Heavy Highway Vehicle Use Tax Is Due August 31

The deadline to file and pay heavy highway vehicle use tax is Monday, August 31. All the information needed to file is on the Trucking Tax Center (https://www.irs.gov/…/small-businesses-…/trucking-tax-center).

In order to complete and file Form 2290, taxpayers will need their Employer Identification Number (taxpayers cannot use their Social Security number), the vehicle identification number of each vehicle, and the taxable gross weight of each vehicle. Taxpayers can complete Form 2290 and mail it to the IRS, or they can e-file for faster processing. Taxpayers who are reporting 25 or more vehicles are required to file electronically.

Taxpayers who are unsure if they are required to file Form 2290 can use the Do I Need to Pay the Heavy Highway Vehicle Use Tax tool (https://www.irs.gov/…/do-i-need-to-pay-the-heavy-highway-ve…). Using this tool, vehicle owners answer a series of questions to help determine if they are required to pay highway use tax.

Good Record-keeping is an Essential Element of Tax Planning

While it may seem early to be preparing for next year’s tax return, reviewing your record-keeping now will pay off when it comes time to file again. Here are some suggestions to help taxpayers keep good records.

● Develop a system that keeps important information together. Store paper documents in labeled folders or use a software program for electronic record-keeping.

● Throughout the year, add tax records to your files as you receive them. This includes your Economic Impact Payment and unemployment compensation documentation. Having records handy makes preparing a tax return next year easier.

● Notify the IRS if your address changes. You should also notify the Social Security Administration of a legal name change to avoid a delay in processing your tax return.

● Review your tax return to make sure you didn’t overlook any credits or deductions.

● Records that taxpayers should keep include receipts, canceled checks and other documents that support income.

● Keep records relating to property you dispose of or sell. Such records are necessary to determine the basis for figuring gains or losses.

● Keep records for three years from the date you filed the return. Taxpayers who have employees must keep all employment tax records for at least four years after the tax is due or paid, whichever is later.

What Should You Do If You Get A Letter From The IRS

Every year the IRS mails letters or notices to taxpayers for many different reasons. Here are some do’s and don’ts for taxpayers who receive one:

● Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do.

● Don’t panic. The IRS and its authorized private collection agencies do send letters by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take the appropriate action.

● Don’t reply unless instructed to do so. There is usually no need for a taxpayer to reply to a notice unless specifically instructed to do so. On the other hand, taxpayers who owe should reply with a payment. IRS.gov has information about payment options.

● Do respond if you dispute the notice. If a taxpayer doesn’t agree with the IRS, they should mail a letter explaining why they dispute the notice. They should mail it to the address included on the notice. The taxpayer should include information and documents for the IRS to review when considering the dispute.

● Do take timely action. A notice may reference changes to a taxpayer’s account, taxes owed, a payment request or a specific issue on a tax return. Acting timely could minimize additional interest and penalty charges.

● Do review the information. If a letter is about a changed or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should make notes about the corrections on their personal copy of the tax return and keep it for their records.

● Do remember there is usually no need to call the IRS. If a taxpayer must contact the IRS by phone, they should use the number in the upper right-hand corner of the notice. The taxpayer should have a copy of their tax return and letter when calling the agency.

● Do avoid scams. The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure if they owe money to the IRS can view their tax account information on IRS.gov.