Document - Excise Tax Enquirer

Accessing IRS Rulings online
Updated: 11/10/2015
IRS Rulings (e.g., Letter Rulings, Technical Advice Memoranda and Chief Counsel Advisories) published in the last few years are generally available on The trick is knowing how to find them. This overview provides key navigation tips to locate desired Rulings. full document >
Primary tax exclusions for chassis sales to end users
Updated: 9/15/2015
Question: Is Section 4051 tax due on all chassis sales to end user customers? Are there some common exclusions? full document >
Determining letter ruling applicability
Updated: 7/15/2015
Question: We are a dealership that sells a certain body type. A customer gave me a copy of another dealership’s letter ruling in which the Internal Revenue Service (IRS) determined the bodies sold by the other dealership were not subject to Federal Excise Tax (FET) under Section 4051. Those bodies are substantially similar to the ones we sell, and we typically charge FET on our bodies. Does this letter ruling mean we can stop charging FET? full document >
Tax Liability Considerations When Refurbishing Chassis
Updated: 5/15/2015
Question: We are overhauling a customer-owned chassis. The original chassis had a gross vehicle weight rating (GVWR) of less than 33,000 lbs., making it non-taxable. Most of the chassis will be rebuilt with new materials, but a few original components will be retained. As the renovated chassis will have a GVWR of more than 33,000 lbs., will the used components be subject to Section 4051 tax? full document >
Truck Bodies and Truck Chassis — Separate Tax Determinations
Updated: 3/16/2015
Question: If a customer purchases a new truck body from us and asks us to install it on a used truck chassis, is the body taxable? Similarly, if a customer purchases a new truck chassis from us and asks us to install it on a used truck body, would the chassis be taxable? Does it matter whether the sale and installation of the new article occurs within six months of the purchase of the used article? full document >
Is FET Due on the Resale of a Tax-Paid Trailer Within the First Six Months?
Updated: 1/15/2015
Question: We are a distributor that just bought a taxable trailer from a manufacturer on a tax-paid basis. (We did not provide the manufacturer with a resale certificate, and the manufacturer’s invoice included the amount of Federal Excise Tax under Section 4051 that the manufacturer would pay to the Internal Revenue Service.) We now intend to resell the trailer. A friend has advised us that if we re-sell the trailer within six months, we will have to pay Section 4051 tax on it. Is this true? full document >
FET and the Six-Month Rule on Parts and Accessories
Updated: 11/17/2014
Question: A customer recently purchased a new truck chassis, and the invoice for the truck included Federal Excise Tax (FET). He now wants our company to install an additional part on the truck chassis. (The part would have been taxable if it was included on the truck when the truck was sold.) Since the customer already paid tax on the truck, is there any tax risk for our company under Internal Revenue Code (IRC) Section 4051? full document >
Are Schools Exempt from FET?
Updated: 9/15/2014
Question: Is there a Federal Excise Tax (FET) exemption for sales of taxable trucks to schools? full document >
Are You Prepared for an FET Audit?
Updated: 7/25/2014
Question: We have received notice that the Internal Revenue Service (IRS) will be conducting an examination of our 720 tax returns. Do you have any tips on how we should prepare for the audit? full document >
Applying Federal Excise Tax — A General Overview
Updated: 7/10/2014
Question: Do you have any quick tips companies can use to determine if they are applying Federal Excise Tax (FET) correctly in some common situations? full document >



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