As a truck driver, tax responsibilities should be handled appropriately in order to prevent any risk of incurring penalties that may not be pleasant to your business. There is one important date that commonly seems to lose a lot of applicants’ focus and that is the deadline for the filing of Form 2290. This form is for filing and paying Heavy Vehicle Use Tax (HVUT), that is imposed on an automobile that has a weight of 55,000 pounds or more when it is used on public highways. In some situations, failing to meet the file deadline can attract penalties or interests as well as the inability to renew one’s vehicles registration. Let’s take a look at all the details related to the filing of Form 2290, the date of filing, and what needs to be done to ensure the filing is done in time.

What Is Form 2290?

The Internal Revenue Service(IRS) requires the completion of Form 2290 for the reporting of the HVUT on gross weight over 55000 pounds. The tax is an indirect means of financing the construction and rehabilitation of the public roads that the heavy Vehicles use and wear down.

In case you possess the above-stated type of vehicle, you must file Form 2290 and pay tax accordingly. The relevant tax you owe is the tax based on the vehicle weight and the distance ran by the vehicle within the year.

When Is Form 2290 Due?

The deadline for submission of Form 2290 is determined by the date of starting to use the particular vehicle on highways. Step back on most truckers as their concern here is a year-when the form is due in July 1 to June 30, tax is annual.

• For vehicles which have been in use since the start of the tax year (July 1): Form 2290 as well as the payment of HVUT will be due on August 31 of that year.
• For vehicles that were first taken out of use after July 1: Form 2290 should be filed no later than the month following the month of First use or by the Final Day of that month of filing for the Form 2290. For example, if a truck is used first in month of September, the Form 2290 has to be filed within the month October.

Make it a point to take down the above mentioned dates on your diary to prevent missing out on these dates.

What Happens If You Miss the Deadline?

If Form 2290 is not filed on time with regards to the stipulated periods issued and ordinance regulations there would be penalties and interest charges accordingly. A penalty before the due date to such returns is normally 4.5% of total return tax due in five months with a penalty ratio of about four over five months. Apart from this charge, there is also an excessive interest charge of 0.5% of tax due remained unpaid in a month.

You’re subject to being fined as a great punishment for failing to file returns. However, it can be even worse than that since it can also make it impossible for you to renew your vehicle registration in the Department of Motor Vehicles (DMV). Israel News Website In the absence of proof of payment of HVUT, the DMV will not renew your truck, making it illegal to out on the public roadway.

Filing of Form 2290

The IRS provides the following two methods for reporting Form 2290:

• Electronically: Form 2290 e-filing is by far the most convenient way to file the return for more than 25 vehicles. It is compulsory for truckers with 25 or more vehicles, but even if you have fewer vehicles electronic filing is significantly encouraged. For those who file using internet, they will quickly get their Schedule 1 (evidence that tax has been paid) shortly after filing.
• By Mail: The other alternative for completing form 2290 is by passing this form through the post office to the IRS. However this option may be somewhat slow and the completion of schedule 1 may take time due to the long processing of the form consequently this may hamper one under vehicle registration renewal.

Keep Documents Sort Out

As a truck driver, you should be able to track down every vehicle you have operated mutually with the HVUT dues you ought to have made. It is compulsory under IRS rules that you should keep proof of the HVUT payment receipts for at least three years after the filing. Following are those records:

• A copy of your submitted Form 2290
• Schedule 1 of the IRS marked with stamp
• Documentations of payment of the amount due

Accessing these records directly will spare you the possibility of conflicting with the IRS, DMV or having the complications of registration or audit ravaged, that they will be enough during the times of renewal.

Special Cases: Haltered Vehicles and Exemptions

There are several instances when you may not be required to pay the HVUT or where the tax may be suspended:

• Suspended Vehicles: In the case of expected annual mileage of less than 5,000 miles (7,500 miles for agricultural vehicles) in a given year, you can file for suspension of the tax. However, you must file Form 2290 which is a tax return that reports the use of heavy vehicles even if yogurt no tax is assessed.
• Exempt Vehicles: HVUT relief could also include vehicles owned or driven by government institution and some non profit organization but these will still be need to file Form 2290 in order to get the exemption.

Appreciating the importance of Form 2290 and ensuring that it is filled out within its time frame is important for any trucker who drives heavy vehicles. Paying timely taxes prevents any form of penalties and interest charges as well as downtime of your business. Make a note of your due dates, select the appropriate filing option and be ready with your records so that the filing goes on smoothly and without any hitches.

Note: For more information, visit IRS website