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IRS Form 2290 Instructions: Selling Suspended Trucks

May 6, 2014

Written by Casey Jenkins

Did you know that when you sell a suspended truck you have to give the new owner information about your old 2290? Do you know what kind of information you’re supposed to give?

Selling Suspended Trucks

When you file a Form 2290 and call your vehicle Suspended the IRS starts tracking mileage. Hopefully you already know about the kinds of proof you’re required to keep. (Read here for more information). What you may not be as clear on is that a single truck that is suspended can only travel 5,000 miles in the tax period. Not per owner – per tax period.

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An Example

Let’s say Bob is buying a truck from John. John suspended taxes in July because he was planning on selling it, but he did use run the truck about 3,500 miles.  Bob also wants to suspend the tax because he’s not planning to use it much before July. The trouble is that Bob can’t suspend the tax if he plans to travel more than 1,500 before the end of the tax period. The mileage for the whole tax period counts not just the miles Bob puts on the truck.

Tracking Mileage

I can just hear all my trucker friends saying, “But how do I KNOW what seller did?” The good news is that they are required to tell you. The seller has to provide a statement to the new owner with all of the following:

  1. Buyer and Sellers Names
  2. Buyer and Sellers Addresses
  3. Buyers and Sellers EINs
  4. Truck VIN
  5. Date of sale
  6. Odometer at the beginning of the period
  7. Odometer at the time of sale

Those last two are the big ones! Odometer readings are everything, and they will let the buyer know whether they can suspend the vehicle or not. The buyer needs to keep this document with his records for the entire 3 year audit period.