Avoiding Penalties for your 2021-22 Form 2290 Filing

IRS penalties are no walk in the park, everyone dreads them for a reason. Not only are IRS penalties costly and frustrating, but they can continue to add up if you fail to meet your IRS requirements. 

For the transportation industry, the most notable IRS filing requirement is Form 2290.  Form 2290 is the Heavy Highway Vehicle Use Tax Return. Truckers are required to file this form each year with the IRS to calculate their Heavy Vehicle Use Tax Payment (HVUT).

Vehicles with a weight over 55,00o pounds are required to file this form, after filing successfully, they will receive a stamped Schedule 1 from the IRS. 

Schedule 1 provides proof that Form 2290 was filed and the HVUT payment was made to the IRS. Without this, truckers will run into issues with their license and ability to operate on the road. Another major issue comes in the form of IRS 2290 penalties. 

When is Form 2290 Due to the IRS?

Meeting your deadline is the first and honestly, the most important step in avoiding IRS penalties. The deadline of Form 2290 is determined by the first month that a vehicle was on the road. Truckers have until the last day of the month following the month of first use to complete and file their Form 2290. For example, if your first month of use was July, then you have until August 31 to file with the IRS. 

For the majority of truckers, the deadline to file Form 2290 falls on August 31. Therefore many truckers have an annual deadline coming up in just over a week! Have you filed your Form 2290 yet? Now is the time!

What are the HVUT Penalty Rates? 

If you fail to file Form 2290 and make your HVUT payment to the IRS, you can be assessed a monthly penalty of 4.5% of the tax that you owe. This can be charged for up to five months. The IRS can also charge an additional .54% of interest each month. As you can guess, the amount you are charged in penalty and interest can really pile on over the months that you are delinquent. 

Underpaying your HVUT can also lead to penalties. You will be assessed a monthly penalty of .5% of the total amount due for each month you fail to pay the full amount. 

Is there any Relief for Penalties? 

The IRS will only consider forgiving your penalties if you are able to prove that you filed late due to a reasonable cause. The IRS only provides penalty relief in dire circumstances, a natural disaster for example. While there is a possibility of penalty relief, no one can assume that it will be granted to them.

Therefore the best option, if you are unable to pay your full amount in taxes, is to make whatever payment you are able to. While you may incur penalties, they will be much smaller compared to those if you fail to file at all. 

Avoid Penalties by filing Form 2290 with ExpressEfile

If you are seeking a simple and affordable option for filing Form 2290 this year, you have come to the right place! With ExpressEfile, you can file your form electronically with the IRS for as low as $6.90. You will have the peace of mind that your return has been received by the IRS, plus you will receive your stamped Schedule 1 in minutes!

Get Started now with ExpressEfile today!

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