A:
There are specific tax implications regarding the sale of
suspended vehicles.
If you sell a vehicle while under suspension, a statement must be given to the buyer and must show your:
- name, address, and EIN,
- VIN Number,
- date of the sale,
- odometer reading at the beginning of the period,
- odometer reading at the time of sale, and
- buyer's name, address, and EIN.
The buyer must attach this statement to
IRS form 2290 and file the return by the last day of the month following
the month the vehicle was purchased.
If, after the sale, the use of the vehicle exceeds the mileage use limit (including the highway mileage
recorded on the vehicle by the former owner) for the period, and the former owner has provided the
required statement, the new owner is liable for the tax on the vehicle. If the former owner has not
furnished the required statement to the new owner, the former owner is also liable for the tax for that period.
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