Understanding Suspended Vehicle Filing for Form 2290

Q: How to check if your vehicle is eligible for suspended filing?

Your vehicle will come under suspended vehicle category if commercial vehicle that has travelled below 5,000 miles during the tax period, agricultural vehicle that has travelled 7,000 miles or less during the tax period, off-highway vehicle such as mobile machinery used for non-transportation functions, non-transportation trailer or semi-trailer or, blood collector vehicle.

If you own a heavy vehicle with a taxable gross weight of 55,000 pounds or more that does not cross 5,000 miles limit during the HVUT tax period, then it will fall under the suspended vehicle category.

Although suspended vehicles (designated by category W) are exempted from paying taxes, the IRS encourages everyone to file Form 2290 electronically regardless of the number of vehicles being reported.

Please Note: Once the suspended vehicle exceeds the mileage use limit, the tax is due.

1. Define Suspended Vehicle 2. Eligibility for Suspended Vehicle Filing 3. HVUT Tax for Suspended Vehicles 4. Required Filing Details 5. Suspended Vehicle e-Filing 6. Selling your Suspended Vehicle

How to check if your vehicle is eligible for suspended filing?

Your vehicle will come under suspended vehicle category if it is:

A commercial vehicle that has travelled below 5,000 miles during the tax period
An agricultural vehicle that has travelled 7,000 miles or less during the tax period
An off-highway vehicle such as mobile machinery used for non-transportation functions
A non-transportation trailer or semi-trailer
A blood collector vehicle

Should you pay tax if your suspended vehicle exceeded the mileage limit?

Yes. If your suspended vehicle exceeds the mileage limit of 5,000 miles (7,000 miles for agricultural vehicles), your truck will no longer be considered suspended. This means you will have to pay the HVUT tax on the last day of the month in which you exceeded the mileage. Your tax amount may be prorated basis the ‘first use’ month.

[ Read: How to pay 2290? ]

How to file Form 2290 for a suspended vehicle online?

If your suspended vehicle crosses the 5,000 miles limit during the tax year, you have to file a Form 2290 Amendment to report the exceeded mileage to the IRS. You can file your HVUT return through eForm2290.com by following these simple steps:

Login to your eForm2290 account using your registered email address.
Click on ‘make an amendment to an existing filing’ option.
Choose your business information. If you’ve not entered the business information, then you need to create one. Click on start e-filing.
Specify the tax period and indicate whether this is your final return.
Choose ‘Mileage Exceeded’ and click on the Start button
Enter the VIN and gross weight of your vehicle and specify if you are filing for a logging vehicle. Review the details once again and click on save.
Click on the IRS payment button
Choose your mode of payment (EFW/ EFTPS/ Check or money order)

What details are required to file 2290 for a suspended vehicle?

You need the same details that you’d require while filing your Form 2990:

Sale of suspended vehicle

If you sell a suspended vehicle, you must provide the below information to the buyer:

Seller's name
Seller's address
EIN
VIN
Date of the sale
Odometer reading at the beginning of the period
Odometer reading at the time of sale
Buyer's name, address, and EIN.

The buyer must attach this statement to Form 2290 and file the return by the last day of the month following the month the vehicle was purchased.

Final Thoughts

Although you do not have to pay tax for a suspended vehicle, keep systematic records of your vehicle's mileage and use. If the IRS decides to audit you, you need to prove to them that your vehicle is tax-exempt to avoid penalties. That’s why we recommend you to file your 2290 exemption form on time every time with a trusted service provider like eForm2290.com - your one-stop-shop for all your form filing needs.