IRS launches IRS2Go Apps

The Internal Revenue Service has unveiled IRS2Go, its first smartphone application that lets taxpayers check on the status of their tax refund and obtain helpful tax information.  “This new smartphone app reflects our commitment to modernizing the agency and engaging taxpayers where they want, when they want it,” said IRS Commissioner Doug Shulman.  “As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information.”

 Apple users can download the free IRS2Go application by visiting the Apple App Store.  Android users can visit the Android Marketplace to download the free IRS2Go app.  “This phone app is a first for us,” Shulman said.  “We will look for additional ways to expand and refine our use of smartphones and other new technologies to help meet the needs of taxpayers.”

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Summer Camp – Possible Tax Credit

Section 21 of the Internal Revenue Code provides for a credit, throughout the year, for child care costs incurred while a taxpayer is gainfully employed. During the summer, when school is not in session, the cost of a day camp may count as an expense towards this credit (even if the camp specializes in a particular sport or activity such as soccer or computers). The cost of overnight camps, summer school or tutoring programs do not qualify for the credit.

To be able to claim the credit, a taxpayer must meet several requirements and tests. The credit is a percentage of the taxpayer’s work-related expenses. You must file Form 1040, 1040A or 1040NR in order to claim the dependent care credit.

Call the Loggins office for assistance with this tax credit opportunity.

IRS Gives Three-Month Extension on Form 2290

Highway Use Tax Return – Due November 30^th

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

Because the highway use tax is currently scheduled to expire on September 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 November 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 November 1.

To aid truckers applying for state vehicle registration on or before November 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.

For trucks and other taxable vehicles in use during July, the Form 2290 and payment are, under normal circumstances, due on Aug. 31. The tax of up to $550 per vehicle is based on weight, and a variety of special rules apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the year and those first used on the road after July.

Loggins Welcomes Kim Fourman

Kim Fourman joins Loggins as an Intern.  Kim lives in Fayetteville with her husband, Brian, and their four little tax credits.  She has taught high school math since 1996 at both Jonesboro High School and Grace Christian Academy.  She is currently in graduate school with the goals of earning her CPA license and MBA degree by the end of 2013.  On the weekends, she is typically at one of the local parks in Fayetteville watching her kids play baseball or soccer.