Record keeping, an important aspect of tax Filing!

record-keeping‘Prevention is better than cure’ is one of the oldest phrases that we hear from time to time. In business when it comes to financial matters, it is important to keep records of all transactions as a precaution; be it small or a big transaction. The sole and the most important reason to perform business activities is to earn profit; increase the zeros in our bank accounts. At the same time, we want to make sure that no mistakes or problems occur while earning those hard earned dollars for IRS or anybody else to snatch it away from us. Hence we need a good record keeping system that can actually help you save money. Keeping records to maintain the progress of our business is just as important. As per the IRS, Keep records of all your Excise taxes for at least 3 years after the date the tax is due or paid, whichever is later. They must be available at all times for inspection by the IRS. When it comes to tax 2290, it is important to maintain records for the following reasons:

  • Monitor the progress of your business • Prepare your financial statements • Identify source of receipts • Keep track of deductible expenses • Prepare your tax returns • Support items reported on tax returns

IRS requires you to records for each vehicle should show all of the following information.

  • A detailed description of the vehicle, including the VIN. • The weight of loads carried by the vehicle in the same form as required by any state in which the vehicle is registered or required to be registered. • The date you acquired the vehicle and the name and address of the person from whom you acquired it. • The first month of each period in which a taxable use occurred and any prior month in which the vehicle was used in the period while registered in your name, with proof that the prior use was not a taxable use. • The date the vehicle was sold or transferred and the name and address of the purchaser or transferee. If it was not sold, the records must show how and when you disposed of it. • If the tax is suspended for a vehicle, keep a record of actual highway mileage. For an agricultural vehicle, keep accurate records of the number of miles it is driven on a farm.

Maintaining all these records are hectic and doing it for 3 years is a tough ask. The process becomes more complicated with number of vehicles you have and add to your fleet. Opting for a CPA or a Book Keeper might go off budget for few smaller firms. If this is the case for businesses what about CPA’s and Book Keeper’s, they will have to keep records for number of clients. The simple and an effective way to keep records of your HVUT Tax Form 2290 filings is by filing them online through Tax2290.com. Any information that you put in during your filing process will be saved and stored for your future reference. Owner operators, CPA’s and Book Keeper’s can take advantage of Tax2290.com, where you can file you returns faster and store your documents for ever.

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