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).