TD 8043 Final

32012

Federal Rtgirter

/

VoL M.

No. 153 1 Thursday,

August 8 , 1085

2381) and the
[W Stal. 444).

26 CFR Partm 40,154, and 602

Tax Reform ACIof 1M
These final regdalionr
have been rrviaed to rtfltet Chore
changes to the law. A public bearing
wes neither held nor requested. O m
comment wan received which ruggerted
thr! the proposed rrgula~ion~rovided
that ihe customer who either d o e d l his
own cerlridges or ha&anolher ptmon
mload t h e artridges for him would be
liable for the excine tax on the reloaded
cartridges. However. that was not the

proper in\erprelation. lie propseed
regulation merely provided that Lhe
customer who has cartridge1 reloeded
w a d d be liable lor excise tax oniy in
Mancrfactvrers Exclse T a x e l on
h e tveni that h e cu6iorner thereafter
Sportlng Goods and Flrearrnr m d
mold the reloaded cartridge. The u l e by
Other Adminlstratlvc Provlsionr of
the customer i 8 not ~ubjectto h e tax
Special App!iea:ion 10 Manulecturen
because of h e personal use exemption
and Retatters Excise Taxes; Reporling
and Recordkeeplng Requirements
, under aection 4218.
T h e existing regulation provider that a
AGENCY: Inlernal Re%,enueServicc.
price readjustment 10 th :urchaser ir Treasury.
made when f i e price of a,:~ n i c l eon
which tax has been paid ir later
A C T I O ~ :Final r ~ g u l a t i o n s .
readjusled because tbc article or i t l
SuMMARV: This document contains final
covering or container ir mtumed or
regula lions which revise and update h e
repossessed. or a bone tide discount
regulations on manufac~urersexclae
rebale or allowance against the aales
taxea on sporting goods and fireama
price is made. That part of be l a x which
and olher a d m i n i r ~ r a t i v tprovisions
i s proportioneta lo the pad of the price
especial)! applicable t o manufacturers
which in repaid or credited to the
and retailers excise taxes. Theae
purchaser ia considered to be an
amendments revise and update Par! 48
overpayment. Cornmenin from within
to achieve preafer clarity and conform
the Service indicated that the proposed
h e regulations to numerous
regulation on the determinat~onof n
amendmenis to the Inlsrnal Revenue
price readjustment was unclear efier an
Code of 195s made a h r I W . Thene
exemple relating to a bona fide
regula!~onsprovide necessary gvidance
discount, rebate or allowance wan
lo the p u b l ~ cfor conlpliance witb the
d8:leted in the proposed regulation.
law.
Since no change w a a intended with
DATES: Effectit e Augusl 8. 198j, cxcepl
regard to a determination of price
8 s otherwise provided. I h e s m e n d m e n t ~
readiu6rment, exomple ( I ) of
made by t h i h document are applicable to # 4B.M16(b)(l)-~{e)(l)i 6 reinserted in
transactions made a l ~ e rDecember 31,
the final regulation.
1954.
S f a t u l a Arncndmcnts
~
R e n e c t d in the
FOR F U ~ T H E RI H F O R M A T ~ O NCOHTACf:
Final Regslation. .
Ada S, Rousso of the Legrslalion end
Ifany ~tatutorychanges enacted after
Pegulaiionb Division. Office of Chief
1913have not previously been reflected
Counsel. In~ernalRevenue Service. 1111
in Part 48 ol Be reaulations. The lable
Conslitulion Ave.. NW. Washinglon.
l e ! iorlh below e n u m e r a t e s the statutory
D.C. 20224-+Alienlion: CC:LR:T: 202changes reflected in these final
W 4 3 3 6 , nai a toll-free call].
regula lions. The rection numbers on the
SUPPLEMEHTARY INFORMATIOK
leik marnin list the srctiona of the Code
to whi& rht statutory changes relate.
Background
1181: 1. k c l i o n 201 a! ~ h Act
t uf October
On january 5.1583. the Federal
25. l K 2 . Pub. L W-538. 86 Sta:. 1173. tplh!ing
Regisltr published proposed
ro the imposilion of trx on hn+sand anows.
arnendrncnit to he Msnulac\urerl and
T h e amendments rn he W p l a l i 0 n b made
Refailem Excise Tax Regulafionr (28
undtr nettion
hall apply wtth rcspca ID
rnic!er bold by the r n m n u f b c ~ m tproducer.
,
CkU Part 481 under seclionl 41 B l . 4181,
or irnporitr on or r f l c r july I, 1874.
I 1 BZ.8011,6071.6081. W1.8101. 8109.
8208 I. Secilan Z 0 7 ( d ) [ 3 )ai the Airport mnd
8151, 6161,R O B . 6302, 6412. M16, 8420,
Airway IIevrlopmcni Ac! of 1970. Pub. L P1M Z I .W Z ~ . W a?n d~ 8675. Subrequeni to
W .M Slat. 219, relaling to mlts applbc&ble
)he publicetion of the propoled
to camsrive clairnr. 7ht amendmcntr lo the
~ m c n d m c n t a cedain
.
changes to tht
regulal~onimade undcr mtctlon f07[d)13)
rppllcable l a w wtre made by the
ahrll apply v l ~ hrespect lo salefi made on or
rfltr ju!y l. lP70
Highway Revenue Act of l9U (* Slat.
LT.D.W3]

I Rules and Regulations
Section 2DZIcl(ZJIA)of the B c i r c T a x
Reduction Act of I=.
Pub. L w.7g Sut.
t e l a l i q 10 a p c c ~ a ld e r appliceble to'
t x c o a i v e claim*. 7 h t rmrndmenlr b h r
rrgulntioor m a d e u d t r 8tction ~ l c ) [ Z ) ( A ]
mhall rppiy only r711h nspccr to lubriceling
oil placed in urt rner h c e m b c r 31.1%5.
&12: 1. Scctim W [ c ) of the Federal Aid
Highwny A d O( 1978, Pub. L 6 S 5 9 9 . 8 2 51rt.
21339, mlmting to noor #lock mfunda.
z SccLion W(b)o t D c Ftderal Aid
Stal
Highwry Act of 1P7B. Pub. L p-ZBO
13. rchfing l o noor rtock nfundr.
W18r 1. Scclionr 2OS(b) (3) and I41 and
an?(d)(4) through [dl(?) of the Airport and
h i m a y Revenue Act of lWO.Pub. L 8 l - S 3 .
M Slat. rlo. allowing refund or credii of
gaoo!inr

trxer when gasotint ir ured in Ihc

production of rpccial h e l l . The rrgu1ar:onr
under ~cctiona203n](31 and (41 rnd Z#(d](d)
through (dJ(7)am r f f t t t i v e mfler j
u
t 30,:070.
r Srction 302 of I)lt Excise. b r a t t and Gilt
T n x Adjualmenl Act of ls?O, Pub. L 81614.
b4 Stal. 1830. modifying the mhnd and r r c d ~ t
pmririonr for !he use of new !2*.paid
component prna in turtht: mrnufacfwe.The
reguTatlonr under l ~ c t i o a an c f l e c t i v t for
c l h i m ~filed rfler Dtctmbcr 31.1970, but only
iI h r Filing of the claim ia notbarred on
January I. IW!. by any l a w or mlt or law.
3. Stctions IQI{a)(Sj(C]mnd Wllg1!6] of the
Revenue Act of lW!. Pub. L 82-178. 85 Sfat.
197. allowing r n h n d or mdi! [or certrin
bash conlalnem. T h e nplationr under
rertion *ol[a]{3)(c]and m ( p ! [ 6 ) sn t f l c c t i v t
with maptct to articles nold alter Dccernbc: *.
10,19;1.
4. Sections 19DI[b1 (1) nnd 12). lScrS[a):?q].
1 W ( b ) j t a](A) and 2108 o i the T a x Re!orm
he1 01 1576 Pub.L 9 4 4 5 5 . W Slat. 1520.

eljminalryl numtmus derdwood pro\isions
and allowing refund or crtdil [or certain !rock
pertr and a ccesboricr. T h e regula:~onaunder
oectionr l W [ b ] (11 ~ n (2).
d Is06(a)[?.l)iA)
and 1906(8)[13)[A)am t.lcctivr r l ~ t janunr).
r
31. 19n.The rrguld4ions under mcclion
190B(a)(24){B)(i)A r t e h c t i v c with rerprct to
umel or r e 6 a l r ~for use of liquid* mftcr
December 31.YE1. The mplmtionr undcr
~ t c l i o n2108 a r t tffcctlve with tcsptct IO
parts and

rccesaoiier old aRer Octobtr 4 .

1976.

5. Secfiw Z(b)(l)of the B!ac)r Lung Benefits
Revenue Act o f l g n , Pub. L 95-227.92 S t n l .
I 1. modifying the ntund and ot&t
pravisionr !or t h t thcimc tax on coal. The
wgulationr under section Z(bl(4j mrc cf!etti\r
wiih nsptct I 0 ralcs alter Mdrch 31. 29-13
M 1 0 - I . Section m [ a ) the Excite Tm*

Reducf~nnAci 01 1963. Pub. L B W . 78 $181
3%. relaling to incornt tax m d i l in lrcu o f
payment nifhrcspttt lo gssoliat uscd on

Irrma Thc rcguIul~onrunder setlion m(11
a n e I I t c t i v t with rtsptct M g l ~ o l i n eured o n
Or ~ l l tJuly
? 1. 1965.
2. S C C ~ ZI (Qb~Jof thr A i ~ o mnd
n Airway
Devclopmtni An of 1970. Pub. L SY-258 lM
S:rl ZIP. rell~ingto lht time ror filing claim1

bection M M n
t rrgulstionr undcr
~ t c i i o nm ( b Jarc ~ n t c \ i vwt i ~ h*spec1 10
tmxablr y e a n ending ahtr Iunr 10,1970.
3.Section 3 ( a ] or the Act vf Ocrober 14.
1978. Pub.L ~ H J
92 B
Stat..1257, mltling lo
cnti~lementof aerial .pplicators to rtlund OI
gasohnc !a% in ccrlaln c r s t r . The p $ u ! l l 1 0 n l
undcr

fsderrl-Rcgirk Vol. 30. Ho. 153 1 Thureday. Augus!
---. - .--

---

under r t c h n 3 8 ) ut t&bm fm g r a o h c
mscb air a March 31.10r0.
81::; 1.Section b09Lbl af ihr E x e i r c T u
K c d u c l ~ o nAct of
Pub.L H,
7P Stat.
13% mlriing M i n a m tax & I
1.b n I
payment wi& respect l o g ~ 1 o l m uaed
t
lor
u n a i r r nunhighway p u v r u or by loo1
-sit
r p t m . T h e ~ l a l i o n ur d m
rcciian -1
4m t W e m wi?h
to
pm#dme used rhw Jrmcm 14ss.
r k=tion W b ) ( l ] dtbt h a p w a n d
Dtvdmpcmi kl d 1 ~ 0P.ub L W-

tSb
aarrlswo
creSilwdMd
am Fual in an aircrlIt [ o h w
than rinr.fi b nmcornmcrcir[ m r ; ~ i e n l .

g s n o l ~ n rured

T h rrgalrkrn mndcr ~ c h m
-1)
r h c r l m e XI. m.

tff&;vc
$,

mn

Xenon mbJ

ncve~3pment
ha d rwo,M,
L
Stat 118 rrl.beg

md

BI

ectime far films d l , m

u n h r rrttim a.
f i r m l s u o h l wckr

r*clion

ZOylbl

u* tfftcliv*

laxable Y M ~

ending uner J WW. Wp.
4. k l j m ZPlaHll ofthe h e t a g Tax A c l
of1q7b. Pub.L-18.
O f Stat.3174. d a t i n g
ta rrfund or
rax on
urc'd
qua1 fied butines~use- The replatiom
under a m i o n **)(I) m r t rfltci?vc*rib
respec1 to u-r ~ f k Decemhr
r
31. Urn.
5. % c t i ~ nZ33(rH1] of ibz Enerly 7 1 hc(
~
0 i t 9 i 8 . PLIb. L 95418.S2 518L 3174. mialing
l v repayment o f t a x on taso!ine med h

i n ~ t r c i ~bu)
y . m r c h d b u m ~k
q u l 4 1 1 o n runder - c h ~ Y s ) [ r rrc
l
effcctiv* Wflk lo

90. lwa

& & : D D ~ lPB(c][1] dtht T

d

d

Contdtonm Act d 1179. Pub. L
SllrI. 1%.n l n l ~ n gto repayment of U x on
g a s ~ l i n rg K d in v e s ~ e l rernpkycd in
f i s h e r i u or h e w h a I i q S u s ~ n t mIh
rrfiletions under e c t j o n 10sIc){l) vr

8. 1985

ltegnlations

3m3

-

Stnt. 138, mhhw s c i d
tor
p a p w o r k Reduction hcl
c r c t i v t duam d m u c h m BM w i h
T h e collec~ionof i n f o r m a t ~ o n
rtmpcd 10 h&+u
h g d il rt+m(ltipCP
requirement* c o n l e h e d in these '
undcr wction 3 2 2 [ c ) ( 3 ) ( A ]r r t cflectiuc 4 t h
r e d a f i w hbubrnitted to Lhe
rrnpct~10ail uatd mfwr 3ccrrnbet 31. I=.
2 Scctiun mdn~dtbt
l] A i m nnd
M r z d @ a r t ; t g e m e h t and B+I
for
w.l- #I-review m am-a
Aim y Oevtlopmrrrl Ad d
wivjth the

2 Y I . M S l h t . 2 1 Q . ~ l r l 1 ~ i 0 f i v i l ~ h mq-t,dhrPaperPlerk
~~
ercesrivt claims under mcclion MZ7 m h
Reduction
Act d I-. These
nnptcr to huh d m e d IPI~n*.&
nqainmcats
hrvc btcn approved
purporer. The r r g u l d ~ o nrndet
~
mettion
OhiB.
m(dya]a r t tfftr!ivc dter June 3.1WO.
A
~
&
~~l ~
~ &
~h d
SpEi.1 Andyscl

tbr find Reprlrtiom
The tsbb bet I& khw enurnerait8
the p w t - ~ w
r m t q chmnges relating
10 m a n u f e ~ errd
n retailen txcibe
faxeo which an no! re.'kcted in these
final regulerion~.

-

,161: 1- sc,ioc,
l m 5 ,nd 1017 d the T~~
Refomh a rw m l a t d to laxel an Lht
,,k of ,pd fjrhlng cgv,pmrnt and nrlain
-m. There rmcndmmb
C ~ w l c td
a
be thc mubjecl d mother r e g d r b ~ apmjceL
4182: 1. k t i m 10s5(h) of tbt T e x Reform
hcl of l W m h l ~ n gl o drfini~tonr 8h ~ h i n gequipmtnl and Lhc mrtmtnl d
certnin
rraarw.m4
4mrndmem
be
rubjtc, oramthe, rrgv,stiDn
pyct,
-2:
1. Section ] ~ 5 ( c ) h e fax Reform
hci oi 19~1
rc\n\ing10 Lht time fot payrntot of
rmnurncturm exdw t r x on spaH firhim8
tquipment,
amendment rrin he
rubjeci of rnorher rtyln!im pmjtct.
(cN3)
M 1 of
6 : 1the
S cEc tai own Trn
1 m ( ACI
c ) ( 3d) . 12 5
3Z
8 (mlatlng
b)~nd~3

to the mhad md

P

mbber, area, lnnm h b t r

~
4Rd Cctia:n IWU

and accesroritt 01 automob& b v s u m d
Ilghl-duty h d r . These nmendmcn\. .,-c Lh+
vlthmavcl
tourcr akD-a mubltc~of another rrgulmtia pr&tL
31. 1978.
t Seclion IMlc) (Z)IA)-(?llB) and (c113k
~ 2 4 1: s c l i - ~ l b d
l ~ U B ~ T I * {,)(r) of ~ h Ttchnicat
c
Cwrectionr A n of lw@
Rebuctioa Act of 1965. Pub L H. Silt
lfiber r b d &
pmiriaam
136. relating to d u d ur m d i l ol m on
for lubricatin8 ail. !irta. and i ~ t t r~ b nn
. il
lubricating oil mn w e d in higtwzy mutor
amendment im ht subitci o l another
v t h ~ c l tTbt
~. ~
u
l u n b* t
~
~a&)
~
mguiation p w f i
m r r cfTecrive r i r h rtrptct to lubricrting oil
3. Section1 l(rHb)(Z)p)nnd 4lc) of the
pbaccd rn u u mlln D w m b r r 3 t l a .
19B0.Pub-L6*,
2- S c G o n mi&l
AirPon bnd A f i a ~
5-at 3#S.r.l=11ng
rhc wlund and crrdll
.
~ c v t l o ~ m rh
o ia d 1970.Pub L 91-25U. 84
pmvisionj iw tax pnid on tmod rubber ured
S ~ a ln9.
. nlalinl to ~ h time
t f o r T;114g Jmuna
if, m t e p p ~ vor n b e d i q m hrt
under & c h o nM24. T h e q u l a t i o n a under
mmendmenb fim
r ~ b p c otf l ~ t b c r
welton m:b1 a r t d r c ! i v r far t*a*bl* l c v l
rrgulauon project
ending rher Junt SO. IOXL
HZ':1. Q c ~ i o n[i)(b) of L ~ CAcl oi October
3 %ion u s ( b ~ 1 )of the Enegy T a x A d
17.1978, P J ~
L.W M . Sini. ZrU, rclmling
of 19?8, Pub. 1 9581h BZSI*i. w C . t r l * %
10 u t d i l nt wlund of l a x on p * o I + n mnd
~
to wcdo a refund of
on lubncrtiry oil
figmir]
umd by wrtain .i-ft
u u d in 4 q u a l i h d burintom uw w io 4
m u u u m r Tbi. Acl cxpirtd on O c l o k r 1.
qualified bum.
1W.Tbr inx w a r mlnrtiluttd by h 4 frr
MZ~
1.Szetioa
:
m
m
)d i h a Airpart m d
Equity 4nd Flrcal Rcgonrlblbty Acl of 198L.
Airway Drvtlopmmi A d o r lWO.Pub. L olThir rrnendmml i m the rub+cl oianolbcr
ZSB.M 9 r t . ns.relafin8 ?o e d i t m &d
of regulrtion pmjta.
141 MI g r d i n r and w
ill futlr urtd lor
2. Seclioa SoJ{4) ef f i r Highwry Revmum
&ah
p w p o r a . 77-d ~ l ~ r i o n s
Act d 1 P a rtlalinl 10trrd~cm *fund fat
A o n m(ajMd s t i v t 4 t h tcrpcd tn
m a i n t a ~ i cbm
r of r ~ c i s eluu
prolint
taxrblr y u n tndinl d l t t I u n t
lm.
urd o t h a mat- h e l a . [TbC prdqions of
&lm
SDS!a) r m nor exptcrtd !a be the
t SccLon 3(bl o T I k A d d D c t h i C
1978. PuE L g
m 92 !h1.1257. d l i q lp
aubjtet or another ~ u l a C i mpmwt.)
t n t i t l u n t n ~of atrial cpplrcslom to d u n & of
L Scciion U ~ ~ U dI ths
J CnLdc Qlt
rptdal hell tax in terrain EIICI,
7 % ~
WindiuH Rob1 T w Act of 1 M . t c l l t i n ~lo
z r p l a l i o w undtl rrcnon Y(h1 arc
refund ol I r x on gaspline urad to p d u c *
lor ga dint wed rRcr March JI.
ceflsln alcchol h e l a .
I ~ ~ ~ Ue h
I m
O p
~ ir
-7% 1 kdrm w c ) ( J J ( Aofj h h&
txpectcd lo bt Chc mubjrct olawtfier
Tax ELtdt~c!imk t d l a . Pub. t
7l
mpulrrlon prop%

".

e*

1 Rules and

by

7ht CommisPioner d hternal
Revenue bas de!crmined i h n ~th!g fins!
mle i* no1 a major nJe as defined in
Extculivt O*r
12291 and that a
~ e g u l e l o r yImpact ~ n a l y s i sis therefore
nut required. AId~ougha noti- of a
proposed rulemaking which soliutcd
P Ub l i ~
isued- Lhe
Internal Revenut S r v i c t concludtd -'
when h e notice was issued that the
re@lalions are interpret alive and h a t
the notice and pubtic procedure
of 5 ULC 553 did
apply. Accordirrgly, h e final regulations
do not constitute regulatitras subject to
t h e R e g u l a l o ~Flexibh1xAct t5 U5.C.
chapter 11.
Drafing Informafiun
The principal sutbor 01 t h s regulation
i,~d~S.~ousbooitheLegislatiah%nd
Regulatior,r Oivision of Lhe Oifice of
Chief CounseL
~
kterna]
Revenue
~

~

&mice. H3wever. personnel irsrn o t h e r

off:ces of the h:ernal Revenue Ser\'ict
and Treasury Departmen! parlicipa tied

in d e ~ e l o p i n gthe regulailons. both a n
matters of substante and style.
Wit of Subjects
26 CF'R Part 48
Agria1tur$. Arms and munitions.
Cod.
Excise t a xPelroleurn,
e l Gasohal.
Gascline,
MDlor
Sportiry
goods. Tires.
26

CFR Part 2 H

-

Aircrnfl, Airporls, Excise taxes,
Airwag Revenue Acl of 1970.
26 CFR POH 602

Reporting and recordkeeping
requirement''

~

d Amendmtnlr
~
~ lo the h
~
Reguhb~m
Parts 45. 154. and
hec~rdingly.28
an amended sr follows:
PART 48-+AMEHDED]

Parrgrmpb 1. The au1hori;y citation for
Part 4 1 continu- M reed am follaw~:

'-

A"'hdtl'
ZB U.S.C.

tar. L Sect~on4 0 . b l i s re\+sed to

read e g lollo~-s.
Sections #.wand.

-

Federal Register

32014

/ Vol.

50.

48.M are remaved. Section 48-&5 i s
redsignaled as # 48.+3.

4 41.b t hntrducUo~
The r e g u l a t ~ o nin~ &is pert [Part 4.
S u b c h a ~ l e rD,Chap' er Title 26Code
o l Federal Regulalional i r e deatpated
"Manufacturen and Retailers Excise
ax Regulations." The reguialionr relate
10 the :axe$ imposed by sectionr IWI.
4M? and 4051 or by chepter 32 of the
Icfemal Revenue Code of 1954. a s
amended, and iu certain related
adrnin~strativeprovisions of subtide F of
the Code. Section m1 irnposen t a x e s on
rertain sales or uses of the specivl heir
r!cscribed i n lh31 sechon, and on certain
sales or uses of gasoline a3 8 fuel in

aitc:af~ engaged in noncnmmercial
aviation. Section 4MZ imposcs laxes on
liquids used 39 fuel in certain vessels in

comrnerclal wa:erway trar,sportation.
Section 4051 Impose3 taxes on heavy
trczks. trailers and certain tractma sold
a1 retail. Chapter 32 or the Code irposes
on t h e sale or u s e by he
rc:n~facturer, producer, or importcr of
articles specified in thei chapter.
References in &e regulations in this part
10 ht "in'ernai Rtvenue Code" or the
"Code" are rele:ences to the Lnternal
Revenue Code of 1954, as amended,
unless otherwist indica led. References
lo a section or other provis:on ot law a t e
references to a section or other
provision o f the Internal Revenue Code.
as amended, unless o~heraiseindicatrd.
taxes

Par. 3. Section 46.4161(a)-1 is
a m e c d e d hy revising paragraph [c) to
read a s foHo;c,s,
f d8.d16i(r)-3 Imposition and rate of t a x ;
fishing tqcripmanL

. . . . .

Ic) liobilityfos tax. The lax imposed
by seclion 4161[a) is payable by the
manulacturer. producer. or importer
m,aking the
F~~ determiniw who
tht manufactwe:, producer, or importer,

5 le.&qa)(4).
Pu.4. Section 48.41Bl(a~Zi n
amended by
(dl to
see

read a r

follvws.

5 48.4161(r)-2
.

.

.

Morning ot tmrmu
I

.

Id) Artificiof IURS, baiu. and Kes.

The ~ c r m"errificial lures. bei!a, end
flies" include4 all artifacts, of whatever
r.z(etials made, that nimulalt an article
considered edible by fish and are
designed lo be artached to a line or hook
to altracl fish ro h a t they may be
caplurrd. Thus. the rtm include8 nuch
artifacts a 5 imifaiion flien. blader.
spoong, end upinnen. and edible
malerials thal have been processed ro
as l o resemble a diiferent cdjble articte
considered more attractive to fieh, r u e

No+ 153 / Thursday,

--

A u g w t 8. 1905

a s bread crumSm treated so r r to
mimulate salmon eggs, and pork rind cut
and dyed to rcaemble frogs. eels, or
ledpotes.
Pu.5. Sectiot~48.1161(~)4ia
amendedby reviring paragraph fi]to
read os lollowr,

1 Ruler and

ReguIalions

Pu. a Sectidn 48.4182-1 is amended
by reviring ~ a r a g r a p h[b) to read a n
followr. -

-

.p) . . - -

J ls.4142-i

brrnpt ultk

Sales to Defense Department or lo
US.cmar C u o d + l J Military
g 4a.4161(.)-3
P a and accer*orlrr
deportmenL Sect!on 4182b)provjdes
t h a t the tax imposed by rectlon I I B 1
*
*
4
.
.
ahall not attach to the *ale of firearms.
fi]Essentia'equhen'
pilloh, revolvcrm, +hellr. or cartridge,
ariiclea ore mold by h e menulachirer,
&at are purchssed with Iufidt
producer. Or
without
nppropriated tor a military department
PBrL' Or accessories hat ere essentialofthe United Stater. For his purpose,
for their 'peration. Or are deei8ned
the term "military department" meana
loimpravt the performanceOr
the Departmen1 of ole h y , the
epptatance of rhe articles. the separate
[3cpsrlment of heN
~and~ ,
bale of the par13 of a c c e ~ s o t i e sto the
Depamenl Df the ~i~ F
~lnduded
~ in~
be
in the
fie Deportmen1 of ihe Nary a r e naval
absence a' evidence la the contrary,
lo
,Ma:ian end rhe Marine Corps and.
have been made in conncclion
with
when o p e r e t i q an a ~e=ice in the W a t y
of the basic article,even though the pur,,ant to he provbsionr 0114 U.S.C.3,
p a r t s Or occeasorieAare shipped
the Coast Guard.
~ e p a r a l e al t~ the same time or on a
(2) C o o ~ Guard.
t
(i]I4 U.S.C. 6.55. 8s
difterent date.
added by see. 5 01 the Act of ]u!y 10,
Par. 6. Section 48.4181(b~Ii s
1 9 2 , f i b . L 87-528,70 Stat. 1421,
emended by reviring parayaph Id1 to
on Iol!owr:
read aa f0110ws.
Set US, A mr and ~mrnuni~ion:
immuni~y
9 UJlbl[bbt

Imwlm

and rmov*r.
.

.

.

a

.

r3d rai,,

e,

!,-om tarorion. ~o lmr on the r a l r or eanrler
of h a m s . pimtaIa, revoIveri+ahella. or
cartridges mey bc irnporcd on ruch arliclts
when bought with hndr appropriated for Lht
United S l u t c ~Coost Guard.

(cj Labi[ity for tax T h e tax imposed
by eection 4161(bJ is payable by tht
{ii) In view oI the proviaions of14
manufacturer, pyoducer, or importer
U.S.C. 655. the tax imposed by ~ection
making I h e ale. For determining who ir
4181 @hallnoi allecb lo&e Bale of
the manufacturer. producer, or h ~ o r l t r . firrema, pisloll. ,evclverr, sbclFs, or
see 14B.&Z[a)[4).
cattf,dgen that are pwchased wiLh funds
PU. 7.Section 48.4181-2in amended
for the U.S. Coaat Guard
by revising paragraph [d) Ir, read 6r
wheher or nal the Coeat Guard i 6
- operating ar a s ~ r v i c in
t the Kevy
fouo WJ.
- p m u e n t to : 4 'J.S.C. 3.
5 Cb.416 1-3 Meaning of ten(3 ] Supporiirrg evidence. (i)Any
manu fa cturer. producer, or importer
( d l Shells undcuP~id~es.
(1) T h e
claiming an exemption born the tax
\errns"shtlbm'and "uttridge~"include
impaled by atclion 4181 by reason o f
anY article ~ 0 n a i ~ l h01g@ ~ t ~ j e ~ i i l e ~oeclion 4182Ib) must maintain luch
explorive. and container that i m
recorde and be prepared lo produce
deligned, awernbled, and reedy tor ure
such evidence ar will establieh the right
without fwlher manubcture in rueormr.
to the exernptian. Generally. clearly
pintoh or revolvcr8.
Identified orden or conbactr of a
military deparhenl or the Coast Guard
(21 A pereon wha rclosds used nhellr
aigned by 4n ~ ~ t h o r i t tofTcer
d
of the
ot cartridgem i n 4 manufacturer of rhellr
military deparment or the C o a ~ Guard
t
or cartridges wjihin the rnesning of
e c d i o n 4181 if
reloaded *hcH, or ' will bt mum~itnl!a taieblish the right to
tht exemption. In the absence of much
cartridges are ,old by Iht rtloader.
orden or conttacb, r atatemtnt. aigned
However. the reloader is not r
U
manulacturer of ahella or cartridaeg il, in by a n nu&orized omcer O ~ military
return for a fee andexpenaem, he reloads department or fie Coast Guard. fiat the
pregcribed articIen were purchased with
rhellr or cartridge8 submitted by m .
customer and return# the identical shells b i d * apmpriated for h a t ~ l i t a r y
depsrtmenl or Ihe Cwst Guard wit!
or cartridges to Ihel customer. Under
such circumrtancer, Ihc customer would conrtihitc relislactoty evidence of b e
right 10 the txernptioh
be h e manlalacturcr of the lhellr or
(ii#A) In genemb Under 18 U.S.C.
cartridge* and may be liable for tax on
the rale of Ihe nrircles. See section 4211 922(b](5]. I manufacturer, dealer. or
impoficr l i w n ~ dunder 18 U.S.C. 923 i8
and I48.4Zl8.2.

.

. . . .

\

~

--,

"'

Federal Register ;I Vol. Sa. No. 153

he name. hge. .ad
place of residence DIan i n 8 v i d u d

required to record

penon. or Ibc identity end principal and
local placer of business ofa corpomtion
or other businern entity, t~ whom the

hotnsec ~ellfior deliven any firearm
ammunition. 18 U.S.C. OUlg) requires
the lictnret to rneintain such rrcodn

.

rnd to make them rvaitable for
Inrpcetion
(B) Erception. However. under section
4182[c] of !he hlernal Revenue Code. no
person holding r Iicenst under 18 U3.C.
833 shall be required to record he name,
addtesr, or olher information eboul the
purchaser of rhotgm ammunition
ammunition suilablc for use only in
nBes generally available in commerce,
or component pans for such

Thursday, August 8,

dirrcior #hall file I return for the
crleodar month or rernimonfily period
($8 defined in 1 28.6502[c)-1 [b)) h
which the notice ir received and Eat
tsch csltadet month ot memimonthly
period themalter until the ptrron bar
filed I finel rein rccordsnce wit5
j ~ . 8 0 1 1 ( aorki~~ mquind to file
returns on the basin d a dinerent reperiod pursuanl to notlficaIion ar
provided in puagraph (b)[t]oi hi*

uction.
12) Change of mquircrneni T h e
d ~ b t r i c director
l
mey nqtlin the
taxpayer. by notice in writing, to file a
quafierly or mon\hly ttlurn,if the

taxpayer has been fil~ngreturn3 form
rtmimon&ly period. or m a y requirt the
taxpayer to 61e r qusrierly or
ammunition.
Rturn. if-thc
Par. O. S c t i o n s i% Pa3l(skf mnd.
been filins monthly rcturnt.
48.W11[aj-2 are revised 10read as
(3) Aer~rrrforperiod change fakes
texpaycr who has been
e,yect, (il
E!tng quaderIy returnr reccii'er notice to
5 48.6Df t(rt1 R t t m k
f,ie a
or remimonthly
or
( a ) fn genemi. [ I ] LiabiIity for tax
Ilaxpayer who has been filing monthly
imposed under section 4041. -2 or ~ S I
rewive, nolice to fib
or chapter 32 of h e Code ahall be
~ernimonthlyretum, t h e firut return
reporled on Form 720.Except ar
rquircdpurruantfo(henotiurhal1bc
provided in paragraph (b) of
S e c h ~ n . fled for he month remimonthly
8 wlum on Form 720 shall be filed for a
in which the notice i l
period of one calendar guaiter.
periods
and ell month* or
Every person required 10 make 0
which ere not kdu6iblein an
wtum on Form 720 for the retum period
period for
taxpayer is
ended Iunt 30,1965. shall make m return reluired to file a
Tor each S ~ I ~ S P ~ calendar
I I P ~ ~
qusricr,
( i i j If P taxpayer who has been filing
month, or s e r n i r n ~ n t h period
l~~
(whether
or remjmonth]yr e t ~ * ; ~ a
cr not liability
for any l a x
receives nolice lo fiie a quarterly return,
regortable on the return for he return
the last monrh or rarnimonlhly period
pcriodl until the person h a s filed a final
for which e re#hall be filed i s the
refurn in accordance ~ i l ah 48.m11(ak2. lasl month or cerninsnthly period of the
(31 Evew Peerson not required lo make
calendar qua-rtrterin which ht notice in
a return on Form 720 for the return
received.
period ended
30.I9c5.
makt a
(iii] Il a taxpayer who has been fitlng
return tor the first calendar quarter
cemiinonthly returns receives notice 10
thereafter in which he incurs liability for file
teturn, & e lest
t a x imposed under $ec+ionM I . m 2 o r
remimonthly period lor which e return
4051 or chapler 32,and shall mrke a
rhall be made in the la61 s e r n i m o n t M ~
rtturn for each subsequent calendar
period 01 t h month
~
in which the notice
quarter, month, or semimonthly period
,j~
uniil ht perscn has filed a final return
&.6Qlt(a)-Z nnal rrturnz.
in accordance with 8 4B,BOll[a)-2
( 4 ) Each relurn required under the
(a] In geneml- Any pemon who i a
to
rrturn an Form720
regulation1 in thig pert. tagelher wiLh
any pre8cnbcd copies, records. or
putsuenl to i ~.b0'll{s)-l,
and who in
supporting data. ahall be completed in
any return period ceases operationm in
ncwrdanct with the rpplicsblc tomr,
respect ot which the person is required
to m a k t a return on t h t lorm, &all make
instructions, and rtgulationr.
(b] Monlhly ond semimanfhly
Ihe'retum lor ihat period a s a Lnrl
rtlum. Each rtturn m ~ d ae3 a find
rerums-+I] Requimnrent. 1f the distritt
director de~erminesthat rny taxpayer
return shall be marked "F~nalReturn"
who i a required l o depoxit taxer under
by the perkon filing the r e 1 m . A pernon
the prnviriona of 48.6302(c)-Iha#
n.ho h a g only temporarily ceased to
failed to make deposirs ollhose taxer,
incur liability lor l a x required lo be
reporled on Form 720 becaurt of
ihe taxpayer &hallbe requirrd, if so
noiiiied in writing by the dist-ict
t t mporary or r t asonal muspenrion O!
busine,~or lot other rearons, nhall not
direc!or, to file a monthly or
a final return but shall continue to
remimonthly mrurn on F ~ r m
7M.Every
file relurns.
pttsnn 10 notified by the dietrict

rouow5.

,!

,

-

1985

1 R d e s and

Regulations

32015

--

(b]Stofemen! lo occompony final
mum. Each final ct- shall have
attached

*talemen\ showing the

I

address 41 which the records required
by lhe e a t i o r u in h i s parl will be
kepk the name of the person keeping the
recards, a n d If the business of the
taxpayer ha* been mld ot otherwise
k a n d e m d to another person. the name
and addrtsc of that ~erersonend thedate
on which the s a l t or trensier took place.
lf no sale or transfer occurred or if [he
taxpayer does not know &e n a m e of the
person I D whom thebusinesr was sold
transferred, that fact should be
included in the statement.
(c) An individual'r signature on a
or oherdocument
made by br for s copotaUon 0: a
pa-tnership
be prima focic
evidence that the individual IS
6ith0rizrd to oign the retum, stalemenl.

I

Or

document.

PU. 10.Section #.60:1(a~1

10 read as

is revised

foll~ws:

1 U.b011(+t

tlmt for fltlng returns.

IaI~~~~erly~~um~-Eachret
required to be made under J 48.6011(a]l [ a ] for a return period of no1 less than
one calendar quaner shall be filed on or
befort the Iast dag or the f i : ~ tcalends:
month following !he close of the period
for which it is made. Howek-er. a return
m a y be i ~ l e don or beln:e t h 1~ O h day or
the second calendar month following the
close of the period il timely deposits
!he Code and
u n d e r scclion 6102[c)
the regulations thereunder have been
made in full payrncnt of the taxes due
lorthe period. For fie purposes of h e
preced~ngsentence, a deposil which i s
not rcquircd by r e ~ u l l t i o n sin respect oi
thE ,,:urn period may be made on or
before t h t last day of h e firs1 calendar
fDllowifig h e close of ihe period.
end the ljrnelinesr of eny deporil made
othemilc h a n by
will be
detcrmintd by the earliest d a l e stamped

on the Federal T a x Deposit iorm blhan

auihorized Gnancial institution or by a
Federal Reserve bank. For determining
the limelines4 o r e deposil made br'
mail.
set ttc:icn 75021t) and 5 301.750:Or
on
Rocedurr Pnd Adminrrtro,ionl,

(b) ~ ~ n t hond
l y semimon!hly
turns-41) Monthly r~lurns.Each
return requited tabc made under
period
~ . ~ l l I a ) - l far
tb~
hall be filed not Ieler than the 1 5 1 hday
of the month lollowing he close of Be
period for which it i s made.
(21 Semimonthly returns. E a ~ return
h
required I D bt made under f48.601l(a)I(b] for 4 semimonth!)' period shall be
hled not later 15an the 10th day of the

32016

Federal Regirlet jmVo1. sQ No. 153 J Thursday. August 8

semimonthly p e r i d InIIowir~gh e c l a e
or the period lor which ii is made.
[c] Lost day forfiling. For provirionr
relaling to the lime for filing e return
when h e p r e s u i k d due date IslL nar a
Saturday. Sunday. or legal hofiday, w
§ 3Ui.7503-1or this chapher [Regulatioru
an Procedure and Administration).
[dl Lo& fiIing. For addilions to the tnx
in case olrailure [o file n return within
the prescribed time. see 8 301.6651-1 d
this chapter (Regulations on Pr-dure
and Adminis~rdtion].
Par. 11. The following new
§ 4 8 . m [a)-1 i s added immediately
a!~erp48.6071Ie)-I.

5 r s . r o R ' ~ 4 ~ 1nmden

m 1 urn%

mr

tMg

l a ) I n gencrnl. Ordinarily. no
extension of t i n e will be granted for
h!ing any rrlurn statement or other
dscument nquirtd w ~ t hrespeci lo Ihe
taxes Imposed b y section Wl. 40.12 or

or chapter 3 2 h c ~ u s the
e
infoma!icn required for the filing of
those documents is under normal
circumstances ttadily available.
However, if becauw 01 temporar).
conditions b y o r n dthe taxpayer's
convot. a laxpayer believes an
exlension of time lor Gling is justified
the tax?ayet may apply to the disbici
director. or to the director of the ~ervice
cenler. Tor a n exlension. An exlension of
time fur filing a return doel no1 operate
to exrend Ihe time for payment of Lhe
tax or any part of the lax un)esr so
specified in the tx!ension For
txlensions or lime for payment nf the
4051

1 48.6'161(a)-1.
fi)Applicolion for extension of time.

l a x , see

The applice:ion lor an exlension of t i m t
for filing Ihe return shall be addressed to
the di~rric!director, or director DI
the

19g5

place of busin~srw kgal rtsiden~cof
tbc -on.
I f the p e r m har M
principel plect d b u r i m a or legrl
r e b i k n c r in any internal revenue
diakict. the return &all be f h d with the
Dirkkt Dimclor, f n t d Rwmue
Service. Baltimort. MD n#12except as
provided in p a m p p b (c] d this waion.
(b) Corpotntims. Tlw return ofr
corporation ahsll h Med with the
district director lor tbc dtrblcl h ~ h i c b
in located the principal place of buinesb
or principal d i c e or a g e n q oI the
corporet~on,cxcepl aa provided i
a
psrapaph (c) of thir rection
(c) Returns o/ l a x w y c r ~ourside the
United Slates. The return d a pcrson
(including a Urnled S I a t n YIIZCR], other
than a corpralion. outride the United
Slates hsving no Iegal msidence or
principal placc of b u r i n n ~in any
internal r ~ v e n u cd i s h d . or therelum of
a corporation having w prindpal place
of businesr or principal office or agency
in any internal revenue d i a b i c l h a l l be
filed wilh ihe Dutdor. F m i @
Operations District Intern.1 Revenue
Service, Washington. D.C. 253225. If.
however, h c principnl p l a a of businesr
orlegalresidenceoithepersonortbe
principal place of busioesl or
~ f l c eor agency of fir corporaii~n.is
l o c a r d in the Virgin blan& or Putrta
Rico, the return shall be hlcd with the
Direclor of tntemational Dpcratioas,
U - S Inwmal R e v e n u e Service, Ha!o
Rey. Puerlo Rico m
i'.
id) R e t u r n /j]& with -&
mlem.
Notwithstanding paragrepb ( a h (b),and
[c] of Ulir section, wbenevv in~truciioru
epplicable to any return pmvide that
the returns shall f
x rded with e service
center, the retumr rhaU be so fled in
sccordancc with h e h k u c l i o ~ b

(e) )fofld-arri&hlums, k - p ~
~ c r ~ ~ c e c e n ~ e r . ~ r l ~ h w h ~ m t h e r e rprovidedinppragraph(e){3]drhia
urni~
to be filed and muat contain a full recital
aeclion. and notwithstandingp a r a p p b
[I] and 121 of lecu'on -I@)
r d
of !he causes Tor the delay, f t should be
wrtrgraph Id) of this w h o a the
made on or before the due date ol the
following rules apply.
return, and f a d u n to do r o may indieah
[I) Persons ~ ! h e&fin
r corpomliolu.
negligence and conntitute sufficient
Retuma of perrona other Ihmn
cause for denial. It should, where
corporatjrms which pn Ehd by h n d
possiblt. be made suficiently eady to
carrying #ball k filed witb he dr*ct
pernil consideration ol the matier end
dimaot an p v i M in paragraph ( 8 )d
reply before what o t h c ~ i would
~ c bc
thmthe due date ol the rttum.
I ~ ~ F r l i n g ; ~ ~ t m . I f a n c x t e n s i o n o S[ 2 l C w p o m l i o n r R t m o f
time lor fding the return ir psntcd, r
-r;ltionr
arr
bJ b d
carry- h~
k fild~&
&rbtct
retun shafl be filed belorr h
director m provided in p r e g l p h (bj d
expiration al th perid ofc x t m a i a
Pw.12 Section M . a - f ir m i d b Lhli -(ion.
(3) E r c e p l i o n n d a puagrpb (el
read as IDIIOWI.
shall nd apply to returrcr of1 a.bPO1-1 mcr tor nw r r b r m
Ii) Penonr who bavt m lqel
ta) Persons otherthan
residenct. m principal plsm d
fhe return of a penon & t than
businerb, or w pincipd
at
carporation l h a l l be filed wilb tbe
rgeacJ in m y kt-1
evenut d i l h d
disfict direclot far G e internid revenue
[ii) Citizenlo4 the UniM Stater
district in which in Iocaid tbe prinapl
whose principal place of abo& for h a

1 Rules

and Regulations

p e d with resptct to which tht return
im tiled i j artride t
k Uniled States.
vfi) P e w n s who claim the benefit* oC
=tion mf [teIalim# to income earned
by individubh from sources wilhoot the
United S~afes].sntion 3 l 3 [relating i o
&&&on
Tor c l r t b l n expenam of living
e b m d ) , section g3Y [dating ta income
from lourcea within p e ~ s t ~ s i oofn ~the
United Sta tell. section X43 [relnting l o
l O U K e J within h e d o
income
RIM, redion 935 [mlating to h e r t o
Rim and p s c s e i o n tax credit], and
(iv]Nonresident alien persons end
foreign corpora tionr.
(0 Permission lo fle in district olher
regujEd hUicl
The
COmisli.ner may prmri fie slingof
any nlurn
t n made llnder
h e regulations in ihis part in any
~
:
~
~? : ~ ~ ~ v . ' :~ g i o n ,
~
(1). [2). and 14) of ~ection
fm11b) and paragraphs la]. Ib). Icl. [dl,

~

end {el ol t h i s M C ~ ~ O B .
(g) Cmm rrfemnce. For definition of
h e t e r n "hard carried', we f M.sCIS1of
flegulations an
P~mandAhini8waknl.
?at. I S . Tht following new 1 48.8101-1
is added imrne&att.ly a h 4 48.6091-1.

I U4,05-I

*

arvrrd

&
,
-

The mrrnal perjod lor which retumr
a~ ~ r d i n a r i l yrequired mder t h i s
m b w i* a calendar quafler- Under
c e f l a h cireumr'ulces
may quire
returns
diutna
bfil* formonMy Or remimnth'y
pen&- For provirions
to

9uartel.l~mCflmfi+see I amll(a)-l(a).
Fm proviriom relating to monthly and
aemimontbly ntmlq
see I aml(ab
IlbL
Pu.14. SwGon 48.61W1ir =vised fa
reed a# followu

I*alfoe*

-ye:

*--

n u m m
[a 1 Reqrrimmnt of applicatioi+(t) In
BE"-1.
B P P L ~ onFonn
~ ~ o ~S M

foran ~ H O Yidmtificatian
H
ahall k madt by erY PeTwn
m d n n wk or uat o f r n artide with
r e m to wheh r t a x is i m p a d by
aection a L
or a 5 1 w cbrpltr z?
of the Codr but wba has not earlier
m a ~ l o ~ e. r

idmtikstim n m h r or baa ~t ~pptied
fw a.
Tbt appliatiOn u d m y
r u p p h n l q &taterntatroxmpsnying
k p r e p r e d tm &mordPoawith
It
the e p p h b l t form ira-tiwu,
rod
reguta t i o m and rhall act lofib fully md
cleerly the dale lhtrcin d d for. Form
S M may be ableined im M YdirW
director or dirtarlr of r d c e eenler.

-

q.

~

Federal Register / Vol. 50. No. 153

me application ghsll be filed with the
internal revenue oncer dcsigna~edin
the instructionr spplicable to Form SS4. The application shall be rigned by {i)
the individual if Iht pemon in an
individuaf: (ii) the prerident. vicepresideni. Or other principal oflicer. if
the person is a corporation; [iii) a

responsible and duly authoriz4
member or omccr having knowledge of
ita sf'fain, if Lhe person is a partne~htp
or other unincorporated organization; or
(iv) the fiduciary, if the person i s 8 trust
or tslete. An employer identification
number will be assigned to !he person in
due c o m e upon the baris of in[ormation
reporled on the applicat~unrepuiwd
under this section.
(2) Time /or filing Form S W . The
application for a n employer
identification number shell be fikd on
or before the revenrh d a y afler h e date
ofthe first sale or use or an article
respec! to which a l a x isimposed by
spction m 1 . 4 0 4 2 , or M51 or chapter 32
of the Code.
[b]Use of employer identimiion
number.
employer identification
number assigned to a person liable [or a
imposed by sec'ion 4M1'4W2' Or
Msl Or
32 or the Code shall be
shown in any relurn. statement. or other
document submitted to !he Internal
Revenue Service by the person.
[ c ] Cross references. For the definition
of the term "employer identification
number". see f 301.2701-12 of this
chapter (Reg'JIal'ons on hocedure and
AdministrationJ.For provisions relating
to the penalty for failure ( 0 include h e
employer idenlificailon number in e
relurn. staiement. or olher document.
ace # 301.6576-1 of this chapter
[Regulations on Procedure and
Adrninis~ralion).

Par. 1 5 Sectitn 48.6151-1 is r c v ~ s e dto
read a s follows:

1 Thur~dey,Augusl

B. 198S

f a.arntl+r EncnJm of tlmr f w
PYiW b r rhown
ntm.
[ a ] In Ceneml. ( I ] Ordinarily, no
extensionr of timt will be granted ior
payment of any l a x imposed by section
#$I, -2
or
o r chapter 32 of the
Code, end shown or required to k
ahown on s n y rttum. However, il
becaufie of temporary conditions beyond
the taxpayer's control a !axpe_ver
believes a n extension of time for
payment is justified, the taxpayer may
apply 10 the diatrict director. or to the
direcior of the service center, for an
extension. The penod o f any extension
shall no1 be mexceis of 6 months from
he dale fixed lor payment of the tax,
except that if the taxpayer is abroad the
period of the extension may be i n excess
of6 months.
(2) The granting of an extension or
time lor fl''ng a
Openre
10 e*lend the time for the PaYment of the
18" 0'
par! of the tax unless @o
specifitd in fie extension-. See
f M.Wlla)-1.
[b) Undue hordship mquiredfor
exlension. An extension of the time for
payment
be
only upon a
sati~lactory
that
on
the due date of rhe amount with respect
to
the exlension
in desired
hardship.
fesulr in an
extension dlI no1 be granted upon a
general staternen! of hardship. The term
-",,due herdship- means more then s n
inconvenience to the taxpayer. 11 must
appear {hat substantial Financial loss.
for
lorr due the
of
p,opcrty
a
pn'ce, will resdt
to the taxpayer from making payment on
the due date nf h e amounf with respect
to which the extension i~desired. If a
markel exists. the sale of property a! the
current markel price is no1 ord~narily
considered sa resulting in sn undue

hardship.
( c ) Applico!ion for extension.

An

application for ei exlension o l time for
paymen! of the tax ahown or r q u i r t d to
be shown on any reiurn shall be made
The tax requircd to be reported on
on Form l ~ and
n shell be acrnmpanied
each tax return under ihis mubpart is due by evidence showing the undl.
and payable to the internal revenue
hardship that would teault to ihe
orricer with whom the rerum ir'filed nt
, taxpayer i f the txtenrion were refuned.
Ihe t i m e prescribed in 4 48.8071(ab1 for T h e application ehall a l ~ be
o
filing such return. Set !he npplicrble
accompanied by r Ilatemen! of the
ccctions in Per1 3M of this c h a p ~ t r
asselr and liabilities of the taspeyer and
(Rcgulationr on Procedure and
en itemized ntatement showing all
Adminis~ra!ion)for provisionr relating
receiplr and disbur6ernentm for eech 01
to inierc6i on underpayments: additionr
tht 3 months immediately prtcedirq the
!O t a x , and penalties. For proviaiom
due date of the amount ro wh~chthe
relai~nglo !he use ofFederal Renerve
application mlatee. The application.
banks ~ n autharized
d
financial .
wilh supporiiog documentr, muat be
insiitu1ion1 . deposiling the taxel. ~ t e filed. on or brfotc be d r t t prescribed
P 40.#02(ct1.
for payment o l the amount with respect
Pdr. 16. The rolIowing new
to which the extennion i n derired. with
48.67 61(a)-1 is ndded irnmrdiately
the inttrnat revenue o K c e t ro whom the
a l ~ e r1 48.8151-1.
tax i~to be p a ~ dT h e application will be
:

'

Rules and Regulations
-

320;

examined, end within 30 days. iT
possible. will be denied, granted, or
lenlatively granled subjecl to cerlain

conditions of which the laxpayer will br.
notif~ee
lnvenloy dale,
j3].4c!uof rnot~~~focllrter
un.4nown. 1I a
dealrr addresses a request l o !he
person. who Iram mdrkings on the
a i ~ ~ c the
! e dcalet presumes to

be tht

n ~ ~ n u f a c l u r e!!,e
r . requcsi may be
tteared as m d d e to the actua!

rnanuraclurer if Lhe actual manulact.~m.er
accepts the dealer's request.
1.1 1 Fa) inen1 lo deoler by c l a h o n t .
Payment may be made directly 10 the
dcdler or to rhe dea!er's authorized
a p ~ n or
l represen\a\,ve b y the claimant
nr by the clairnanl's authorized agent or
rcprescn:alr\ e. If a c ! a i m n i pays a
dcaler ~ b r o u the
~ h c!aimanlmsagent or

rep:esenlalice, the eb,idence mrlsi show
tha: ihr deaIer actu;Hy received the
p->!men[. IT a dealer authorizes the
c \ d ~ r n ~ lo
n l pay he dealer through h e
dealer's agent or reprclsenlaiir-e.
e %~ c e n c eshowing receipt o l the
pa! merit by thragent or representative
&-ill be accepted as proor o f ac~ual
p a y n e n l :o the deater. Palmcnr rhal[ be
mace, at the m a n u f a c ~ u r e ioption,
j
in
r d s t , by check. or by credit 10 ihe

deal~t'satcouciasmaintainedhythe
claimant. The amount of the paqment
which r,ay be made by cred~ting the
dealer's account may not exceed the
u n d ~ s p u l e ddebil balance due a1 the
l i m e the credit is made. However.
payment mag be made in merchandise
a 1 the deaier'~oplion wilh he
cuncurrence of the manufacturer.
( 5 ) Dote ofperformance. The d a k on
which any act described in Lhir

pataataph le) is perfn:rned by an agent
or re;lresenlalive on behallale claimant
O t dcdter is deemed to bt tht date on
which the act is performed by h e
principal.
(6! Record oJ i n r c n t ~ r i e sFor
.
Proi'isions relaring to the record of a
draler'o inventories to be kept by h e
claimant. see paragraph (g) at thia
~ectlon.
17) Scmp/e wr~tlcnconsent. No
parlicular h r m ia prtlzribed or required
for t h t wriitcn consen1 of the dealer

No. 153 /

' l l ~ u r s t l i ~ vAugusl
,
8, 1985

described in ptrraarcph le)li!](ii) of this
rcclian. I l o w e v e r . the lollowing in an
example of an eccepteble cansent
&\atemen!by s dealer:
S,,lcmtnl

(For
in W u e s
m ~ u f h ~ t u " rproducer.
t.
or importer to
obtain credit under section b i l Z of the
Intfema1RevenutCodeoi19~wi~h
respect to floor rtrlcka.)
1 hereby consen1 to the allowance to
the manvlac\urer, prc\ducer, or importer
the noor slacks eredjl or rerund of he
e x c ~ s ctax imposed by [he Internal
Revenue Code of 19%
respect to
the articles in my h e n tnry on

--_
[Name)

-

R~~
..
lSignarurc ol OIficerJ

Vi\lel
-

,

.

(Detr)

(T) Procedure for claiming credit or
r e f ~ n d - 4 1I)n g e n ~ r a lEach
,
claim Ior
crejil or refund under this section shall
be filed on or beiore the applicable
clelm l i ~ i t a t i o ndate. in b e manner and
aubiect 10 the coddi5ann stated in thia
sc"liOn and in # 301,WOZ-2 nl this
chapter (Regulatianj on Rocedure and
Adminisfration). Either credit or refund.
or a com5inetian thteql.rnay be
claimed, but !he amount which mey be
claimed as a credit on a return shall not
exceed the total f a * l i a b i h shown on
the return, reduced by the amount of any
made under QB.6302(<)-1
respect to the return and by any amount
of credi! claimed on the return pursuant
to any provisian oflaw other than
sectmn W1Z. If the total snount which
may be claimed exceedr the amount
thatmaybeclaimedaacreditona
return. the excess amount may be
claimed on or beIore !he appl~cable
claim lidtalion date either as a refund
or am P credit on o soS*equent -turn.

u

claimed the amount of the
credjt h a l l be enitred mr 1 cttdlt an r
timely-filed return 01 tax. The ~ t tement
a
desuibed in paragraph [T)(z) ol lhir
r r c t i o n murt thaw the srnounl and dale
of each previous end concurrent claim
for ctedii OT refind under aia section
and indicate whether any future claim,
are expected 10be filed.
(2) Supporhg c. vidence to be
submit&d by the monufuc~urer.No
trtdil or refund shall be slLow.ed under
this rection unlera there i 6 submitted, in
rupport o t the chim lor cmdi t or rerun&
4 statement ~ignrdby the person
credll

i4

making the claim,. that describer in

general \ e m s \he articles covered by the
claim, s e t s forth ~ h method
c
of
computing h e amount claimed

1 Rutcs and Regulations

-

[including a description or a n y - - .
pxcedurea ueed pursuant lo P 48-Ml231, and rfater hat+
(i]
The cle~rnanlpaid Lo Ihc district
direcror or the direclot of the internal
=venue r e w i c t center the !ax for which
credit or refund ir claimed;
( i i ] The total amount claimed
reprewnts payments requested by
dealer3 before the dealer request

limitation
(iii] The lola] amount claimed eilher
war paid by the claiman! lo Ihe dealers.
ot the claimant received he n,ritten
consent or the dealers to the aliowance
of the amount claimed:
[iv] T h e claimant has in his
possession, and available lor inspeclion
by in~crnalrevenue oificers, the
evidence with respect to inventories
required by paragraph [g)I2) of lhis
section, end any witten consent^
referred lo in paragraph (Q[z)(iii]or this
section; and
( v ] No ofher claim for credil or rcrund
under thin section has been or will b e
made by the claimant wilh respect la
any amount covered by Ihe claim.
(81 Evidence b be retainedin the

mo.qufoc!urer'rrecnrds. Every person
filing a c!aim lor credii or refund
pursuant lo this section shall svpport the
claim by keeping a s part of rhe

claiman\', records11) T h e dealer'# inventory rtaternents
mquired by paragraph [p)lz)[iii) Df lb,is
,,,tion,
lo rhc exlent that the articles
ere covered by fie claim:
tl)Recfird J , in respect &e 8rtic:es
held by each dealer. showing-(il
and
the
dealer,
(ii}The quantitieg a i each ariicle held
by me dealer as floor r\ocks by iaxbble
category, lor exampit, by model or type
nurn bet.
{iij)T h e amount of tax considered 10
paidby

be

'

mlptct to cnch arlicle held by Cht
under 48'64'2-3'
liv)The
of tar
sny. which
tfit claimant wpuld pay on the sale of
each article
by the
if the lax
we't cornpuled I' &t
re'tm
( Y ] The total amount of n~mbursement

due h e d e ~ l t r .
[vi) T h t date gn which Lhe claimant
aceived i r ~ m
the dealer the request
described in ~ r a g r e p h(*)If) *is
@@Ct i a h bul only if paymen! was not
made 10 lbt dealer before fit dealer
*quest limitation date,
(vii)The daie and amount of each
payment to r dealer, or the date of
receipt by the claimant fmm the dealer
of a written conocnl. ma net forth in
paragraph (e](Z)(ii) at t h i a ~ectior4end

.

- -.

F d e r d Register / Vol. 50, No. 153 / T h u ~ d a y .Augusl
I S ) Any mch wrilien conwnt rtctivcd
Zrom a dealer.

(h) Specialrules wkre the pmumed
monuf~cirrrerir Ihc qent cf&e oc~ual
mnufuctum. For purpolei of thi*
redion if a m a n u t a c m r ptlls rr!idet
tnx-paid to 4 semnd manuraetunr far
@sale by tbe iewnd m r n u f a c l u m
under ih o m brand name. the
m l d f i m m a y ptrfom an, mctr .nd
keep mny mcords which am 4

-prerequisiit to fbe nnt rnanufmci-r'r
filing a claim for floor~ t o c ba t d i t w
d u n d with respccl to the rrlkkr. H
r u c h a p r ~ c e d a mi l io!lowrd. h e E ~ B I ~ P
filed ty the f i r t l martufactum h a l l
include B stalemeni indicating the name
and eddrens of the second manutaciwsr
and the smounf of Itc claim which
relater to articlen sold lo fhc mtcond

0. f9BS

{I] In sold by the manufanurtt
(othervrist then in. t a x - f m s a k ]

be

e l o h 1.1888,
(21 held by a dealer the first
m o m 1 an Octabm I , 1% snd hat no!

b e ~ w e dmd
(31 lr intended ht raie.

However. \br term * f l o o r stockr" doem
nu! incl~tdegasoline in relsi! rtocks held
rt lhc p l a a where inlended t o be #old el
retail, nor with renpecl IO gasoline held
for sale by r producer or importer of
8*mllnt+

.

Ib] Inventory dote. The term

c i n v c n t o r ~date" mean#
first
mcmtnt on the date on which an article
i~ treared floor m t ~ k within
a
Ihe
meanin8 of p a f ~ g r r p h( 8 ) O! ~ h i rsection.
[c) Dealer. The ! e m "dealer" includes
a wholesaler. jobber. distribulor, or
manufactunt.
retailer.
(d1 HeM by n dealer--(I I n geneml.
lilETJecf on ~ l h e clojms
r
for credit 0 7
A, rnkit i c
es -held by a
+nd.
Ila claim for w d i t or refund ir
dealer.+
il
titleto
article ha6 pasMd
pumuant los P r t i o n
the
ta i h c dealer (whether or nrjf delivery to
wulaiions
thereunder' re'a'h
jn
!he dealer has been made], end if, for
' 0 return''
'ales. 641" for e x ~ or
d for
purposel o[consumpfion, ti11,p to or
exempl use. sales toStatea. elc..wiih
posrefskon ,he article hak not at any
respec'
by uctiOn m 1 flme b e - , bansferrtd to any penon
or section -1, and i f the claim ir made
*,her
a dealer.
with respec! to articles sold by fie
(ii) Floor wmpier, demonstraton, end
claimant befori the date on which h
undergoing
(whether or
fax ib rrduced in rate or ~ e m i n a t e dthe
not on
dealer,,
,hat
claim &hellbe based on the n e w rate of
in ,lo& 1, b,
lax
Ihe claimantcan ~ - ~ ~ a b ~ ~ ssf lhi c t e ~and
,
articles purchased tax-paid
that the lax was i m p ~ s e dat l b e old rate
by a manufacturer or a s a l t s subsidlsry
and that no m f ~ n or
d credit under
a n d held by he ppmon o n the invenlary
~ e c f i 0 was
n
allowed wi!h respec1 t o tbe
date lor resale
k
&rtirles,See+ hawever. paragraph Id) 01
c o n s i d e d a s unused and held bv I
t h i s betlion.
dealer, i f title (a or possession o f i h e
b7 O ~ ' r e 7opplicPblc pmvisiom. All
artrcle has not at any time been
provisions of law. including penaltier.
transferred to any person lor purposes
applicable in respect of he taxes
of consurnpt~nn.
imposed b y leclions a071 and -1
ahall,
(iii) Articler mold by a dealer !o r
insofar as applicable and not
consumer befare the inventory d a f e and
inconsistent with scction 8112, apply in
Ihcreafier repossewed bg the dealer,
respect la the credits end nlundr
a n d articlcc purchalt'd iax-paid by a
provided tor is nection M I Z lo tht came
manuiacturer for unt in further
exlent as it the credits w rriundr
manulactun within the meaning of
cons~ifuied
overpayrnenlr of he U x t r . . r s t i o n 42n(d][6). will not tw
For pro\imioru under which timely
considered a t held by a dealer. .
(iv) The determination a s to the time
mailing II treattd 4 1 timely filing. and
litle or possesalon passes for purports
for provisions appliuble to the time for
of consumption shall be made under
performance of acts when the lrsr day
rpplicable 10-1 law.
1aIlc on Saturday. Sunday. or r Iran1
12) E~omples.Tht appl~calionof t h i ~
holiday. ree # 5 301.7502-1 end 301.7paragraph (dl may be iltustrtlted by the
1. rerpec!iuely. d l tbu chspier
1 0 l l o w i ~exrmplt#:
megulat~onron Proctdurt wnd
Admini~lreliozl).
Exomp?e {I). If, under local law, title
r~ mn rriicle ,old by a dealtr under r
# a.6412-2 Dsnnmma 1w prrporrs uf
conditional aalee conlract Is in the
W
udtornfmd
dealer on the inventory date, but the
For ~ u r ! o r e * rection 6132 and
consumer ha, physical possezsion DI tht
regula !ion# thereundetnrljc!e on rha I dare, !he ndicle is nol
[a)
s~ocks
tern, "flwt
cansidered am held by I)rt dealer.
srocks- means any article eubjeci to &r!
Exnrn.de {I.IT. mde~lrnrel law. title
tax lrnpased by ltclion .Unl or lectioa
lo an rrticle i r in !he consumer on the
4081 whithInvqniory date because ihe ar~icleiu

nt

/

Rules a n d Repu;ations

3Mll

epecificelly identified with a c m l t a c t ,
bui an thur d a l e the dealer still has
physical possessian.ol!he erticre. for
exompIe, in hit will-call depar~ment,tF,e
srtielcifi Qol considered a s held by the
dealer on that date because title to the
rrlicle har p a r e d lo Ihe m s u n e r lor
purponea af consumplion.
Exnmplt 13). If, under l o ~ a lla w . tiOe
to an sdiclt ir in the consumer on the
inventcry date h c a u l e the dealer
transferred the article to e common
carrier for delivery to the consumer. he
article in transit is no! consldemd a s
held by thr dealer on that date because
t ~ t l ehas passed lo t h t consumer for
purpores o l conrumptinn. even fhough
n e ~ ~ h the
e r dealer nor the consumer has
physical possession of Ihe article.
E ~ a m p l e(4). If. under local law. title

-

~oensn~cleiointhtdealer.onIhe
inventory d a t e rnd does not pass 10 the
consumer until deliveq by a common

carrier, the article in transir ehall be
considered a s held by the deale: on h a 1
date because neither tht iille ncr
possession has passed to the consumcr
tor purposes d consumption.
Exompie (5). If en article has been
marigaged or ntherwse hypothecated
by a de;ler as sceurity 13r B loan and.
under local law, title to the article i s in
:he cred!tor on !he inventory daky~nrl

phyeicaJpossession i c in the dealer. t h e
article shall be considered as held by
Ihe dcaler on that dale because neirher
title nor possesslon has passed to the
consumer for purposes or consurnpticn.

[el OIdrafe.f i e term "old rate"
means fie rate of lax in effect w ~ l h
respect to h e sale oi a n arficle before
the dale designa:ed in paragraph la) or
( 5 ) of this bectipn on which t h e t a x i s
reduced in rate or is terminated.
(0 h'e w mle. T h e term "new rate"
means the rate of tax, if any. in ellect
wilh respect to the gale or a n article on
the date designated in paragraph [ a ) or
(b) ofthis rection Qn which t h e t a x is
reduced in rate or is ~ermineted.
(g] Dealer request Iirnito~i~n
ds:e. The
{ e m "dcattt request timilatran ddke" is
!he date prescribed by section M 1 2 1 a ) ( l )
before which the request on which the
m a n u l a c l u ~ r ' oclaim i s based must bt
rubmiited to the manufacturer by the
dealer who held h e floor $locks on h e
.
invenlory dale. In the case or an article
htld b y r dealer on October 1, 19BB. the
denler request limila~iondart i s ) a n u a v
1,1903.
fi) CIairrr h m i l c l i ~ ndote. The Icrm
"claim limitation dale" means the last
dale p r c s ~ b e dby rectior. ~ 1 2 I e ) lIlon
which refund or credit with respec1 to
floor stock^ may be claimed by a
manulacturer. In the cast of an orlicle

32022

---

Federal Register

I

Vol. 50. No. 153 / Thursday. August 8. 1 9 B

held by a dealer on O c ~ o b e r1. 19e8,rhe
claim Iiniitalion date is March 31.19a9.
(i] Tax pcld. A lax i s considered paid
ii it was paid or was olfsel by en
allorvable credit on the rerurn on which
1 1 wa5

-ported.

g 48-6111-3 h w n l of tax paM on each
ankle.
[a) Cenerol mle-For purposes of
making the clairn lor credit or refund
under 9 48.M12-1 in respect of floor
stocks held by E dealer. [he t a x paid on
each article must be separately
compuied. it desired, the procedures set
r o r ~ hin paragraphs (b] through (8) of thi:
section mab be used in making the
c o ~ p u t a t i o n The
.
procedure used in
derermining the l a x paid on a n ar~icle
must also b used in deiermining the
amount of t a x . if any, made applicable
f a the arlicle on the effective date of
reduction or repeal of

the tax involved.

h i o r approval ofthe lnter~alRevenue
S ~ H - i cfor
e the method of computation
need not be obtained and should not be
'requested.
(b) Selling price. In determining the
Fnce of a n article on which the lax paid
I S to be compuled. he average of the
gross :elling prices of identical ariicles
sold during a represenlatirbeperiod may
be used. For example, truck chassis 01
the same model that are sold by the
manufacturrr with the same equipment
a n d accessories are iden!ical articles
uhosc selling prices may be computed
on the b a s ~ sof an average.
(c] Trcnsportction choqes. In
d e t e r m i n ~ n pthe p r ~ c eoT an article on
w h ~ c hthe tax patd is 10 be computed,
t t e average o l the exclusions authorized
b y section 4216Ia)tor Lransportalion.
delivery, insurance, insta!lation, etc., lor
a reasonable caregory of articles during
a rep;esentar~\e period may be used.
{ d l Credirs for tar paid on inner tubes.
Tbe averafle of the credits aulhorized by
section M161c) lor tax paid on tires or
inner lubes may be averaged Ior a
reasonable category of articles during a
rcprcsenlative period. The credjtr shall
be s ~ b t r a c t c dfrom rhe gross excise tax
to arrive a t the nef excise tax paid.
(e) Price reodjustments. [I) In

determining the price on which the fax
paid il to be computed. there munt be
taken into account any price
teadjustmen!3 with respect lo which the
manufactuter has filed a claim lor credit
or refund under section MtNb). Other
price readjus~mentswhlch heve been, or
arc rcasonat:y expected to be, made
with respect \a the article may, at the
option of the manufacturer, be iaken
into account in computing the price or
the article,
I Z ) Price readjustments which cannot
be attributed to specific artrclta as ol

-

the inventory date ( a 3 , €or example. a
ptice readjustment o t m Rat dollar
amount which is made to dealers who
meel a ~ s l e quota]
s
may be laken into
.
account on the b a a i ~of en average of
tfie adjustments which is computed lor r
reasonable ce tegoty of artides over A
representative period.
(31 Rice readjustmentr related to
rpecitic iferna {a$, for example. an
auiomatic rebste of I specific
percen!age of the price of tach unit nold
to a dealer] may not be averaged, and in
such a cane only the actual price
readjustment attributable to e particular
article may be taken into account in
computiq the tax on h a t article.
(4)If, because of the facts in a case. a

1 Rules and

Regulations

chapter 31 or chapler 32 ahall be made
in bccordance with the npplicab!t
pmvi~ionmo I thij jubpart and tht
applicable pmvirionr of_f 3En.MUZ-2 of
this chapter pegulations on Procedure
end ~dminiahation).A claim on Form
843 i n not required in the a r c of a claim
for crcdil, but the amounl of the credit
ahall be claimed by entering h a t
arnoun~~g r credit on s return c l tax
under h i r subpar! filed by the p e h o n
makutg the cleirn. In thin regard, nee

Ie.~lBf&l.
P u . 22. The following new
4 4 U . B Q ~ ~ ( P ~end
Z 4ahW18(a)-3 are
ndded irnrnedieleiy alter
10 reed 4 1 f o l f 0 ~ 3 .

44.W16(sj-1

p r i c e r e a d j ~ s t m e n t c a n b e e ~ ~ r i b ~ ~ e d !t o~ . 4 4 l W ~ F 2C t * d ~ l o r ~ f u n d o f ~ ~
mp*ctal hnlr
specific articles lor purposes of
(a ) Overpayments nut described in
con4umer refunds but canno1 be
section #16(bj(2 j ( l ] Claims included
attribuled l o specific articlea for
'i)ll~
paragraph applies only to claims
purposes of floor stocks credits or
lor credit or refund or an overpayment
refunds, the price adjus~mentmay be
averaged l o r purpoler o i both consumer of tax imposed by section 4 ~ 1 l a ) 1 1 ] ( A l
[relating to lax on h e sale of diesel
refund3 and nbor etocks credib and
relur,dj.
fuel], eection Wl(a)IZ][A) (relating lo
tax on the selt of wecia1 motor fuels),
(I) Represen!ative period. A period
reclion m l ( c ) ( r ) t A ] Irel~tiogto tax on
will be considered a representst~ve
the sale of he1 for use in noncommercial ,
period if(1)It covers (i] kt leeat four
~viatjgn].or section 4~ 1[c)(2)(A)
[ ~ l a t L n gl o the tax on sale of gasoline
consecutive calendar quartem. tbe last
for "st in noncommercIa1 aviation). It
of which endr with a period of six
doen not apply, however, to a claim lor
calendar months immediateiy preceding
the effective dale of the rnx reduction or credit or refund of any overpayment
repeel involved or [ii) any other period
described fn parsgraph Ib)or this
a e c t i m which arises by reason of &e
of time which h e texpa yet can
demonstrate constitutes a representative application of rechon 6416{b)(2].
period lor h e arficular category, and
( 2 ) Suppoiding evidence nqujred. No
(2) The numger of attides in the
u e d i t or refund of any overpayment to
category involved sold by the
which hi&
paragraph [a) applies shall be
manufacturer during the period either Ii)
allowed unless the person who paid h e
equais or enceedr the number of articles
tax rnubrnit4with the claim a written
in the calegory to which the everage
consent 01 the ultimate purchaser to the
amount is to be applied or ( i i ) can be
ellowance of the credit or refund. or
demonstrated by Lhe taxpayer to be a
with the claim s statement,
represenla tive uanlity.
rupported by suflicient available
(81~ e o s o n a b l ewfcgory. Examplea of
pvidcnce. anerlirig that4 reaaoneble category ol articles ere
ti] The penon has neither Included the
articles that are identified by a common
p i c e of Lhc fuel with r I ? ~ p t c t
in
siock or c l a number
~ ~
or which are ol
to which it was imposed nor collected
the aamt model. class. ar line. For
of he law fmm 4 vendee.
purpose of everaging exclusions.
end i d e n l i f p g the nature of the
another example of a reasonable
evidence available to establi~hthese
category of articlcr i a a gmuping of
Iacta, or
article3 that are shipped in the same
(jl) T h e pcnon has rtpaid the amount
contsiner. Lf e rnanuiactwer aelh
of h e tax to tbe ultimate purcharcr of
rflicle* bearing hi8 own ttedemark and
h, fuet
a130 sella article8 ar private brandr.
(3)Ultimo~eprmhaser~
me term
rtparate computations or the two
"ultimate purchemer", 8 8 urcd in
brandr must be made under this seclion.
Pu. a,sclie
~n
~ , ~ i#I rrvi,c,
q a ~ paragraph
l
8ec'ion me'n'
the vendee lo whom Ihc fuel was sold
read an fol~ows~
tax-paid by the ptnon claiming credit or
4 U.6416(8)-1 Cbtm8 for wdtt w returd
refud.
(b)Overpayments determined under
ol ovwpaymrnta of tutl on ~ p c c whelm
t
urd m~nuractursrsb x n
section w f#b){Z-f
Claims included.
This paragraph npplits only to claim8
Any claim6 lor credit or rtlund of en
far uedi! or refund of amounts paid 4 s
overpayment of lnx imposed by

2

federal Regisln

I

Vol. So, No. 153

1 Thumdey,

August B. 1985

I Rules and Regulations

32023

10 any person for purposes o!
consumption unless h e entire purchase
wnsen~ottheultimatepun;haser~othe p r i c c w a s m p a i d t o ~ e p e r s o n o r
credited to the penon's account Bnd the
aliowanct ol h e u e d i t or refund, or
malt was rescinded or any such article
~ubmitsw!h the claim a statement,
purchamdby the wholesaler, jobber.
ruppofltd by nuficient avtiilabe
dirtribuior. or retailer as a component
evidence, asserting &at.
[i) T h e perron has neither included the pad of, or on or in connection with,
laxinthcpriceofIheerticlewih
another article. h stl~clein transit a t
the rust momen1 of the 15th day after the
respect to which it was imposed nor
d a l e of the delerminaiion is regarded a s
collected the amounr of h e tax horn a
vendee, and identifying Iht nature of the
being held by the person to whom 1 1 was
evidence aveilable 10 establish these
*hipped, excepl that i f title 10 the article
facts, or
doel not p a s s until delivered 10the
(ii) The penon has repaid the amount
person the article is deemed ID be held
of the ta* to t h e ultimate purchaser of
by the shipper.
the article.
(b) Overpoymenk described In
(31 Ullimok purchaser-dil Gen em]
secrion W 16(b) (3)[C) or ( 4 ) (prior to
rule. he term "dtimate ~ u ~ h a ~ as
e r " ~ p r i I,
l 19.93) ondsectjon M16(bllZJ-(lI
used in p a r a ~ t e p h(aI(2) of this section,
CIoims ~ncluded.-This paragraph
means the person who p ~ h 8 6 e d
appli'e6 on1y 10 claim, tor credit or
article for consumption, Or for U f e in the
ierund of a m o u n t r paid a s tax under
manufaclure of other articles s n d not for chapter32 that are detemlned to be --.
resale in Ihe form in which purchased.
overpaymenls by mason Of leCtjOn
( ii ] Speciol m!e under section
W16(b)(2] [relating to tax payments in
M16{all3). (A) Condjlions to be met -1f
,,p,,t
,I,,d,i,
uses,sales. or resales
tax under chapter 32 is paid in respect 01 , f a taxableaniclel. eectjon
a n articlc and the Commissioner
&416{b)i3](CJ(relating to tex-paid tires
determines that the article is no! mubject
,,,ni
tubesusedfor further
to tax under chapter 32. h e term
manuiac!ure). or section M16(b)(4)
"ultimate purchaser". s t uled in
(relating to tires or inner tubes used by
paragraph fa](zJof h i s section. includes
the manufacrurer on
any ~holesaler,
jobber, distributor, or
msnufaclllred arlicle).
retailer who, on he 15th d a y after the
(21 Supporling er~idencereguDe8 -KO
date of the determination, hoidr for sale credit or refund o f a n overpa!.menl lo
Ihe nverpamenL
6 u c h article with respect l o ~ h l c '
(his paragraph ( b ) applies
be
tax h a s been p a i d il the claim for credii
[c) Nonapplicotion & &x on use of
who paid the
a l l o h ed unless
the
specigl fuels. This section shall nor have or refund of the overpayment in respect
!he claima statement.
t a x submits
any effect on overpayments of tax under of the article1 held for ale by !he
suppotred by suff~cienlavailable
who!csaler, jobber. distribulor, or
section QWl(a](l)[B](relaling to f a x on
evidence. asserting thatretailer is filed on or before the date on
the use ol diesel luel). section
( i ) The persun neither included the tax
which the person who paid the tax is
4 W l [ a ) ( 2 ) ( 8 ]{relaling to t a x on the use
aflicle w,th
lo
in ,he price of
of special motor fuels), sectian
required lofile a return for
period
it
jmposPd nor collecled r h e
4Wltc]Il]IB) (relaring ro tax on the use
endjw with the first calendar quarter
Bmounr
tax
vendee. and
of fuel other ihan gasoline in
which begins more b a n M day6 after
ihr evidence
noncommercial aviation), seciion
the dale of the determination by the
available to establish thcsr lacls. or
Commissioner.
4041[c)(Z)[B](relating to i a x on the
(ii) f i e person repaid, nr agreed to
[Bl Supporiins slofemenl.-A claim
of gasoltne in noncommercial aviation].
.
"Pay. Ihe amount of 'he laxlo Ihe
b
r
~
r
e
d
or
i
~
refund
or
an
o
r
e
r
p
r
y
m
~
n
l
or s e ~ i , o n
10 tar on furl
ulrlmare vendor of the article. or
of tax in respect of an EariicIe aB I0
used in co-erciel
banspoflation on
(iia) The Person has secured* and '\'ill
which a wholecalet. jobber, distributor.
inland waterways).
tubmil upon request of the Sesbice.'he
or rglaiter is ,he ultimate purchaser, as
written consent of the ujtimzte vendor
8 48.61 16(a)-3 a t d ! t ov ? d u dd
provided in his paragraph (e)(J)(ii).
to !he ellolcance OI h e credit or refnnd.
rnanuiacturerr tax undzr chapter 32.
that
musi be supporled by rlatemenl
13) UIlimole vendor.-411Cenem)
(a] Orerpnyment not described in
the person filing the claim hag a
mle.-The term "ultimate vendor". a s
section 54~6[b){~){C)
or (4) (prior lo
statement. by each wholesaler, jobber.
u ~ t din paragraph lbI12) of this section,
April 1. 19833 andsection 6 4 1 q b ) / Z H 1 ) ' distributor, or retailer whose srlicles arc
meann the seller making the sale which
Claims included. This paragraph applies
covered by the claim, showing toiel
o n l y ~ o e l a i m s f o r c r e d ~ t o r r e l u n d o f a n inventoq,bymodelnumberand
gives rise to the overpayment or which
lest precedes the exportation or use
overpaymen; of rnanuiacturerr tax
quantity. of aII such articles purchased
which ha# given rise to h e
imposed by c h a p ~ e r32. 11 does not
tax-paid and held for sale a o oi 12:M
overpayment.
epply, however. 1 0 a claim Tor credit or
a.m. of t h 15th
~ d a y alter the date of the
( i i ) Special rule under secllbn
refund on any overpa!ment described in de~erminalionby the Commissioner that
MJ6{0)[3)(8)prior to relVisionb y ~ h p
paragraph (b] ot thir section which
the arlicle i s no1 mubjecl lo t a x under
Hi'hwoy Revenue Act of 1 ~ - 7 . - l n the
arises by rea3on o f the application or
chaplet 32.
case of an overpayment delermined
IC)Inventog rrquiremcnt.--The
section MIB(b)(2), [3)(C], or f4).
u n d e r section &416[b) (Z](Fj. (3j(Cl. or ( 4 )
(2) Suppurling evidence reguimd. No
inventory shall no1 include any such
in respec! of tires or inner lubes. where
credit or relund of any overpayment to
sdicle, tille t o which. or possession of
the taxable article is used h s a
which !his paragraph { a ] a p p l i e ~shall be which, has pRviously been itansferred

tax under aecLion I W 1 { a ) ( I ) { A ) [relating

to tax on the sale ot diesel fuel] or
rectionWl[s)[2)[A){rclati~totaxon
the l s l t of special motor fucla) that an
determined to bc overpayments by
reason of section &llB[b](Z] Ifelsting to
lax paymenta in respect of certain uses.
sales, or resalen of r texabtt article).
12)Supporfi~evidencemguirpd.No
credit or refund of an overpayment to
whicb this paragraph Ib] applieo rhall bc
mllowed unless the person who paid the
tax ~ubrniuwith the claim a rtatemenl
pupported by rumcient svailable
evidence, mrrerling that[i) The penon has neither included the
tax in the price nf the fuel with respect
to which i t was imposed nor coUccted
the amount of the tax from a vendee,
and identifying the nalurt G( the
evidence avaiIsbte to establish these
facts. or
(ill The person has repaid. or agreed
to repay, the amouni of the tax to the
ulllmate vendor of the fuel, or
(iii) The penon has secured, and will
submit upon request of the Senice, the
u ~ i t t e nconsen1 of the ultimate vendor
to the allowanct o l the cmdit or refund.
(3) Ultimo& vendor. The term
"ullima~evendor", es used in paragraph
[ b ) ( ~of] this seclion, means h e reller
making t h e sale which gives rise to h e
overpaymen! or which last precedes the
ehporration or use which gives rise to

allowed unless the person w h o paid the
t e x submiu with the claim a written

,,