Instructions For Form 2290 - Heavy Highway Vehicle Use Tax Return

A credit, lower tax, exemption, or refund is not

Part II. Statement in Support of

allowed for:

Suspension

CAUTION

•

An occasional light or decreased load.

Line 8

•

A discontinued or changed use of the vehicle.

•

Complete line 8 to suspend the tax on vehicles expected to

The sale of a vehicle.

be used less than the mileage use limit during a period.

You must also:

•

Enter the total number of tax-suspended vehicles on Form

Information to be submitted. Attach an explanation

2290, page 2, column (3), category W and

•

detailing the facts for each credit.

List the vehicles on which the tax is suspended in

Schedule 1, Part II. See the Schedule 1 instructions on

For vehicles destroyed or stolen include: the VIN, the

page 7.

date of the accident or theft, and the computation of the

amount claimed. See Figuring the credit below. A vehicle is

Line 9

destroyed when it is damaged by accident or other casualty

If any of the vehicles listed as suspended in the prior period

to such an extent that it is not economical to rebuild.

exceeded the mileage use limit, check the box on line 9a

and list the vehicle identification numbers for those vehicles

Figuring the credit. Use the partial-period tax tables on

on line 9b. Attach a separate sheet if needed.

page 10 and follow the steps below:

1. Figure the number of months of use. Start counting

Line 10

from the first day of the month in the period in which the

If in the prior period, Form 2290, line 8 (formerly line 7) was

vehicle was first used to the last day of the month in which it

completed and the tax-suspended vehicles were sold or

was destroyed or stolen.

otherwise transferred, complete line 10.

2. Find the number of months of use in the table on

page 10. The months are shown in parentheses at the top of

Sales

the table next to each month.

If you sell a vehicle while under suspension, a statement

3. Find the taxable gross weight category of the vehicle.

must be given to the buyer and must show the seller’s

4. Find where the category and months of use meet.

name, address, and EIN; VIN; date of the sale; odometer

This is the partial-period tax.

reading at the beginning of the period; odometer reading at

5. The difference between the annual tax and the

the time of sale; and the buyer’s name, address, and EIN.

partial-period tax is the amount that can be claimed as a

The buyer must attach this statement to Form 2290 and file

credit. Enter the credit amount on line 5 of the next Form

the return by the last day of the month following the month

2290 required to be filed. Attach this computation to the

the vehicle was purchased.

return.

If, after the sale, the use of the vehicle exceeds the

mileage use limit (including the highway mileage recorded

Installment payment. If you are paying in installments,

on the vehicle by the former owner) for the period, and the

the credit may be less than the amount figured in 5 above

former owner has provided the required statement, the new

because you cannot make a claim for unpaid installment

owner is liable for the tax on the vehicle. If the former owner

amounts. If you still owe tax, include an explanation with the

has not furnished the required statement to the new owner,

installment notice and reduced payment. If you do not owe

the former owner is also liable for the tax for that period. See

or have overpaid, include an explanation with the installment

Suspended vehicles exceeding the mileage use limit next.

notice. You may use Form 8849, Schedule 6, to make a

Suspended vehicles exceeding the mileage use

claim for refund instead of claiming a credit on Form 2290.

limit

Vehicle used less than the mileage use limit. If the tax

Once a suspended vehicle exceeds the mileage use limit,

has been paid for a period on a vehicle that is used 5,000

the tax becomes due. Mileage use limit means the use of a

miles or less (7,500 miles or less for agricultural vehicles),

vehicle on public highways 5,000 miles or less (7,500 miles

the person who paid the tax may make a claim for the credit.

or less for agricultural vehicles). The mileage use limit

Claim a credit on line 5 of the first Form 2290 filed for the

applies to the total mileage a vehicle is used during a period,

next period.

regardless of the number of owners.

You may use Form 8849, Schedule 6, to make a claim for

Report the tax for the whole period on Form 2290, line 2.

refund instead of claiming a credit on Form 2290. Form

Do not complete Form 2290, Part II, or Schedule 1, Part II.

8849 cannot be filed until after June 30 of the period for this

Figure the tax on Form 2290, page 2, based on the month

claim.

the vehicle was first used in the period. At the top of the

Record of Installment Payments (see page 6 for installment due dates)

(d) Cumulative total paid (add

Installment

(b) Check or money

(a) Date

amounts in col. (c) through the

number

order number

applicable line)

-5-

Instructions For Form 2290 - Heavy Highway Vehicle Use Tax Return - 2004 Page 5

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