# Prop. Treas. Reg. § 48.4221-8: Tax-free sales of tires used on intercity, local, and school buses. Proposed regulation, not in force. REG-103380-05, 81 FR 18544, published 2016-03-31 . Interprets 26 U.S.C. § 4221. Par. 24. Section 48.4221-8 is amended by: 1. Revising the section heading and paragraph (a). 2. Removing the second paragraph (b), Registration requirements for tires, tubes, and tread rubber; vendees purchasing tax-free. 3. Revising paragraphs (c) and (d). 4. Removing paragraphs (e) and (f). The revisions read as follows: (a) In general. Under section 4221(e)(3), tax is not imposed by section 4071 on the sale of a taxable tire for use by the buyer on or in connection with a qualified bus, as defined in paragraph (b) of this section, if— (1) The registration requirements of section 4222 and the regulations thereunder are met; (2) At the time of sale, the manufacturer of the taxable tire— (i) Possesses a certificate (in the form described in paragraph (c)(2) of this section) from the buyer of a taxable tire, in which, among other things, the buyer certifies that the buyer will use the taxable tire on or in connection with a qualified bus; (ii) Has no reason to believe that any information in the certificate described in paragraph (c) of this section is false; and (iii) Has not received a notification from the IRS under paragraph (c)(2) of this section with respect to the buyer. * * * * * (c) Certificate —(1) Effect of certificate. A manufacturer will not be liable for tax on the sale of a taxable tire if the conditions of paragraph (a)(2) of this section are satisfied. In such a case, 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) In general. The certificate referred to in paragraph (a)(2) 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 (c)(3) 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 buyer of a taxable tire to provide a certificate under this section if the buyer uses the tires to which a certificate relates other than as stated in the certificate. The IRS may notify any manufacturer to whom the buyer has provided a certificate 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. (3) Model certificate. Certificate (To support the nontaxable sale of taxable tires used on intercity, local, and school buses) 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 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), will be used on intercity, local, and school buses. | | | | --- | --- | | | | | | | | | | | | | 5. 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. 6. Check here ___ if Buyer is not required to be registered with the Internal Revenue Service because Purchaser is a state or local government or the United States. 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.