Federal Vehicle Use Tax Form 2290 is used to report and pay the vehicle use tax on a heavy highway motor vehicles that is used on a public highway between July 2020 through June 2021. The taxes is applied on a heavy vehicle operated on public highways at a gross weight of 55,000 lbs. and greater. The vehicles is also expected to use above 5,000 miles on a public highway and 7,500 miles for farm vehicles.
Tax Exempt Heavy Highway Vehicle
Claim suspension from the tax when a vehicle is expected to be used 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the period July through June. The mileage use limit applies to the total mileage a vehicle is used during a period, regardless of the number of owners. Suspended vehicles are exempt vehicles and will not owe taxes to IRS but still this vehicle has to be reported in Form 2290 and Schedule 1 shall be obtained from the IRS claiming the suspension category.
How to reported Suspended Vehicle?
Form 2290 and Schedule 1 is used to report the heavy highway vehicle use taxes with the IRS on a highway motor vehicle. Suspended vehicles or exempt vehicles will not owe taxes because of the mileage use limit applies, however the Form 2290 has to be reported by quoting the VIN# under suspension category.
Getting started with Suspended Vehicle eFiling
If you’re a new user with TaxExcise.com or Tax2290.com, create your user account by choosing your preferred username and a password to protect it.
Returning user just access your personalized account using your unique username and password.
Add/choose your business information to report 2290 return with the IRS. You must need a EIN# to efile, IRS need it to process your 2290 tax return. Never use a DBA name, as IRS would not be able to verify your authority and the data you report in the 2290 tax return.
Start a New Tax Return, choose the Tax Year for which you’re reporting for and the First Used Month.
While choosing the Reporting vehicle category, choose Suspended Vehicle [Exempt Vehicle] and continue entering your Vehicle Identification Number, the reason for exempt from tax and the type of use.
Follow through the steps and you can complete a suspended tax 2290 return and submit it with the IRS.
IRS would be processing it and match the data you have entered with what they have at their end. Upon successful verification Watermarked Schedule 1 is sent and will be made available in the inbox.
Quick Handy FAQ’s:
Why do I need an Employer Identification Number to e-file?
We use a combination of your EIN and your name as a unique identifier for the name control. On an e-filed return, if a taxpayer’s unique ID doesn’t match our records, it’s rejected.
Can I file my return electronically if I just received my EIN?
You may electronically file your return four weeks from the date your EIN was assigned so your name control is established in our system. If you e-file it before then, your return might be rejected.