07-30-2024
Common Mistakes That Lead to Form 2290 Penalties
Form 2290 is used to pay the tax owed on highway motor vehicles that have a taxable gross weight of 55,000 pounds or more during the tax period.
Why to File Form 2290?
As a truck owner, you must file Form 2290 to comply with IRS regulations and avoid Form Penalties.
Common Mistakes Which Lead to Penalties:
There are a few common mistakes made by truck owners while filing Form 2290. Here is the most repeated one, discussed in detail:
1) Providing Incorrect VIN:
One of the main inputs for filing Form 2290 is the Vehicle Identification Number (VIN). This 17-character identifier, which includes both numbers and letters, needs to be provided correctly to avoid penalties
2)Provide the Correct Gross Weight of the vehicle:
This is an important input when filing your Form 2290. The tax amount is calculated based on the taxable gross weight. Providing the wrong gross weight will lead to penalties. If the gross weight is less, then the tax amount is less, and vice versa
How to calculate your Taxable gross weight:
Calculating the taxable gross weight requires adding the unloaded weight of your vehicle to its maximum load capacity. The resulting weight is then rounded up to the nearest 500-pound increment. This final number is the taxable gross weight that you will report on your Form 2290.
Refer to our blog on How to calculate Form 2290 to determine your tax amount and prepare accordingly.
3)Input Correct FUM:
Another common mistake is providing the wrong First Used Month (FUM) detail. People often provide the month they purchased the vehicle, but FUM refers to the month the vehicle is first used on the highways. This needs to be accurately reported
4)Missing the Filing deadlines:
Always adhere to the Form 2290 deadlines to pay your tax amount. If you have vehicles with a combined gross weight of 55,000 pounds or more, the IRS requires you to file Heavy Vehicle Use Tax Form 2290 each year by August 31. Failing to file will result in penalties. Save money by filing on time.
5)Gathering Inputs:
Before you start the filing process, gather all the required information and documents for filing Form 2290. This preparation will help ensure a smooth filing experience and allow you to avoid unnecessary penalties. Refer Form 2290 Requirements for more details.
6)Having Sufficient Funds:
Before filing Form 2290, make sure you have a clear idea of how much tax you will need to pay. Having sufficient funds available before making the payment is crucial to avoid penalties that can arise from late filing due to insufficient funds.
WRAP:
Providing correct information while filing is a major factor in avoiding penalties. It is always advisable to choose online filing over manual filing to avoid unwanted penalties due to time consumption and the increased likelihood of errors.