Form 2290 - Suspended Vehicles

1. What is meant by “Suspended Vehicle”?

Highway motor vehicles that do not exceed 5,000 miles (7,500 miles for agricultural vehicles) are exempted from paying heavy vehicle use tax, and they fall under the Suspended Vehicle category. However, owners must still report suspended vehicles using Form 2290.

For suspended vehicles, the mileage used limit on public highways is 5,000 miles (7,500 miles for agricultural vehicles). The mileage use limit applies to the total mileage a vehicle is used during a tax period, regardless of the number of owners. Therefore, if any motor vehicle is driven 5,000 miles or less (7,500 miles or less for agricultural vehicles), they are considered suspended vehicles.

2. What is considered a Suspended Vehicle?

The following types of vehicles are considered a Suspended Vehicles:

• Commercial Vehicles that are driven 5,000 miles or less annually.
• Agricultural Vehicles that are driven 7,500 miles or less annually.

All suspended vehicles are reported on Form 2290 as Category W.

3. Things to consider when buying or selling Suspended Vehicles

This form must be filed on or before the last day of the following month of first use.

• Name of the Seller
• Seller’s Address
• Seller’s EIN
• Selling vehicle’s VIN
• Date of Sale
• Odometer reading at the beginning of the period
• Odometer reading at the time of sale
• The buyer’s Name
• Buyer’s Address, and EIN

4. Do I need to Pay Tax for Suspended Vehicles?

You do not need to pay tax for suspended vehicles, but you have to file Form 2290. In addition, if your suspended vehicles exceed the mileage limit, you must amend your previously filed Form 2290 and pay the required Heavy Vehicle Use Tax.

5. What are the E-Filing requirements for reporting Suspended Vehicles?

E-filing Form 2290 is mandatory if you are reporting 25 or more vehicles. However, The IRS encourages every filer to e-file Form 2290 irrespective of the number of vehicles being reported for quick processing and to get their Schedule 1 instantly.

6. How to report Suspended Vehicles on Form 2290 using ExpressTruckTax?

Follow the steps below to report suspended vehicles using ExpressTruckTax:

• Create an ExpressTruckTax account.
• Add your business details.
• Select the Tax Year and First Used Month (FUM).
• Check Add Suspended Vehicle under the Vehicle Details.
• Review Form summary and transmit the returns to the IRS.