• Carriers must file Form 2290 and Schedule 1 if a taxable highway motor vehicle is registered under any state or District of Columbia, Canadian, or Mexican law at the time of its first use.
• Returns must be filed by the last day of the month following the month of the vehicle’s first taxable use in the tax period.
• All carriers are encouraged to file electronically using an e-file program.

Carriers must file Form 2290 and Schedule 1 if a taxable highway motor vehicle is registered, or required to be registered, by the carrier under any state or District of Columbia, Canadian, or Mexican law at the time of its first use. The entity registering may be an individual, corporation, partnership, or any other type of organization (including nonprofit charitable, educational, etc.).

Schedule 1 of the Form 2290 is used to list all reportable vehicles by category and vehicle identification number (VIN).

Annual filing

The tax period begins on July 1 and ends the following June 30, and taxpayers pay the full year’s tax on all vehicles in use during the month of July. The tax balance due shown on the form must be paid in full when filing Form 2290.

Returns must be filed by the last day of the month following the month of the vehicle’s first taxable use in the tax period, even if filing the return just to suspend the tax for any vehicle. Typically, the annual filing due date is August 31.

Electronic filing

Carriers filing a return for 25 or more vehicles are required to file electronically using an e-file program. However, any carrier can — and is encouraged by the Internal Revenue Service (IRS) — to file electronically. The benefit to e-filing is that the stamped Schedule 1 can be available within minutes of the IRS accepting the return.

The paid receipt is important because the stamped Schedule 1 becomes proof of tax payment for the vehicles listed. This proof of payment is required before vehicles can be registered with a state’s motor vehicle office.