The National Truck Equipment Association recently introduced its “Federal Excise Tax Guide,” a new publication for the work truck industry. “For more than 30 years, the NTEA has been the leading source of excise tax information to the work truck industry,” says Jim Carney, NTEA executive director. “We felt it was time to publish a comprehensive guide that would help retailers avoid pitfalls that can result in huge IRS tax assessments.”
The guide was written by NTEA’s outside counsel, Mark Sidman and Rose-Michele Nardi, attorneys with Weiner Brodsky Sidman Kider PC in Washington, D.C. Sidman says the Internal Revenue Service has been aggressively auditing work truck, trailer and tractor retailers for excise tax compliance. “Because the tax is so high – 12 percent of the retail price – the risk of misapplying it is huge,” he says.
Carney says the tax creates competitive issues in the industry. “Aggressive companies that don’t charge tax risk tax assessments, while conservative companies risk being noncompetitive on price,” he says.
“The tax is extraordinarily complicated, and there are a lot of gray areas,” says Sidman. ”We have attempted to give retailers the tools to make informed tax decisions. The guide explains how the law works and provides extensive citation to critical IRS rulings and court decisions.”
The book is intended to be a resource for retailers of heavy trucks and their tax advisers. It addresses all major excise tax issues such as the “suitable for use” standard, further manufacturing, the six-month rule, the 75 percent rule, tax-exempt sales, off-road vehicles and defending audits.
To obtain a copy or for more information, go to www.ntea.com or call 800-441-6832.