IRS Reminds Paid Tax Preparers to Register Now for PTINs

WASHINGTON — As year end approaches, the Internal Revenue Service today strongly encouraged paid tax return preparers to register now for their new or renewed Preparer Tax Identification Numbers (PTINs) to avoid any last-minute rush.

Starting Jan. 1, 2011, use of the PTIN will be mandatory on all federal tax returns and claims for refund prepared by a paid tax preparer. Individuals who, for compensation, prepare all or substantially all of any federal tax return or claim for refund must use PTINs. Paid preparers must apply for a new or renewed PTIN through the new sign-up system at www.irs.gov/taxpros. Continue reading →

Eight Things to Know If You Receive an IRS Notice

Did you receive a notice from the IRS this year? Every year the IRS sends millions of letters and notices to taxpayers but that doesn’t mean you need to worry. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox.

1. Don’t panic. Many of these letters can be dealt with simply and painlessly.

2. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.

3. Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry. Continue reading →

Holiday 2010!!! Get a chance to win iPod Touch

www.TaxExcise.com is currently running a promotional sweepstakes, in which you will get a chance to win an iPod Touch. Every successful filing with the IRS through our system will get an automatic entry to this sweepstakes starting November 17th 2010 and runs through January 5th 2011.

There are several prizes to be won. The big winner will get an iPod Touch. All you need to do is just e-file your tax Form 2290, Form 720 or Form 8849 at www.TaxExcise.com or www.Tax2290.com and you will automatically get an entry into the sweepstakes. You can make as many entries by e-filing more returns and increase your probability of winning. So why wait anymore, just click here to start your e-filing.

For more information on sweepstakes please visit: http://www.tax2290.com/holiday2010/

Know more about Record Keeping.

Record keeping:

Keep records for all taxable highway vehicles registered in your name 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. Also keep copies of all returns and schedules you have filed. Keep your records even if a vehicle is registered in your name for only a portion of a period. If thetax is suspended on a highway motor vehicle for a period because its use on public highways during the period did not exceed 5,000 miles (7,500 miles for agricultural vehicles), the registrant must keep the records at least 3 years after the end of the period to which the suspension applies.

Records for each vehicle should show all of the following information.

  1. 1. A detailed description of the vehicle, including the VIN
  2. 2. 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.
  3. 3. The date you acquired the vehicle and the name and address of the person from whom you acquired it.
  4. 4. 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.
  5. 5. 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.
  6. 6. 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.

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.