Tag Archives: IRS Alert

Tax cuts package extends ethanol incentives

The $858-billion package includes a one-year extension on a tax credit that pays 45 cents per gallon for ethanol blended into gasoline, a move that’s estimated to cost about $6 billion. Congress also extended a tariff on foreign-made ethanol. Industry officials say the credits help ethanol stay competitive with oil and preserve jobs tied to ethanol plants.

The major national ethanol subsidy — called the Volumetric Ethanol Excise Tax Credit, or VEETC — pays 45 cents per gallon to ethanol blenders. Ethanol supporters estimate that leads to a 4.5 cent per gallon decrease at the pump.The tax-cut package also extends credits for small ethanol producers and owners of alternative fuel vehicles. And it keeps a tariff of 54 cents per gallon on ethanol made outside the United States.

What if My Form 2290 not filed in time to the IRS?

A 2290 can be filed with the IRS at any time after the deadline [August 31st] has passed but the tax due may be subject to penalties and interest. Other points to remember about the 2290 Heavy Use Tax, the 2290 tax is due the next month after the truck is put in service. For trucks on the road in July 2010, the tax is due by August 31, 2010.
For trucks that aren’t put into service until sometime in the month of August, 2010, the tax is due by Sept 30, 2010. And So forth. Also, the tax is pro-rated for trucks that are not in service for the full tax period. The details on the pro-rated tax are in the 2290 instructions. 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 →