Yes, absolutely. If you sell a heavy highway vehicle that was subject to the Heavy Vehicle Use Tax and you had paid the Form 2290 tax for the full tax period-from July 1st to June 30th-then you are entitled to a tax credit or refund for the remaining unused months. The IRS knows life-and trucking business operations-do not always fall within the bounds of a given tax year.

This is designed to avoid overpayment of taxes and is an important aspect of tax compliance for the owner-operator or fleet manager. Think of the HVUT like pre-paid insurance: you get a prorated amount back when cancelling the policy early, as would happen when selling the truck.

Claiming Your Refund: Credit vs. Cash

If the vehicle is sold, destroyed, or stolen before the end of the tax period, there are two major ways of recovering the tax you have already paid. The best option for you will depend on your current tax situation

Option 1: The Tax Credit (The Quick Offset)

This is the easiest path for fleet owners who anticipate future Form 2290 liability.

• How it works: The credit will be claimed on a subsequent Form 2290 filing (either later in the current tax period or the next tax period).
• Benefit: The credit amount is automatically deducted from the tax due on your other vehicles, thus instantly lowering your tax liability. This is usually quicker than waiting for a direct refund check. You'll complete Line 5 of Form 2290 to report the sold vehicle and the claim amount.

Option 2: The Refund (The Cash Back Route)

You'll want a direct refund if you've significantly downsized your fleet or don't anticipate having enough HVUT liability to offset the entire credit.

• How it works: You need to file IRS Form 8849, Claim for Refund of Excise Taxes, along with Schedule 6 (Other Claims).
• Benefit: The IRS will refund the prorated amount in the form of a direct refund check. This is required when the calculated credit amount is greater than the tax you owe on your next Form 2290.

How to Calculate and File Your Claim

Whether you take the credit or the refund, the computation is the same: the claim is for the months remaining in the tax year after the month of sale.

• Determine the Sale Date: Identify the exact date when the heavy vehicle was sold or transferred. The credit will start from the first day of the month after the sale takes place.
• Example: If the truck was sold on November 15th, you are due a refund/credit for December through June.
• Calculate the Monthly Proration: HVUT taxes are charged based on the vehicle's taxable gross weight. Divide the amount you paid by 12 and then multiply that by the number of remaining months.
• Gather Documentation: Supporting documentation is required to be attached for the IRS to process your claim without delay. This is the most crucial step in verifying tax returns and processing claims successfully.

You will need:

• The VIN number of the vehicle.
• The date of sale.
• Purchaser's name and address.
• Effective for sales occurring after July 1, 2015.
• Proof of sale, including but not limited to a bill of sale or transfer of title document.

Using an IRS-authorized e-file provider, this process is incredibly simplified, as the software does the complicated pro-rata calculation for you and walks you through the required fields in Form 2290 or Form 8849.

Note: For more information, visit IRS website