HVUT IRS Form 2290 - Suspended Vehicles

When a vehicle does not cross the average miles i.e, 5,000 miles within the 12 months filing period, they fall under the category of Suspended vehicle. Though the taxes are not paid on the suspended vehicles, it is still required to file form 2290 for these vehicles. Once a suspended vehicle exceeds the mileage use limit, the tax is due. Use the HVUT Form 2290 - Amendment option in Taxseer2290 to file for mileage exceeded so that the taxes can be paid due to the vehicle status change to Taxable vehicle.

E-Filing Requirements for Suspended Vehicles

Tax-suspended vehicles (designated by category W) aren't included in the electronic filing requirement for 25 or more vehicles since the filer aren't paying tax on them. However, IRS encourages everyone to file electronically regardless of the number of vehicles being reported.

Sale of Suspended Vehicle

If you sell a vehicle while under suspension, a statement must be given to the buyer and must show:

  • The seller's name, address, and EIN;
  • VIN;
  • Date of the sale;
  • Odometer reading at the beginning of the period;
  • Odometer reading at the time of sale; and
  • The buyer's name, address, and EIN.

The buyer must attach this statement to Form 2290 and file the return by the date shown in the table under When To File, earlier.

If, after the sale, the use of the vehicle exceeds the mileage use limit (including the highway mileage recorded on the vehicle by the former owner) for the period, and the former owner has provided the required statement, the new owner is liable for the tax on the vehicle. If the former owner hasn't furnished the required statement to the new owner, the former owner is also liable for the tax for that period. See Suspended vehicles exceeding the mileage use limit below. Also see Used vehicles, earlier.

Suspended vehicles exceeding the mileage use limit.

Once a suspended vehicle exceeds the mileage use limit, the tax becomes due. Mileage use limit means the use of a vehicle on public highways 5,000 miles or less (7,500 miles or less for agricultural vehicles). The mileage use limit applies to the total mileage a vehicle is used during a period, regardless of the number of owners.

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