Today, at our article space, we would discuss about one of the most important portions of the form, which is usually ignored or neglected. Third Party Designee is the topic we are going to cover today. |
Form 2290, the application to file and report heavy vehicle used tax to the IRS. If your vehicle weighs more than 55,000 pounds or more, and likely to use the public highway for delivery, you are liable to pay and file form 2290 on or before the due date. the tax season for the year 2015-16 is falling on 1st of July to 31st of August, allowing the truckers, owner operators and business owners to file and report form 2290 within the given time span.
Other than taxable vehicles, there is a variety of vehicles filed via form 2290. Another important vehicle type is suspended vehicles. These vehicles do not cross more than 5,000 miles a year. You are liable to report the form to the IRS; however, you are suspended from paying tax.
However, if you have taken your vehicle out for the first time any time before or after the tax season, you are liable to report from for newly driven vehicles by the second month of the first use. i.e. if you have taken your vehicle out for the first time in the month of April, by the end of May, you are liable to report taxes based on the weight and the miles to be covered.
Each time you file form 2290, the application ask you if you wish to assign for a third party designee for your tax return. Are you assigning one or you don’t know why you should assign at the first place. Whatever your queries are, we are here to answer them. Keep reading, today, we are going to talk all about third party designee.
Purpose of Third Party Designee:
A third party designee can be anyone, whom you can trust. From an employee to your spouse, business head to return preparer or any other third party who can deal with your filed tax and discuss the same with IRS in your absence is applicable to be your designee. When you are filing form 2290, you need to check on “Yes”, authorizing IRS to speak to the designee at the time of need, and during your absence.
You are authorizing the designee for:
• Exchange of information concerning form 2290 with IRS, • Request and receive written tax return information related to form 2290, including copies of notices, correspondence, and account transcripts
While assigning for a third party designee, you need to mention the name of the person, the contact details, and the five digits that person choose as his/her personal identification number (PIN). The authorization applies only to the tax return on, which it appears. However, do note, when you assign a person as your Third Party Designee, you are not binding the person to anything, including additional tax liability or otherwise represent the taxpayer before the IRS.
The authorization will expire in a year’s time from the date of authorization. You can also revoke the authorization by writing to the IRS. You can check through IRS website for better information. And if you have any questions related to the assigning a third party designee, you know whom to call and get them answered. Our Tax Experts would love to tell you everything about the form and related questions. Keep filing and make sure you file your return online. It is much easier that way. Happy filing and trucking.
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