While reporting 2290 with the IRS, you can have the following action items
- Use Form 2290 to report and pay 2290 dues on any highway motor vehicles used during the period with a taxable gross weight of 55,000 pounds or more.
- Use Form 2290 also to claim suspension or exemption 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.
- Use Form 2290 to report and pay taxes on a vehicle reported suspended and later exceeded the mileage use limit during the period. Under 2290 Amendment on mileage use limit exceeded.
- Use Form 2290 to report and pay the tax due if any, during the period, the taxable gross weight of a vehicle increases and the vehicle falls into a new category. Under 2290 Amendments on increase in taxable gross weight of the vehicle.
- Use Form 2290 to claim a refund / credit for tax paid on vehicles that were destroyed, stolen, sold, or used 5,000 miles or less (7,500 miles or less for agricultural vehicles).
- Use Form 2290 to report tax when you acquire or buy a used taxable vehicle, and also claim refund on a used taxable vehicle traded out (sold) during the period.
Form 2290 Schedule 1 “Proof for Payment” is used for the following actions.
- To report all vehicles for which you are reporting tax (including an increase in taxable gross weight) and those that you are reporting suspension of the tax by category and vehicle identification number (VIN).
- As proof of payment to register your vehicle(s) (unless specifically exempted) in any state. Use the copy of Schedule 1 stamped and returned to you by the IRS for this purpose.
Electronic filing is simple and safe, easy and quick. IRS has stopped send out printed Form 2290 as a token of informing you the due dates. When it is July of a tax year your 2290 tax form is automatically falls due. Electronic filing can get your return processed faster than any other way of filing.
Electronic filing is required for each return reporting and paying tax on 25 or more vehicles. Tax-suspended vehicles (designated by category W) aren’t included in the electronic filing requirement for 25 or more vehicles since you aren’t paying tax on them. However, all taxpayers are encouraged to file electronically. Electronic filing generally allows for quicker processing of your return. A stamped Schedule 1 can be available within minutes after filing and acceptance by the IRS.