Par. 10. Section 48.4052-1 is revised to read as follows:
(a) In general. For purposes of the tax imposed by section 4051, first retail sale means a taxable sale defined in paragraph (b) of this section.
(b) Taxable sale; in general. A sale of an article described in § 48.4051-1(a) is a taxable sale except in the following cases:
(1) The sale is an exempt sale. A sale is an exempt sale if—
(i) The sale is a tax-free sale under section 4221;
(ii) The sale is of a used article that had previously been sold tax-free under section 4221; or
(iii) The article is sold for resale or leasing in a long-term lease and, at the time of sale, the seller—
(A) Has obtained from the buyer a certificate described in paragraph (d) of this section stating, among other things, that the buyer will either resell the vehicle or lease it in a long-term lease;
(B) Has no reason to believe that any information in the certificate is false; and
(C) Has not received a notification from the IRS under paragraph (d)(1) of this section with respect to the buyer.
(2) There has been a prior sale of the article that is not an exempt sale. The previous sentence does not apply if the prior sale is described in paragraph (c)(1) of this section.
(c) Special rule for trailers and semitrailers —(1) In general. A sale is described in this paragraph (c)(1) if the sale—
(i) Is a sale of a chassis or body of a truck trailer or semitrailer (“trailer or semitrailer”);
(ii) Is not an exempt sale; and
(iii) Occurs less than six months after the first sale of the trailer or semitrailer that is not an exempt sale.
(2) Credit. In the case of a sale described in paragraph (c)(1) of this section, any tax paid by the prior seller on account of its sale (and not at any time refunded to or credited against any other liability of the prior seller) is treated as a payment on behalf of the person (the subsequent seller) liable for the tax on the sale described in paragraph (c)(1) of this section. The subsequent seller may claim such payment as a credit against its liability for tax on the sale described in paragraph (c)(1) of this section if the following conditions are met:
(i) The claim is made on Form 720, “Quarterly Federal Excise Tax Return” (or such other form as the IRS may designate) in accordance with the instructions for that form.
(ii) The subsequent seller has not been repaid any portion of the tax by the prior seller and has not provided the prior seller with a written consent to the allowance of a credit or refund.
(iii) The subsequent seller has records substantiating the amount of tax paid by the prior seller on its sale of the truck trailer or semitrailer.
(d) Certificate —(1) In general. The certificate referred to in paragraph (b)(1)(iii) of this section is a statement that is signed under penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate provided in paragraph (d)(3) of this section, and contains all information necessary to complete the model certificate. The IRS may withdraw the right of a buyer of vehicles to provide a certificate under this section if the buyer uses the vehicles to which a certificate relates other than as stated in the certificate. The IRS may notify any seller that the buyer's right to provide a certificate has been withdrawn. The certificate may be included as part of any business records normally used to document a sale.
(2) Effect of use other than as stated in certificate. If a buyer that provides a certificate described in paragraph (b)(1)(iii)(A) of this section uses or leases (in a short term lease) an article listed in the certificate, the sale of such article to the buyer is treated as the first retail sale of the article and the buyer is liable for the tax imposed on such sale. If the conditions of paragraph (b)(1)(iii)(A), (B), and (C) of this section are satisfied, the seller will not be liable for the tax imposed on such sale.
(3) Model certificate.
Certificate
(To support nontaxable sale of articles listed in section 4051 for resale or long term lease under section 4052 of the Internal Revenue Code)
The undersigned buyer of articles listed in section 4051 (“Buyer”) hereby certifies the following under penalties of perjury:
1.
Seller's name, address, and employer identification number
2.
Buyer's name, address, and employer identification number
3.
Date and location of sale to Buyer
4. The articles listed below will be either resold by Buyer or leased on a long term basis by Buyer. If the article is a chassis, Buyer has listed the chassis Vehicle Identification Number. If the article is a body, Buyer has listed the body's identification number.
5. Buyer understands that it must be prepared to establish, by evidence satisfactory to an examining agent, how each article bought under this certificate was used.
6. Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn.
7. Buyer understands that if it uses or leases (in a short term lease) an article listed in this certificate, Buyer will be liable for the tax imposed by section 4051(a)(1) on the article. See 26 CFR 48.4051-1 and 145.4052-1(c).
8. Buyer understands that Buyer may be liable for the section 6701 penalty (relating to aiding and abetting an understatement of tax liability) if this is an erroneous certification.
9. Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution.
Printed or typed name of person signing this certificate
Title of person signing
Signature and date signed
(e) No installment payment of tax. If a lease is a taxable sale under § 145.4052-1(b) of this chapter or an installment sale (or another form of sale under which the sales price is paid in installments), then the liability for the entire tax arises at the time of the lease or installment sale. No portion of the tax is deferred by reason of the fact that the sales price is paid in installments.
(f) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations.