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Instructions for Form 2290

Part II. Statement in Support of Suspension(p7)

Electronic filing is required for each return reporting and paying tax on 25 or more vehicles that you file during the tax period. 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, you are encouraged to file electronically regardless of the number of vehicles being reported. File Form 2290 electronically through a provider participating in the IRS e-file program for excise taxes. Once your return is accepted by the IRS, your stamped Schedule 1 can be available within minutes.

Line 7(p7)

Complete line 7 to suspend the tax on vehicles expected to be used less than the mileage use limit during a period.
You must also:

Line 8(p7)

If any of the vehicles listed as suspended in the prior period exceeded the mileage use limit, check the box on line 8a and list the vehicle identification numbers for those vehicles on line 8b. Attach a separate sheet if needed.

Line 9(p7)

If in the prior period, Form 2290, line 7, was completed and the tax-suspended vehicles were sold or otherwise transferred, complete line 9.
If you sell a vehicle while under suspension, a statement must be given to the buyer and must show: The buyer must attach this statement to Form 2290 and file the return by the date shown in the table under When To File, earlier.
If, after the sale, the use of the vehicle exceeds the mileage use limit (including the highway mileage recorded on the vehicle by the former owner) for the period, and the former owner has provided the required statement, the new owner is liable for the tax on the vehicle. If the former owner hasn’t furnished the required statement to the new owner, the former owner is also liable for the tax for that period. See Suspended vehicles exceeding the mileage use limit below. Also see Used vehicles, earlier.
Suspended vehicles exceeding the mileage use limit.(p7)
Once a suspended vehicle exceeds the mileage use limit, the tax becomes due. Mileage use limit means the use of a vehicle on public highways 5,000 miles or less (7,500 miles or less for agricultural vehicles). The mileage use limit applies to the total mileage a vehicle is used during a period, regardless of the number of owners.
Figure the tax on Form 2290, page 2, based on the month the vehicle was first used in the period. Report the tax on Form 2290, line 2. Check the Amended Return box on page 1 and to the right of Amended Return write the month in which the mileage use limit was exceeded. Don’t complete Form 2290, Part II. File the amended Form 2290 and Schedule 1 by the last day of the month following the month in which the mileage use limit was exceeded.
Agricultural vehicles.(p7)
An agricultural vehicle is any highway motor vehicle that is:
  1. Used (or expected to be used) primarily for farming purposes, and
  2. Registered (under state laws) as a highway motor vehicle used for farming purposes for the entire period. A special tag or license plate identifying the vehicle as used for farming isn’t required for it to be considered an agricultural vehicle.
A vehicle is used primarily for farming purposes if more than half of the vehicle’s use (based on mileage) during the period is for farming purposes (defined below).
Don’t take into account the number of miles the vehicle is used on the farm when determining if the 7,500-mile limit on the public highways has been exceeded. Keep accurate records of the miles that a vehicle is used on a farm.
Farming purposes means the transporting of any farm commodity to or from a farm, or the use directly in agricultural production.
Farm commodity means any agricultural or horticultural commodity, feed, seed, fertilizer, livestock, bees, poultry, fur-bearing animals, or wildlife. A farm commodity doesn’t include a commodity that has been changed by a processing operation from its raw or natural state.


Juice extracted from fruits or vegetables isn’t a farm commodity for purposes of the suspension of tax on agricultural vehicles.
A vehicle is considered used for farming purposes if it is used in an activity that contributes in any way to the conduct of a farm. Activities that qualify include clearing land, repairing fences and farm buildings, building terraces or irrigation ditches, cleaning tools or farm machinery, and painting. But a vehicle will not be considered used for farming purposes if used in connection with operations such as canning, freezing, packaging, or other processing operations.