Heavy Vehicle Use Tax or HVUT is a federal tax imposed on heavy vehicles that weigh 55,000 pounds or more. Dedicated truck operators are liable to pay HVUT tax by filing form 2290 online to reduce their tax obligation and the hassle-free operation of their trucks.
The liability to pay the tax falls on the truck operator and must be paid before 31st August every year.
Now that we know about the heavy highway vehicle use tax, we will discuss who is liable to pay the same.
- Truck owners who own a truck that has a gross weight of 55,000 pounds or more.
- Limited liability company that owns and operates heavy trucks.
- Owners of heavy trucks that have crossed 5000 miles or more.
All the responsible parties are liable to pay the heavy highway vehicle use tax by filing Form 2290. You can file your form 2290 using any of the two ways:
- Manual filing: Download a form from 2290 from the IRS website or obtain one from the IRS office and mail it to the IRS office after filling out the form.
- E-filing: Use the services of an IRS authorized e-file service provider to file your form 2290 online.
The IRS encourages truckers to use the online means to file their form 2290 due to its hassle-free and reliable filing process.
There are various ways through which the process of filing form 2290 can be made more convenient. Some of these are listed below:
- Opting for e-filing 2290 HVUT form:
E-filing is considered a secure and reliable method of file form 2290 and payment of your HVUT tax. With e-filing, you can file your form 2290 much faster and receive your Schedule 1 Form 2290 copy within minutes of filing.
Also, pre-filing of the tax form can help reduce the chances of any imposition of penalties. The risk of penalties and additional charges is completely eradicated through e-filing and timely payment of the necessary tax amount.
All these steps can help in reducing your hassle concerning payment of the HVUT amount and filing your form 2290.
- Opting for an IRS authorized e-file service provider:
One must also select an IRS authorized service provider to ensure complete security and reliability when filing the 2290 form. An IRS service provider helps in delivering a completely secure online method of filing the tax form.
Electronic fund transfers and a safe federal tax payment system are made available that clients can get access to. This helps in making the overall transaction of e-filing 2290 form easy and convenient.
- Calculation of the HVUT tax before the filing of the form:
Before moving further with filing form 2290, one must calculate the correct amount of tax that one is liable to pay. An online HVUT tax calculator is made available that one can get access to for calculating the right amount of tax.
You must provide information such as the tax period, the vehicle type, the first month of usage, the weight category of the vehicle owned, and the number of vehicles in your possession.
What to do in case of non-filing of 2290 form and non-payment of HVUT return?
The IRS charges a late-filing penalty of 4.5%of total tax due for failure to file form 2290 before the deadline. This penalty is imposed for 5 months and is accrued on a monthly basis.
Also, in case of non-payment of the HVUT amount before the due date, a further penalty of 0.5% of the total tax due is imposed. You will also face additional interest charges of 0.54 percent per month.
Ways to apply for filling extension:
The truck owner or person responsible for the e-filling of the 2290 form can apply for an extension. They must send a letter to the Internal Revenue Service in Kentucky stating a valid reason for the extension. However, the extension period can last no more than 6 months.
Truckers and trucking business owners are responsible for e-filing 2290 forms and payment of the necessary tax amount. They must stay compliant and file form 2290 on time for complete tax compliance and protecting themselves from any tax obligations.