05-30-2024

How to File Form 2290 for Suspended Vehicles

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What are Suspended Vehicles in 2290?

Suspended Vehicles are 2290 tax-exempted vehicles under special grounds. Government Vehicles, Agriculture Vehicles, Logging trucks, and Regular Trucks are considered if they meet the below-miles criteria. 

Vehicle Type	Exemption Limit (for 12 months)
Government Vehicles	No Miles Limit
Agriculture Vehicles	< 7500 miles
Logging trucks	<7500 miles
Regular Trucks	<5000 miles

 

 

Though the suspended vehicles are exempted from tax, the vehicles must file Form 2290. 

How do we report Form 2290 suspended vehicles?

There are 2 ways to report your vehicle details when it falls under the suspension category.

1.       Reporting 2290 Suspended Vehicles through Online

2.      Reporting through Manual Filing 

Reporting 2290 Suspended Vehicles through Online:

You can report through our Simple Form 2290 dashboard and complete your filing in 5 steps

Step 1: Create your free account by registering with us

Step 2: Once the account is created, add your business details

Step 3: Click “Add new filing”, then add your tax year details

Step 4: Select the “Reporting Suspended/Exempt Vehicles” category and add the vehicle details

Step 5:  Pay the cheapest submission fee of $7.95 and complete the process in a few minutes. 

We have been an IRS-authorized 2290 efile provider operating in the US since 2009. Get professional assistance through our dedicated customer care team and complete your filing at a cheaper cost. 

Reporting through Manual Filing:

You can manually report suspended vehicles. But IRS recommends efile form 2290 than paper filing these days.

Step 1: Download Form 2290 from the IRS site

Step 2: Fill the business details(name, address, EIN,etc.,)

Step 3: Ignore Part I and go to Line 7 in Part II. Fill in this field to suspend the tax on vehicles that are anticipated to be driven fewer miles per year for a certain amount of time. Tick mark under which category the exemption comes in.

Step 4: Under Line 8a: At this line, confirm that the vehicles used for 5,000 miles or less and recorded as suspended on Form 2290 during the previous tax period were not taxable.

Step 5: Under Line 8b: In case box 8a is ticked, you need to provide the VINs of the vehicles that were previously suspended and subsequently driven for at least 5,000 miles within the specified period.

Step 6: In Line 9: Fill in this line in the following circumstances: If, during the previous period, Form 2290 was filed and those vehicles are suspended from paying taxes now if those vehicles are sold or transferred.

Feeling manual filing cumbersome? Pay Form 2290 online today! 

Step 7: Third Party Designee: Tick the Yes box in the Third Party Designee section of Form 2290 if you would like to discuss your Form 2290 with the IRS with a business employee, a return preparer, or any other third party. Add the designer's name, contact information, and any five-digit PIN (personal identification number) that they may select. Only the tax return on which it appears is covered by the authorization.

Step 8: Signature: Once you've made sure everything on the return is correct, sign it and include the date and phone number. Without a signature, submitted returns will be forwarded back to you for approval.

Step 9: Use of Paid Preparer Only: Only your Paid Preparer can perform this section. Other than the document being forwarded to the IRS, as a client you should also get a copy of this form from your preparer. If you are a paid preparer, enter your PTIN in the appropriate field. Kindly provide your full address. In case you are an employee of a firm, you should include the name and EIN as well.

Step 10: Ignore the Tax Computation page as the vehicle is exempted from tax. 

Step 11: Fill Form 2290 Schedule 1, both Part I and Part II. You need to fill both schedule 1 copies. One copy would be signed and returned by the IRS. 

Step 12: Complete Consent to Disclosure of Tax Information. After filing form 2290 with all required information and attachments, check twice before signing it, and submit it along with the tax amount to the specified address on the IRS website.

 

Conclusion:

Filing form 2290 through paper is an old-school procedure. This is applicable for tax-exempted vehicles. Manual filing takes time and effort.

Move online through Simple Form 2290 and feel the convenience! Your suspended vehicle reporting will be completed in a few minutes.