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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...

Is it true that the new tax law eliminates the tax on further manufacturing? Our company buys used or wrecked vehicles, which we then restore and sell. Sometimes we modify a tractor into a straight truck or vice versa...

Our company is a truck dealership. We frequently sell chassis that are rated 32,900 pounds gross vehicle weight (GVW) by the chassis manufacturer. We don’t charge FET on these chassis. As a service to our customers, we...

In our distributorship, we often shorten a chassis at the request of a customer. Sometimes we change the wheelbase as a result of the shortening, and sometimes we don’t. Has the Internal Revenue Service issued rules...

When a truck equipment distributor or manufacturer modifies a customer-owned body or chassis, the customer, not the modifier, is responsible for any FET imposed as a result of the modification.

Our company is a used truck dealership. In our town, there is a truck leasing company that from time to time sells trucks as they come off leases. We realize that used trucks are not subject to federal excise tax...