The IRS allows claiming credits under the following scenarios in IRS Form 2290. A taxpayer can claim his/ her credit for the vehicles when it was destroyed, stolen or sold before the period of June 1 and when not used in the remaining period or used 5,000 miles or less during the prior period (7,500 miles or less for agricultural vehicles.)
For instance, if you have filed your Form 2290 at 85,000 lbs, but the situation demanded you to operate at a lower weight class then you will not qualify for the credit. On the other hand, if you used the taxable vehicle for a portion of tax period, you can qualify for the credit when you did not cross the mileage use limit 5,000 miles (7,500 miles for agricultural vehicles). In this case, if you exceeded the mileage limit 5,000 miles (7,500 miles for agricultural vehicles) then you cannot qualify for the credit.
A claim for Heavy Vehicle refund made for the following:
- Form 2290 claim on stolen, destroyed, transferred or sold Vehicle
- Vehicle used within the low mileage use limit
- Tax dues are overpaid by mistake
Credit for Stolen, Destroyed or Sold Vehicles
Credit for stolen, destroyed or sold vehicles during tax period will be prorated based on the occurrence dates. For stolen, destroyed or sold vehicles you need to include the VIN, taxable gross weight of the vehicle and date of theft, accident or sale. The credit for the vehicle for which the tax is paid, can be claimed on next IRS 2290 Form filed or claim the refund on the Form 8849. To do this you no need to wait until the end of the tax period.
Credit for Low Mileage Vehicles
In case of credits for low mileage vehicles there can be two scenarios, one is you qualify for the claim and you get the paid full amount as a credit. Second scenario is that you will not qualify for the credit and also you will not get any credit. This credit is not prorated like the previous credit for stolen, destroyed or sold vehicles.
Tax Dues are Overpaid
The taxpayer can place a claim when the tax dues are overpaid by mistake for various reasons. For instance, the taxpayer might have reported the tax for the same VIN number and paid the tax twice. Reported tax returns for a used vehicle for which the tax dues are already settled with the IRS.
Important Notes about Form 2290 Claims
- The claimed credit should not exceed the tax amount that is reported on Form 2290. If it happens, the excess credit need to be claimed using the Form 8849, Claim for Refund of Excise Taxes and Schedule 6, Other Claims in order to claim the overpayment due to the error in previously reported Form 2290 tax liability.
- Credit, lower tax, refund or exemption is not permitted for a decreased load or occasional light, discontinued, or changed use of the taxable vehicle.
- You cannot claim the credit until the end of the tax period for the vehicles for which the taxes are paid and used 5,000 miles or less (7,500 miles or less for agricultural vehicles)
- Even when you know that you will not exceed the 5,000 miles mileage limit during the tax year, you cannot claim the credit until the end of the tax period, June 30th.
You need to place the claim within 3 years of filing the actual tax return to which the claim relates or 2 years from the tax reported and paid, whichever is later. To apply for a credit, complete Form 2290, include the required information and file your tax return. In order to apply for a refund, you need to complete Form 8849 along with Schedule 6 (Form 8849) following the given instructions. You can call our customer support team for any guidance and we can walk you through the filing process.