Instructions for Form 2290 (7/2006)

Specific Instructions

This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Getting Started

To complete Form 2290, have the following information available:

Your employer identification number (EIN). You must have an EIN to file Form 2290. You cannot use your social security number.
The vehicle identification number of each vehicle.
The taxable gross weight of each vehicle to determine its category.

Employer Identification Number (EIN)

If the EIN on the preaddressed Form 2290 is wrong or you did not receive a preaddressed Form 2290, enter the correct number. If you do not have an EIN, you may apply for one online. Go to the IRS website at www.irs.gov/businesses and click on the “Employer ID Numbers” link under “Businesses Topics.” You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS.

Vehicle Identification Number (VIN)

The VIN of your vehicle can be obtained from the registration, title, or actual vehicle. The VIN is 17 characters made up of numbers and letters (19 characters in vehicles made before 1988). Be sure to use the VIN for the vehicle and not from the trailer.

Taxable Gross Weight

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).

Buses

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 3.

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.

Name and Address

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.

Part I. Figuring the Tax

Line 2. Tax Computation

To figure the tax on line 2, complete the Tax Computation on Form 2290, page 2.

Column 1—Annual tax. Use the tax amounts listed in column 1(a) for a vehicle used during July.

Logging vehicles. Use the tax amounts listed in column 1(b) for logging vehicles used in July. For more information on these vehicles, see page 2.

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 9, Table I, for the partial-period tax table. Enter the tax in column 2(a) for the applicable category.

You must figure and pay the tax due on a used taxable vehicle acquired and used during the period. See Used vehicle on page 2.

Logging vehicles. For logging vehicles, see page 9, Table II, for the partial-period tax table. Enter the tax in column 2(b) for the applicable category.

Column 3—Number of vehicles. 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—Amount of tax. 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.

Line 3. Additional Tax From Increase in Taxable Gross Weight

Complete line 3 only if the taxable gross weight of a vehicle increases during the period and the vehicle falls in a new category. For instance, an increase in maximum load customarily carried may change the taxable gross weight.

Report the additional tax for the remainder of the period on Form 2290, line 3. At the top of Form 2290, write the word "Amended" and the month the taxable gross weight increased. 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 using the following worksheet. Attach a copy of the worksheet for each vehicle.

1.	Enter the month the taxable gross weight increased. Enter the month here and on Form 2290, line 1
2.	From Form 2290, page 2, determine the new taxable gross weight category. Next, go to the Partial-Period Tax Tables on page 9. 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 9, 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 Form 2290, line 3	$

If the increase in taxable gross weight occurs in July after you have filed your return, use the amounts on Form 2290, page 2, for the new category instead of the partial-period tax tables.

Line 5. Credits

Complete line 5 only if you are claiming a credit for tax paid on a vehicle that was either:

Sold,
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).

A credit, lower tax, exemption, or refund is not allowed for an occasional light or decreased load or a discontinued or changed use of the vehicle.

The amount claimed on line 5 cannot exceed the tax reported on line 4. 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. See When to make a claim below.

Information to be submitted. Attach an explanation detailing the facts for each credit.

For vehicles destroyed, stolen, or sold include: the VIN, the date of the accident, theft, or sale and the computation of the amount claimed. See Figuring the credit next. 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 9 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, stolen, or sold.
Find the number of months of use in the table on
page 9. 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. Attach this computation to the return.

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.

When to make a claim. For a vehicle that was destroyed, stolen, or sold before June 1, a credit for tax paid can be claimed on the next Form 2290 filed or a refund of tax paid can be claimed on Form 8849.

For a vehicle that was used 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the period, a credit for tax paid can be claimed on the first Form 2290 filed for the next period. Likewise, a refund for tax paid cannot be claimed on Form 8849 until the end of the Form 2290 tax period. For example, if the tax was paid for the period July 1, 2006, through June 30, 2007, for a vehicle used 5,000 miles or less during the period, a credit on Form 2290 (or refund on Form 8849) cannot be claimed until after June 30, 2007.

Part II. Statement in Support of Suspension

Line 7

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 on Form 2290, page 2, column (3), category W and
List the vehicles on which the tax is suspended in Schedule 1, Part II. See the Schedule 1 instructions on
page 6.

Line 8

If any of the vehicles listed as suspended in the prior period exceeded the mileage use limit, check the box on line 8a and list the vehicle identification numbers for those vehicles on line 8b. Attach a separate sheet if needed.

Line 9

If in the prior period, Form 2290, line 7 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 next.

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 Form 2290, Part II, or Schedule 1, Part II. Figure the tax on Form 2290, page 2, 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.

Agricultural vehicles

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.

How To Pay The Tax

There are two methods to pay the tax.

By Electronic Federal Tax Payment System (EFTPS).
By check or money order using the payment voucher.

You must pay the tax in full with your Form 2290. The option to pay in installments has been eliminated.

How To Make Your Payment

By EFTPS. Using EFTPS is voluntary, but you must enroll in EFTPS before you can use it. To get more information or to enroll in EFTPS, visit the EFTPS website at www.eftps.gov or call 1-800-555-4477. 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.

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 7.
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. 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.

Form 2290, Schedule 1

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.

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 4.

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.

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 3.

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.

Third Party Designee

If you want to allow an employee of your business, a return preparer, or other third party to discuss your Form 2290 with the IRS, check the “Yes” box in the Third Party Designee section of Form 2290. Also, enter the designee's name, phone number, and any five digits that person chooses as his or her personal identification number (PIN). The authorization applies only to the tax return on which it appears.

By checking the “Yes” box, you are authorizing the IRS to call the designee to answer any questions relating to the information reported on Form 2290. You are also authorizing the designee to:

Exchange information concerning Form 2290 with the IRS and
Request and receive written tax return information relating to Form 2290, including copies of notices, correspondence, and account transcripts.

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 authority, see Pub. 947, Practice Before the IRS and Power of Attorney.

The authorization will automatically expire one year from the due date (without regard to extensions) for filing your Form 2290. If you or your designee wants to revoke this authorization, send a written statement of revocation to the Internal Revenue Service Center, Cincinnati, OH 45999. See Pub. 947 for more information.

Signature

Sign the return. Returns filed without a signature will be sent back to you for signing. An unsigned return is not considered filed.

Where To File

Mail Form 2290 to:

Form 2290 with full payment	Internal Revenue Service P.O. Box 105421 Atlanta, GA 30348-5421
Form 2290 without payment due or using EFTPS for payment	Internal Revenue Service Cincinnati, OH 45999-0031

Private Delivery Services

You can use certain private delivery services designated by the IRS to meet the “timely mailing as timely filing/paying” rule for tax returns and payments. These private delivery services include only the following:

DHL Express (DHL): DHL Same Day Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service.
Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.
United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

The private delivery service can tell you how to get written proof of the mailing date.

Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

Recordkeeping

Keep records for all taxable highway vehicles registered in your name for at least 3 years after the date the tax is due or paid, whichever is later. They must be available at all times for inspection by the IRS. Also keep copies of all returns and schedules you have filed. Keep your records even if a vehicle is registered in your name for only a portion of a period. If the tax is suspended on a highway motor vehicle for a period because its use on public highways during the period did not exceed 5,000 miles (7,500 miles for agricultural vehicles), the registrant must keep the records at least 3 years after the end of the period to which the suspension applies.

Records for each vehicle should show:

A detailed description of the vehicle, including the VIN.
The weight of loads carried by the vehicle in the same form as required by any state in which the vehicle is registered or required to be registered.
The date you acquired the vehicle and the name and address of the person from whom you acquired it.
The first month of each period in which a taxable use occurred and any prior month in which the vehicle was used in the period while registered in your name, with proof that the prior use was not a taxable use.
The date the vehicle was sold or transferred and the name and address of the purchaser or transferee. If it was not sold, the records must show how and when you disposed of it.
If the tax is suspended for a vehicle, keep a record of actual highway mileage. For an agricultural vehicle, keep accurate records of the number of miles it is driven on a farm. See Part II. Statement in Support of Suspension on
page 5.

How To Get Forms and Publications

Personal Computer

You can access the IRS website 24 hours a day, 7 days a week at www.irs.gov to:

Download forms, instructions, and publications.
Order IRS products online.
Search publications online by topic or keyword.
Send us comments or request help by email.
Sign up to receive local and national tax news by email.

CD

Order Pub. 1796, IRS Tax Products CD, and get:

Current year forms, instructions, and publications.
Prior year forms, instructions, and publications.
Frequently requested tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping.
The Internal Revenue Bulletin.

Buy the CD on the Internet at www.irs.gov/cdorders from the National Technical Information Service (NTIS) for $25 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) to buy the CD for $25 (plus $5 handling fee).

Phone

Call 1-800-TAX-FORM (1-800-829-3676) to order current and prior year forms, instructions, and publications. You should receive your order within 10 days.

Walk-in

You can pick up some of the most requested forms, instructions, and publications at many IRS offices, post offices, and libraries. Some city and county government offices, credit unions, grocery stores, office supply stores, and copy centers have an extensive collection of reproducible tax forms available to photocopy or print
from a CD.

Prior Period Forms

If you need a Form 2290 for a period prior to July 2006, specify the prior period. For example, to order Form 2290 for a taxable vehicle first used in January 2005, specify the return for the period "July 1, 2004, through June 30, 2005."

Form 2290 Call Site

You can get immediate help with your Form 2290 questions by calling the Form 2290 call site. The hours of operation are Monday - Friday, 8:00 a.m. to 6:00 p.m., eastern time.

IF you are calling from...	THEN use this number...
The United States	866-699-4096 (toll free)
Canada or Mexico	859-669-5733 (not toll free)

The assistor will have access to your Form 2290 account information. Spanish speaking assistors are available. Have your Form 2290 and information about your filing available when you call. For help with other returns filed, taxes paid, etc., call 1-800-829-1040 for individual returns or 1-800-829-4933 for business returns.

Unresolved Tax Issues

If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.

Your assigned personal advocate will listen to your point of view and will work with you to address the concerns. You can expect the advocate to provide:

A "fresh look" at a new or on-going problem.
Timely acknowledgment.
The name and phone number of the individual assigned to your case.
Updates on progress.
Timeframes for action, speedy resolution, and courteous service.

When contacting the Taxpayer Advocate, you should provide the following information:

Your name, address, and employer identification number.
The name and telephone number of an authorized contact person and the hours he or she can be reached.
The type of tax return and year(s) involved.
A detailed description of the problem.
Previous attempts to solve the problem and the office that had been contacted.
A description of the hardship you are facing (if applicable).

You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.