Tag Archives: IRS Form 2290

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.

Updated Federal Heavy Vehicle Use Tax (FHVUT) information:

The unladen weight of a vehicle plays no part in Federal Heavy Vehicle Use Tax determination. FHVUT proof is needed only if a commercial motor vehicle is operated at 55,000 pounds or more combined gross vehicle weight (CGW).

The Department of Motor Vehicles (DMV) no longer accepts evidence that an applicant is making payments to the Internal Revenue Service (IRS) for FHVUT proof. IRS stamped Form 2290 Schedule 1 copy is a must and should be carried. For efiling, IRS issues a watermarked schedule 1 copy as proof. The IRS does not accept partial payments for FHVUT.

The IRS requires taxpayers with 25 or more vehicles to file their FHVUT Schedule 1, Form 2290 electronically (they cannot paper file). Continue reading →

Who Can Take a Credit for Federal Tax Paid On Fuels?

Final purchasers, and in some cases, ultimate vendors of certain types of fuels may be able to claim a refund or credit for the federal excise tax that applies on the fuel if it is for specific nontaxable uses, such as on a farm, for off-highway business use, for commercial fishing, in certain types of intercity, local, and school buses, and for exclusive use by a non-profit educational organization.

A credit can be taken for U.S. federal Income tax purposes for certain non-taxable use of fuels.  This credit can be claimed on Form 4136, Credit for Federal Tax Paid on Fuels, filed with the annual federal income tax return.  Certain taxpayers may be entitled to claim a periodic refund for the federal excise tax on fuels, by filing Form 8849, Claim for Refund of Excise Taxes.  A credit can also be claimed on Schedule C of Form 720, Quarterly Federal Excise Tax Return, if a liability for excise taxes is reported on that form. Continue reading →

Is your vehicle suspended and want to report to IRS

Tax2290.com is ready for the tax year 2010-2011 with a ultimate new look and excellent features.  Reporting a Suspended vehicle will help to reduce a tax due when a vehicle will only run below 5000 miles.

Let us consider a situation where a taxable heavy highway vehicle which weighs over 55,000 lbs or more is estimated to run on public highways for a distance lesser than 5,000 miles 97500 miles for Agriculture Vehicles). With the above stated condition, the owner of the truck is eligible to apply for suspension of heavy vehicle use tax. Please note the mileage limit for the same purpose for an agriculture vehicle is 7,500 miles or less. Continue reading →

Form 2290 is due November 30th, 2010 if used first in October 2010.

Tax2290.com – Reminder, Heavy Vehicle Tax (IRS Form 2290) is due November 30th, 2010 if first used in October.

Have you used your vehicle first time in October since July 1st?
If YES, then you need to file form 2290 by end of this month and get your Schedule 1 copy instantly at www.Tax2290.com Continue reading →