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Showing posts from September, 2014

Avoid Scam Artists by e-Filing Your 2290

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A federal grand jury in Florida recently indicted a woman operating a permitting and licensing business for fraud. She used a counterfeit IRS stamp to make her documentation look official. Meanwhile, she pocketed $248,000 from hard-working truckers. It’s hard to escape every con artist who may come your way. Most of us want to trust those we encounter and especially those we have chosen to do business with. When dealing with the IRS, it’s always best to remain above reproach. 

What are some ways you can protect yourself?
Work With a Reputable Broker or Third Party CompanyIt seems obvious that you’d want to do this, but even for obvious instances we sometimes need to remind ourselves to check out or business partner. Contact the Better Business Bureau, your local Chamber of Commerce, the local Department of Transportation, etc. Make sure the firm you are dealing with has good ratings and is approved to provide the services they are selling you.
Confirm Your e-File Provider is IRS-Approve…

What is the penalty for not paying the Heavy Vehicle Use Tax (HVUT)?

The due date for filing your 2290 to pay your excise tax is August 31 each year. For 2014, the deadline is actually September 2, since August 31 falls on a weekend. What happens if you fail to pay the tax when due?

The Penalties Can Be Steep
Not surprisingly, the IRS will penalize any owner who fails to file their 2290 in a timely manner. The amount of penalty is 4.5% of the tax due. They assess that penalty on a monthly basis for up to five months.

That’s just the start, though. If you don’t file on time, and you fail to pay the tax due, there is an additional penalty of 0.5% of the total tax due. Interest charges accrue for each month the payment is late as well. Those interest charges equal another 0.54% per month.

Here is an example. You owe $550 for your heavy road use tax. You fail to file and you fail to pay the tax due for five months. The penalties would add up to $123.75 for the 4.5% failure to file, plus $13.75 for the 0.5% late payment penalty. Interest would add more th…