Companies may be overpaying federal excise tax on purchases and long-term leases of heavy vehicles such as highway trucks, trailers, or tractors.
Certain companies often require customized vehicles that contain specialized jobsite equipment and other nontaxable articles for use in business operations. The supplier may include, on the purchase invoice, an amount equal to the excise tax calculated on the full sale price of the vehicle, without taking into account the allowable reductions under the federal excise tax rules. The burden of this tax is, thus, passed on to the purchaser—typically because the purchaser is unaware of the applicable rules that would reduce the seller’s tax calculation.
Read a May 2017 report [PDF 62 KB] prepared by KPMG LLP: What’s News in Tax: Truck Fleets: Federal Excise Tax Review Opportunity—Heavy Vehicles Tax
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