NTEA Releases New Federal Excise Tax Guide

Apr 05, 2011, 10:26 ET from NTEA

FARMINGTON HILLS, Mich., April 5, 2011 /PRNewswire-USNewswire/ -- NTEA, the Association for the Work Truck Industry, introduces Federal Excise Tax Guide, a new publication for the work truck industry.

Jim Carney, NTEA executive director, noted, "For more than 30 years, the NTEA has been the leading source of excise tax information to the work truck industry. We felt it was time to publish a comprehensive guide that would help retailers avoid pitfalls that can result in huge IRS tax assessments."

The Guide was written by the NTEA's long-time outside counsel, Mark Sidman, and Rose-Michele Nardi, who are attorneys with Weiner Brodsky Sidman Kider PC in Washington, D.C. Sidman and Nardi are co-editors of the FET Quarterly, an NTEA publication that summarizes all excise tax rulings issued by the IRS and courts. Nardi also writes the Excise Tax Enquirer, a monthly column in NTEA News.

Sidman explained that the IRS has been aggressively auditing work truck, trailer and tractor retailers for excise tax compliance. "Because the tax is so high – 12 percent of the retail price – the risk of misapplying it is huge."

Carney noted that the tax creates competitive issues in the industry: "Aggressive companies that don't charge tax risk tax assessments, while conservative companies risk being non-competitive on price."

"The tax is extraordinarily complicated and there are a lot of gray areas," said Sidman. "We have attempted to give retailers the tools to make informed tax decisions. The Guide explains how the law works and provides extensive citation to critical IRS rulings and court decisions."

The book is intended to be a resource for retailers of heavy trucks and their tax advisors. It addresses all major excise tax issues, such as the "suitable for use" standard, further manufacturing, the six-month rule, the 75 percent rule, tax-exempt sales, off-road vehicles and defending audits.

To obtain a copy of the Guide or for more information, visit www.ntea.com or call 1-800-441-NTEA (6832).

About the NTEA

Established in 1964, the NTEA is the leading association supporting the work truck industry. The Association maintains its administrative headquarters in suburban Detroit and a government relations office in Washington, D.C.

About Weiner Brodsky Sidman Kider PC

WBSK is a Washington, D.C.- based law firm, with offices in Dallas, TX, and Irvine, CA. The firm specializes in transportation and mortgage finance matters. The transportation department represents multi-stage vehicle manufacturers, truck dealers and railroads.