IRS Alert for the New Tax Season 2011-2012

Date: 07/15/2011 Form 2290 Heavy Highway Vehicle Use Tax (HVUT) COMMUNICATION from IRS.

Issue:

Form 2290 Heavy Highway Vehicle Use Tax (HVUT) status update

Background:

The Internal Revenue Service today advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011.

Because the highway use tax is currently scheduled to expire on Sept. 30, 2011, this extension is designed to alleviate any confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date. Under temporary and proposed regulations filed today in the Federal Register, the Nov. 30 filing deadline for Form 2290, Heavy Highway Vehicle Use Tax Return, for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. Returns should not be filed and payments should not be made prior to Nov. 1.

To aid truckers applying for state vehicle registration on or before Nov. 30, the new regulations require states to accept as proof of payment the stamped Schedule 1 of the Form 2290 issued by the IRS for the prior tax year, ending on June 30, 2011. Under federal law, state governments are required to receive proof of payment of the federal highway use tax as a condition of vehicle registration. Normally, after a taxpayer files the return and pays the tax, the Schedule 1 is stamped by the IRS and returned to filers for this purpose. A state normally may accept a prior year’s stamped Schedule 1 as a substitute proof of payment only through Sept. 30.

For those acquiring and registering a new or used vehicle during the July-to-November period, the new regulations require a state to register the vehicle, without proof that the highway use tax was paid, if the person registering the vehicle presents a copy of the bill of sale or similar document showing that the owner purchased the vehicle within the previous 150 days.

In general, the highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more. Ordinarily, vans, pick-ups and panel trucks are not taxable because they fall below the 55,000-pound threshold.

Date: 06/10/2011 Form 2290 Heavy Highway Vehicle Use Tax (HVUT) COMMUNICATION from IRS.

Issue:

Form 2290 Heavy Highway Vehicle Use Tax (HVUT) status update

Background:

Section 4481 of the Internal Revenue Code imposes an annual tax on the use of heavy highway vehicles. This annual tax is reported on Form 2290. Under current law the tax expires after September 30, 2011. The Form 2290 for the taxable period July 1, 2011 has not been published / released.

Before a State will register a vehicle subject to the section 4481 tax, it must first receive proof of payment [Schedule 1 copy] of the tax, or an acceptable substitute allowed by IRS regulations. Existing regulations allow the State to register a heavy highway vehicle for which an application for registration is received during the months of July, August or September 2011, using a Form 2290 receipted Schedule 1 for the taxable period July 1, 2010 through June 30, 2011 as proof of payment.

A State must also register a heavy highway vehicle without proof of payment if the person registering the vehicle presents the original or a photocopy of a bill of sale indicating that the vehicle was purchased by the owner either as a new or used vehicle during the preceding 60 days before the date the State receives the application for registration of the vehicle.

If a State receives an application for registration in the month of June 2011, a receipted Schedule 1 for the taxable period July 1, 2010 thru June 30, 2011 must be accepted as proof of payment.

Taxpayers who need a copy of their Schedule 1 for the taxable period July 1, 2010 through June 30, 2011, should call the Form 2290 toll free number at 866-699-4096 if they are calling from the United States. Taxpayers who are calling from Canada or Mexico should call 859-669-5733 (not toll free).

If you have filed through www.TaxExcise.com / www.Tax2290.com you can download by accessing your account else request for a copy over phone or by email.

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