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E-filing Form 2290 Is Now Available for the 2019-2020 Tax Year!

Frequently Asked Questions

Q: What is the tax liability when buying or selling a suspended vehicle?

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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This service is provided by ExpressTruckTax, a division of Span Enterprises and an IRS authorized e-file provider.

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