(Newswire.net — August 20, 2021) —
Heavy Highway Vehicle Use Tax (HVUT) is a federal tax that heavy vehicle owners and drivers have to pay. A dedicated Form 2290 is required to be filed, along with paying the HVUT amount. Moreover, one has to furnish various details for making secure and correct tax payments. Taxpayers liable to pay the tax must possess necessary knowledge about liability to pay and due date etc that can help in making the process of tax payment quite hassle-free and to save themselves from any kind of penalties.
Being a compulsory tax that must be paid by heavy vehicle owners, filing IRS Form 2290 online or offline and paying the HVUT return requires an understanding of various aspects. All the necessary aspects are mentioned below:
- Liability of paying HVUT return:
Heavy vehicle owners are liable to file Form 2290 and make the HVUT payment with the IRS. You are liable to file form 2290 if you meet the below criteria
:• Owners of vehicles with a gross weight of 55,000 pounds and more.
• Limited liability companies that have one or more heavy vehicles registered with their business.
• Heavy vehicles that have run for 5000 miles or more. However, in the case of agricultural vehicles, the distance covered is extended to 7500 miles or more.
- Ways of Filing Form 2290:
There are 2 ways of filing form 2290:
- Manual filing :
Manual filing of Form 2290 involves completing Schedule 1 of 2290 Form and mailing the same to the Internal Revenue Service (IRS). Paper filing of Form 2290 form is a time-consuming and lengthy process.
- 2. E-filing:
Individuals responsible for filing the IRS form 2290 can opt for hassle-free online filing or e-filing of the HVUT return. You can e-file your form 2290 using any of the e-file service providers authorized by the IRS. With e-filing, you will receive your IRS stamped Schedule 1 copy within minutes.
One of the above-mentioned ways can be used for filling the HVUT tax. However, the e-filling process is considered to be convenient and effective.
3. Details Required for filing Form 2290 . All the dedicated details and information to be made available for e-filing of HVUT Form 2290 and are listed below:
• Business name along with necessary details which includes permanent company address.
• Employer Identification Number(EIN) which is unique to each individual..
• Vehicle Identification Number (VIN) that helps in identification and authentication of vehicle data and information.
• Details of the first use month in which the heavy vehicle was first used during the tax year are necessary for filing form 2290 and calculating the HVUT amount.
• The gross weight of the heavy vehicle to identify whether or not the liability to make the HVUT payment arises.
4. Penalties in case of late-filing form 2290 and HVUT payment:
Dedicated penalties are also imposed on individuals and business owners in case of late-filing of form 2290 and non-payment of the federal tax. Penalty equal to 4.5% of the tax amount due is charged in case of non-payment of the tax amount on a monthly basis upto five months.. Moreover, in case of late payment, an additional monthly penalty of 0.5% is also imposed. A penalty of 0.54% may also be imposed on a monthly basis.
5. Form 2290 due date:
The due date for filling Form 2290 and paying the HVUT amount is 31st August of every year. However, for newly purchased vehicles, the due date is the last day of the month following the month of first use. For example, if the first use month is April, 2021, then the due date will fall on May 31st, 2021..
Moreover, the Form 2290 filing period starts on July 1st and ends on June 30th of the next year.
6. Extension of due date:
Taxpayers also receive the flexibility to request an extension of the payment of the tax. However, this extension cannot be granted for more than six months. Taxpayers are, however, required to state the reason for non-payment and extension of the due date. This is necessary for timely acceptance of the reason and payment of the tax amount without any penalties.
All these dedicated aspects and knowledge about the same can prove beneficial for tax payers. Provision of necessary information and completion of the formalities for payment of the HVUT tax can help in reducing the chance of imposition of penalties. Moreover, opting for online Filing 2290 form and payment of the tax amount can help in receipt of Schedule 1 on time and without any inconvenience.
The online process of filing form 2290 is quite convenient and short. Always ensure that you file your form 2290 with a trusted IRS authorized e-file service provider before the due date to avoid any penalties imposed by the IRS.