When is Federal Excise Tax due on installment sales?

June 10, 2010
Rose-Michele Nardi
Weiner Brodsky Sidman Kider PC
​​​​​​​We are a truck body distributor and are thinking about offering a special sales promotion to retail customers that offers the purchaser a chance to spread the cost of the body over a six-month period. In other words, the customer can pay the purchase price in six equal monthly installments. When buying a body under this promotion, the customer pays one-sixth of the purchase price, the title is transferred and the customer takes possession of the body. We know the body is taxable under Internal Revenue Code Section 4051, but we believe we would not be liable for the tax until the customer pays us the full purchase price. Are we correct?
THIS CONTENT REQUIRES NTEA MEMBERSHIP
Sign in for access
Not a member?
Make NTEA your Association today and unlock access to exclusive resources, tools and insights.
Join online

Recommended Articles

Regulatory

Federal Motor Vehicle Safety Standards removal of obsolete regulatory text from FMVSS 204, 205, 206, 207, 210, 213a, 214, 216, 217, 222, 301, 303 and 304

NHTSA has issued notice of proposed rulemaking proposing to remove unnecessary regulatory text from various Federal Motor Vehicle Safety Standards. Comments must be received within 60 days of May 30, 2025. Comments are...
June 17, 2025
Association News

NTEA’s vehicle engineering and compliance resources provide solutions

NTEA’s technical services department is a vital resource for members. Staff engineers with more than 100 years of combined commercial vehicle industry experience provide in-depth solutions to technical questions and...
May 6, 2025