Selling a heavy highway vehicle subject to the annual heavy vehicle use tax did require specific reporting. Contrary to popular misconception, it is not the case that selling a truck automatically terminates all tax obligations. If one paid the full-year HVUT beforehand for that vehicle, a credit or possibly even a partial refund might become applicable for the months that come after the sale date until the end of that tax period. One needs to understand how to correctly report the disposition of heavy equipment to maintain compliance and perhaps even get tax funds back.
When a taxable vehicle is sold, you generally have two options for handling the HVUT that was paid for the unused portion of the tax year. First, you can claim a credit for the overpaid amount on your next Form 2290 filing, applying it toward the tax liability of other vehicles, or newly acquired trucks. This is perhaps the easiest way if you're still in the trucking business. Second, if you have left the trucking business or if you prefer a direct reimbursement, you can file Form 8849 along with Schedule 6, that is actually referred to as Credits Sold Stolen or Destroyed Vehicles.
To smoothen the whole process, all these sales should be recorded in fine detail, including the date of transfer of the vehicle, vehicle identification number, taxable gross weight category, besides, for sales after July 1, 2015, name and address of the purchaser. Accumulating these facts, you can expect reimbursement to base the credit or refund on the number of full months remaining in the tax year after the month of sale. An accurate reporting of the disposition of the vehicles saves someone from unnecessary tax liability and ensures that payment for the legitimately owed funds is received.
