[Federal Register Volume 76, Number 139 (Wednesday, July 20, 2011)]
[Rules and Regulations]
[Pages 43121-43123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-18244]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 41
[TD 9537]
RIN 1545-BK36
Highway Use Tax; Filing and Payment for Taxable Period Beginning
July 1, 2011
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
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SUMMARY: This document contains final and temporary regulations that
provide guidance on the filing of Form 2290 (``Heavy Highway Vehicle
Use Tax Return'') and payment of the associated highway use tax for the
taxable period beginning July 1, 2011. The regulations affect owners
and operators of highway motor vehicles with a taxable gross weight of
55,000 pounds or more. The text of the temporary regulations also
serves as the text of the proposed regulations on this subject in the
Proposed Rules section in this issue of the Federal Register.
DATES: Effective Date: These regulations are effective on July 20,
2011.
Applicability Date: For dates of applicability, see Sec. Sec.
41.6001-2T(d), 41.6071(a)-1T(c)(3), and 41.6151(a)-1T(b).
FOR FURTHER INFORMATION CONTACT: Natalie Payne, (202) 622-3130 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document amends the Highway Use Tax Regulations (26 CFR Part
41) under section 4481 of the Internal Revenue Code (Code).
Section 4481 imposes a tax on the use in any taxable period of a
highway motor vehicle with a taxable gross weight of 55,000 pounds or
more. The person in whose name the vehicle is registered at the time of
the first use must pay the tax. The rate of tax is based on the weight
of the vehicle with a maximum of $550 per vehicle per taxable period
(the standard amount).
Generally, a ``taxable period'' is the year that begins on July 1
and ends on the following June 30. For the taxable period beginning on
July 1, 2011, however, section 4482(c)(4) of present law provides that
the taxable period ends at the close of September 30, 2011. For this
three month period, the tax rate is a reduced amount that is 25 percent
of the tax rate for a 12-month period.
Section 41.6011(a)-1(a)(1) requires each person that is liable for
the tax imposed by section 4481 to file a return for each taxable
period and Sec. 41.6011(a)-1(b) provides that the return is Form 2290,
``Heavy Highway Vehicle Use Tax Return.''
The due date for filing Form 2290 is not prescribed by statute and
section 6071 provides that when the Code does not set the time for
filing a return, the Secretary is to prescribe such time by
regulations. Under Sec. 41.6071(a)-1(a), Form 2290 generally must be
filed by the last day of the month following the month in which a
person becomes liable for tax. For most taxpayers, their first use of a
vehicle in a taxable period occurs in July and thus their return is due
by August 31.
Section 41.6001-2(b) provides, generally, that a State that
receives an application to register a highway motor vehicle must
receive from the applicant ``proof of payment'' of the tax imposed by
section 4481(a). Section 41.6001-2(c) specifies that this proof of
payment generally consists of a receipted
[[Page 43122]]
Schedule 1 (Form 2290) that is returned by the IRS to a taxpayer that
files Form 2290 and pays the amount of tax due with the return. The
taxpayer generally must present proof of payment for the taxable period
that includes the date on which the application for registration is
filed, but in the case of an application filed in July, August, or
September proof of payment for the preceding taxable period may be
used.
The tax imposed under section 4481 will expire on September 30,
2011, unless Congress changes the law. Under existing regulations, the
person liable for the highway use tax must file a Form 2290 by the last
day of the month following the month in which the person becomes liable
for the tax. Therefore, under current statutory and regulatory
provisions, the person liable for the tax will be required to file a
Form 2290 for taxable use during the period of July 1, 2011, through
September 30, 2011 (the ``2011 short taxable period''). Further, if
Congress extends the tax past September 30, 2011, a person who filed
Form 2290 for the 2011 short taxable period would have to file a second
Form 2290 covering the period after September 30, 2011, through the
earlier of the expiration date of the extension or June 30, 2012.
Explanation of Provisions
For purposes of efficient tax administration and alleviating
taxpayers' potential administrative burden, the temporary regulations
postpone the due date of Form 2290 for the 2011 short taxable period
until November 30, 2011. If Congress does not extend the tax past
September 30, 2011, taxpayers will file one Form 2290 and will pay the
reduced amount for the 2011 short taxable period by November 30; if
Congress does extend the tax past September 30, 2011, and substitutes a
longer taxable period for the 2011 short taxable period, taxpayers who
become liable for the highway use tax after June 30, 2011, and before
November 1, 2011, also will file a Form 2290 for the period July 1,
2011--June 30, 2012 (or the end of the new taxable period, if earlier),
by November 30, 2011. In either case, most taxpayers will have to file
only one return for the taxable period beginning July 1, 2011. But for
the change made by the temporary regulations, most taxpayers would have
to file two returns if Congress extends the tax past September 30.
Further, the temporary regulations state that taxpayers should file
a Form 2290 no earlier than November 1, 2011, for taxable use during
the 2011 short taxable period. The IRS will not provide a receipted
Schedule 1 for a return and associated payment for the taxable period
beginning July 1, 2011, before November 1, 2011. Because taxpayers will
not be able to receive a receipted Schedule 1 for filing a Form 2290
and paying the tax for the taxable period beginning July 1, 2011, until
November 1, 2011, the temporary regulations provide that the receipted
Schedule 1 for the taxable period ending June 30, 2010, must be
accepted by a State as a substitute proof of payment for registration
applications filed during the period of July 1, 2011, through November
30, 2011.
Section 41.6001-2(b)(1) provides that a State may register a
highway motor vehicle without proof of payment if the person
registering the vehicle presents the original or a photocopy of a bill
of sale (or other document evidencing transfer) indicating that the
vehicle was purchased by the owner either as a new or used vehicle
during the preceding 60 days before the date that the State receives
the application for registration of such vehicle. Because taxpayers
will not be able to obtain proof of payment during the period between
July 1, 2011, and November 1, 2011, the temporary regulations provide
that between July 1, 2011, and November 30, 2011, a State must register
a highway motor vehicle without proof of payment if the person
registering the vehicle presents the original or a photocopy of a bill
of sale (or other document evidencing the sale) that demonstrates that
the owner purchased the vehicle, either as a new or used vehicle,
within 150 days of the date that the State receives the application for
registration, and the vehicle has not been registered in any State
since the purchase date.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866, as
supplemented by Executive Order 13563. Therefore, a regulatory
assessment is not required. It also has been determined that section
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does
not apply to this regulation. For applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6), please refer to the Special
Analysis section in the preamble to the cross-referenced notice of
proposed rulemaking in the Proposed Rules section in this issue of the
Federal Register. Pursuant to section 7805(f) of the Code, this final
and temporary regulation was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on their
impact on small business.
Drafting Information
The principal author of these regulations is Natalie Payne, Office
of the Associate Chief Counsel (Passthroughs and Special Industries).
However, other personnel from the IRS and the Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 41
Excise taxes, Motor vehicles, Reporting and recordkeeping
requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 41 is amended as follows:
PART 41--EXCISE TAX ON USE OF CERTAIN HIGHWAY MOTOR VEHICLES
0
Paragraph 1. The authority citation for part 41 is amended to read in
part as follows:
Authority: 26 U.S.C. 7805. * * *
Section 41.6001-2T also issued under 26 U.S.C. 6001. * * *
Section 41.6071(a)-1T also issued under 26 U.S.C. 6071(a). * * *
Section 41.6151(a)-1T also issued under 26 U.S.C. 6151(a). * * *
0
Par. 2. Section 41.6001-2 is amended by:
0
1. Redesignating paragraph (b)(1) as paragraph (b)(1)(i) and adding a
paragraph heading to newly designated paragraph (b)(1)(i).
0
2. Adding paragraph (b)(1)(ii).
0
3. Redesignating paragraph (b)(4) as paragraph (b)(4)(i) and adding a
paragraph heading to newly designated paragraph (b)(4)(i).
0
4. Adding paragraph (b)(4)(ii).
0
5. Redesignating paragraph (c)(2) as paragraph (c)(2)(i), adding a
paragraph heading to newly designated paragraph (c)(2)(i) and adding
paragraph (c)(2)(ii).
The additions read as follows:
Sec. 41.6001-2 Proof of payment for State registration purposes.
* * * * *
(b) * * *
(1) * * *
(i) Registration generally. * * *
(ii) [Reserved]. For further guidance, see Sec. 41.6001-
2T(b)(1)(ii).
* * * * *
(4) * * *
(i) General rule. * * *
(ii) [Reserved]. For further guidance, see Sec. 41.6001-
2T(b)(4)(ii).
* * * * *
(c) * * *
[[Page 43123]]
(2) * * *
(i) General rule. * * *
(ii) [Reserved]. For further guidance, see Sec. 41.6001-
2T(c)(2)(ii).
* * * * *
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Par. 3. Section 41.6001-2T is added to read as follows:
Sec. 41.6001-2T Proof of payment for State registration purposes
(temporary).
(a) [Reserved]. For further guidance, see Sec. 41.6001-2(a) .
(b)(1)(i) [Reserved]. For further guidance, see Sec. 41.6001-
2(b)(1)(i).
(ii) Special rule for registration after June 30, 2011, and before
December 1, 2011. Between July 1, 2011, and November 30, 2011, a State
must register a highway motor vehicle without proof of payment if the
person registering the vehicle presents the original or a photocopy of
a bill of sale (or other document evidencing transfer) indicating that
the vehicle was purchased by the owner either as a new or used vehicle
during the preceding 150 days before the date that the State receives
the application for registration of the vehicle, and the vehicle has
not been registered in any state subsequent to such date of purchase.
(b)(2) through (b)(4)(i) [Reserved]. For further guidance, see
Sec. 41.6001-2(b)(2) through (b)(4)(i).
(ii) Special rule for registration after June 30, 2011, and before
December 1, 2011. In the case of a highway motor vehicle subject to tax
under section 4481(a) for which a State receives an application for
registration during the months of July, August, September, October, or
November of 2011, a State shall accept proof of payment for the taxable
period of July 1, 2010, through June 30, 2011, to verify payment of the
tax imposed by section 4481(a).
(c) introductory text through (c)(2)(i) [Reserved]. For further
guidance, see Sec. 41.6001-2(c) through (c)(2)(i).
(ii) Substitute proof of payment for the taxable period beginning
July 1, 2011. For purposes of this section and Sec. 41.6001-2, in the
case of a highway motor vehicle for which a State receives an
application for registration during the period of July 1, 2011, through
November 30, 2011, a State shall accept as a substitute for proof of
payment, proof of payment for the taxable period of July 1, 2010,
through June 30, 2011.
(iii) Cross reference. For provisions relating to the use of proof
of payment for the taxable period of July 1, 2010, through June 30,
2011, to verify payment of the tax imposed by section 4481(a), see
Sec. 41.6001-2T(b)(4)(ii).
(d) Effective/applicability date. Paragraphs (b)(1)(ii),
(b)(4)(ii), (c)(2)(ii) and (c)(2)(iii) of this section apply on and
after July 20, 2011.
(e) Expiration date. The applicability of this section expires on
or before July 15, 2014.
0
Par. 4. Section 41.6071(a)-1 is amended as follows:
0
1. In paragraph (a) introductory text, the phrase ``Except as provided
in paragraph (b) of this section'' is removed and ``Except as provided
in paragraph (b) or paragraph (c) of this section'' is added in its
place.
0
2. Add paragraph (c).
The addition reads as follows:
Sec. 41.6071(a)-1 Time for filing returns.
* * * * *
(c) [Reserved]. For further guidance, see Sec. 41.6071(a)-1T(c)
through (c)(3).
0
Par. 5. Section 41.6071(a)-1T is added to read as follows:
Sec. 41.6071(a)-1T Time for filing returns (temporary).
(a) through (b) [Reserved]. For further guidance, see Sec.
41.6071(a)-1(a) through (b).
(c) Special rule for highway motor vehicles for which a taxable use
occurs during the period July 1, 2011, through September 30, 2011--(1)
Date for filing returns. In the case of a highway motor vehicle for
which a taxable use occurs during the period July 1, 2011, through
September 30, 2011, the person liable for the tax must file a return
described in Sec. 41.6011(a)-1 no later than November 30, 2011. The
return should be filed no earlier than November 1, 2011. If the return
is filed and payment is submitted before November 1, 2011, the IRS will
not provide a receipted Schedule 1 (Form 2290, ``Heavy Highway Vehicle
Use Tax Return'') as proof of payment until after November 1, 2011, and
will provide such receipted Schedule 1 only if the full amount of the
tax for the 2011 taxable period (determined under the law in effect as
of November 1, 2011) has been paid.
(2) Cross reference. For provisions relating to time and place for
paying the tax imposed under section 4481, see Sec. 41.6151(a)-1.
(3) Effective/applicability date. This paragraph (c) applies on and
after July 20, 2011.
(4) Expiration date. The applicability of this section expires on
or before July 15, 2014.
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Par. 6. Section 41.6151(a)-1 is revised to read as follows:
Sec. 41.6151(a)-1 Time and place for paying tax.
[Reserved]. For further guidance, see Sec. 41.6071(a)-1T(a) and
(b).
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Par. 7. Section 41.6151(a)-1T is added to read as follows:
Sec. 41.6151(a)-1T Time and place for paying tax (temporary).
(a) In general. The tax must be paid at the time prescribed in
Sec. 41.6071(a)-1 (or Sec. 41.6071(a)-1T, as appropriate) for filing
the return and at the place prescribed in Sec. 41.6091-1 for filing
the return.
(b) Effective/applicability date. This section applies on and after
July 20, 2011.
(c) Expiration date. The applicability of this section expires on
or before July 15, 2014.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: July 13, 2011.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2011-18244 Filed 7-15-11; 4:15 pm]
BILLING CODE 4830-01-P