It seems like something always needs to be done. Go grocery shop, get an oil change, take the kids to school, laundry, bills, and on and on. Life can feel a little crazy from time to time. How can we possibly keep up with the list of things that need to be completed? Especially your 2290 deadline?
Form 2290 filing is one of the many tasks fleet owners and owner-operators have on their list. Since 2290 filing is only due once a year, it can be hard to remember exactly when it should be filed. We want to send you that reminder, so you have one less task to memorize.
How does the tax year run?
To remember when to file, it is good to know how the tax year runs. The tax year is from July 1st to June 30th of the following year.
When is the deadline to file each year?
In order to avoid penalties for filing late, the IRS states that the form 2290 must be filed for the tax year by August 31st of that tax year. You want to make sure that whichever form of payment you choose, the IRS fee will be paid by the 31st. For example, if you mail in a check, you will want to make sure you file the 2290 early enough that the IRS will receive your payment by the deadline.
Click the following link to view “How to pay” on the IRS website: https://www.irs.gov/instructions/i2290/ch02.html#d0e1283.
What if I purchase a vehicle during the tax year?
The IRS states that you must file the 2290 form by the end of the month following the month of purchase. So if you bought your vehicle in April, then you would have to file and pay the IRS fee by May 31st. This would cover your vehicle from April through June 30th of that tax year and the new tax year would begin July 1st.
Remember the tax year always starts over on July 1st of each year. If you just filed in June for a new vehicle, you still have to file for the next tax year by August 31st for that vehicle (as well as others you own).
Is it too late to file?
What if you miss the deadline? What does that mean for you?
I missed the deadline, can I still file?
The deadline is August 31st of the current tax year due and you should file by the deadline. If for some reason you do not file and pay the IRS fee (tax due) by this deadline you can still file. You can file the 2290 form anytime during the tax year, but there could be penalties (& interest) for filing late. You can e-file up to 2 years prior to the current tax year. If you need to file farther back, you will need to (paper) file in person.
Are there penalties for filing late?
If you do not file and pay the tax due by August 31st of the current tax year, the IRS will most likely mail you a letter with late penalties. The penalty is equal to 4.5 percent of your total tax due. It is assessed on a monthly basis for up to 5 months. If your tax amount was $550, you could end up having to pay a total of $700 instead.
What if I don’t have a tax due, but I still file after August 31st?
Even if you do not owe a tax, you still need to file by the deadline to avoid any penalties. You could still face penalties of 0.5 percent of the total tax due on a monthly basis up to 5 months.
Additional charges of 0.54 percent per month can accrue as well whether you owe a tax or not.
Additional Penalties
The IRS requires that if you are going to file 25 or more vehicles you need to e-file the forms. If you paper file 25+ vehicles with the IRS, there could be penalties for not e-filing.
Your best option is to make sure you are filing your HVU Tax each year and have it filed by the deadline to stay current and avoid late penalties.
Some graphics courtesy Freepik.com
