How to File Form 2290 for Suspended Vehicles: Step-by-Step Instructions

Step-by-Step Guide on How to File Form 2290 for Suspended Vehicles

As a truck owner or operator, you are likely familiar with Form 2290 as well as filing it for heavy highway vehicles. Sometimes, however, a vehicle may be suspended from operation for at least part of any given year, which can alter your filing status. If you have suspended vehicles, this article is intended to lead you through the whole process of filing.

What is Form 2290 for Suspended Vehicles?

Form 2290 is a document by the Internal Revenue Service which is used for reporting and paying the federal Heavy Vehicle Use Tax (HVUT). Generally, this tax is imposed on vehicles with a gross weight of 55,000 pounds or more subject to use on public highways. Other vehicles, however remain suspended from usage or are not moved on public highways for a part of a tax year. These vehicles have to be filed under a different form. For suspended vehicles, one must know the correct identification of when that vehicle was suspended in order to file Form 2290 successfully.

What is Considered a Suspended Vehicle?

A vehicle is considered suspended if it does not go on public highways for more than three months of the tax year. It may be due to various reasons, such as it not being operational or is used mainly in off-roads.

• The IRS allows suspension on account of every vehicle for up to five months in any tax year.
• The vehicle needs to be suspended for more than three consecutive months and not used on any public highway during this period.

A correct knowledge of the suspension status is required in order to submit your Form 2290 accurately.

How to File Form 2290 for a Suspended Vehicle

Step 1: Gather Information

Before you go about filling out your Form 2290, you will need to know the following information about your suspended vehicle:

• VIN for each vehicle.
• Gross weight of the vehicle.
• Tax year for which you are filing.

Make sure the vehicle is suspended and IRS rules and regulations permit you to file this exemption.

Step 2: Simplified Form 2290

As in the regular Form 2290, filling up the first part isn't different from a normal Form 2290:

• Business information: Give your name, your address, and Employer Identification Number (EIN).
• Entry for vehicle data: You will key in the VIN of each vehicle and the weight category whether it is taxable or suspended
• It is suspended: You will show that the vehicle will not be on public highways for the mentioned period when it is suspended
• Suspended vehicle: Enter all suspension period

On Form 2290, you will report the taxable period for your vehicle. With suspended vehicles, you will:

• Check the box that shows the vehicle is used less than 5,000 miles and not used on public highways.
• You will state the suspension period in months. You will report the number of months the vehicle will be under suspension (typically between 3 to 5 months).
• You will not owe the HVUT on that vehicle if your vehicle is suspended for the entire year; however, you must still file Form 2290.

Step 4: E-file Form 2290

The IRS now requires you to file Form 2290 electronically. Once you have completed the form, there are two final steps for you to complete:

• Choose an e-filing service: You will use IRS-Approved e-filing services to file (simpletrucktax.com).
• Pay filing fee: Although the motor vehicles used during the tax period are exempt from the tax, you may have to pay a few small processing fees when you file Form 2290.

Step 5: Get the Stamped Schedule 1 from IRS

Once the IRS accepts and processes your Form 2290, you will receive a stamped Schedule 1. This is evidence that you have filed for proof. For suspended vehicles, you will receive the stamped Schedule 1 stating that you do not owe tax for that particular vehicle.

Step 6: Make a Copy Available to Your Records

Once you've filed your Form 2290 and receive the stamped Schedule 1, be sure to retain a copy for your records. The IRS will request it in an audit.

What happens if I don't file for Suspended Vehicles?

Even suspended vehicles need a Form 2290 to be submitted with the IRS, so not filing can result in penalties. The Heavy Vehicle Use Tax is not payable in any case when the vehicle is suspended, but the form has to be made for the sake of the record book where failure to do so results in fines and disorder in filing with the IRS.

Key Takeaways

• Are exempt from the Heavy Vehicle Use Tax if not used on public highways for at least three months in a tax year.
• You are required to file Form 2290 for a suspended vehicle even though you owe no tax on the vehicle
• All taxpayers are required to e-file Form 2290 electronic according to the IRS.
• You can obtain the Stamped Schedule 1 as proof that you have indeed filed for your suspended vehicle and you comply with it.

And so, once you implement all of those suspended vehicles in any of your filing for taxes, all those complications that come along with taxes when they roll around are avoided.

Note: For more information, visit IRS website