Tag Archives: IRS news

Tax2290 Reminder: HVUT is due Jan 31st, if your vehicle first used in Dec 2010.

Heavy Vehicle Use Tax (IRS Form 2290) is due by Jan 31st,2011. if your vehicle first used in Dec 2010.

Have you used your vehicle first time in January 2011 since July 1st?

If YES, then you need to file IRS Form 2290 by end of this month and get your Schedule-1 instantly only at www.Tax2290.com Continue reading →

How to Get Your Prior Year Tax Information from the IRS

Taxpayers who need certain prior year tax return information can obtain it from the IRS. Here are nine things to know if you need federal tax return information from a previously filed tax return.

  1. There are three options for obtaining free copies of your federal tax return information – on the web, by phone or by mail.
  2. The IRS does not charge a fee for transcripts, which are presently available for the current tax year as well as the past three tax years.
  3. A tax return transcript shows most line items from your tax return as it was originally filed, including any accompanying forms and schedules.  It does not reflect any changes made after the return was filed. Continue reading →

IRS Announces 2011 Air Transportation Tax Rates

The Internal Revenue Service today announced the 2011 inflation adjustments to the excise taxes on air transportation.

Excise taxes apply to the domestic segments of taxable air transportation and to the use of international air facilities. The Airport and Airway Extension Act of 2010, Part IV, signed into law on Dec. 22, 2010, extends these excise taxes to air transportation that begins or is paid for no later than March 31, 2011.

These excise taxes are adjusted annually for inflation:

  • For 2011, the excise tax on the domestic segment of taxable air transportation is $3.70, unchanged from 2010.
  • The excise tax for 2011 for international flights that begin or end in the United States is $16.30, up from $16.10 in 2010.
  • The tax on use of international air facilities also applies at a reduced rate to departures of interstate flights that begin or end in Alaska or Hawaii. For 2011, the international air facilities tax on these flights is $8.20, up from $8.10 in 2010.

The new rates take effect Jan. 1, 2011.

Further details pertaining to the excise taxes on air transportation can be found in Form 720, Quarterly Excise Tax Return, and its instructions.

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.

Claims for Refund of Excise Taxes – Form 8849

The IRS has recently added fraud involving the fuel tax credit to the list of frivolous tax claims being put forth by individuals and businesses. The credit has very defined criteria and applies generally to farmers and fisherman who use fuel for off-highway business purposes. There are some individuals who are trying to claim the credit when in fact their occupation or income level makes the claim unreasonable. If you attempt to claim a tax credit or refund, and it is not justified, you can be liable for up to $5,000 in penalties.

The tax credit is a possibility under the right, and narrowly defined circumstances. Basically, it works like this:

A federal excise tax is imposed on gasoline ($.184 per gallon), clear diesel fuel ($.244 per gallon), and clear kerosene ($.244 per gallon). The amount of these taxes may be credited or refunded if these fuels are used in many types of off-road uses. Common off-road uses include use as heating oil, use in stationary engines, use in non-highway vehicles, and use in separate engines mounted on highway vehicles. Continue reading →