Form 2290 – HVUT efiling starts from July 1st 2010.

Heavy Vehicle Use Tax season is just around the corner. The tax period starts on 1st July 2010. Hope you are aware that IRS has mandated e-filing for taxpayers with 25 or more vehicles with registered gross weight of 55,000 lbs or more, but always encourage everyone to do e-filing.

Tax2290.com has simplified e-filing process and provides many unique features to serve you better. You can try for free at www.tax2290.com. If you are satisfied, you can submit it online.

EIN# is a must to efile taxes with IRS. Owner Operators and Business Owners without EIN can not efile their tax returns with IRS. Don’t have an EIN# then register for one online with IRS. An Employer Identification Number (EIN)  can be applied in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. Visit www.irs.gov or click below link to apply online http://www.irs.gov/businesses/small/article/0,,id=98350,00.html Continue reading →

Are you putting your Heavy Vehicle for Sale?

Putting your Truck Sales for Sales?

If you sell a heavy vehicle while under suspension, a statement must be given to the buyer and must show the seller’s name, address, and EIN; VIN; date of the sale; odometer reading at the beginning of the period; odometer reading at the time of sale; and the buyer’s name, address, and EIN. The buyer must attach this statement to Form 2290 and file the return by the last day of the month following the month the vehicle was purchased.

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 has not furnished the required statement to the new owner, the former owner is also liable for the tax for that period.

Failing to file returns or pay taxes when due?

Penalties and Interest

The law provides penalties for failing to file returns or pay taxes when due. There are also penalties for filing false or fraudulent returns. These penalties are in addition to the interest charge on late payments. The penalty for filing a return late or paying the tax late will not be imposed if you can show reasonable cause for not filing (or paying) on time. If you file after the due date (including extensions), attach an explanation to the return to show reasonable cause.

The penalty for failing to file IRS Form 2290 by August 31st is equal to 4.5 percent of total tax due, assessed on a monthly basis up to five months. Late filers not making an HVUT payment also face an additional monthly penalty equal to 0.5 percent of total tax due. Additional interest charges of 0.54 percent per month accrue as well. An HVUT liability that was originally $550 would climb to over $700 by the end of the five-month period of delinquency. In addition to these federal penalties, many states suspend the registrations of vehicles for which proof of HVUT payment has not been provided.

The Secretary of Transportation has the authority to withhold up to 25 percent of the state’s Interstate Maintenance funds [23 U.S.C. 104(b)(5)] if it fails one of its periodic compliance reviews.

Any information regarding filing Form 2290 – HVUT please call our Help Desk 1-866-245-3918 or simply write to us your queries support@taxexcise.com.

Proof of payment for state registration

Proof of payment for state registration

Generally, states will require verification of payment of the tax for any taxable vehicle before they will register the vehicle.

Use the stamped copy of Schedule 1 as proof of payment when:

* Registering vehicles with the state, or
* Entering a Canadian or Mexican vehicle into the United States.

If you do not have the stamped copy, you may use a photocopy of Form 2290, Schedule 1, and both sides of your canceled check as proof of payment.

IRS stamped Schedule 1 copy:

In efiling service the Schedule 1 copy will have IRS efile watermark, with received date. This is the valid Schedule1 copy from IRS and accepted across states for registration and proof of payment.

In paper return the schedule 1 copy will be stamped as paid by IRS.

IRS Continues Efforts to Ensure Accurate Return Preparation; Reminds Tax Preparers to Sign Up for PTINs

WASHINGTON — The Internal Revenue Service has started sending out more than 10,000 letters to tax return preparers nationwide to remind them of their obligation to prepare accurate tax returns on behalf of their clients.

Also, during the 2011 filing season, IRS representatives will visit approximately 2,500 tax return preparers who received these letters to further discuss their responsibilities as a return preparer and to verify their compliance with existing requirements.

The tax agency is sending the letters to paid preparers who completed tax returns in which the IRS has identified common errors. The letter includes an enclosure that reminds tax return preparers of their responsibilities and consequences of filing incorrect returns. Continue reading →