Reasons Why Recordkeeping is Important for Tax Payers

Record keeping is the act of maintaining and preserving documents and records. Properly maintained records help tax payers in several ways especially when preparing tax return and during times when the IRS sends a notice. Important and essential records such as cancelled checks, receipts, etc. should be kept handy and in a place where it is easy to locate. Whether an individual or business owner, they should keep in mind to maintain their records for hassle-free filing of taxes. For example, those into the trucking business should ensure maintaining their documents to avoid any hassles when filing their tax return.

Why to Maintain Records?

Both individuals and business should maintain their records and documents, as this can help them keep an eye expenses. Additionally, record keeping habits also help individuals and businesses save time and efforts whenever required. Some of the benefits of record keeping are:

  • It helps keep track of the growth and development of their business
  • It makes it easy for businesses and individuals to prepare their financial   statements
  • Businesses and individuals can identify the payment proofs
  • It helps in the preparation and filing of tax return

What are the Documents to be Maintained when Filing Tax 2290:

Trucks that have been registered at a gross weight of 55,000 lbs need to file HVUT return. It is important for them to maintain 3 years of documents from the date the tax has been paid or is due. Truck owners and operators should maintain the following documents and use them whenever required:

  • Vehicle Identification Number or VIN, along with detailed description of the vehicle.
  • The total load carried by the vehicle
  • The date the vehicle was purchased also mentioning the name and address of the person from whom the vehicle was actually purchased
  • Proof if the vehicle was sold, destroyed, or disposed.

Those under the suspended vehicles category should maintain records of the total highway mileage. If the vehicle is an agricultural vehicle, then keep correct records of the miles it is driven on a farm.

It is true that handling business and maintaining the records is not an easy can be the perfect solution for truck owners and operators facing similar problems. Truck owners filing their truck tax with us have the benefit of retrieving their documents from their account. Therefore, if they thought maintaining records was an additional effort, then filing through us can help them stay relieved.