Selling your truck: New opportunities, along with a little paperwork to wrap up. If you sold your truck recently and paid the Heavy Vehicle Use Tax, or HVUT, on Form 2290, you are probably qualified for an eligible refund. In fact, millions of truck owners sell their trucks each year, not claiming a refund of their HVUT paid while filing Form 2290. This article helps you understand how to file Form 2290 for a refund after selling your truck.
As much as the IRS tries to make as much revenue possible, it has subjected heavy vehicles weighing over 55,000 pounds that move on public highways to HVUT. Truck owners pay this tax for the entire taxable period, which runs from July 1 of one year to June 30 of the following year while filling in Form 2290. Now, if you sell your truck mid-year, forget about the tax for the rest of the months; you have paid the full period as required.
Fortunately, the IRS provides for prorated refund or credit when the truck is sold or stolen or totally destroyed during the tax period.
Why So? Before diving into the process let alone, first know its eligibility criteria.
The claims will usually be processed by the IRS within 6-8 weeks. However, if additional information is needed for the determination of the claim, you will be notified through a notice or letter. Once the IRS approves your claim, a refund check with the computed amount will be mailed to you. Be sure to update you on the status of your claim and act in response to any inquiries of questions from the IRS for clarifications or requesting further information.
Don't forget that a refund claim must be made on Form 8849, not Form 2290. In many instances, truck owners make an error by trying to amend Form 2290 for a refund. This wastes important time and creates unnecessary confusion.
Ensure that the date of sale is accurate and correct on all forms and documents. If the date does not match, your claim might not be accepted.
Always keep copies of all forms and documents sent to the IRS. It would help to have a reference in case the IRS needs further information.
Claiming a refund on Form 2290 after selling your truck is relatively easy if you've taken the right step. File Form 8849 with proper details and attachments to get a part of the HVUT carried forward to the months left for the tax period. Do not miss this chance, and save a bit of money by keeping your finances perfect.
Truck owners need to know if they are qualified and which forms to fill for the annual tax; by being proactive in managing your taxes and refunds, you save more and spend less on unnecessary things. Seek clarification from a tax professional if you have doubts, and he will take you through the process, ensuring that every refund you qualify for is claimed.
Note: For more information, visit IRS website