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 →

Interest Rates Decrease for the First Quarter of 2011

WASHINGTON – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning January 1, 2011, will decrease by one percentage point.  The rates will be:

  • three (3) percent for overpayments [two (2) percent in the case of a corporation];
  • three (3) percent for underpayments;
  • five (5) percent for large corporate underpayments; and
  • zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000. Continue reading →

IRS e-signature Policy Change for the use of the electronic signature pad for Form 8879 and Form 8878

The IRS has approved the use of an electronic signature pad by Electronic Return Originators (EROs) to have taxpayers sign Forms 8879 and 8878.

Taxpayers must be present in the ERO’s office where the electronic signature pad is located to sign using the signature pad. The ERO must retain the forms with the taxpayers’ signatures and provide a copy to the taxpayer upon request.

This policy change has been updated in the Web version of Publication 1345 information titled; Authorized IRS e-file Providers e-filing Individual Income Tax Returns at IRS.gov. You will find it specifically on the IRS e-file Signature Authorization link under Signing an Electronic Tax Return.

IRS Expands Use of Twitter to Help Taxpayers, Tax Professionals

WASHINGTON — The Internal Revenue Service announced the availability of expanded Twitter feeds to share timely information with taxpayers and the tax professional community.

The IRS Twitter news feed, @IRSnews, provides the latest federal tax news and information for taxpayers. The focus of the IRS Twitter messages will be on easy-to-use information, including tax tips, tax law changes and important IRS programs such as e-file, the earned income tax credit and “Where’s My Refund.” Anyone with a Twitter account can follow @IRSnews by going tohttp://twitter.com/IRSnews. Continue reading →