For any business that is an owner-operator and trucks, Form 2290 is only the beginning. To stay in complete HVUT compliance and be prepared for the IRS, there are many things that you need to keep in mind. First, the rule of thumb is that you need to retain all records for at least 3 years from the tax due date or paid date, whichever is the latter. This information must be accessible for inspection at all times for verification purposes by the IRS in regard to the information shown on your return.

What Records Must You Keep?

The IRS demands a paper trail for each taxable vehicle under your registration, even if it is only operational during a portion of the taxation year.

• Copies of Filed Returns: It is essential to have copies of all Form 2290s that are e-filed or paper filed.
• Proof of Payment: Your most important document is your stamped Schedule 1. It is officially known as proof of payment. It is required during truck registration and state compliance.
• Vehicle Description: It is essential to keep a detailed record containing the Vehicle Identification Number (VIN), date you got the vehicle, and the name or address of the individual from whom you purchased the vehicle.
• Weight Information: Documents that support the taxable gross weight you reported, maximum authorized load capacity of the vehicle.

Special Records for Suspended Vehicles

If you deducted the tax suspension because your car was used below the standard mileage use limit (5,000 miles for commercial vehicles or 7,500 miles for agricultural vehicles), your record-keeping requirements are even more precise.

• Mileage Logs: You are required to keep accurate, daily records of miles travelled, or what are also called “trip reports” that can serve as proof that the vehicle did not go beyond the maximum speed limit approved by the government, from July 1st through June 30th of
• Agricultural Records: “When you own an agricultural vehicle, you are required to keep a separate record of miles driven on the farm and miles driven on public roads, since miles driven on the farm do not count towards the 7,500-mile exemption.”
• Retention for Suspensions: Retain these documents for at least 3 years following the end of the relevant period of suspension.

Why Long-Term Storage Matters

Failure to produce these documents during an investigation may also result in the IRS disallowance of your credits, entitlement to exemption, or suspension of taxes.

• Auditing Protection: To avoid or effortlessly win an audit conducted by the IRS, keeping organized records of miles driven and payment receipts on hand is the most practical approach to resolve any disputes.
• Asset Disposal: When selling or disposing of an asset, it is very important to maintain data about the date of the sale and the details of the person to whom the asset was transferred or sold. This may prove helpful in the future for processing a prorated refund or credit claim, if need be.
• Digital Advantage: With IRS-approved digital tax preparation software providers, you can enjoy the security of cloud storage so your stamped Schedule 1 and other filings are always accessible to you, so you don't risk losing your information with a lost file or a bad hard drive.

Note: For more information, visit IRS website