Form 2290 for a Sold/Stolen Vehicle

Your vehicle may be eligible for a credit or refund if it meets any of the following criteria:

• Stolen Vehicle: If your vehicle was stolen during the tax period, and you can provide proof of the theft.

• Sold Vehicle: If your vehicle was sold to another person and you no longer have ownership or legal claim over it.

• Destroyed Vehicle: If your vehicle was destroyed beyond repair, and you can provide proof that it cannot be economically rebuilt.

• Low Mileage: If you paid the tax for the entire period, but your vehicle has not exceeded the mileage limit (5,000 miles for regular vehicles or 7,500 miles for agricultural vehicles) during the tax period, you may claim a credit or refund.

• Overpayment: If you mistakenly paid more than the required tax amount, you are eligible to request a refund for the excess payment.

There are certain situations in which your vehicle is not eligible for a credit claim or refund, including:

• Weight Class Adjustment: If you filed Form 2290 for a specific weight class but occasionally operated the vehicle at a lower weight, you are not eligible for a refund based on the lower weight class.

• Stopped Usage (But Not Destroyed): If you have stopped using the vehicle but it hasn’t been destroyed, you cannot claim a refund. However, you may still be eligible for a credit if the mileage used is less than 5,000 miles (7,500 miles for agricultural vehicles).

• Tax Not Fully Paid: You must have paid the tax amount for the entire tax period before you can claim a credit or refund. Without full payment, you're not eligible.

Now that you know when your vehicle qualifies for a credit or refund, let's explore the difference between claiming a credit and applying for a refund.

• Form 2290 Credit: The IRS allows you to claim a credit for a sold or stolen vehicle, which means that the amount you already paid can be applied toward your future tax payments. This option is available directly on Form 2290 and can be used to offset the tax liability for other vehicles or future filings.

• Form 2290 Refund: A refund is when you request the IRS to return the overpaid tax directly to your bank account. This option is not available through Form 2290 itself. Instead, you must file Form 8849 (Claim for Refund of Excise Taxes) to get your money refunded.

In short, claiming a credit allows you to reduce future tax payments, while applying for a refund gives you the money back directly.

You can claim a credit for a sold or stolen vehicle using either the manual method or the online method:

Manual Method:

1. Download the revised Form 2290 from the IRS website.

• Fill out Line 5 under Part 1 to indicate the credit claim.

• Fill out Line 9 under Part 2 with the necessary information regarding the sold, stolen, or destroyed vehicle.

• Complete Schedule 1 with the exact details of the vehicle.

2. Attach the required supporting documents (e.g., proof of sale, theft, or destruction) along with Form 2290.

3. Mail the completed Form 2290 and documents to the IRS at the appropriate address.

For mailing addresses, visit the IRS link.

Online Method:

1. Use an IRS-approved portal, such as Simple Form 2290.

• Select Form 2290 and specify the tax year and tax period.

• On the vehicle details page, select the "Sold, Destroyed, or Stolen Vehicles (Credit)" option.

2. Enter the required information:

• Vehicle gross weight

• First Month Used (FUM)

• Date of sale, destruction, or theft

• Logging or non-logging vehicle status

3. Proceed to the payment page and select your preferred method to pay the small processing fee.

4. Once the IRS approves your credit request, the credit amount will be available in your portal account, which you can apply toward your next tax payment.

This process ensures that the credit can be used for future HVUT payments.

You can request a refund using either the manual method or the online method:

Manual Method:

1. Download the revised version of Form 8849 from the IRS website.

• Fill out the necessary sections that apply to the Heavy Vehicle Use Tax (HVUT).

• Select the Schedule 6: Other Claims option.

• Provide the required details under Schedule 1 related to the sold, destroyed, or stolen vehicle.

2. Attach supporting documents, such as proof of sale, theft, or destruction.

3. Mail the completed Form 8849 and supporting documents to the IRS.

For mailing addresses, visit the IRS Link

Online Method:

1. Visit an IRS-approved portal, such as Simple Form 2290.

• Select the tax year and tax period.

• Choose the Form type as Form 8849.

2. In the vehicle details section, select "Sold, Destroyed, or Stolen Vehicles (Credit)" and provide the required vehicle details:

• Gross weight

• First Month Used (FUM)

• Date of sale, destruction, or theft

• Logging or non-logging vehicle status

3. Proceed to the payment page and select your preferred method to pay the small processing fee.

4. Once you review and submit the request, the IRS will process your claim. If approved, the refund will be transferred directly to your bank account.

Both methods enable you to request a refund of the HVUT tax for the sold or stolen vehicle, but the online option provides a faster, more convenient process.

WRAP:

After reading this blog, you will have a clear understanding of how to claim a credit or refund if your vehicle has been sold or stolen, as well as the eligibility criteria for each.