You’ve filed and paid for the Form 2290. You may or may not have known that you filed late and now the IRS is charging you penalties and interest. What do you do now?
The exact amount of penalties and interest can really only be calculated by the IRS. This is because the IRS does things the way the IRS wants to. They say that the total penalties for unpaid taxes is calculated on a monthly basis. This totals to be about 4.5% of the total tax due. For example, if you have one truck registered at a GVW of 80,000 pounds and are one month late, the penalties are calculated like this:
$550 x 4.5% = $24.75
The IRS can calculate penalties for 5 consecutive months. What that boils down to, is that you can be charged over $120.00 in addition to the $550 you already paid. That is a lot of money! I know there are things I would rather do with the money paid in penalties than give it to the IRS.
The IRS can also charge interest on late filings of the Form 2290. They charge interest of a little more than 0.5% per month. Basically, if you filing 5 months late, your interest and penalties can total to be around $150. This is in addition to the initial $550 already paid.
Get Those Penalties and Interest Waived!
It is always possible to get Form 2290 penalties and interest waived, especially if you are a first time filer. To get these fees waived, simply call the IRS and ask them to get rid of the additional fees. The IRS is actually pretty reasonable about doing this for this specific tax form.
Toll Free: (866) 699-4096
International: (859) 669-5733
Also, if it’s the very 1st time you’re late but have a solid filing history for the 3 previous years, you can usually get 2290 tax penalties and interest waived. Just call the IRS and ask. If it is your 2nd time filing late, you can still call the IRS and ask them to waive the fees. Since it would be your 2nd time filing late, the IRS wants “reasonable cause” as to why you filed late.
There isn’t 1 specific answer for this one. Here some examples of reasonable cause:
- Notification of a changed due date was not received
- The taxpayer spent time in the hospital
- The check was lost in the mail
- Natural disaster
- Death in the family
These examples may or may not work for you. Whichever reason you choose, just be sure you can provide proof. The IRS loves when you can prove what you’re claiming.
Avoid Penalties and Interest
The best way to avoid penalties and interest is to file on time. We recommend you file every year during the beginning of July. Sign up for our mailing list, follow us on Twitter, and like us on Facebook and we will be sure to send you reminders of when to file.
Keep in Touch
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Written by Molly Harris