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We understood that after Jan. 1, 1998, chassis modifications that did not exceed 75% of the cost of purchasing a similar new chassis would not be considered further manufacturing. However, in Technical Advice Memorandum...

A city representative has approached us about purchasing certain new trucks from our truck dealership. The rep stated we should contact a local utility company for the exact specifications because the utility company has...

Our distributorship bought a used tractor from a dealer. We extended the wheelbase, modified the tractor into a straight truck rated 40,000 pounds gross vehicle weight and installed a taxable dump body. We don’t know...

Our dealership sells taxable tractors, truck bodies and chassis to a large trucking company. On occasion, one of our salesmen will take an order for a tractor (outfitted with a fifth wheel) and for one or more fifth...

We recently opened a truck equipment distributorship. Is it true the fair market value of tires can be deducted from the taxable price of a chassis? If so, how do we determine the fair market value of the tires?

I have been told that a vehicle designed for off-road use will not be subject to Federal Excise Tax if it cannot be operated on public roads without first obtaining a special permit (as a result of its exceeding weight...

We buy used chassis, modify them and resell them. The modifications typically include adding a lift axle and stretching the frame. We have been told that the 75% rule applies to customer-owned chassis; does it also apply...

What is the difference between Private Letter Rulings, Technical Advice Memoranda and Revenue Rulings?

Over the past 14 years, our distributorship has been audited for FET four times. Each time, the IRS assessed several thousand dollars of additional tax and interest. Because the amounts at stake were relatively small, we...

We sell heavy-duty trucks (50,000 pounds gross vehicle weight and larger) to non-profit educational organizations. Is it true that such sales can now be made tax-free without registration with the IRS and without...