Instructions For Form 2290 - 2016 (Page 9 of 14) in pdf

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

1. For the vehicle that was destroyed, stolen, or sold,

mileage use limit (including the highway mileage recorded on

enter the tax previously reported on Form 2290,

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

line 4

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

former owner has provided the required statement, the new

2. Partialperiod tax. On the Partial-Period Tax

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

Tables, later, find where the taxable gross weight

has not furnished the required statement to the new owner,

category and months of use meet and enter the tax

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

here

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suspended vehicles exceeding the mileage use limit below.

3. Credit. Subtract line 2 from line 1. Enter here and on

Also see Used vehicles, earlier.

Form 2290, line 5

. . . . . . . . . . . . . . . . . . . . .

Suspended vehicles exceeding the mileage use limit.

Once a suspended vehicle exceeds the mileage use limit, the

The credit for each vehicle must be calculated separately.

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

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

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

or less for agricultural vehicles). The mileage use limit applies

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

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

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

regardless of the number of owners.

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

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

When to make a claim. For a vehicle that was destroyed,

the vehicle was first used in the period. Report the tax on

stolen, or sold before June 1, a credit for tax paid can be

Form 2290, line 2. Check the Amended Return box on

claimed on the next Form 2290 filed or a refund of tax paid

page 1 and to the right of “Amended Return” write the month

can be claimed on Form 8849.

in which the mileage use limit was exceeded. Do not

For a vehicle that was used 5,000 miles or less (7,500

complete Form 2290, Part II. File the amended Form 2290

miles or less for agricultural vehicles) during the period, a

and Schedule 1 by the last day of the month following the

credit for tax paid can be claimed on the first Form 2290 filed

month in which the mileage use limit was exceeded.

for the next period. Likewise, a refund for tax paid cannot be

Agricultural vehicles. An agricultural vehicle is any

claimed on Form 8849 until the end of the Form 2290 tax

highway motor vehicle that is:

period. For example, if the tax was paid for the period July 1,

2016, through June 30, 2017, for a vehicle used 5,000 miles

1. Used (or expected to be used) primarily for farming

or less during the period, a credit on Form 2290 (or refund on

purposes, and

Form 8849) cannot be claimed until after June 30, 2017.

2. Registered (under state laws) as a highway motor

Part II. Statement in Support of

vehicle used for farming purposes for the entire period. A

special tag or license plate identifying the vehicle as used for

Suspension

farming is not required for it to be considered an agricultural

vehicle.

Line 7

A vehicle is used primarily for farming purposes if more

Complete line 7 to suspend the tax on vehicles expected to

than half of the vehicle's use (based on mileage) during the

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

period is for farming purposes (defined below).

Do not take into account the number of miles the vehicle is

You must also:

used on the farm when determining if the 7,500-mile limit on

List the vehicles on which the tax is suspended in

the public highways has been exceeded. Keep accurate

Schedule 1. See Schedule 1 (Form 2290), later, and

records of the miles that a vehicle is used on a farm.

You must also count the number of tax-suspended

Farming purposes means the transporting of any farm

vehicles (designated by category W) listed in Schedule 1,

commodity to or from a farm, or the use directly in agricultural

Part I, and enter the number on Schedule 1, Part II, line b.

production.

Line 8

Farm commodity means any agricultural or horticultural

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

commodity, feed, seed, fertilizer, livestock, bees, poultry,

exceeded the mileage use limit, check the box on line 8a and

fur-bearing animals, or wildlife. A farm commodity does not

list the vehicle identification numbers for those vehicles on

include a commodity that has been changed by a processing

line 8b. Attach a separate sheet if needed.

operation from its raw or natural state.

Example. Juice extracted from fruits or vegetables is not

Line 9

a farm commodity for purposes of the suspension of tax on

If in the prior period, Form 2290, line 7, was completed and

agricultural vehicles.

the tax-suspended vehicles were sold or otherwise

A vehicle is considered used for farming purposes if it

transferred, complete line 9.

is used in an activity that contributes in any way to the

Sales. If you sell a vehicle while under suspension, a

conduct of a farm. Activities that qualify include clearing land,

statement must be given to the buyer and must show:

repairing fences and farm buildings, building terraces or

The seller's name, address, and EIN;

irrigation ditches, cleaning tools or farm machinery, and

painting. But a vehicle will not be considered used for farming

VIN;

purposes if used in connection with operations such as

Date of the sale;

canning, freezing, packaging, or other processing operations.

Odometer reading at the beginning of the period;

Odometer reading at the time of sale; and

How To Pay the Tax

The buyer's name, address, and EIN.

The buyer must attach this statement to Form 2290 and file

There are three methods to pay the tax.

the return by the date shown in the table under When To File,

Electronic funds withdrawal (direct debit) if filing

earlier.

electronically.

Electronic Federal Tax Payment System (EFTPS).

Instructions for Form 2290 (Rev. 072016)

Instructions For Form 2290 - 2016 Page 9

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