FARMINGTON HILLS, MI — As a result of the National Truck Equipment Association’s (NTEA) submission under the Internal Revenue Service (IRS) Industry Issues Resolution program, guidelines are now available to help truck dealers determine if a truck body is subject to federal excise tax under Revenue Procedure 2005-19. The term “suitable for use” is defined as practical and commercial fitness for such use. In addition, a chassis or body possesses practical fitness for use with a vehicle if it performs its intended function up to a generally acceptable standard of efficiency with the vehicle, and a chassis or body possesses commercial fitness for use with a vehicle if it is generally available for use with the vehicle at a price that is reasonably competitive with other articles that may be used for the same purpose. The lack of clear and objective determinations for the term “suitable for use” has resulted in competitive disadvantages and frequent audit activity. As a result of the association's efforts, the IRS declared that it will not challenge a seller’s determination that several specific classifications of truck body types meet the “suitable for use“ standard, and sales thereof are excluded from the retail excise tax. For in-depth details on the new “suitable for use” standard, please visit www.ntea.com/fr/leg_issues_detail.asp?leg_id=235/ or contact NTEA Government Relations Director Mike Kastner at (202) 484-0526, or e-mail mkastner@ntea.com with questions.
0 Comments