’s safe to file your taxes and file Form 2290 on time. After paying only this tax, the person will be provided with a stamped schedule 1 as proof that the person has paid the taxes on time.
If you filed form 2290 late or made a mistake while filing your tax form, you need to file as soon as possible and resubmit your return with correct details. If you are unable to file your taxes or file Form 2290 on time, you must write an extension letter to the IRS with a valid reason why. The only condition for renewal is that it must not be more than 6 months.
Paying taxes on time is the responsibility of every US citizen. No matter how busy you are, you must find enough time to file your form 2290 and pay your HVUT taxes. To make the process smooth, choose an IRS-approved electronic filing partner to file your tax return and get an IRS watermarked schedule 1 in no time.
Also Read- Ways to Save Tax
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Source: vothisaucamau.edu.vn
