07-23-2024

How To Avoid Form 2290 Penalty

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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.

When is Form 2290 Due?

In general, the due date for filing Form 2290 is calculated as the last day of the month following the month in which the vehicle was first used on a public highway.

Example: If the vehicle is first used on highways in the month of July then the Form 2290 should be filed by August 31^st.

If the last day of the month falls on a Saturday, Sunday, or any legal holiday, the filing can be made on the next business day.

If Form 2290 is not filed on time according to the above guidelines, a penalty will be imposed on the tax amount.

Read our article on Form 2290 Due Date for a deeper understanding.

How much is the penalty for Form 2290?

This penalty is applied to the tax amount when Form 2290 is late-filed or unfiled according to IRS Code Section 6651.

The form 2290 late filing penalty is substantial and can be up to 4.5% of the excise tax owed, plus an additional 0.5% for each month it remains unpaid.

How to avoid Form 2290 Penalty?

1.The first step to avoid penalties is choosing eFiling over manual filing. Manual errors and delayed IRS acknowledgments can result in late payments. Opting for our IRS-approved online portal Simple Form 2290 can avoid such penalties. Our team sends friendly reminders by mail before the due dates.

2. Secondly, always adhere to due dates to avoid penalty fees.

3. Set Form 2290 Reminders. 

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