Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • MID YEAR REPORT
    • TIRE MAKERS
    • HUMANITARIAN
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • ADVERTISE
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
September 15, 2014 02:00 AM

TIA fights IRS casing tax reg

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON—The Tire Industry Association (TIA) has helped rectify a misinterpretation by the Internal Revenue Service of a tax regulation involving tire casings imported into the U.S. for retreading.

    Earlier this year, the IRS sent out 10 field agents to crack down on retreaders who, the agency alleged, were not paying the required federal excise tax (FET) on those casings.

    Within two weeks of the IRS action, five TIA members contacted the association's office in Bowie, Md., because the IRS was threatening them with heavy fines and tax bills, according to the association's “Legislative Update.”

    “The confusion resulted from an interpretation of a revenue ruling that spelled out that imported casings suitable for road use should be taxed,” according to the article written by Roy Littlefield, ITA executive vice president.

    “They interpreted that a retreaded tire was suitable for road use and was therefore subject to the new FET because it had not been previously taxed,” Mr. Littlefield wrote. “The association had worked on a revenue ruling that clearly stated that an imported casing not suitable for use would be considered raw material to be used in the retread process and would not be subject to the FET.”

    TIA contacted the IRS and presented a long history of rules, regulations and revenue rulings that demonstrated the agency's interpretation of the imported casings rule was erroneous, according to Mr. Littlefield. On May 19, the IRS confirmed to TIA that it had reversed its interpretation and would not seek payment of FETs on those casings, he said.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Goodyear tabs distributors for Australia, New Zealand
    2
    Goodyear to cut jobs, divest Asia-Pacific locations
    3
    Tire Business ranks the Top 75 Tire Makers of 2023
    4
    Goodyear adds DuraTrac RT to Wrangler LT tire lineup
    5
    Key issues of UAW strike on Ford, GM and Stellantis
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • MID YEAR REPORT
      • TIRE MAKERS
      • HUMANITARIAN
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • ADVERTISE
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION