Instructions For Form 2290 - Heavy Highway Vehicle Use Tax Return

Disregarded entities and qualified subchapter S

Logging vehicles are taxed at reduced rates. See

TIP

subsidiaries. Qualified subchapter S subsidiaries (QSubs)

Logging vehicles on page 5.

and eligible single-owner disregarded entities are treated as

separate entities for excise tax and reporting purposes.

Taxable Vehicles

QSubs and eligible single-owner disregarded entities must

pay and report excise taxes, register for excise tax activities,

Highway motor vehicles that have a taxable gross weight of

and claim any refunds, credits, and payments under the

55,000 pounds or more are taxable.

entity’s employer identification number (EIN). These actions

A highway motor vehicle includes any self-propelled

cannot take place under the owner’s taxpayer identification

vehicle designed to carry a load over public highways,

number (TIN). Some QSubs and disregarded entities may

whether or not also designed to perform other functions.

already have an EIN. However, if you are unsure, please

Examples of vehicles that are designed to carry a load over

call the IRS Business and Specialty Tax line at

public highways include trucks, truck tractors, and buses.

1-800-829-4933. For more information on applying for an

Generally, vans, pickup trucks, panel trucks, and similar

EIN, see Employer Identification Number (EIN) on page 4.

trucks are not subject to this tax because they have a

Generally, QSubs and eligible single-owner disregarded

taxable gross weight less than 55,000 pounds.

entities will continue to be treated as disregarded entities for

A vehicle consists of a chassis, or a chassis and body,

other federal tax purposes (other than employment taxes).

but does not include the load. It does not matter if the

For more information, see Regulations section

vehicle is designed to perform a highway transportation

301.7701-2(c)(2)(v).

function for only a particular type of load, such as

Dual registration. If a taxable vehicle is registered in the

passengers, furnishings, and personal effects (as in a

name of both the owner and another person, the owner is

house, office, or utility trailer), or a special kind of cargo,

liable for the tax. This rule also applies to dual registration of

goods, supplies, or materials. It does not matter if machinery

a leased vehicle.

or equipment is specially designed (and permanently

Dealers. Any vehicle operated under a dealer’s tag,

mounted) to perform some off-highway task unrelated to

license, or permit is considered registered in the name of the

highway transportation except to the extent discussed below

dealer.

under Vehicles not considered highway motor vehicles.

Used vehicle. If you acquire and register or are required to

Use means the use of a vehicle with power from its own

motor on any public highway in the United States.

period, you must keep as part of your records proof showing

A public highway is any road in the United States that is

whether there was a use of the vehicle or a suspension of

not a private roadway. This includes federal, state, county,

the tax during the period before the vehicle was registered in

and city roads.

your name. The evidence may be a written statement signed

and dated by the person (or dealer) from whom you

Exemptions. To be exempt from the tax, a highway motor

purchased the vehicle.

vehicle must be used and actually operated by:

•

The Federal Government,

If you acquire a vehicle and use it on the public

•

The District of Columbia,

highways in any month other than July, you are liable

•

A state or local government,

for the tax for the prorated tax period. You must file

•

CAUTION

The American National Red Cross,

Form 2290 and pay the tax by the last day of the month after

•

A nonprofit volunteer fire department, ambulance

the month you use the vehicle. See Line 2. Tax Computation

association, or rescue squad,

on page 5.

•

An Indian tribal government but only if the vehicle’s use

If there is an unpaid tax liability for the months before you

involves the exercise of an essential tribal government

acquire and use the vehicle during the tax period, you are

function, or

•

liable for the total tax for the entire period, to the extent not

A mass transportation authority if it is created under a

paid. In that case, you must file Form 2290 and pay the tax

statute that gives it certain powers normally exercised by the

by the last day of the month after the month notification is

state.

received from the IRS that the tax has not been paid in full.

Also exempt from the tax (not required to file Form 2290)

Logging vehicles. A vehicle qualifies as a logging vehicle

are:

if:

•

Qualified blood collector vehicles (see below) used by

qualified blood collector organizations, and

1. It is used exclusively for the transportation of products

•

Mobile machinery that meets the specifications for a

harvested from the forested site, or it exclusively transports

chassis as described under Specially designed mobile

the products harvested from the forested site to and from

machinery for nontransportation functions, later.

locations on a forested site (public highways may be used

between the forested site locations), and

Qualified blood collector vehicle. A qualified blood

2. It is registered (under the laws of the State or States in

collector vehicle is a vehicle at least 80% of the use of which

which the vehicle is required to be registered) as a highway

during the prior tax period was by a qualified blood collector

motor vehicle used exclusively in the transportation of

organization for the collection, storage, or transportation of

harvested forest products. A vehicle will be considered to be

blood. A vehicle first placed in service in a tax period will be

registered under the laws of a state as a highway motor

treated as a qualified blood collector vehicle for the tax

vehicle used exclusively in the transportation of harvested

period if the qualified blood collector organization certifies

forest products if the vehicle is so registered under a state

that the organization reasonably expects at least 80% of the

statute or legally valid regulations. In addition, no special tag

use of the vehicle by the organization during the tax period

or license plate identifying a vehicle as being used in the

will be in the collection, storage, or transportation of blood.

transportation of harvested forest products is required.

Vehicles not considered highway motor vehicles.

Generally, the following kinds of vehicles are not considered

Products harvested from the forested site may include

highway vehicles.

timber that has been processed for commercial use by

sawing into lumber, chipping or other milling operations if

1. Specially designed mobile machinery for

the processing occurs before transportation from the

nontransportation functions. A self-propelled vehicle is

forested site.

not a highway vehicle if all the following apply.

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Instructions For Form 2290 - Heavy Highway Vehicle Use Tax Return - 2010 Page 2

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