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2011 1040

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2011 1040

2011 1040 Index A Abatement of interest (see Interest, abatement) Appeal rights, Appeal Rights, Appeals to the Courts, Tax Court, District Court and Court of Federal Claims (see also Tax Court) Assistance (see Tax help) Authorization, third party, Third party authorization. 2011 1040 B Burden of proof, Burden of proof. 2011 1040 C Civil action (see Waivers, tax suits, civil action) Claim for refund, Claims for Refund Disallowance, Explanation of Any Claim for Refund Disallowance Estates on installment method, Claim for refund by estates electing the installment method of payment. 2011 1040 Periods of financial disability, Periods of financial disability. 2011 1040 Comments on publication, Comments and suggestions. 2011 1040 Communications, privileged, Confidentiality privilege. 2011 1040 , Confidentiality privilege. 2011 1040 Confidentiality, Confidentiality privilege. 2011 1040 , Confidentiality privilege. 2011 1040 D Disability (see Financial disability, periods of) Disaster areas, abatement of interest, Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions E Employment status, Tax Court review of, Jurisdiction for determination of employment status. 2011 1040 Estates Claim for refund, Claim for refund by estates electing the installment method of payment. 2011 1040 Examination of returns, Examination of Returns F Fast track mediation, Fast track mediation. 2011 1040 Financial disability, periods of Claim for refund, Periods of financial disability. 2011 1040 Form 8379, Injured spouse exception. 2011 1040 8857, Form 8857. 2011 1040 Free tax services, Free help with your tax return. 2011 1040 H Help (see Tax help) I Injured spouse, Injured spouse exception. 2011 1040 Innocent spouse relief, Tax Court review of request for relief from joint and several liability on a joint return. 2011 1040 , Relief from joint and several liability on a joint return. 2011 1040 Installment agreement, Installment Agreement Request Installment method Estates, claim for refund by, Claim for refund by estates electing the installment method of payment. 2011 1040 Interest Abatement Disaster areas, Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions Error or delay by IRS, Abatement of Interest Due to Error or Delay by the IRS Terrorist attacks, Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions Netting, overlapping underpayments and overpayments, Interest Netting Suspended, Suspension of interest and penalties. 2011 1040 J Joint and several liability, relief from, Tax Court review of request for relief from joint and several liability on a joint return. 2011 1040 , Relief from joint and several liability on a joint return. 2011 1040 L Losses Disaster area, Disaster area claims for refund. 2011 1040 Low Income Taxpayer Clinics, Low Income Taxpayer Clinics. 2011 1040 M Mediation, fast track, Fast track mediation. 2011 1040 More information, Useful Items - You may want to see: N Notice of deficiency Timely mailing, Suspension of interest and penalties. 2011 1040 Notices Third party contacts, Notice of IRS contact of third parties. 2011 1040 O Offer in compromise, Offer in Compromise Overpayments Offsets against state tax, Offset of past-due state income tax obligations against overpayments. 2011 1040 P Penalties, suspended, Suspension of interest and penalties. 2011 1040 Practitioners, federally authorized Confidential communications, Confidentiality privilege. 2011 1040 , Confidentiality privilege. 2011 1040 Presidentially declared disaster, Disaster area claims for refund. 2011 1040 Publications (see Tax help) R Refund, Claims for Refund, Periods of financial disability. 2011 1040 , Offset of past-due state income tax obligations against overpayments. 2011 1040 Reduced, Reduced Refund Refund deadline postponement, Postponed refund deadlines. 2011 1040 Refund or credit before court decision, Refund or Credit of Overpayments Before Final Determination Rights Communications, privileged, Confidentiality privilege. 2011 1040 , Confidentiality privilege. 2011 1040 Requests to waive, Prohibition on requests to taxpayers to give up rights to bring civil action. 2011 1040 S Suggestions for publication, Comments and suggestions. 2011 1040 T Tax Court, Appeals to the Courts, Tax Court Employment status, review of, Jurisdiction for determination of employment status. 2011 1040 Innocent spouse relief, review of request for, Tax Court review of request for relief from joint and several liability on a joint return. 2011 1040 Refund or credit before decision, Refund or Credit of Overpayments Before Final Determination Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. 2011 1040 Taxpayer Advocate Service, Taxpayer Advocate Service. 2011 1040 Terrorist attacks, abatement of interest, Abatement of Interest for Individuals Affected by Presidentially Declared Disasters or Military or Terrorist Actions Third party authorization, Third party authorization. 2011 1040 TTY/TDD information, How To Get Tax Help W Waivers Tax suits, civil action, Prohibition on requests to taxpayers to give up rights to bring civil action. 2011 1040 Z Zero rate, overlapping periods of interest (see Interest, netting) Prev  Up     Home   More Online Publications
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Procurement At-a-Glance

Mission:

Our dedicated acquisition professionals deliver world class, customer-focused acquisition services with the highest degree of integrity and the cooperative effort of our partners.

Vision:

Our vision is to be the best acquisition organization in the Federal Government--best people, best practices, best performance.

Strategic Priorities:

  •  TO BE THE ACQUISITION SERVICES PROVIDER OF CHOICE for all of the IRS and Department of the Treasury to fulfill mission requirements. (Customer Perspective)
  • TO OBTAIN, TRAIN AND RETAIN THE BEST PEOPLE to provide world-class customer-focused acquisition services to fulfill mission needs. (Employee Perspective)
  • TO HAVE THE BEST AND THEN CONTINUALLY IMPROVE OUR BUSINESS PROCESSES to enhance our employee's ability to provide world-class customer-focused acquisition services that fulfill mission requirements. (Business Process Perspective)
  • TO BE THE BEST ACQUISITION ORGANIZATION IN THE FEDERAL GOVERNMENT in providing world-class customer-focused acquisition services that fulfill mission requirements. (Business Results Perspective)

Headquarters:

Oxon Hill, MD
Phone: 240-613-8500

Management Team:

Jake Hansen, Director, Procurement
Angie Sweitzer, Deputy Director, Procurement
       Mary Killion, Chief, Workforce Management & Support Services
Joe Gregory, Director, Office of Business Operations
      Cindy Lynn, Deputy Director, Office of Business Operations
      Anthony (Tony) McCoy, Chief, Field Operations Branch, Midstates Area
      Peter DiNicola, Chief, Field Operations Branch, Northeast Area
      Dotti Hunter, Chief, Field Operations Branch, Southeast Area
      Vacant, Chief, Field Operations Branch, Western Area
Michael Crawford, Director, Office of Electronic Procurement
Bobby McCane, Director, Office of Information Technology (IT) Acquisition
      Tyuana Bailey, Deputy Director, Office of Information Technology (IT) Acquisition
           IT Services and PRIME Contract Support
      Patrick Bergin, Deputy Director, Office of Information Technology (IT)
           Acquisition, Enterprise Networks and Tier Systems Support                            
Barry Kearns, Director, Office of Procurement Policy
Chris Rodgers, Director, Office of Strategic Acquisition Initiatives
Jeff Jackson, Director, Office of Treasury Procurement Services

 


Questions about the Procurement information on this site, please contact the webmaster.
 Contact the Office of Procurement for other Procurement related questions.

Page Last Reviewed or Updated: 05-Dec-2013

The 2011 1040

2011 1040 6. 2011 1040   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. 2011 1040 Vehicles not considered highway vehicles. 2011 1040 Idling reduction device. 2011 1040 Separate purchase. 2011 1040 Leases. 2011 1040 Exported vehicle. 2011 1040 Tax on resale of tax-paid trailers and semitrailers. 2011 1040 Use treated as sale. 2011 1040 Sale. 2011 1040 Long-term lease. 2011 1040 Short-term lease. 2011 1040 Related person. 2011 1040 Exclusions from tax base. 2011 1040 Sales not at arm's length. 2011 1040 Installment sales. 2011 1040 Repairs and modifications. 2011 1040 Further manufacture. 2011 1040 Rail trailers and rail vans. 2011 1040 Parts and accessories. 2011 1040 Trash containers. 2011 1040 House trailers. 2011 1040 Camper coaches or bodies for self-propelled mobile homes. 2011 1040 Farm feed, seed, and fertilizer equipment. 2011 1040 Ambulances and hearses. 2011 1040 Truck-tractors. 2011 1040 Concrete mixers. 2011 1040 Registration requirement. 2011 1040 Further manufacture. 2011 1040 A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. 2011 1040 Truck chassis and bodies. 2011 1040 Truck trailer and semitrailer chassis and bodies. 2011 1040 Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. 2011 1040 A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. 2011 1040 A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. 2011 1040 A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. 2011 1040 A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. 2011 1040 The seller is liable for the tax. 2011 1040 Chassis or body. 2011 1040   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. 2011 1040 Highway vehicle. 2011 1040   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. 2011 1040 Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. 2011 1040 A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. 2011 1040 A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). 2011 1040 A special kind of cargo, goods, supplies, or materials. 2011 1040 Some off-highway task unrelated to highway transportation, except as discussed next. 2011 1040 Vehicles not considered highway vehicles. 2011 1040   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. 2011 1040 Specially designed mobile machinery for nontransportation functions. 2011 1040 A self-propelled vehicle is not a highway vehicle if all the following apply. 2011 1040 The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. 2011 1040 The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. 2011 1040 The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. 2011 1040 Vehicles specially designed for off-highway transportation. 2011 1040 A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. 2011 1040 To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. 2011 1040 It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. 2011 1040 Nontransportation trailers and semitrailers. 2011 1040 A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. 2011 1040 For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. 2011 1040 Gross vehicle weight. 2011 1040   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. 2011 1040 It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. 2011 1040 Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. 2011 1040   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. 2011 1040 Platform truck bodies 21 feet or less in length. 2011 1040 Dry freight and refrigerated truck van bodies 24 feet or less in length. 2011 1040 Dump truck bodies with load capacities of 8 cubic yards or less. 2011 1040 Refuse packer truck bodies with load capacities of 20 cubic yards or less. 2011 1040 For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. 2011 1040 R. 2011 1040 B. 2011 1040 2005-14 at www. 2011 1040 irs. 2011 1040 gov/pub/irs-irbs/irb05-14. 2011 1040 pdf. 2011 1040   The gross vehicle weight means the maximum total weight of a loaded vehicle. 2011 1040 Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. 2011 1040 The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. 2011 1040 The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. 2011 1040 See Regulations section 145. 2011 1040 4051-1(e)(3) for more information. 2011 1040 Parts or accessories. 2011 1040   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. 2011 1040 For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. 2011 1040 The tax applies in this case whether or not the retailer bills the parts or accessories separately. 2011 1040   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. 2011 1040 The tax applies unless there is evidence to the contrary. 2011 1040 For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. 2011 1040 The tax does not apply to parts and accessories that are spares or replacements. 2011 1040   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. 2011 1040 Idling reduction device. 2011 1040   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. 2011 1040 The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. 2011 1040 The EPA discusses idling reduction technologies on its website at www. 2011 1040 epa. 2011 1040 gov/smartway/technology/idling. 2011 1040 htm. 2011 1040 Separate purchase. 2011 1040   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. 2011 1040 The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. 2011 1040 The installation occurs within 6 months after the vehicle is first placed in service. 2011 1040   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. 2011 1040   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. 2011 1040 This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. 2011 1040   The tax does not apply if the installed part or accessory is a replacement part or accessory. 2011 1040 The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. 2011 1040 However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. 2011 1040 Example. 2011 1040 You bought a taxable vehicle and placed it in service on April 8. 2011 1040 On May 3, you bought and installed parts and accessories at a cost of $850. 2011 1040 On July 15, you bought and installed parts and accessories for $300. 2011 1040 Tax of $138 (12% of $1,150) applies on July 15. 2011 1040 Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. 2011 1040 First retail sale defined. 2011 1040   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. 2011 1040 There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). 2011 1040 The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). 2011 1040 The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. 2011 1040 There is no registration requirement. 2011 1040 Leases. 2011 1040   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. 2011 1040 The tax is imposed on the lessor at the time of the lease. 2011 1040   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. 2011 1040 The tax is imposed on the lessor at the time of the lease. 2011 1040 Exported vehicle. 2011 1040   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. 2011 1040 Tax on resale of tax-paid trailers and semitrailers. 2011 1040   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. 2011 1040 The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. 2011 1040 The credit cannot exceed the tax on the resale. 2011 1040 See Regulations section 145. 2011 1040 4052-1(a)(4) for information on the conditions to allowance for the credit. 2011 1040 Use treated as sale. 2011 1040   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. 2011 1040 Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. 2011 1040 The tax attaches when the use begins. 2011 1040   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. 2011 1040   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. 2011 1040   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. 2011 1040 Presumptive retail sales price. 2011 1040   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. 2011 1040 If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. 2011 1040 Table 6-1 outlines the appropriate tax base calculation for various transactions. 2011 1040   The presumed markup percentage to be used for trucks and truck-tractors is 4%. 2011 1040 But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. 2011 1040 Sale. 2011 1040   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. 2011 1040 Long-term lease. 2011 1040   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. 2011 1040 Short-term lease. 2011 1040   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. 2011 1040   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. 2011 1040   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. 2011 1040 Related person. 2011 1040   A related person is any member of the same controlled group as the manufacturer, producer, or importer. 2011 1040 Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. 2011 1040 Table 6-1. 2011 1040 Tax Base IF the transaction is a. 2011 1040 . 2011 1040 . 2011 1040 THEN figuring the base by using the. 2011 1040 . 2011 1040 . 2011 1040 Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. 2011 1040   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. 2011 1040   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. 2011 1040 However, you do add a markup if all the following apply. 2011 1040 You do not perform any significant activities relating to the processing of the sale of a taxable article. 2011 1040 The main reason for processing the sale through you is to avoid or evade the presumed markup. 2011 1040 You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. 2011 1040 In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. 2011 1040 Determination of tax base. 2011 1040   These rules apply to both normal retail sales price and presumptive retail sales price computations. 2011 1040 To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. 2011 1040 However, see Presumptive retail sales price, earlier. 2011 1040 Exclusions from tax base. 2011 1040   Exclude from the tax base the retail excise tax imposed on the sale. 2011 1040 Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. 2011 1040 Also exclude the value of any used component of the article furnished by the first user of the article. 2011 1040   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. 2011 1040 These expenses are those incurred in delivery from the retail dealer to the customer. 2011 1040 In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. 2011 1040   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. 2011 1040 For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. 2011 1040 Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. 2011 1040 Sales not at arm's length. 2011 1040   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. 2011 1040   A sale is not at arm's length if either of the following apply. 2011 1040 One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. 2011 1040 The sale is made under special arrangements between a seller and a purchaser. 2011 1040 Installment sales. 2011 1040   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. 2011 1040 The tax is figured on the entire sales price. 2011 1040 No part of the tax is deferred because the sales price is paid in installments. 2011 1040 Repairs and modifications. 2011 1040   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. 2011 1040 This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. 2011 1040 However, this exception generally does not apply to an article that was not subject to the tax when it was new. 2011 1040 Further manufacture. 2011 1040   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. 2011 1040 Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. 2011 1040 Combining an article with an item in this list does not give rise to taxability. 2011 1040 However, see Parts or accessories discussed earlier. 2011 1040 Articles exempt from tax. 2011 1040   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. 2011 1040 Rail trailers and rail vans. 2011 1040   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). 2011 1040 Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. 2011 1040 Parts and accessories. 2011 1040   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. 2011 1040 Trash containers. 2011 1040   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. 2011 1040 It is designed to be used as a trash container. 2011 1040 It is not designed to carry freight other than trash. 2011 1040 It is not designed to be permanently mounted on or affixed to a truck chassis or body. 2011 1040 House trailers. 2011 1040   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. 2011 1040 Camper coaches or bodies for self-propelled mobile homes. 2011 1040   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. 2011 1040 Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. 2011 1040 Farm feed, seed, and fertilizer equipment. 2011 1040   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. 2011 1040 This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. 2011 1040 Ambulances and hearses. 2011 1040   This is any ambulance, hearse, or combination ambulance-hearse. 2011 1040 Truck-tractors. 2011 1040   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. 2011 1040 Concrete mixers. 2011 1040   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. 2011 1040 This exemption does not apply to the chassis on which the article is mounted. 2011 1040 Sales exempt from tax. 2011 1040   The following sales are ordinarily exempt from tax. 2011 1040 Sales to a state or local government for its exclusive use. 2011 1040 Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. 2011 1040 Sales to a nonprofit educational organization for its exclusive use. 2011 1040 Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. 2011 1040 Sales for use by the purchaser for further manufacture of other taxable articles (see below). 2011 1040 Sales for export or for resale by the purchaser to a second purchaser for export. 2011 1040 Sales to the United Nations for official use. 2011 1040 Registration requirement. 2011 1040   In general, the seller and buyer must be registered for a sale to be tax free. 2011 1040 See the Form 637 instructions for more information. 2011 1040 Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. 2011 1040 Further manufacture. 2011 1040   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. 2011 1040 Credits or refunds. 2011 1040   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. 2011 1040 The person using the article as a component part is eligible for the credit or refund. 2011 1040   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. 2011 1040 A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. 2011 1040   See also Conditions to allowance in chapter 5. 2011 1040 Tire credit. 2011 1040   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. 2011 1040 The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). 2011 1040 This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. 2011 1040 Prev  Up  Next   Home   More Online Publications