FET and excise tax...

Had a nice conversation with the head IRS agent in regards to these 2 subject.

Excise use tax- This is a tax to keep the highways and biways up to par. Do they always use it for that, well that's another subject. But after you have paid the tax and you decide to sell you truck, you can file for a refund for the unused portion of that tax. However, when you buy your new truck you will have to pay the tax based on the time left for the year.

FET- I just did a deal where the client bought the truck in Canada. We did the financing and the O/O used an importer to get the truck into the states. According to the IRS the driver of that truck is responsible for the FET on the sale amount of that used truck. The IRS gets the information from customs and cross checks that information with other information to insure it was paid. Some drivers do get away with it, but some do not. Nothing worse that getting that notice in the mail that you owe the IRS for something the dealer said you don't have to pay.

APU units are subject to FET if you purchase the APU unit within the first 6 months of owning your trucks. After the 6 months it is not subject to the FET.