A suspended truck shows any taxable truck expected to be used for five thousand miles or less within the tax period. Taxable trucks are normally trucks weighing 55000 pounds and exceed fifty five thousand miles during the tax period. Even if your truck is categorized to fall under the class of suspended vehicles you are still required to file Form 2290. The main reason for filing 2290 is that if the stated mile limits is exceeded you will be liable to pay tax on it.
An agricultural truck is any highway automobile used mainly for carrying out farming activities such as transportation and other primary farming activities. Trucks used for Agricultural purposes should be filed as so. Agricultural trucks enjoy more mileage limits as compared to other heavy commercial trucks.
If you are going to put a suspended truck on offer, there are particulars you need to meet as a requirement per IRS standards. Particulars showing certain information must be submitted to the purchaser of the suspended vehicle. These particulars include name, address, VIN number, date of sale, odometer reading at the beginning of tax period and at the sale period and both the seller’s and buyer’s EIN. These particulars are used by the buyer to connect to Form 2290 and during the last day of the month it was purchased, the truck is filed.
If after the sale of the truck, the distance covered by the suspended truck exceeds the mileage limitation, and the previous owner had submitted the required particulars, the new owner of the truck is liable for the incurred taxes. If it happens the previous owner is found not to have submitted the said particulars, he or she will be liable for the incurred taxes on the truck.
Most companies will always try to keep away from complicated legal problems by making sure they succeed in complex tax details associated with Form 2290. Trucks which are used to transport goods across- country and weighs fifty five thousand pounds or more are required by state to e-file Form to remit HVUT. Extra piece of information which you are to include when filing tax is a tax statement for a truck that is classified as suspended and going over the mileage limitation of 5,000.
It is advisable keep reports for all your taxable trucks registered under your name for at least three years once the tax is paid. All your trucks should be within reach all the time for regularly checking by IRS. Keep safe all the copies of tax returns and schedules that you have being already filled on. If tax is stop on a truck for a certain quantity as a result of it being used on public highways though the quantity did not exceed limits of miles required, the owners must keep records for at least three years.
Form 2290 is renewed annually by August 31 to mark a new tax period. This form can also be filed at any period after the stated deadline has elapsed but normally the tax due will be subjected to penalties. The penalty for failing to honor IRS deadline may go up to 4.5 percent of total due, estimated monthly for five months.