Par. 19. Section 48.4073-1 is revised to read as follows:
(a) In general. Tax is not imposed by section 4071 on the sale of a taxable tire if—
(1) The manufacturer of the taxable tire meets the registration requirements of section 4222; and
(2) The sale of the taxable tire is to the Department of Defense or the Coast Guard for the exclusive use of the Department of Defense or the Coast Guard,
(b) Sales for resale. A manufacturer may sell a taxable tire tax-free under section 4073 and this section only if the sale is directly made to either the Department of Defense or the Coast Guard for such agency's exclusive use. Accordingly, a sale may not be made taxfree to a dealer for resale to the Department of Defense or the Coast Guard for its exclusive use, even though it is known at the time of sale by the manufacturer that the article will be so resold.
(c) Certificate —(1) Effect of certificate. A manufacturer will not be liable for tax on the sale of a taxable tire if, at the time of the sale, the manufacturer has obtained from the buyer an unexpired certificate described in paragraph (c)(2) of this section and has no reason to believe any information in the certificate is false. A buyer that provides an erroneous certificate described in paragraph (c)(2) of this section is liable for any tax imposed on the sale to which the certificate relates.
(2) Form of certificate. The certificate described in this paragraph (c)(2) is a statement by the Department of Defense or the Coast Guard that is signed under penalties of perjury by a person with authority to bind the Department of Defense or the Coast Guard, is in substantially the same form as the model certificate provided in paragraph (c)(3) of this section, and contains all information necessary to complete the model certificate. A new certificate or notice that the current certificate is invalid must be given if any information in the current certificate changes. The certificate may be included as part of any business records normally used to document a sale.
(3) Model Certificate.
Certificate
(To support the tax-free sales of tires to the Department of Defense or the Coast Guard under section 4073 of the Internal Revenue Code)
The undersigned buyer of taxable tires (“Buyer”) hereby certifies the following under penalties of perjury:
1.
Manufacturer'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 tire(s) to which this certificate applies will be for the exclusive use of Buyer (that is, the Department of Defense or the Coast Guard).
5. This certificate applies to Buyer's purchases from Manufacturer as follows (complete as applicable):
a. A single purchase on invoice or delivery ticket number __.
b. All purchases between __ (effective date) and __ (expiration date), a period not exceeding 12 calendar quarters after the effective date, under account or order number(s) __. If this certificate applies only to Buyer's purchases for certain locations, check here __ and list the locations.
6. Buyer will provide a new certificate to the Manufacturer if any information in this certificate changes.
7. 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.
8. 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
(d) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations.