Penalties for not filing your Form 2290 HVUT
DATE POSTED: 7/20/2021
Mistakes can happen. Perhaps your company didn’t realize it operates vehicles that are subject to the Heavy Vehicle Use Tax (HVUT), or you lost track of time and didn’t file Form 2290 by the required deadline.
While the Internal Revenue Service (IRS) won’t forgive the tax due, it is important to understand what penalties and interest may be assessed against your company for late filing. You may also be granted an extension in certain circumstances.
Penalties and interest
If you don’t file your return or pay your taxes on or before the due date, the IRS will assess the following on the total tax due, monthly, for up to five months:
- Penalty of 4.5 percent
- An additional penalty 0.5 percent
- Interest charges of 0.54 percent
Penalties and interest can add up quickly. For example, if you have a vehicle weighing 80,000 pounds, the tax due would be $550. If you don’t pay the tax for five months and the penalties and interest accrue during that time, the tax liability would be more than $700. With a fleet of vehicles, you can see how this could become quite costly.
If late, file sooner than later
Once you’ve realized you missed your tax filing, submit your return and payment as soon as you can. Note that your penalty won’t be calculated immediately when using e-file for Form 2290; the IRS will send you a separate letter to inform you of the penalty. However, the sooner you e-file after the missed deadline, the smaller the penalty and interest.
If you know there is going to be a circumstance where you won’t be able to submit your Form 2290 by the deadline, you may ask for an extension. You must, however, make your request for more time, in writing, before the due date of the return. Your request must be submitted to:
Internal Revenue Service
7940 Kentucky Drive
Florence, KY 41042-2915
In your letter, you must fully explain the cause of the delay. The extension may be for no more than six months.
Note: An extension of time to file doesn’t extend the time to pay the tax. If you want an extension of time to pay, you must request that separately.