There may be times when you’ve dutifully paid the Heavy Vehicle Use Tax (HVUT), and then your vehicle ends up not being driven the minimum number of miles. Or, maybe you sold or traded the vehicle for a new one. Or, in a stroke of bad luck, the vehicle in question was stolen, or destroyed in an accident. Now what? How do you get an IRS form 2290 refund?
Truck operators often face scenarios where they’ve completed Form 2290 and paid the HVUT, but for one reason or another, they’re now eligible for a refund. While it is possible to receive a check for an IRS Form 2290 refund for an excess payment, it’s not a simple process, and it’s typically much easier to accept your refund in the form of a credit on future payments. In this article, we’ll delve into the IRS provisions for claiming an IRS Form 2290 refund, and the best way for you to receive compensation for paying excess amounts in 2290 tax.
The IRS mandates that vehicles exceeding a certain weight and driven more than 5,000 miles (7,500 miles for agricultural vehicles) within a tax period must pay the 2290 tax. If you didn’t file your vehicle as suspended with the expectation that you would travel more than 5,000 miles, but your travel ends up not exceeding the mileage requirement, this will result in an excess payment of the 2290 tax.
Another scenario in which overpayment is possible is when the vehicle in question is sold or traded. The 2290 tax is tied to the vehicle itself, not to its owner; because of this, selling or trading it can result in you paying excess tax.
In truly unfortunate situations, where the vehicle on which the tax was paid was stolen, or even destroyed in a collision or accident, the 2290 tax the owner paid for the vehicle in that tax period becomes an overpayment. Keeping meticulous, comprehensive records of any incidents like this can help validate your claim for a tax refund or credit.
Once you’ve determined that you qualify for an IRS Form 2290 refund, what’s the best way to receive it? The IRS does provide a way for taxpayers to receive refunds for excess 2290 tax payments. Taxpayers seeking a refund need to file Form 8849, Schedule 6, and attach the documents required that substantiate their claim (for example, if the vehicle was sold, you might attach a copy of a bill of sale). If you file your claim correctly, once the IRS approves the refund they will mail a check to the address for you they have on file. This process typically takes around six weeks.
On paper, filing a claim and subsequently receiving a refund check from the IRS is the most simple and straightforward way to recover money from overpayments. However, it may not always be the most efficient. Six weeks is just an estimate, and possible processing times and potential delays with the postal service mean that while claiming a refund from the IRS for excess 2290 payments may be the simplest, it’s not the most efficient way, and it’s definitely not the fastest.
An alternative to receiving a refund check is to claim the overpaid amount as a credit against future payments of the 2290 tax. You can do this by claiming the credit on line 5 of your Form 2290 when you file for the next tax period (when you e-file, you can receive this credit instantly).
In order to successfully claim a credit, you must clearly convey the reason for the overpayment, the overpayment amount, the vehicle’s identification number, and its taxable gross weight. If the vehicle was sold or traded, include the name and address of the vehicle’s owner.
Opting for a credit on future 2290 payments can be a faster and more efficient way of handling overpayments than requesting an IRS Form 2290 refund via Form 8849, Schedule 6. However, choosing the credit option requires the taxpayer to have future tax liabilities against which the credit can be applied. If you don’t plan to pay the HVUT in the future, a credit won’t do you any good.
Additionally, it’s not common, but after you file the IRS may decide not to accept a credit. If that happens, they will send you a letter requiring you pay the amount equal to that of the rejected credit, or request supporting documentation.
If you’ve overpaid on your 2290 tax, which of these options is your best bet? Well, that’s up to you. While many taxpayers prefer the ease and efficiency of simply claiming the amount as credit for future payments, others might prefer the simplicity of a IRS Form 2290 refund check from the IRS, even if it might take its time arriving. Ultimately, your decision may come down to your specific tax circumstances, your projected future tax liabilities, or whatever just feels right to you.
There’s a lot to consider when filing your taxes, which is why i2290 is dedicated to making it as quick and easy as possible to file your Heavy Vehicle Use Tax Return. Use i2290 to cut out the hassle and receive your stamped Schedule 1 in a matter of minutes. Our dedicated support staff is always around to answer any questions and help with any part of the process – including claiming credits or receiving an IRS Form 2290 refund by completing Form 8849, Schedule 6.
Create an account with us today and discover how i2290 makes filing your 2290 return a breeze!
Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re filing correctly and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.
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