Instructions For Form 2290 - 2016 (Page 4 of 14) in pdf

You may be an individual, limited liability company (LLC),

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

corporation, partnership, or any other type of organization

trucks are not subject to this tax because they have a taxable

(including nonprofit, charitable, educational, etc.).

gross weight less than 55,000 pounds.

Disregarded entities and qualified subchapter S subsid

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

iaries. Qualified subchapter S subsidiaries (QSubs) and

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

eligible single-owner disregarded entities are treated as

is designed to perform a highway transportation function for

separate entities for most excise tax and reporting purposes.

only a particular type of load, such as passengers,

furnishings, and personal effects (as in a house, office, or

QSubs and eligible single-owner disregarded entities must

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

utility trailer), or a special kind of cargo, goods, supplies, or

and claim any refunds, credits, and payments under the

materials. It does not matter if machinery or equipment is

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

specially designed (and permanently mounted) to perform

cannot take place under the owner's taxpayer identification

some off-highway task unrelated to highway transportation

number (TIN). Some QSubs and disregarded entities may

except to the extent discussed later under Vehicles not

considered highway motor vehicles.

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

the IRS Business and Specialty Tax line at 1-800-829-4933.

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

For more information on applying for an EIN, see Employer

motor on any public highway in the United States.

Identification Number (EIN), later.

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

Generally, QSubs and eligible single-owner disregarded

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

entities will continue to be treated as disregarded entities for

and city roads.

other federal tax purposes (other than employment taxes).

For more information, see Regulations section 301.7701-2(c)

Example. You purchased your heavy truck from the

(2)(v).

dealer and drove it over the public highways to your home.

The drive home was your first taxable use of the vehicle.

Dual registration. If a taxable vehicle is registered in the

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

Exemptions. The use of certain highway motor vehicles is

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

exempt from the tax (and thus not required to be reported on

a leased vehicle.

a Form 2290) if certain requirements are met. The use of a

highway motor vehicle is not subject to the tax if it is used

Dealers. Any vehicle operated under a dealer's tag, license,

and actually operated by:

or permit is considered registered in the name of the dealer.

The Federal Government,

Used vehicle. See Used vehicles and New tax

The District of Columbia,

computation for privately purchased used vehicles and

A state or local government,

required claim information for privately sold used vehicles,

The American National Red Cross,

later.

A nonprofit volunteer fire department, ambulance

association, or rescue squad,

Logging vehicles. A vehicle qualifies as a logging vehicle if:

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

1. It is used exclusively for the transportation of products

involves the exercise of an essential tribal government

harvested from the forested site, or it exclusively transports

function, or

the products harvested from the forested site to and from

A mass transportation authority if it is created under a

locations on a forested site (public highways may be used

statute that gives it certain powers normally exercised by the

between the forested site locations), and

state.

2. It is registered (under the laws of the state or states in

Also exempt from tax (and thus not required to be

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

reported on a Form 2290) is the use of:

motor vehicle used exclusively in the transportation of

Qualified blood collector vehicles (see below) used by

harvested forest products. A vehicle will be considered to be

qualified blood collector organizations, and

registered under the laws of a state as a highway motor

Mobile machinery that meets the specifications for a

vehicle used exclusively in the transportation of harvested

chassis as described under Specially designed mobile

forest products if the vehicle is so registered under a state

machinery for nontransportation functions, later.

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

Qualified blood collector vehicle. A qualified blood

or license plate identifying a vehicle as being used in the

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

transportation of harvested forest products is required.

during the prior tax period was by a qualified blood collector

Products harvested from the forested site may include

organization for the collection, storage, or transportation of

timber that has been processed for commercial use by

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

sawing into lumber, chipping, or other milling operations if the

treated as a qualified blood collector vehicle for the tax

processing occurs before transportation from the forested

period if the qualified blood collector organization certifies

site.

that the organization reasonably expects at least 80% of the

use of the vehicle by the organization during the tax period

Logging vehicles are taxed at reduced rates. See

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

Table II, later.

TIP

Vehicles not considered highway motor vehicles.

Generally, the following kinds of vehicles are not considered

Taxable Vehicles

highway vehicles.

Highway motor vehicles that have a taxable gross weight of

1. Specially designed mobile machinery for

55,000 pounds or more are taxable.

nontransportation functions. A self-propelled vehicle is

not a highway vehicle if all the following apply.

A highway motor vehicle includes any self-propelled

vehicle designed to carry a load over public highways,

a. The chassis has permanently mounted to it machinery

whether or not also designed to perform other functions.

or equipment used to perform certain operations

Examples of vehicles that are designed to carry a load over

(construction, manufacturing, drilling, mining, timbering,

public highways include trucks, truck tractors, and buses.

processing, farming, or similar operations) if the operation of

Instructions for Form 2290 (Rev. 072016)

Instructions For Form 2290 - 2016 Page 4

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