Items Needed for an FET Audit

Originally published in the July 2014 edition of Tech Trends (e-newsletter and as an article within NTEA News), this article is also available to you below as an employee of an NTEA member company.

The Association has recently received several inquiries from members who are being audited by the Internal Revenue Service (IRS) for Federal Excise Tax (FET) compliance. These members report that auditors are focusing on a few key FET items, including up-to-date exemption certificates, taxable body sales, lift axle installation and further manufacture.

What You Need to Know to Prepare for an FET Audit

  • Make sure your FET exemption certificates (from the truck dealers to which you sell bodies and equipment) are up-to-date. 
  • Obtain new municipal exemption certificates for each and every tax exempt sale.
  • Keep detailed records on body sales and the specific chassis on which they are mounted.
  • Maintain detailed records on who owned the chassis on which you installed any lift axle.

The Technical Services Department is available to help answer your FET questions before, during and after an audit. In addition, the NTEA’s staff engineers can help identify any IRS rulings that may support your FET position.

NTEA Excise Tax Enquirer Articles

Are you faced with technical or engineering challenges?
Contact the Technical and Engineering Hotline at (800) 441-6832 for individual attention on varied topics such as Federal Excise Tax, truck certification and labeling, vehicle compliance and truck spec’ing. The Hotline is available Monday-Friday, 8AM-5PM (EST). Members can contact the Association as frequently as needed.