Tax Instructions

Purpose of Form

Use Form 2290 to:

• Figure and pay the tax return due on heavy highway motor vehicles used during the tax period with a taxable gross weight of 55,000 pounds or more.
• Figure and pay tax due on a vehicle for which you completed the suspension statement on another Schedule 1 Form 2290 if that vehicle later exceeded the mileage use limit during the period.
• Figure and pay the tax due if, during the tax period, the taxable gross weight of a vehicle increases and the vehicle falls into a new category. or less (7,500 miles or less for agricultural vehicles) during the tax period.
• Claim a credit for tax paid on vehicles that were destroyed, stolen, sold, or used 5,000 miles or less (7,500 miles or less for agricultural vehicles).
• Report acquisition of a used taxable vehicle for which the tax suspended.
• Figure and pay tax due on a used taxable vehicle acquired and used during the period.

Use Schedule 1 (Form 2290):

• To report all vehicles for which you are reporting tax 2290 (including an increase in taxable gross weight) and those that you are reporting suspension of the tax by category and vehicle identification number (VIN).
• As proof of tax 2290 payment to register your vehicle(s) (unless specifically exempted) in any state. Use the Form 2290 Schedule 1 stamped and returned to you by the IRS for this purpose.

Use Form 2290-V, Payment Voucher, to accompany your check or money order. Form 2290-V is used to credit your heavy highway vehicle use tax return payment to your account.

Who Must File

You must file Form 2290 Schedule 1 for the tax return period beginning on July 1, 2009, and ending on June 30, 2010, if a taxable highway motor vehicle (defined below) is registered, or required to be registered, in your name under state, District of Columbia, Canadian, or Mexican law at the time of its first use during the period and the vehicle has a taxable gross weight of 55,000 pounds or more. You may be an individual, limited liability company (LLC), corporation, partnership, or any other type of organization (including nonprofit, charitable, educational, etc.).

Taxable Vehicles

Heavy highway vehicle use tax return (HVUT) will be applicable when the Highway motor vehicles that have a taxable gross weight of 55,000 pounds or more are taxable.

Heavy Highway motor vehicle includes any self-propelled vehicle designed to carry a load over public highways, whether or not also designed to perform other functions. Examples of vehicles that are designed to carry a load over public highways include heavy trucks, truck tractors, and buses. Generally, vans, pickup trucks, panel trucks, and similar trucks are not subject to this tax because they have a taxable gross weight less than 55,000 pounds.

Vehicle consists of a chassis, or a chassis and body, but does not include the load. It does not matter if the vehicle is designed to perform a highway transportation function for only a particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer), or a special kind of cargo, goods, supplies, or materials. It does not matter if machinery or equipment is specially designed (and permanently mounted) to perform some off-highway task unrelated to highway transportation except to the extent discussed below under Vehicles not considered highway motor vehicles.

Use means the use of a vehicle with power from its own motor on any public highway in the United States.

Highway is any road in the United States that is not a private roadway. This includes federal, state, county, and city roads.

Exemptions.

To be exempt from the tax , a heavy highway motor vehicle must be used and actually operated by:

• The Federal Government,
• The District of Columbia,
• A state or local government,
• The American National Red Cross,
• A nonprofit volunteer fire department, ambulance association, or rescue squad,
• An Indian tribal government but only if the vehicle's use involves the exercise of an essential tribal government function, or
• A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state.

Also exempt from the online tax return (not required to file Form 2290) are:

• Qualified blood collector vehicles (see below) used by qualified blood collector organizations, and
• Mobile machinery that meets the specifications for a chassis as described under Specially designed mobile machinery for nontransportation functions later.

Qualified blood collector vehicle.

A qualified blood collector vehicle is a vehicle at least 80% of the use of which during the prior tax return period was by a qualified blood collector organization for the collection, storage, or transportation of blood. A vehicle first placed in service in a tax return period will be treated as a qualified blood collector vehicle for the return tax period if the qualified blood collector organization certifies that the organization reasonably expects at least 80% of the use of the vehicle by the organization during the tax period will be in the collection, storage, or transportation of blood.

Vehicles not considered heavy highway motor vehicles. Generally, the following kinds of vehicles are not considered heavy highway vehicles.

1. Specially designed mobile machinery for no transportation functions. A self-propelled vehicle is not a highway heavy vehicle if all the following apply.

• The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways.
• The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation.
• The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load.

2. Vehicles specially designed for off-highway transportation. A vehicle is not treated as a highway heavy vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle’s capability to transport a load over a public highway is substantially limited or impaired.

To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway.

3. Nontransportation trailers and semi-trailers. A trailer or semi-trailer will not be treated as a highway heavy vehicle if it is specially designed to function as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle.

When To File

Form 2290 must be filed for each month a taxable heavy vehicle is first used on public highways during the current period. The current period begins July 1, 2009, and ends June 30, 2010. Form 2290 must be filed by the last day of the month following the month of first use (as shown in the chart below). The filing rules apply whether you are paying tax or reporting tax suspension. The following examples demonstrate these rules.

Example, continued. John purchases a new taxable highway vehicle on January 3, 2011. The vehicle is required to be registered in his name. The vehicle is first used in January. John must file another Form 2290 reporting the new vehicle by February 28, 2011, for the period beginning July 1, 2010, through June 30, 2011. To figure the tax, John would use Table I on page 10.

Note: If any due date falls on a Saturday, Sunday, or legal holiday, file by the next business day.

Extension of time to file. Before the due date of the return tax, you may request an extension of time to file your return by writing to the Department of the Treasury, Internal Revenue Service (IRS), Cincinnati, OH 45999-0031. In your letter, you must fully explain the cause of the delay. Except for taxpayers abroad, the tax extension may be for no more than 6 months. An extension of time to file does not extend the time to pay the tax. If you want an extension of time to pay, you must request that separately.

How To File

Electronic filing is required for each return tax reporting 25 or more vehicles. However, all taxpayers are encouraged to file electronically.

Electronically. File Form 2290 electronically through any electronic return originator (ERO), transmitter, and/or intermediate service provider (ISP) participating in the IRS e-file program for excise taxes. For more information on online e-file, visit the IRS website at www.irs.gov/efile. Paper. Mail Form 2290 to the address shown under Where To File. If you did not pay the tax using the Electronic Federal Tax Payment System (EFTPS), mail Form 2290-V and your check or money order with Form 2290. For more information on online tax payments, see How to Pay the Tax on page 7.

Penalties and Interest

The law provides penalties for failing to file returns or pay taxes when due. There are also penalties for filing false or fraudulent returns. These penalties are in addition to the interest charge on late payments. The penalty for filing a return late or paying the tax late will not be imposed if you can show reasonable cause for not filing (or paying) on time. If you file after the due date (including tax extensions), attach an explanation to the return to show reasonable cause.