Ezel / IRS Rulings / 200025048

IRS letter 200025048: Prior truck excise tax ruling revoked

Number
200025048
Outcome
Revocation
Document type
Determination Letter
IRS subject
Imposition of Tax on Heavy Trucks and Trailers Sold at Retail (Taxable v. Non-Taxable)
Topics
Excise taxes
Code sections
§ 4051
Ruling dated
March 15, 2000
Publicly released
June 23, 2000
Source
View Official PDF

Apply this to your situation

This page covers one taxpayer's determination, issued in 2000, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2000
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The IRS notified a taxpayer that it was reconsidering how an excise tax exception applies to trucks fitted with crane booms. A prior letter ruling had said § 4051 did not impose excise tax on the taxpayer's purchases and later retail sales or leases of certain trucks after a third party installed cranes or booms. The IRS revoked that ruling effective May 15, 2000, so the taxpayer could no longer rely on it for those transactions. This letter does not state a final position on whether the tax applies.

Ruling snapshot

  • Question: May the taxpayer continue relying on its earlier truck excise tax ruling?
  • Outcome: Revocation effective May 15, 2000.
  • Key authorities: IRC § 4051; Treas. Reg. § 48.4061(a)-1(d)(2)(i).

Full text (IRS public release)

INTERNAL REVENUE SERVICE

Number: 200025048
Release Date: 6/23/2000
Index No.: 4051.00-00

CC:DOM:P&SI:8/PLR 104229-00

MAR 15, 2000
In re:

Legend:

Taxpayer =

Dear

This is to notify you that the Internal Revenue Service (Service) is reconsidering the applicability of the tax exception in § 48.4061(a)-1(d)(2)(i) of the Manufacturers and Retailers Excise Tax Regulations to trucks on which crane booms are installed.

In letter ruling, LTR 199923022, dated March 9, 1999, the Service concluded that § 4051 of the Internal Revenue Code did not impose an excise tax on Taxpayer’s purchase and subsequent lease or sale at retail of certain trucks on which Taxpayer had a third party install cranes or booms.

Because this matter is now being reconsidered, the Service is revoking LTR 199923022 effective May 15, 2000. Consequently, Taxpayer may no longer rely on LTR 199923022 with respect to the purchase and the subsequent sale or lease of certain trucks on which Taxpayer had a third party install cranes or booms.

We recognize the significance of this development to you and will attempt to resolve this matter as soon as possible.

Sincerely,
Assistant Chief Counsel
(Passthroughs & Special Industries)
By: Richard A Kocak
Chief, Branch 8

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