Par. 23. Section 48.4221-7 is amended by: 1. Revising the section heading and paragraph (a). 2. Removing paragraph (b) and redesignating paragraph (c) as paragraph (b). 3. Revising redesignated paragraph (b)(2). 4. Adding new paragraph (c). The revisions and addition read as follows:
(a) In general. Under section 4221(e)(2), tax is not imposed by section 4071 on the sale of a taxable tire if—
(1) The taxable tire is sold for use by the purchaser for sale on or in connection with the sale of another article manufactured or produced by the purchaser;
(2) The other article is to be sold by the purchaser—
(i) In a tax-free sale for export, for use as supplies for vessels or aircraft, to a state or local government for its exclusive use, or to a nonprofit educational organization for its exclusive use; or
(ii) For any of such purposes in a sale that would be tax-free but for the fact that the other article is not subject to tax under section 4051 or 4064;
(3) The registration requirements of section 4222 and the regulations thereunder are met; and
(4) The proof, described in paragraph (b) of this section, of the disposition of the other article, is timely received by the manufacturer.
(b) * * *
(2) Required information —(i) In general. The information referred to in paragraph (b)(1) of this section is a statement that is signed under penalties of perjury by a person with authority to bind the purchaser, is in substantially the same form as the model certificate provided in paragraph (b)(2)(ii) of this section, and contains all information necessary to complete the model certificate. For purchasers that are not required to be registered under section 4222, the IRS may withdraw the right of a purchaser of a taxable tire to provide a certificate under this section if the purchaser uses the tire to which a certificate relates other than as stated in the certificate. The IRS may notify any manufacturer to whom such purchaser has provided a certificate that the purchaser's right to provide a certificate has been withdrawn.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.
(ii) Model certificate.
Certificate
(To support the nontaxable sale of taxable tires by the manufacturer when sold for use on or in connection with the sale of another article manufactured or produced by the buyer and sold by the buyer in a sale that meets the requirements of section 4221(e)(2))
The undersigned buyer of taxable tires (“Buyer”) hereby certifies the following under penalties of perjury:
1.
Manufacturer's name, address, employer identification number, and registration number
2.
Buyer's name, address, employer identification number, and registration number (if required)
3.
Date and location of sale to Buyer
4. The taxable tire(s) listed below, by its (their) United States Department of Transportation identification number(s), are covered by this certificate
5. The taxable tire(s) listed in this certificate that were purchased or shipped on the date specified in entry 3 have been used on or in connection with the sale of __ (describe product sold by Buyer) by Buyer and such sale was— (complete line (i), (ii), (iii), or (iv), whichever is applicable)
(i) for export by __ (Name of carrier) to __ (Name of foreign country or possession) and was so exported on __ (Date). (A copy of the bill of lading or other proof of exportation is attached.)
(ii) for use as supplies on __ (Name of vessel or aircraft) that is registered in __ (Name of country in which vessel or aircraft is registered).
(iii) to __ (Name of state or local government).
(iv) to __ (Name and address of the nonprofit educational organization).
6. Buyer understands that it must be prepared to establish, by evidence satisfactory to an examining agent, how each tire bought under this certificate was used.
7. Check here __ if Buyer is not required to be registered with the Internal Revenue Service because Buyer is a state or local government, a foreign person buying for export, or the United States.
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
(c) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations.