REG-116699-07

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					Part IV. Items of General Interest
Notice of Proposed                           SUPPLEMENTARY INFORMATION:                      ulations provide guidance on the vehicles
Rulemaking                                                                                   that are taken into account in determining
                                             Background                                      whether the “25 or more” requirement ap-
Highway Use Tax; Sold                                                                        plies.
                                                This document contains proposed                 The regulations provide guidance for
Vehicles and Electronic Filing               amendments to the Excise Tax on Use of          claiming a credit or refund of the statutory
                                             Certain Highway Motor Vehicles (26 CFR          overpayment upon the sale of a vehicle.
REG–116699–07                                Part 41) under section 4481 of the Internal     The regulations also clarify that the trig-
                                             Revenue Code (Code). Section 4481 was           gering event for overpayments, and hence
AGENCY: Internal Revenue Service
                                             amended by section 867 of the American          the ability to claim a prorated credit or re-
(IRS), Treasury.
                                             Jobs Creation Act of 2004, Public Law           fund of tax paid, is the sale, destruction, or
ACTION: Notice of proposed rulemaking.       108–357 (118 Stat. 1418) to require elec-       theft of a vehicle.
                                             tronic filing of a return for 25 or more           The regulations clarify that when a ve-
SUMMARY: This document contains pro-         highway motor vehicles, allow a proration       hicle is sold during a tax period, sepa-
posed regulations that provide guidance on   of the tax for vehicles that are sold, and      rate and prorated taxes are imposed on the
mandatory electronic filing of Form 2290,    eliminate the ability to pay the tax in in-     use of the vehicle before the sale and the
“Heavy Highway Vehicle Use Tax Return,”      stallments.                                     use after the sale. The regulations provide
for 25 or more vehicles; credits or re-                                                      rules for the computation of these taxes.
funds for sold, destroyed or stolen vehi-    Explanation of Provisions
cles; and paying tax on the use of certain                                                   Special Analyses
second-hand vehicles. The regulations re-        Section 4481 imposes an annual tax on
flect changes to the law made by the Amer-   the use of highway vehicles with a taxable          It has been determined that this notice
ican Jobs Creation Act of 2004. The regu-    gross weight of 55,000 pounds or more.          of proposed rulemaking is not a significant
lations would affect owners and operators    For this purpose, the tax year is from July 1   regulatory action as defined in Executive
of highway motor vehicles with a taxable     to the following June 30. For vehicles used     Order 12866. Therefore, a regulatory as-
gross weight of 55,000 pounds or more.       in July, the tax is due on August 31 and        sessment is not required. It has also been
                                             is filed on Form 2290, “Heavy Highway           determined that section 553(b) of the Ad-
DATES: Written or electronic comments        Vehicle Use Tax Return.” For vehicles first     ministrative Procedure Act (5 U.S.C. chap-
and requests for a public hearing must be    used in later months of the tax year, the       ter 5) does not apply to these regulations.
received by April 16, 2009.                  tax is prorated. Thus, for example, for             Pursuant to the Regulatory Flexibility
                                             a vehicle that is not used in July but is       Act (5 U.S.C. chapter 6), it is hereby cer-
ADDRESSES: Send submissions to:              used in August, the tax is 11/12 of the full    tified that this regulation will not have a
CC:PA:LPD:PR           (REG–116699–07),      rate and the return is due September 30.        significant economic impact on a substan-
Room 5203, Internal Revenue Service, PO      After a return is filed with the IRS, the IRS   tial number of small entities. The regula-
Box 7604, Ben Franklin Station, Wash-        will return Schedule 1 of Form 2290 to the      tions affect owners and operators of high-
ington, DC 20044. Submissions may be         taxpayer as proof of payment of the tax.        way motor vehicles with a taxable gross
hand-delivered to: CC:PA:LPD:PR Mon-         Under 23 U.S.C. 141, state governments          weight of 55,000 pounds or more, some
day through Friday between the hours of      are required to receive proof of payment        of which may be small entities. Although
8 a.m. and 4 p.m. to: CC:PA:LPD:PR           of the tax as a condition of registering a      a number of small entities may be subject
(REG–116699–07), Courier’s Desk, Inter-      vehicle for highway use.                        to the requirements of this rule, any eco-
nal Revenue Service, 1111 Constitution           Section 4481(e), as added by the Amer-      nomic impact is minimal. First, the reg-
Avenue, NW, Washington, DC, or sent          ican Jobs Creation Act, provides that any       ulations merely implement the electronic
electronically via the Federal eRulemak-     taxpayer that files a highway use tax re-       filing requirement under section 4481 and
ing Portal at http:www.regulations.gov       turn for 25 or more vehicles for any tax-       any cost associated with electronic filing
(IRS REG–116699–07).                         able period must file the return electron-      is minimal. In addition, the regulations
                                             ically. The proposed regulations provide        provide guidance for claiming a refund or
FOR       FURTHER      INFORMATION
                                             that submitting a Form 2290 for 25 or more      credit when a vehicle is sold during the
CONTACT: Concerning the proposed
                                             vehicles on paper rather than electronically    tax year. In order to make the claim, the
regulations, Taylor Cortright, (202)
                                             constitutes a failure to file for purposes of   taxpayer must submit Form 2290 or Form
622–3130; concerning submissions of
                                             the penalty under section 6651. In addi-        8849, “Claim for Refund of Excise Taxes.”
comments and requests for a public hear-
                                             tion, if a Form 2290 for 25 or more vehi-       The information to complete these forms
ing, Oluwafunmilayo.P.Taylor@irscoun-
                                             cles is filed on paper rather than electron-    is readily available to the taxpayer and the
sel.treas.gov, or (202) 622–7180 (not
                                             ically, the regulations provide that the IRS    forms take little time to complete. Without
toll-free numbers).
				
DOCUMENT INFO
Description: Proposed regulations under Section 4881 provide guidance on mandatory electronic filing of Form 2290, Heavy Highway Vehicle Use Tax Return, for 25 or more vehicles; credits or refunds for sold, destroyed or stolen vehicles; and paying tax on the use of certain second-hand vehicles.
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