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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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Lev, I bought a used Kenworth truck from a canadian dealer

Customer Question

Hi Lev, I bought a used Kenworth truck from a canadian dealer last june. The truck was manufactured in theUS, so no duty was due at import. Will I be contacted by the IRS for an excise tax at some point?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Section 4051 of the Internal Revenue Code imposes a tax on the first sale of certain truck chassis and bodies. The excise tax does not apply to truck bodies and chassis suitable with vehicles that have a gross vehicle weight of 33,000 pounds or less or truck trailer and semi-trailer bodies and chassis suitable with vehicles that have a gross vehicle weight of 26,000 pounds or less.
tax - see page 34 in the publication that I referenced above
http://www.irs.gov/pub/irs-pdf/p510.pdf
A tax of 12% of the sales price is imposed
"First retail sale" means the first sale, purpose other than resale or leasing in a long-term lease, after manufacture, production, or importation.page 35
Exported vehicle. A vehicle exported be-fore its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation.
and see after that...
Use treated as sale. If any person uses a taxable article before the first retail sale of the article, that person is liable tax as if the article had been sold at retail by that person.
Exported vehicle is vehicle that was exported from the US to a foreign country.
So far when you start using the truck - that is treated as the sale purposes - and unfortunately - FET liability arises based on that first use.

Anyone who registers a heavy highway motor vehicle with a taxable gross weight of 55,000 pounds or more must file Form 2290 Heavy Highway Vehicle Use Tax Return.

Your filing deadline is not tied to your vehicle registration date. Regardless of your vehicle’s registration renewal date, file Form 2290 by the last day of the month following the month in which the vehicle was first used on a public highway during the taxable period.