IRS guidance on vehicle transfer under state replacement incentive program | Deloitte US | Tax has been added to your bookmarks.
IRS guidance on vehicle transfer under state replacement incentive program
Multistate tax alert | February 9, 2015
This tax alert summarizes the Federal Heavy Highway Vehicle Use Tax (“HHVUT”), IRS Program Manager Technical Assistance 2014-03 (“PMTA 2014-03”), and other related matters.
On January 22, 2015, the Internal Revenue Service (“IRS”) Office of Chief Counsel issues IRS Program Manager Technical Assistance 2014-03 (“PMTA 2014-03”), which provides guidance on the federal excise tax implications of a taxpayer’s transfer of a vehicle to a dealer under a state vehicle replacement incentive program (“Program”).1 PMTA 2014-03 concludes that under the specified Program the transfer of a vehicle to the dealer is considered a “sale” for purposes of the Federal Heavy Highway Vehicle Use Tax (“HHVUT”) under Internal Revenue Code (IRC) §4481 and is thus eligible for a prorated credit or refund of the tax.
Although PMTAs do not constitute precedential authority, the reasoning underlying PMTA 2014-03 may potentially be applicable to vehicle transfers in states with similar programs.
1 IRS PMTA 2014-03 (dated: Apr. 14, 2014, with a release date of Jan. 22, 2015) is accessible at: http://www.irs.gov/pub/irs-utl/PMTA-2014-03.pdf.
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The Multistate Tax Alert Archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.