Tax form 2290 Questions – Reporting Suspended Vehicles

Recently, we had a question from one of our customers. The answers we usually give our customers in return to their Form 2290 related queries are so good that they don’t come back with another question pertaining to the same. For more reviews on us, click here. Anyways, we thought we should share one such answer to all our readers so that when they face similar situations with respect to trucker’s tax filing, they find answers themselves over the internet.

Q: A vehicle was filed as a suspended vehicle last year and was transferred / sold to someone, which was eligible for suspension at the time of the transfer. Should that be reported in this year’s form 2290?

A: When a taxable vehicle is sold before the end of the tax year everyone remembers to report it because they get a credit on the taxes paid on that vehicle. As per the form 2290 Part II Line 9, any vehicle reported as suspended in the  prior year that was sold or transferred to a third party before the end of the tax year, has to be reported. This is to let the IRS know that the vehicle was eligible for suspension of taxes during the transfer. It should also have the person’s name it was transferred to and the date it was sold/transferred.

How to report suspended vehicle on e-file application?

Doing the above answer part live on our secure e-file tax filing application is not so tough. While answering the questions on the vehicle information page mark “yes” to the prior year suspended / exempt vehicles 3rd from the top. When you reach the respective page, add the VIN of the vehicle which was sold / transferred and mark yes on the question “Was the above suspended vehicle sold or transferred to someone?” The application will then ask for the buyers name and the date on which the vehicle was sold. Input the information and continue with the filing process.