Suspension of HVUT

written by: Aparajithan Chandramouli; article published: year 2010, month 06;

In: Root » Legal and finance » Taxes

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In case the taxable truck weighing 55,000 lbs. or more is expected to run on public highways 5,000 miles or less (7,500 miles or lower for agricultural vehicles), the truck owners can apply for HVUT suspension.

  • Actual Unloaded Weight
  • Fully Equipped for Service
  • Liability for Heavy Vehicle Use Tax after the sale
  • Mileage Use Limit
  • Sale of vehicle under suspension
  • Suspended vehicles exceeding the mileage use limit

Actual Unloaded Weight

This is the empty weight of the heavy highway vehicle. In case the vehicle is outfitted to tow a trailer, the trailer is considered as "used in connection with the heavy vehicle".

Fully Equipped for Service

Fully equipped for service comprises:

  • The body
  • All accessories
  • All equipment attached to the vehicle
  • A full supply of fuel, oil, and water

The term excludes:

  • The driver
  • Any equipment mounted on the vehicle
  • Any special equipment

Liability for Heavy Vehicle Use Tax after the sale

In case after the sale, the utilization of the vehicle exceeds the mileage use limit and the previous owner provides the required statement the tax liability for the vehicle falls on the new owner. In case the previous owner does not furnish the required statement to the new owner, the previous owner is also liable for the tax.

Mileage Use Limit

Total mileage the heavy vehicle is used during a period in spite of the number of owners.

Sale of vehicle under suspension

In case you sell a vehicle under suspension, a statement must be provided to the buyer which shows the:

  • Buyer's name, address and EIN
  • Date of the sale
  • Odometer reading at the beginning of the period
  • Odometer reading at the time of sale
  • Seller's name, address, and Employer Identification Number (EIN)
  • Vehicle Identification Number (VIN)

Buyer needs to affix this statement to IRS Form 2290 and file the return by due date.

Suspended vehicles exceeding the mileage use limit

If a suspended heavy highway vehicle surpasses the mileage use limit, the tax becomes due. Mileage use limit denotes the utilization of vehicle on public highways 5,000 miles or less.

You need to report the tax for the entire period on Form 2290, line 2. You need not complete Form 2290, Part II, or Schedule 1, Part II. Calculate the tax starting from the month the vehicle was first used in the period. Write "Amended" on the top of the return and the month in which the mileage use limit was surpassed. File Form 2290 and Schedule 1 by due date. Check out www.Tax2290.com for efficient e-filing of excise taxes.

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