Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Free Irs Tax Filing Online

Can I File 1040ezIrs Tax Forms 2012 1040a1040a Tax Form2012 Income Tax ReturnAmmend 2010 Taxes2011 Tax Tables 1040ez2012 1040a Tax Forms2012 Ez Tax Form1040ez Forms 2013File Taxes For Free 2011Turbo Taxes 2011How To File An Amended Federal Tax ReturnE File 2009 Taxes Free2010 Tax Forms 1040ezFree Tax FilingAmended Tax FormsHow To Ammend Your Taxes1040easyFile Taxes For Free 2012Www Irs Gov Efile Index HtmlFree Tax Calculator 2011State Income Tax ReturnFree Tax OnlineForm4868MyfreetaxesFile Free State And Federal Taxes OnlineWww Hnrblock ComIrs EfileFiling 1040ez Online FreeFile State Taxes Online FreeFiling Previous Year TaxesFile 2012 Taxes Late Online FreeBack Taxes HelpIncome Tax Return 1040ezFree Federal Tax FormsHow To File 1040ez OnlineHr Block Free Tax FilingFile State Tax For Free OnlineH&r Block OnlinePast Year Tax

Free Irs Tax Filing Online

Free irs tax filing online 2. Free irs tax filing online   The Tax and Filing Requirements Table of Contents Returns and Filing Requirements Payment of TaxFederal Tax Deposits Must be Made by Electronic Funds Transfer All organizations subject to the tax on unrelated business income, except the exempt trusts described in section 511(b)(2), are taxable at corporate rates on that income. Free irs tax filing online All exempt trusts subject to the tax on unrelated business income that, if not exempt, would be taxable as trusts are taxable at trust rates on that income. Free irs tax filing online However, an exempt trust may not claim the deduction for a personal exemption that is normally allowed to a trust. Free irs tax filing online The tax is imposed on the organization's unrelated business taxable income (described in chapter 4). Free irs tax filing online The tax is reduced by any applicable tax credits, including the general business credits (such as the investment credit) and the foreign tax credit. Free irs tax filing online Alternative minimum tax. Free irs tax filing online   Organizations liable for tax on unrelated business income may be liable for alternative minimum tax on certain adjustments and tax preference items. Free irs tax filing online Returns and Filing Requirements An exempt organization subject to the tax on unrelated business income must file Form 990-T and attach any required supporting schedules and forms. Free irs tax filing online The obligation to file Form 990-T is in addition to the obligation to file any other required returns. Free irs tax filing online Form 990-T is required if the organization's gross income from unrelated businesses is $1,000 or more. Free irs tax filing online An exempt organization must report income from all its unrelated businesses on a single Form 990-T. Free irs tax filing online Each organization must file a separate Form 990-T, except section 501(c)(2) title holding corporations and organizations receiving their earnings that file a consolidated return under section 1501. Free irs tax filing online The various provisions of tax law relating to accounting periods, accounting methods, at-risk limits (described in section 465), assessments, and collection penalties that apply to tax returns generally also apply to Form 990-T. Free irs tax filing online When to file. Free irs tax filing online   The Form 990-T of an employees' trust described in section 401(a), an IRA (including a traditional, SEP, SIMPLE, Roth, or Coverdell IRA), or an MSA must be filed by the 15th day of the 4th month after the end of its tax year. Free irs tax filing online The Form 990-T of any other exempt organization must be filed by the 15th day of the 5th month after the end of its tax year. Free irs tax filing online If the due date falls on a Saturday, Sunday, or legal holiday, the return is due by the next business day. Free irs tax filing online Extension of time to file. Free irs tax filing online   A Form 990-T filer may request an automatic 3-month (6 months for corporation) extension of time to file a return by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return. Free irs tax filing online The Form 990-T filer may also use Form 8868 to apply for an additional (not automatic) 3-month extension to file the return if the original 3-month extension was not enough time. Free irs tax filing online Public Inspection Requirements of Section 501(c)(3) Organizations. Free irs tax filing online   Under section 6104(d), a section 501(c)(3) organization that has gross income from an unrelated trade or business of $1,000 or more must make its annual exempt organization business income tax return (including amended returns) available for public inspection. Free irs tax filing online    A section 501(c)(3) organization filing the Form 990-T only to request a credit for certain federal excise taxes paid does not have to make the Form 990-T available for public inspection. Free irs tax filing online Payment of Tax Estimated tax. Free irs tax filing online   A tax-exempt organization must make estimated tax payments if it expects its tax (unrelated business income tax after certain adjustments) to be $500 or more. Free irs tax filing online Estimated tax payments are generally due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Free irs tax filing online If any due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next business day. Free irs tax filing online   Any organization that fails to pay the proper estimated tax when due may be charged an underpayment penalty for the period of underpayment. Free irs tax filing online Generally, to avoid the estimated tax penalty, the organization must make estimated tax payments that total 100% of the organization's current tax year liability. Free irs tax filing online However, an organization can base its required estimated tax payments on 100% of the tax shown on its return for the preceding year (unless no tax is shown) if its taxable income for each of the 3 preceding tax years was less than $1 million. Free irs tax filing online If an organization's taxable income for any of those years was $1 million or more, it can base only its first required installment payment on its last year's tax. Free irs tax filing online   All tax-exempt organizations should use Form 990-W (Worksheet), to figure their estimated tax. Free irs tax filing online    Tax due with Form 990-T. Free irs tax filing online   Any tax due with Form 990-T must be paid in full when the return is filed, but no later than the date the return is due (determined without extensions). Free irs tax filing online Federal Tax Deposits Must be Made by Electronic Funds Transfer You must use electronic funds transfer to make all federal deposits (such as deposits of estimated tax, employment tax, and excise tax). Free irs tax filing online Forms 8109 and 8109-B, Federal Tax Deposit Coupon, are no longer in use. Free irs tax filing online Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Free irs tax filing online If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Free irs tax filing online Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Free irs tax filing online EFTPS is a free service provided by the Department of Treasury. Free irs tax filing online Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Free irs tax filing online To get more information about EFTPS or to enroll in EFTPS, visit www. Free irs tax filing online eftps. Free irs tax filing online gov or call 1-800-555-4477. Free irs tax filing online Additional information about EFTPS is available in Publication 966, The Secure Way to Pay Your Federal Taxes. Free irs tax filing online Deposits on business days only. Free irs tax filing online   If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Free irs tax filing online A business day is any day other than a Saturday, Sunday, or legal holiday. Free irs tax filing online For example, if a deposit is required to be made on a Friday and Friday is a legal holiday, the deposit will be considered timely if it is made by the following Monday (if that Monday is a business day). Free irs tax filing online The term "legal holiday" means any legal holiday in the District of Columbia. Free irs tax filing online Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding your CP2006 Notice

 
We received your information. We'll look at it and let you know what we're going to do.


What you need to do

  • Read your notice carefully.
  • You don't have to do anything.
  • You don't have to answer the notice.
  • If you have a payment plan for another IRS debt, keep making your payments.

You may want to...

  • Fill out and send us a Form 2848, Power of Attorney and Declaration of Representative to allow someone (such as an accountant) to contact us on your behalf.
  • Keep a copy of your notice for your files.
  • Contact us by mail or by calling the toll free number on your notice with any questions we haven't answered below.

Answers to Common Questions

Why did it take you so long to contact me about this matter?
Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.

I got a deficiency notice. It says I have 90 days to petition the U.S. Tax Court. Does this notice give me more time?
No, you still only have 90 days.

The deficiency notice I got says I have 150 days to petition the U.S. Tax Court. Why doesn't it say 90 days?
You have 150 days for deficiency notices sent outside the U.S. The new notice you just received does not extend the 150 days.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 28-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free Irs Tax Filing Online

Free irs tax filing online 6. Free irs tax filing online   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. Free irs tax filing online Vehicles not considered highway vehicles. Free irs tax filing online Idling reduction device. Free irs tax filing online Separate purchase. Free irs tax filing online Leases. Free irs tax filing online Exported vehicle. Free irs tax filing online Tax on resale of tax-paid trailers and semitrailers. Free irs tax filing online Use treated as sale. Free irs tax filing online Sale. Free irs tax filing online Long-term lease. Free irs tax filing online Short-term lease. Free irs tax filing online Related person. Free irs tax filing online Exclusions from tax base. Free irs tax filing online Sales not at arm's length. Free irs tax filing online Installment sales. Free irs tax filing online Repairs and modifications. Free irs tax filing online Further manufacture. Free irs tax filing online Rail trailers and rail vans. Free irs tax filing online Parts and accessories. Free irs tax filing online Trash containers. Free irs tax filing online House trailers. Free irs tax filing online Camper coaches or bodies for self-propelled mobile homes. Free irs tax filing online Farm feed, seed, and fertilizer equipment. Free irs tax filing online Ambulances and hearses. Free irs tax filing online Truck-tractors. Free irs tax filing online Concrete mixers. Free irs tax filing online Registration requirement. Free irs tax filing online Further manufacture. Free irs tax filing online A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. Free irs tax filing online Truck chassis and bodies. Free irs tax filing online Truck trailer and semitrailer chassis and bodies. Free irs tax filing online Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Free irs tax filing online A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. Free irs tax filing online A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. Free irs tax filing online A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. Free irs tax filing online A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. Free irs tax filing online The seller is liable for the tax. Free irs tax filing online Chassis or body. Free irs tax filing online   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Free irs tax filing online Highway vehicle. Free irs tax filing online   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Free irs tax filing online Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Free irs tax filing online A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Free irs tax filing online A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Free irs tax filing online A special kind of cargo, goods, supplies, or materials. Free irs tax filing online Some off-highway task unrelated to highway transportation, except as discussed next. Free irs tax filing online Vehicles not considered highway vehicles. Free irs tax filing online   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. Free irs tax filing online Specially designed mobile machinery for nontransportation functions. Free irs tax filing online A self-propelled vehicle is not a highway vehicle if all the following apply. Free irs tax filing online The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Free irs tax filing online The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Free irs tax filing online The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Free irs tax filing online Vehicles specially designed for off-highway transportation. Free irs tax filing online A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. Free irs tax filing online To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Free irs tax filing online It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Free irs tax filing online Nontransportation trailers and semitrailers. Free irs tax filing online A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Free irs tax filing online For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Free irs tax filing online Gross vehicle weight. Free irs tax filing online   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. Free irs tax filing online It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. Free irs tax filing online Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. Free irs tax filing online   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. Free irs tax filing online Platform truck bodies 21 feet or less in length. Free irs tax filing online Dry freight and refrigerated truck van bodies 24 feet or less in length. Free irs tax filing online Dump truck bodies with load capacities of 8 cubic yards or less. Free irs tax filing online Refuse packer truck bodies with load capacities of 20 cubic yards or less. Free irs tax filing online For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. Free irs tax filing online R. Free irs tax filing online B. Free irs tax filing online 2005-14 at www. Free irs tax filing online irs. Free irs tax filing online gov/pub/irs-irbs/irb05-14. Free irs tax filing online pdf. Free irs tax filing online   The gross vehicle weight means the maximum total weight of a loaded vehicle. Free irs tax filing online Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. Free irs tax filing online The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. Free irs tax filing online The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. Free irs tax filing online See Regulations section 145. Free irs tax filing online 4051-1(e)(3) for more information. Free irs tax filing online Parts or accessories. Free irs tax filing online   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. Free irs tax filing online For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. Free irs tax filing online The tax applies in this case whether or not the retailer bills the parts or accessories separately. Free irs tax filing online   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. Free irs tax filing online The tax applies unless there is evidence to the contrary. Free irs tax filing online For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. Free irs tax filing online The tax does not apply to parts and accessories that are spares or replacements. Free irs tax filing online   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. Free irs tax filing online Idling reduction device. Free irs tax filing online   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. Free irs tax filing online The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. Free irs tax filing online The EPA discusses idling reduction technologies on its website at www. Free irs tax filing online epa. Free irs tax filing online gov/smartway/technology/idling. Free irs tax filing online htm. Free irs tax filing online Separate purchase. Free irs tax filing online   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. Free irs tax filing online The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. Free irs tax filing online The installation occurs within 6 months after the vehicle is first placed in service. Free irs tax filing online   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. Free irs tax filing online   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. Free irs tax filing online This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. Free irs tax filing online   The tax does not apply if the installed part or accessory is a replacement part or accessory. Free irs tax filing online The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. Free irs tax filing online However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. Free irs tax filing online Example. Free irs tax filing online You bought a taxable vehicle and placed it in service on April 8. Free irs tax filing online On May 3, you bought and installed parts and accessories at a cost of $850. Free irs tax filing online On July 15, you bought and installed parts and accessories for $300. Free irs tax filing online Tax of $138 (12% of $1,150) applies on July 15. Free irs tax filing online Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. Free irs tax filing online First retail sale defined. Free irs tax filing online   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. Free irs tax filing online There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). Free irs tax filing online The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). Free irs tax filing online The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. Free irs tax filing online There is no registration requirement. Free irs tax filing online Leases. Free irs tax filing online   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. Free irs tax filing online The tax is imposed on the lessor at the time of the lease. Free irs tax filing online   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. Free irs tax filing online The tax is imposed on the lessor at the time of the lease. Free irs tax filing online Exported vehicle. Free irs tax filing online   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. Free irs tax filing online Tax on resale of tax-paid trailers and semitrailers. Free irs tax filing online   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. Free irs tax filing online The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. Free irs tax filing online The credit cannot exceed the tax on the resale. Free irs tax filing online See Regulations section 145. Free irs tax filing online 4052-1(a)(4) for information on the conditions to allowance for the credit. Free irs tax filing online Use treated as sale. Free irs tax filing online   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. Free irs tax filing online Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. Free irs tax filing online The tax attaches when the use begins. Free irs tax filing online   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. Free irs tax filing online   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. Free irs tax filing online   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. Free irs tax filing online Presumptive retail sales price. Free irs tax filing online   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. Free irs tax filing online If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. Free irs tax filing online Table 6-1 outlines the appropriate tax base calculation for various transactions. Free irs tax filing online   The presumed markup percentage to be used for trucks and truck-tractors is 4%. Free irs tax filing online But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. Free irs tax filing online Sale. Free irs tax filing online   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. Free irs tax filing online Long-term lease. Free irs tax filing online   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. Free irs tax filing online Short-term lease. Free irs tax filing online   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. Free irs tax filing online   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. Free irs tax filing online   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. Free irs tax filing online Related person. Free irs tax filing online   A related person is any member of the same controlled group as the manufacturer, producer, or importer. Free irs tax filing online Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. Free irs tax filing online Table 6-1. Free irs tax filing online Tax Base IF the transaction is a. Free irs tax filing online . Free irs tax filing online . Free irs tax filing online THEN figuring the base by using the. Free irs tax filing online . Free irs tax filing online . Free irs tax filing online Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. Free irs tax filing online   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. Free irs tax filing online   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. Free irs tax filing online However, you do add a markup if all the following apply. Free irs tax filing online You do not perform any significant activities relating to the processing of the sale of a taxable article. Free irs tax filing online The main reason for processing the sale through you is to avoid or evade the presumed markup. Free irs tax filing online You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. Free irs tax filing online In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. Free irs tax filing online Determination of tax base. Free irs tax filing online   These rules apply to both normal retail sales price and presumptive retail sales price computations. Free irs tax filing online To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. Free irs tax filing online However, see Presumptive retail sales price, earlier. Free irs tax filing online Exclusions from tax base. Free irs tax filing online   Exclude from the tax base the retail excise tax imposed on the sale. Free irs tax filing online Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. Free irs tax filing online Also exclude the value of any used component of the article furnished by the first user of the article. Free irs tax filing online   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. Free irs tax filing online These expenses are those incurred in delivery from the retail dealer to the customer. Free irs tax filing online In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. Free irs tax filing online   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. Free irs tax filing online For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. Free irs tax filing online Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. Free irs tax filing online Sales not at arm's length. Free irs tax filing online   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. Free irs tax filing online   A sale is not at arm's length if either of the following apply. Free irs tax filing online One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. Free irs tax filing online The sale is made under special arrangements between a seller and a purchaser. Free irs tax filing online Installment sales. Free irs tax filing online   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. Free irs tax filing online The tax is figured on the entire sales price. Free irs tax filing online No part of the tax is deferred because the sales price is paid in installments. Free irs tax filing online Repairs and modifications. Free irs tax filing online   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. Free irs tax filing online This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. Free irs tax filing online However, this exception generally does not apply to an article that was not subject to the tax when it was new. Free irs tax filing online Further manufacture. Free irs tax filing online   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. Free irs tax filing online Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. Free irs tax filing online Combining an article with an item in this list does not give rise to taxability. Free irs tax filing online However, see Parts or accessories discussed earlier. Free irs tax filing online Articles exempt from tax. Free irs tax filing online   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. Free irs tax filing online Rail trailers and rail vans. Free irs tax filing online   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). Free irs tax filing online Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. Free irs tax filing online Parts and accessories. Free irs tax filing online   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. Free irs tax filing online Trash containers. Free irs tax filing online   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. Free irs tax filing online It is designed to be used as a trash container. Free irs tax filing online It is not designed to carry freight other than trash. Free irs tax filing online It is not designed to be permanently mounted on or affixed to a truck chassis or body. Free irs tax filing online House trailers. Free irs tax filing online   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. Free irs tax filing online Camper coaches or bodies for self-propelled mobile homes. Free irs tax filing online   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. Free irs tax filing online Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. Free irs tax filing online Farm feed, seed, and fertilizer equipment. Free irs tax filing online   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. Free irs tax filing online This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. Free irs tax filing online Ambulances and hearses. Free irs tax filing online   This is any ambulance, hearse, or combination ambulance-hearse. Free irs tax filing online Truck-tractors. Free irs tax filing online   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. Free irs tax filing online Concrete mixers. Free irs tax filing online   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. Free irs tax filing online This exemption does not apply to the chassis on which the article is mounted. Free irs tax filing online Sales exempt from tax. Free irs tax filing online   The following sales are ordinarily exempt from tax. Free irs tax filing online Sales to a state or local government for its exclusive use. Free irs tax filing online Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. Free irs tax filing online Sales to a nonprofit educational organization for its exclusive use. Free irs tax filing online Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. Free irs tax filing online Sales for use by the purchaser for further manufacture of other taxable articles (see below). Free irs tax filing online Sales for export or for resale by the purchaser to a second purchaser for export. Free irs tax filing online Sales to the United Nations for official use. Free irs tax filing online Registration requirement. Free irs tax filing online   In general, the seller and buyer must be registered for a sale to be tax free. Free irs tax filing online See the Form 637 instructions for more information. Free irs tax filing online Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. Free irs tax filing online Further manufacture. Free irs tax filing online   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. Free irs tax filing online Credits or refunds. Free irs tax filing online   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. Free irs tax filing online The person using the article as a component part is eligible for the credit or refund. Free irs tax filing online   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. Free irs tax filing online A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. Free irs tax filing online   See also Conditions to allowance in chapter 5. Free irs tax filing online Tire credit. Free irs tax filing online   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. Free irs tax filing online The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). Free irs tax filing online This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. Free irs tax filing online Prev  Up  Next   Home   More Online Publications