Each and every vehicle is not taxed on the same basis for the IRS Form 2290 Heavy Vehicle Use Tax (HVUT) filings. Some trucks are classified as suspended vehicles and, depending upon the circumstances, could be exempt from the heavy vehicle use tax. Knowing these rules can save you money and keep you compliant with the IRS, whether you are an owner-operator or a trucking company.

What Are Suspended Vehicles Under Form 2290?

Suspended vehicles are highway motor vehicles that travel 5,000 miles or less during a tax period (or 7,500 miles or less for agricultural vehicles). Because they do not exceed the mileage use limit, they are not subject to HVUT payment, but the vehicles must be reported on Form 2290 Schedule 1.

Typical examples include:

• Seasonal trucks or trucks used for limited operations.
• Farm trucks qualifying as agricultural vehicles.
• Vehicles in a fleet but seldom used on public highways.

All these would be properly accounted for under your IRS reporting process, keeping you compliant and avoiding unwarranted tax payments.

IRS Rules for Reporting Suspended Vehicles

While suspended vehicles are exempt from paying HVUT, the IRS requires you to:

File Form 2290 with the vehicle marked as “suspended.”

List the VIN (Vehicle Identification Number) in Part II of Schedule 1.

Keep mileage records demonstrating the vehicle did not exceed the mileage limit.

Should the vehicle exceed the mileage limit during the year, you must amend your Form 2290 and remit payment for tax immediately; otherwise, penalties and interest charges may apply.

Here is why it is important to file suspended vehicles correctly:

The trucking business is concerned with fleet management compliance. The IRS is known to examine HVUT filings quite rigorously.

Should the trucking business report incorrectly or fail to amend, then fines shall go into effect.

States need a stamped Schedule 1 in order to renew registrations, even for suspended vehicles.

Thus, suspended vehicles must be filed to keep in compliance with federal and state regulations.

How to file Form 2290 for suspended vehicles

Filing Form 2290 for suspended vehicles is easy if the following are properly done:

• Eligibility: Mileage use must be checked for the vehicle.
• Time to e-file Form 2290: Get the stamped Schedule 1 right away, through e-filing.
• Select the category of a suspended vehicle that is, enter VINs in the suspension section.
• Recordkeeping: Log mileage records for review by the IRS.

Using an IRS-authorized e-file provider guarantees processing without defects and will be the most efficient way to report suspended vehicles.

There is an opportunity for truckers and fleet owners to save money while keeping compliance with IRS requirements when it comes to suspended vehicles under Form 2290 HVUT. Identifying these vehicles and reporting them correctly, keeping mileage records, and amending reports as required will protect you and make your trucking operations smoother.

If you are an owner-operator, fleet manager, or trucking company, learning about suspended vehicles under Form 2290 is something you will need to save money and keep things going smoothly.

Note: For more information, visit IRS website