The experience of having a heavy vehicle stolen can be extremely stressful. At the same time that you are dealing with police reports and insurance adjusters, don’t forget to take advantage of your federal tax recovery. The IRS offers you a prorated tax credit for any stolen vehicle that is not recovered during the tax year. This way, you don’t have to pay the Heavy Highway Vehicle Use Tax (HVUT) on a vehicle you no longer have control over.

It is important to document the event and update your taxpayer information in order to maintain your IRS compliance and get back your overpaid taxes.

Eligibility for a Stolen Vehicle Credit

In order for a vehicle to be qualified for a credit or a refund on HVUT, it must be stolen and remain missing for the rest of the current tax year (July 1 – June 30).

• The Recovery Rule: If your truck is stolen in October and recovered by the police in November, you are not allowed to claim a credit since the truck remained under your ownership throughout the year.
• The "Unused Months" Principle: The credit is available only for the full months remaining in the tax period after the month the theft occurred.
• Paid Status: The taxpayer must have filed a Form 2290 and received a stamped Schedule 1 for the vehicle to qualify for a credit or refund.

Calculating Your Prorated Credit Amount

The Internal Revenue Service has a breakdown that shows how much of the taxes you paid during the year can be credited back to you.

Month of Theft	Remaining Months (Credit)	Prorated Calculation (Example $550 Tax)
August	10 Months	550 * (10 / 12) = $458.33
November	7 Months	550 * (7 / 12) = $320.83
February	4 Months	550 * (4 / 12) = $183.33

The credit period begins on the first day of the month following the theft. For example, if the theft occurred in any month of September, the credit begins on October 1st.

How to Claim the Credit on Form 2290

If you are currently filing to add a replacement vehicle to your fleet, the best way to recoup your money quickly is to take a credit on your next e-file.

• Enter the Credit on Line 5: On your new Form 2290, enter the prorated amount you calculated on Line 5 (Credits).
• Attach the Required Statement: In order to avoid a pending review status for your 2290 filing, an explanation stating your Vehicle Identification Number, taxable gross weight category, and date of theft is required to be attached.
• Net Tax Due: The credit will be deducted from your tax due for your new vehicle by your e-file provider. This can greatly reduce your balance due.

Requesting a Refund via Form 8849

If you are not replacing the stolen vehicle or if you do not have a sufficient tax liability to utilize the credit, then you must file for a cash refund on a Form 8849 (Schedule 6).

• Immediate Filing: You may file Schedule 6 as soon as the theft is documented. There is no need to wait until the end of the tax year.
• The "Other Claims" Category: The credit reference number (CRN) 365 will be used to identify the claim as an HVUT-related refund.
• IRS Processing Time: After the completion of the e-file processing, the refund check is issued within a period of 6 to 8 weeks.

Essential Documentation for Your Tax Records

Although you are not always required to upload documents during the initial process of e-filing, your return may be flagged for a manual review by the IRS. The following documents should be kept in your permanent files:

• Official Police Report: A copy of this report filed when the theft was first reported.
• Insurance Claim Records: These records contain information on the date of loss and the status of the vehicle.
• Original Schedule 1: This is proof that the tax on the stolen VIN has been paid for the current period.

These records are important to maintain as they are essential to being ready for any audits. Additionally, they are important to verify your identification as a taxpayer when the IRS asks for identification.