If you fail to file or submit your HVUT payment by the deadline you will be forced to face severe IRS penalties. Penalties may also apply for incorrect information on 2290 filing. You will also face an additional interest charge on late payments.
The penalty for failing to file your IRS Form 2290 by the deadline is equal to 4.5% of the total tax amount due, and the penalty will increase monthly for up to five months. The penalty for failing to pay your Heavy Highway Use Tax payment is .5% of your total tax amount. You will also face an additional interest charge of .54% per month.
Based on these rates, an HVUT payment initially $550 would increase to over $700 by the end of the five months of delinquency.
If you can show reasonable cause for failing to file or pay taxes on time, you can request penalty relief by sending a letter to IRS explaining the reason.
Do not attach this explanation when you file your return.
In addition to these federal penalties, many states suspend the registration of vehicles for which proof of HVUT payment has not been provided. Penalties for HVUT non-compliance for states are even more costly.
To request an extension for Form 2290, you must request an extension directly from the IRS. You are required to write a letter and send to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0031
In your letter, you must fully explain the cause of the delay. Except for taxpayers abroad, the extension may be for no more than six months. If you want an extension of time to pay, you must request that separately.
You can request an extension of time to file Form 2290; however, this will not extend the deadline for submitting your tax payment. If you need an extension of time to pay, you must request that separately.