Form 2290 Penalties

June 16, 2012 by  Filed under: Taxes 

It should come as no surprise that the IRS has discovered a way to penalize tardy Form 2290 tax filers and intelligently generate additional revenue out of these tax defectors. Form 2290, otherwise known as the heavy vehicle use tax, is a financial obligation geared towards heavy truck operators that frequently travel cross country with hefty loads. The tax was established in an effort to finance roadway improvement projects that could ease traffic congestion, maintain national roadways, develop roadway administration, etc. However, not every owner/operator is found of reserving a piece of their annual profit to finance the heavy vehicle use tax, so they tend to take their time with paying the tax, if they pay it at all. Well, we want to warn against tardy and delinquent filing for the IRS has put in place some severe consequences.

Penalties for HVUT non-compliance are quite costly to motor carriers. The penalty for failing to file the IRS Form 2290 by its deadline is nearly equal to 4.5 percent of the total tax due, which is assessed on a monthly basis up to five months. In addition, late filers not making the HVUT payment also face a monthly penalty equal to 0.5 percent of the total tax due. Now based on the penalty percentages just explained, an HVUT liability that was originally $550 could shoot up to more than $700 by the end of the five-month period of tax negligence. Beyond that, several states also suspend the registration of vehicles for which proof of HVUT payment remains absent causing trucking businesses to lose substantial amounts of money.

HVUT non-compliance for state governments is even more costly. The Secretary of Transportation has the authority to inhibit up to 25 percent of the state’s Interstate Maintenance funds if it fails one of the department’s periodic compliance reviews. This penalty alone is detrimental to the road conditions that citizens experience on a daily basis. Imagine your local highway never having road maintenance, or it never receiving additional lanes to improve traffic flow, that would be quite disastrous. The state non-compliance review is a long and arduous process that should probably be avoided for everyone’s benefit. The financial penalties and the lack of funding for the state’s transportation department would be a big inconvenience.

Although it can be considered “easy” to avoid taxpaying, the financial torment that serves as penalty is definitely not worth it.

Seun is an associate of Etax2290 which is a leader in e-file industry, with approval from IRS and various other trusted organizations for filing tax form 2290 online with ease and hassle free. File form 2290 now and avoid possible penalties.

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