Sold, Stolen, or Scrapped? Claiming Your 2290 Refund or Credit
As a heavy vehicle owner or fleet manager, you know how important HVUT compliance is to be filed annually along with IRS Form 2290. You pay your Heavy Highway Vehicle Use Tax in good faith based on your vehicle's taxable gross weight. What happens when a vehicle was not in use in a tax period – perhaps it has been sold, stolen, or destroyed?
The good news is, you likely will not forfeit the whole tax amount paid! The IRS has provisions to claim a refund or credit on Form 2290 for your vehicle's tax period when it was out of service. Although the procedures to file such claims appear more tiring, we, as your 2290 e-file service provider, simplify the whole process for you.
Consider the Options: Credit vs. Refund
Once your heavy highway vehicle goes off the road, you generally have two avenues to claim back the overpaid HVUT:
- Claim a Credit on Form 2290: This path is the easiest and fastest. When you file a later Form 2290 for other vehicles during the same or subsequent tax period, you can simply use credit for other vehicles. The credited amount will be against any new tax liability and, hence, reduce the amount due; this method is mostly adopted by trucking firms operating other vehicles. Our clever platform does the hard calculations for you.
- Form 8849 for Refund: If you do not have a 2290 tax liability in the next taxable period to offset it or the credit exceeds the tax due to you, then you can claim a refund directly from the IRS for HVUT by filing Form 8849, Claim for Refund of Excise Taxes, along with Schedule 6 (Other Claims). This form provides a route to the IRS to return a direct refund to you.
Proof and Eligibility Matters
Conditions for claiming and supporting documents are necessary, no matter if stolen, sold, or scrapped:
- Sold Vehicles: Credit can be taken for the months in the tax period after the date of sale. You'd need the VIN, Taxable Gross Weight, date of sale, and name and address of the purchaser. A bill of sale or certificate of transfer will act as ample proof of sale.
- Stolen Vehicles: The credit can be obtained for the period post-theft. You'll need the VIN, date of the theft, plus some evidence like a police report or disposition of the insurance company.
- Destroyed Vehicles: If destroyed beyond repair, that is wasted or the vehicle cannot be recovered economically, you can get a credit from the date of destruction to redemption. VIN, date of destruction, and some concrete support documents, such as an insurance claim or receipt from a salvage yard, will be required.
- Important: To claim credit on your next Form 2290 or Form 8849 for a refund, the vehicle must have been sold, stolen, or destroyed on or before June 1 of the current tax period. Credits for low-use mileage vehicles that did not exceed the mileage use limit (5,000 miles for interstate and 7,500 miles for agriculture vehicles) may be claimed only after the tax period is ended (June 30).
Let Us Help E-file Your Claim
Our easy-to-use e-filing system helps expedite the filing and claiming process for your 2290 refund or credit. With our platform, you will be guided through choosing the correct reason for your claim, prorated tax calculation, and entering all relevant vehicle information. We check your information for errors that might delay getting your tax refund.
Don't overlook the money lying there. Take advantage of the IRS provision for credits and refunds for HVUT if a heavy vehicle in your fleet is no longer in service. Comply and earn profit by following our proficient e-filing solution.
