Is your vehicle suspended and want to report to IRS

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<h1>Is your vehicle suspended and want to report to IRS</h1><strong> Author: <a href='http://www.articleseen.com/profile_Aparajithan Chandramouli.aspx'>Aparajithan Chandramouli</a></strong><br /><p>Let us consider a situation where a taxable heavy highway vehicle which weighs over 55,000 lbs or more is estimated to run on public highways for a distance lesser than 5,000 miles. With the above stated condition, the owner of the truck is eligible to apply for suspension of heavy vehicle use tax. Please note the mileage limit for the same purpose for an agriculture vehicle is 7,500 miles or less. We need to discuss certain concepts and definitions to understand the suspension criteria for HVUT in a better manner. These concepts are listed below: What is Actual Unloaded Weight? When the vehicle is fully equipped for Service? Who holds the liability for Heavy Vehicle Use Tax after the sale? What do you mean by Mileage Use Limit? What are the regulations for sale of vehicle under suspension? What happens for suspended vehicles exceeding the mileage use limit? What is Actual Unloaded Weight? Actual uploaded weight refers to the empty weight of the heavy highway vehicle. For vehicles equipped to tow a trailer, the trailer is treated as “used in connection with the heavy vehicle”. When the vehicle is fully equipped for Service? A vehicle is considered as fully equipped for service when it consists of: • The body • All accessories • All equipment attached to the vehicle • A full supply of fuel, oil, and water The term does not include: • The driver • Any equipment mounted on the vehicle • Any special equipment Who holds the liability for Heavy Vehicle Use Tax after the sale? Let us consider that post sale, the usage of the vehicle exceeds the mileage use limit and the prior owner provides the essential statement. In this case the tax liability for the vehicle is due on the new owner. Let us consider that the prior owner does not provide the essential statement to the new owner. Under this condition the previous owner is also liable for the tax. What do you mean by Mileage Use Limit? This term refers to the total mileage the heavy vehicle is utilized during a period regardless of the number of owners. What are the regulations for sale of vehicle under suspension? For vehicles under suspension, a detailed statement must be given to the buyer which shows the: • Buyer's name, address and EIN • Date of the sale • Odometer reading at the beginning of the period • Odometer reading at the time of sale • Seller's name, address, and Employer Identification Number (EIN) • Vehicle Identification Number (VIN) This statement needs to be attached by the buyer with the IRS Form 2290 and return be filed by due date. What happens for suspended vehicles exceeding the mileage use limit? Whenever the suspended heavy vehicle surpasses the mileage use limit, the vehicle is due for tax. Mileage use limit signifies the usage of vehicle on public highways for 5,000 miles or less. You are required to report the tax for the complete period on Form 2290, line 2. Anyway you are not required to complete Form 2290, Part II, or Schedule 1, Part II. Calculation of tax should be done starting from the month of first usage of vehicle in the taxation period. It is essential that you write "Amended" on the topmost column of the return and also specify the month in which the mileage use limit was surpassed. Always remember to file the HVUT form and Schedule 1 by due date. </p><strong>About the Author:</strong><br />Author is a tax news specialist. view his site at <a rel="nofollow" href="http://www.tax2290.com">www.Tax2290.com</a><p> Article Source: <a href='http://www.articleseen.com/Article_Is-your-vehicle-suspended-and-want-to-report-to-IRS_27872.aspx'> http://www.articleseen.com/Article_Is your vehicle suspended and want to report to IRS_27872.aspx</a></p>

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Keywords : HVUT, Tax Form 2290, 2290,

Category : Finance : Taxes