| Instructions for Form 2290 |
2003 Tax Year |
Specific Instructions
This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
The first time you file Form 2290, enter your name and address. Include the suite, room, or other unit number after the street
address. Each period
after that, the IRS will mail you a Package 2290 with your information preprinted on the form. If you receive a preprinted
form, check your
information. Make any corrections on the form. If your address has changed, check the Address change box on Form 2290.
P.O. box.
If the Post Office does not deliver mail to the street address and you have a P.O. box, show the box number instead
of the street address.
Canadian or Mexican address.
If your address is in Canada or Mexico, enter the information in the following order: city, province or state, and
country. Follow the country's
practice for entering the postal code. Do not abbreviate the country name.
Final return.
If you no longer have vehicles to report on, file a final return. Check the Final return box on Form 2290, sign the return, and mail it
to the IRS. The IRS will stop mailing Form 2290 to you.
Employer Identification Number (EIN)
If the preprinted EIN on the form is wrong or you did not receive a form with preprinted information, enter the correct number.
If you do not have
an EIN, use Form SS-4, Application for Employer Identification Number, to apply for one. Form SS-4 has information on how to apply for an
EIN by mail or by telephone.
The period begins July 1, 2003, and ends June 30, 2004.
If the vehicle(s) is first used after July, enter the year and month the vehicle(s) was first used. For instance, if the vehicle(s)
is first used
in December 2003, enter "200312", if the first use is in March 2004, enter "200403".
To figure the tax on line 2, complete the Tax Computation on page 2 of Form 2290. You need to know the taxable gross weight of each
vehicle to determine its category. See Determining Taxable Gross Weight on page 7.
Column 1—Annual tax.
Use the tax amounts listed in column 1(a) for a vehicle used during July.
Use the tax amounts listed in column 1(b) for logging and Canadian/Mexican vehicles. For more information on these
vehicles, see page 7.
Column 2—Partial-period tax.
If the vehicle is first used after July, the tax is based on the number of months remaining in the period. See page
8, Table I, for the
partial-period tax. Enter the tax in column 2(a) for the applicable category.
For logging and Canadian/Mexican vehicles, see page 8, Table II, for the partial-period tax. Enter the tax in column
2(b) for the applicable
category.
Column 3.
Enter the number of vehicles for categories A-V in the applicable column. Add the number of vehicles in columns (3a)
and (3b), categories A-V, and
enter the combined number on the total line in column 3. For category W, enter the number of suspended vehicles in the applicable
column.
Column 4.
Multiply the applicable tax amount times the number of vehicles. Add all amounts in a category and enter the result
in column 4. Then, add the tax
amounts in column 4 for categories A-V, and enter the total tax amount.
Suspended vehicles exceeding the mileage use limit.
Once a suspended vehicle exceeds the mileage use limit, the tax becomes due. Mileage use limit means the use of a vehicle on public
highways 5,000 miles or less (7,500 miles or less for agricultural vehicles). The mileage use limit applies to the total mileage
a vehicle is used
during a period, regardless of the number of owners.
Report the tax for the whole period on Form 2290, line 2. Do not complete Part II of Form 2290 or Part II of Schedule 1. Figure the tax
on page 2 of Form 2290 based on the month the vehicle was first used in the period. At the top of the return, write the word
"Amended" and the month
in which the mileage use limit was exceeded. File Form 2290 and Schedule 1 by the last day of the month following the month
in which the mileage use
limit was exceeded.
Complete line 3 only if the taxable gross weight of a vehicle increases during the period and the vehicle falls in a new category. You
must file another Form 2290 and pay the additional tax for the remainder of the period. For instance, an increase in maximum
load customarily carried
may change the taxable gross weight. File Form 2290 and Schedule 1 by the last day of the month following the month in which
the taxable gross weight
increased.
Figure the additional tax as shown below. Attach a copy of the following computation for each vehicle.
| 1.
|
Enter the month the taxable gross weight increased |
|
| 2. |
From page 2 of Form 2290, determine the new taxable gross weight category. Next, go to page 8 of the
instructions. Find the month entered on line 1 above. Read down the column to the new category; this is the new tax. Enter
the amount here
|
$ |
| 3. |
On page 8, find the tax under that month for the previous category reported. Enter the amount here |
$ |
| 4. |
Additional tax. Subtract line 3 from line 2. Enter the additional tax here and on line 3 of Form 2290 |
$ |
If the increase in taxable gross weight occurs in July after you have filed your return, use the amounts on page 2 of Form
2290 for the new
category instead of page 8 of the instructions.
Complete line 4 only if you are claiming a credit for tax paid on a vehicle that was either:
- Destroyed or stolen before June 1 and not used during the remainder of the period or
- Used during the prior period 5,000 miles or less (7,500 miles or less for agricultural vehicles).
The amount claimed on line 4 cannot exceed the tax reported on lines 2 and 3. Any excess credit must be claimed as a refund
using Form
8849, Claim for Refund of Excise Taxes, and Schedule 6, Other Claims. Also use Schedule 6 to make a claim for an overpayment due to a
mistake in tax liability previously reported on Form 2290.
A credit, lower tax, exemption, or refund is not allowed for:
- An occasional light or decreased load.
- A discontinued or changed use of the vehicle.
- The sale of a vehicle.
Information to be submitted.
Attach an explanation detailing the facts for each credit.
For vehicles destroyed or stolen include: the VIN, the date of the accident or theft, and the computation of the amount
claimed. See Figuring
the credit below. A vehicle is destroyed when it is damaged by accident or other casualty to such an extent that it is not economical
to
rebuild.
Figuring the credit.
Use the partial-period tax tables on page 8 and follow the steps below:
- Figure the number of months of use. Start counting from the first day of the month in the period in which the vehicle was
first used to the
last day of the month in which it was destroyed or stolen.
- Find the number of months of use in the table on page 8. The months are shown in parentheses at the top of the table next
to each
month.
- Find the taxable gross weight category of the vehicle.
- Find where the category and months of use meet. This is the partial-period tax.
- The difference between the annual tax and the partial-period tax is the amount that can be claimed as a credit. Enter the
credit amount on
line 4 of the next Form 2290 required to be filed. Attach this computation to the return.
Installment payment.
If you are paying in installments, the credit may be less than the amount figured in 5 above because you cannot make a claim for unpaid
installment amounts. If you still owe tax, include an explanation with the installment notice and reduced payment. If you
do not owe or have overpaid,
include an explanation with the installment notice. You may use Schedule 6 (Form 8849) to make a claim for refund instead
of claiming a credit on Form
2290.
Vehicle used less than the mileage use limit.
If the tax has been paid for a period on a vehicle that is used 5,000 miles or less (7,500 miles or less for agricultural
vehicles), the person who
paid the tax may make a claim for the credit. Claim a credit on line 4 of the first Form 2290 filed for the next period.
You may use Schedule 6 (Form 8849) to make a claim for refund instead of claiming a credit on Form 2290. Form 8849
cannot be filed until
after June 30 of the period for this claim.
Part II. Statement in Support of Suspension
Complete line 7 to suspend the tax on vehicles expected to be used less than the mileage use limit during a period.
You must also:
- Enter the total number of tax-suspended vehicles in category W, column (3), on page 2 of Form 2290 and
- List the vehicles on which the tax is suspended in Part II of Schedule 1. See the Schedule 1 instructions below.
If in the prior period, line 7 of Form 2290 was completed, check the box on line 8a to verify that the vehicles were used
less than the mileage use
limit for that period. If any of the vehicles listed as suspended in the prior period exceeded the mileage use limit, list
the vehicle identification
numbers for those vehicles on line 8b. Attach a separate sheet if needed.
If in the prior period, line 7 of Form 2290 was completed and the tax-suspended vehicles were sold or otherwise transferred,
complete line 9.
Sales.
If you sell a vehicle while under suspension, a statement must be given to the buyer and must show the seller's name,
address, and EIN; VIN; date
of the sale; odometer reading at the beginning of the period; odometer reading at the time of sale; and the buyer's name,
address, and EIN. The buyer
must attach this statement to 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.
See Suspended
vehicles exceeding the mileage use limit on page 3.
If you want to allow an employee of your business or another person to discuss your Form 2290 with the IRS, check the “Yes” box in the
Third Party Designee section of the return. Also, enter that person's name, phone number, and any five digits that person chooses as his or
her personal identification number (PIN). The designation must specify an individual and may not refer to your payroll office
or a tax preparation
firm.
By checking the “Yes” box, you are authorizing the IRS to call the designee to answer any questions that may arise during the processing of
your return. You are also authorizing the designee to:
- Give the IRS any information that is missing from your return,
- Call the IRS for information about the processing of your return or the status of your payment(s), and
- Respond to certain IRS notices that you have shared with the designee about math errors and return preparation. The notices
will not be sent
to the designee.
You are not authorizing the designee to bind you to anything (including additional tax liability) or otherwise represent you
before the IRS. If you
want to expand the designee's authorization, see Pub. 947, Practice Before the IRS and Power of Attorney.
Sign the return. Returns filed without a signature will be sent back to you for signing. An unsigned return is not considered
filed.
Complete both copies of Schedule 1 and file them with your return. Your return may be rejected if Schedule 1 is not attached
to Form 2290. A copy
of Schedule 1 will be stamped and returned to you.
Note:
If you want a copy of a prior-period Schedule 1 returned to you, you must send a written request to the Internal Revenue Service
Center,
Cincinnati, OH 45999-0031.
Name and address.
The first time you file, enter your name and address on Schedule 1 exactly as shown on Form 2290. See Name and Address on page 3.
Part I.
Enter by category the VIN of each vehicle for which you are reporting tax. If you need more space, attach separate
lists. Be sure to write your
name and EIN on each list you attach.
Part II.
Enter the VIN of each vehicle for which you are claiming suspension from the tax. If you need more space, attach
separate lists. Be sure to write
your name and EIN on each list you attach.
Note:
Instead of completing Parts I and II, you may attach a statement to Schedule 1 that lists the VINs by category. You must attach
two copies of the
statement. Be sure to write your name and EIN on each statement you attach.
Part III.
Complete as follows:
- Enter on line a, the total number of taxable vehicles that you reported on Form 2290, page 2, column (3), categories
A-V.
- Enter on line b, the total number of taxable vehicles that you reported on Form 2290, page 2, column (3), category W.
Proof of payment for state registration.
Generally, states will require verification of payment of the tax for any taxable vehicle before they will register
the vehicle.
Use the stamped copy of Schedule 1 as proof of payment when:
- Registering vehicles with the state or
- Entering a Canadian or Mexican vehicle into the United States.
If you do not have the stamped copy, you may use a photocopy of Form 2290, Schedule 1, and both sides of your canceled
check as proof of payment.
No proof of payment is required for
a newly purchased vehicle, if you present to the state a copy of the bill of sale showing that the vehicle was purchased
within the last 60 days.
However, you must file a return and pay any tax due. See When To File on page 1.
A limited number of states have agreed to participate in an alternate proof of payment program with the IRS. In those
states, the Department of
Motor Vehicles (DMV) may forward your return to the IRS if certain requirements are met. If you give your Form 2290 (with
voucher and payment) to your
DMV to be forwarded to the IRS, no further proof of payment is needed to register your vehicle. Contact your local DMV to
see if your state
participates in this program.
If you give the DMV your Form 2290 to forward, your return is not considered filed until the IRS receives it. You
are responsible for any penalties
or interest if the return is filed late or lost by the DMV.
There are two methods to pay the tax:
- By check or money order using the payment voucher or
- By Electronic Federal Tax Payment System (EFTPS).
You may pay the tax in full with your Form 2290, or pay the tax in as many as four equal installments if your Form 2290 is
filed on time.
By check or money order.
If you use this method, you must also complete the payment voucher. See Payment voucher below.
- Do not send cash. Make your check or money order payable to the United States Treasury. Write your name, address, EIN, “Form 2290”, and
the date (as entered in Box 3) on your payment.
- Detach the voucher and send it with the Form 2290, both copies of Schedule 1, and your payment. See Where To File on page
2.
- Do not staple your payment to the voucher or Form 2290.
Payment voucher.
If you did not receive a preprinted payment voucher, complete Form 2290-V, Payment Voucher. Even if you elect to pay the tax in
installments, you must use Form 2290-V for your first installment payment that is due when you file Form 2290. If you have
your Form 2290 prepared by
a third party, provide this payment voucher to the return preparer.
Box 1.
Enter your EIN. If you do not have an EIN, see page 3.
Box 2.
Enter the amount you are paying with Form 2290.
Box 3.
Enter the same date that you entered on Form 2290, Part I, line 1.
Box 4.
Enter your name and address exactly as shown on Form 2290. Print your name clearly.
By EFTPS.
Using EFTPS is voluntarily, but you must enroll in EFTPS before you can use it. To get more information or to enroll
in EFTPS, call 1-800-555-4477
or 1-800-945-8400, or visit the EFTPS website at www.eftps.gov. If you make your payment using EFTPS, do not include the payment
voucher. Mail Form 2290 to the Internal Revenue Service, Cincinnati, OH 45999-0031.
Paying on time.
For EFTPS payments to be on time, you must initiate the transaction at least one business day before the date the
payment is due.
If you file on time, you may pay the tax due in installments. The first installment payment is due when Form 2290 is filed.
For payments by EFTPS,
see paying on time above. However, if the vehicle is first used in April, May, or June, you cannot pay in installments.
To figure when to pay, use the following table.
How to figure the installment payment.
Divide the amount on line 5 (Form 2290) by the number of installments shown in column (b) from the table above. Pay
this amount by the due dates
shown in columns (c) and (d). Enter the installment amount due on line 6 and make your first installment payment when the
Form 2290 is filed. Fill in
the Record of Installment Payments on page 5 for your records.
After the first installment, the IRS will send you a notice of each installment before it is due. Return your installment
payment with that notice.
If you do not get a notice for the 2nd, 3rd, or 4th installment payment, continue to make your payments. If you are paying
by check or money order,
send it with the required information. Do not:
- Complete a payment voucher or
- Prepare another Form 2290 or send a copy of the original you filed.
Mail your 2nd, 3rd, or 4th installment payment to the Internal Revenue Service, Cincinnati, OH 45999-0031.
If you pay in installments and later sell the vehicle, you are still liable for the full tax and must pay any remaining
installments.
Late payments.
If you pay an installment late, the whole amount of the unpaid tax becomes due and is payable upon notice and demand
from the IRS.
Highway motor vehicles that have a taxable gross weight of 55,000 pounds or more are taxable.
A 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 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.
A 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. See
Vehicles not considered highway motor vehicles below.
Use means the use of a vehicle with power from its own motor on any public highway in the United States.
A public 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 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.
Vehicles not considered highway motor vehicles.
Generally, the following kinds of vehicles are not considered highway vehicles.
- Specially designed mobile machinery for nontransportation functions. A self-propelled vehicle is not a highway vehicle if
it consists of a
chassis that:
- Has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling,
mining,
timbering, processing, farming, or operations similar to any of these) if the operation of the machinery or equipment is unrelated
to transportation
on or off the public highways,
- Has been specially designed to serve only as a mobile carriage and mount for the machinery or equipment, whether or not the
machinery or
equipment is in operation, and
- Because of its special design, could not, without substantial structural modification, be used as part of a vehicle designed
to carry any
other load.
- Vehicles designed for off-highway transportation. A self-propelled vehicle is not a highway vehicle if:
- The vehicle is designed primarily to carry a specific kind of load (other than over the public highway) for certain operations
(construction, manufacturing, mining, processing, farming, drilling, timbering, or similar operations), and
- The vehicle's design to carry this load substantially limits or impairs its use over public highways. To determine if the
vehicle's use is
substantially limited or impaired, you may take into account whether the vehicle may travel at regular highway speeds, requires
a special permit for
highway use, is overweight, or is too tall or too wide for regular highway use.
However, for purposes of item 2b, equipment that is attached to the vehicle and used for loading, unloading, storing, vending, or
handling is equipment associated with moving the load over public highways even though it may be used off highway.
The taxable gross weight of a vehicle (other than a bus) is the total of:
- The actual unloaded weight of the vehicle fully equipped for service,
- The actual unloaded weight of any trailers or semitrailers fully equipped for service customarily used in combination with
the vehicle,
and
- The weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers customarily used in
combination with
the vehicle.
Actual unloaded weight of a vehicle is the empty (tare) weight of the vehicle.
A trailer or semitrailer is treated as customarily used in connection with a vehicle if the vehicle is equipped to tow the trailer or
semitrailer.
Fully equipped for service includes the body (whether or not designed for transporting cargo (such as a concrete mixer)); all
accessories; all equipment attached to or carried on the vehicle for use in its operation or maintenance; and a full supply
of fuel, oil, and water.
The term does not include the driver, any equipment (not including the body) mounted on, or attached to, the vehicle, for use in handling,
protecting, or preserving cargo, or any special equipment (such as an air compressor, crane, or specialized oilfield equipment).
The taxable gross weight of a bus is its actual unloaded weight fully equipped for service plus 150 pounds for each seat provided
for passengers
and driver.
Determining Taxable Gross Weight
The weight declared for registering a vehicle in a state may affect the taxable gross weight used to figure the tax.
State registration by specific gross weight.
If the vehicle is registered in any state that requires a declaration of gross weight in a specific amount, including
proportional or prorated
registration or payment of any other fees or taxes, then the vehicle's taxable gross weight must be no less than the highest
gross weight declared for
the vehicle in any state. If the vehicle is a tractor-trailer or truck-trailer combination, the taxable gross weight must
be no less than the highest
combined gross weight declared.
State registration by gross weight category.
If the vehicle is registered in any state that requires vehicles to be registered on the basis of gross weight, and
the vehicle is not registered
in any state that requires a declaration of specific gross weight, then the vehicle's taxable gross weight must fall within
the highest gross weight
category for which the vehicle is registered in that state.
State registration by actual unloaded weight.
If the vehicle is registered only in a state or states that base registration on actual unloaded weight, then the
taxable gross weight is the total
of the three items listed under Taxable Gross Weight on page 6.
Special permits.
In determining a vehicle's taxable gross weight, do not consider weights declared to obtain special temporary travel
permits. These are permits
that allow a vehicle to operate:
- In a state in which it is not registered,
- At more than a state's maximum weight limit, or
- At more than the weight at which it is registered in the state.
However, special temporary travel permits do not include permits that are issued for your vehicle if the total amount
of time covered by those
permits is more than 60 days or (if issued on a monthly basis) more than 2 months during a taxable year.
A vehicle qualifies as a logging vehicle if:
- It is used exclusively during the period to transport products harvested from a forest,
- The products are transported to and from a point within the forest, and
- It is registered as a highway motor vehicle used in the transportation of harvested forest products under the laws of the
state in which the
vehicle is, or is required to be, registered. A special tag or license plate identifying the vehicle as used in the transport
of harvested products is
not required for the vehicle to be considered a logging vehicle.
Products harvested from the forested site may include timber that has been processed for commercial use by sawing into lumber,
chipping, or other
milling operations if the processing occurs prior to transportation from the forested site.
Canadian/Mexican Vehicles
These are vehicles that have a base registration in Canada or Mexico. Base registration means registered in Canada or Mexico
and not registered in
the United States other than a proportional registration under a proration agreement.
An agricultural vehicle is any highway motor vehicle that is:
- Used (or expected to be used) primarily for farming purposes and
- Registered (under state laws) as a highway motor vehicle used for farming purposes for the entire period. A special tag or
license plate
identifying the vehicle as used for farming is not required for it to be considered an agricultural vehicle.
A vehicle is used primarily for farming purposes if more than half of the vehicle's use (based on mileage) during the period
is for farming
purposes (defined below).
Do not take into account the number of miles that the vehicle is used on the farm when determining if the 7,500-mile limit
on the public highways
has been exceeded. Keep accurate records of the miles that a vehicle is used on a farm.
Farming purposes means the transporting of any farm commodity to or from a farm, or the use directly in agricultural production.
Farm commodity means any agricultural or horticultural commodity, feed, seed, fertilizer, livestock, bees, poultry, fur-bearing animals,
or wildlife. A farm commodity does not include a commodity that has been changed by a processing operation from its raw or
natural state.
Example.
Juice extracted from fruits or vegetables is not a farm commodity for purposes of the suspension of tax on agricultural vehicles.
A vehicle is considered used for farming purposes if it is used in an activity that contributes in any way to the conduct of a farm.
Activities that qualify include clearing land, repairing fences and farm buildings, building terraces or irrigation ditches,
cleaning tools or farm
machinery, and painting. But a vehicle will not be considered used for farming purposes if used in connection with operations
such as canning,
freezing, packaging, or other processing operations.
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