Clarification to the Instructions for Form 2290 (Rev. July 2015) -- 21 - OCT - 2015
Form 2290 is used, in part, to figure and pay tax on certain highway motor vehicles. The Instructions for Form 2290 identify situations in which a vehicle is exempt from tax. If the vehicle is exempt from tax, you do not need to file Form 2290 or Schedule 1 for that vehicle and you do not need to make a payment of tax for that vehicle. The instructions did not previously explain the consequences of a vehicle being exempt from tax.
If you downloaded the Instructions for Form 2290 (Rev. July 2015) please note the following.
The exemptions with respect to who must file Form 2290 and Schedule 1 listed on page 2 should read as follows.
Exemptions. To be exempt from the tax (not required to file Form 2290 or make a payment of tax), a highway motor vehicle must be used and actually operated by:
• The Federal Government,
• The District of Columbia,
• A state or local government,
• The American National Red Cross,
• A nonprofit volunteer fire department, ambulance association, or rescue squad,
• An Indian tribal government but only if the vehicle's use involves the exercise of an essential tribal government function,
• A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state,
• Qualified blood collector vehicles (see below) used by qualified blood collector organizations, or
• Mobile machinery that meets the specifications for a chassis as described under Specially designed mobile machinery for nontransportation functions, later.
NOTE: This is not a change in the law but a clarification to the instructions. The change will be incorporated into the July 2016 revision of the instructions.