EFFECT ON OTHER DOCUMENTS Rev. Rul. 70-376 is amplified by providing that the trust can acquire qualifying replacement property under section 1033 of the Code. DRAFTING INFORMATION The principal author of this revenue ruling is Karl T. Walli of the Office of Assistant Chief Counsel, Financial Institutions and Products. For further information regarding this revenue ruling contact Mr. Walli on (202) 566-3297 (not a toll-free call). Section 4481.-Imposition of Tax 26 CFR 41.4481-1: Imposition of tax. What is the maximum aggregate period that may be covered by "special temporary travel permits," as that term is used in section 41.4482(b)-1(e)(1) and 41.6001-2(b)(1) of the Highway Motor Vehicle Use Tax Regulations. See Rev. Rul. 88-104, below. Section 4482.-Definitions 26 CFR 41.4482(b)-1: Definition of taxable gross weight. (Also Sections 4481, 6001, 7805; 41.4481-1, 41.6001-2, 301.7805-1.) with the semitrailers and trailers cus- Section 4481(c)(1) of the Code pro- Section 4482(b) of the Code provides that the term "taxable gross weight" means the sum of the actual unloaded weight of a highway motor vehicle fully equipped for service, and the semitrailers and trailers (fully equipped for service) customarily used in connection with highway motor vehicles of the same type as such highway vehicle, plus the weight of the maximum load customarily carried on highway motor vehicles of the same type and on such semitrailers and trailers. Section 41.4481-1(c)(3) of the regulations provides that if a Form 2290, Heavy Vehicle Use Tax Return, has been filed for a taxable period for a highway motor vehicle based on a particular taxable gross weight, and such taxable gross weight increases during the same taxable period, then the taxpayer must file a new Form 2290 and pay (either in full or by installments) any additional tax imposed as a result of the increased taxable gross weight. The regulation further provides that such additional tax shall be calculated based on the number of months state in which the vehicle is not registered or prorated, (ii) operate at more than a state's maximum statutory weight limit, or (iii) operate at more than the weight that the vehicle is registered in a state, shall not be considered in determining the taxable gross weight of a vehicle. Example (2) of section 41.4482(b)1(f) of the regulations illustrates that a special temporary travel permit includes a special 2-day permit issued once during the taxable period to permit a highway motor vehicle operator to haul a weight in excess of the vehicle's registered weight. Section 41.6001-2(b)(1) of the regulations provides that a state to which an application is made to register a highway motor vehicle must receive from the registrant proof of payment of the tax imposed by section 4481 of the Code (or proof of suspension of such tax) unless otherwise provided in section 41.60012(b). That section further provides that a state is not required to receive proof of payment in order to issue special temporary travel permits that allow a vehicle to (i) operate in a state in which the vehicle is not registered (including proportional or prorate registration), (ii) operate at more than the state's maximum statutory weight limit, or (iii) operate at more than the weight that the vehicle is registered in a state. Highway use tax; special temporary travel permits. The term "special temporary travel permits" for purposes of sections 41.4482(b)-1(e)(1) and 41.6001-2(b)(1) of the regulations, does not include permits issued by a state for a particular vehicle that cover an aggregate period exceeding either 60 days during the motor vehicles 1-year taxable period beginning July 1 or, if such permits are issued on a monthly basis, 2 months during such 1-year taxable remaining in the taxable period including ning after September 30, 1984, during period. Rev. Rul. 88-104 ISSUE What is the maximum aggregate period that may be covered by "special temporary travel permits," as that term is used in sections 41.4482(b)-1(e)(1) and 41.6001-2(b)(1) of the Highway Motor Vehicle Use Tax Regulations? LAW AND ANALYSIS Section 4481(a) of the Internal Revenue Code imposes a tax on the use of any highway motor vehicle that (together the month in which the vehicle's taxable Section 41.4482(b)-1(e)(1) of the reg- Pursuant to 23 U.S.C. section 141(d) (Supp. IV 1986), the Secretary of Transportation is required to reduce a state's share of federal-aid highway funds apportioned under 23 U.S.C. section 104(b)(5) (1982 & Supp. III 1985) in an amount up to 25 percent of the amount to be apportioned in any fiscal year begin which heavy vehicles that are subject to the use tax imposed by section 4481 of the Internal Revenue Code may be lawfully registered in the state without having presented proof of payment of the tax. A "special temporary travel permit" for purposes of sections 41.4482(b)1(e)(1) and 41.6001-2(b)(1) of the regulations is one that is valid for a relatively short time period to allow a highway motor vehicle to operate in excess of the vehicle's registered weight or without complying with other specifications of state law in non-routine and non-recurring circumstances. See Example (2) in section 41.4482(b)-1(f) of the Part III. Administrative, Procedural, and Miscellaneous 26 CFR 601.602: Tax forms and instructions. Rev. Proc. 88-55 SECTION 1. PURPOSE The purpose of this Revenue Proce- 1) To state the requirements of the 2) To state requirements for tax pre- SECTION 2. OFFICE OF .01 Legal Requirements of the Paper- .02 Approval Number and Date Is .03 Format Required. (2 options) OMB # XXXX-XXXX (b) OMB No. XXXX-XXXX OR OMB # XXXX-XXXX .04 Required Explanation to Users of Substitute Forms. You must inform the the official form (usually in the lower Instructions". these are line numbers, captions, instruc- etc. 4 Printed (or Preprinted) Form - A 5 Preprinted Pin-Fed Form - A sub- SECTION 4. PRIVATE PRINTERS .01 Ordering Reproduction Proofs. 1 The Service provides for the public to: Internal Revenue Service Attn: Reproduction Proof Coordinator, 1111 Constitution Ave, NW 2 A charge of $1.00 per page will be .02 Privately Printed Forms 1040ES 1 A clear band of 0.5 inch is required 2 Must be on chemical wood writing prohibited from use on Forms 1040ES filed with the Service. 3 The color of ink must be black. 4 The overall size of the form in width may range from 74 - 81⁄2 inches. The height of the form may range from 3 3/3 inches. 5 Must have a high standard of legibility, both as to original form and as to fill in matter. The Service may reject reproductions with poor legibility. 6 The basic specification such as margins etc., will be printed in the top margin of the reproduction proof and must be removed before printing. The official reproduction proof margins across the top, bottom and sides must be maintained on all reproductions. The repro duced form must be an exact facsimile of the official form and meet the requirements as set forth in this revenue procedure to be considered an unchanged reproduction. (This type of reproduction needs no approval.) 7 All lines and numbers which appear on the official form must also appear on the substitute form. 8 The Service does not approve or disapprove the specific equipment or process used in reproducing substitute forms but requires only that the reproduced forms satisfy the conditions stated in this revenue procedure. 9 Substitute forms which do not meet the requirements of this revenue procedure may not be filed in lieu of the official form. SECTION. 5. COMPUTERGENERATED FORMS 1040ES .01 Form 1040ES may be computer generated; the entire form may be printed by computer on blank paper if all specifications in this revenue procedure are met. The generated form must have vertical spacing of six lines per inch and horizontal spacing of 10 characters per inch. It is requested that a scan area be included on the form. .02 Margins - A one-quarter inch margin must be maintained across the top and both sides (exclusive of any pin-feed holes) on all computer generated substitutes. The margin allows for slight printing misalignment when forms are prepared on high-speed equipment. .03 Tax preparers who are computer generating Form 1040ES should enter the scan line data as specified in Section 6. .04 Format Arrangement - The format of each substitute form must follow the format of the official form as to item captions, line references, line numbers, form arrangement and format etc. Basically try to make the form look like the official one with readability being a primary factor. All line numbers and items must be printed even though an amount is not entered on the line. SECTION 6. SPECIAL OPTICAL CHARACTER RECOGNITION (OCR) SCANLINE REQUIREMENTS .01 It is requested that tax preparers provide the required information so the Service can capture posting data from the scanline using Optical Character Recognition technology. This can be accomplished by using laser print or any other technology that can provide the same product. You may choose to use a typewriter having OCR Font A or B with a mylar ribbon if laser print is not available. 1 Position of scanline Scanline data should be positioned so that the last character in the scan line ends 31⁄2 inches from right edge of form. 2 Type of Font OCR-A or OCR-B .02 Scanline and Character Position. 1 Vertical Character Displacement Characters should not fall more than 0.060 inches above or below the baseline of the scan line. 2 Horizontal Character Displacement The minimum acceptable clear space between characters is 0.014. 3 Vertical Line Separation - The line to be scanned should occupy the center of a clear band 0.5 inches in height. 4 Line Skew - Characters in the scan line must not run out of the Optical Reader's field of view. Over an 8.5 inch line of print, the line should not be skewed more than 1.4 degrees. 5 Rotation - The maximum allowable rotation of the character image is +1.5 degree measured relative to the baseline of the line of print. .03 Form 1040ES Scanline Description (Sample) SECTION 7. APPROVAL .01 Any person making changes or desires to file substitute Form 1040ES, must develop such substitute using guidelines in this revenue procedure and they should be approved by the Service Proposed substitutes should be sent to before being filed. .02 Determination of such requests will be made after the Service's copy is finalized, usually in mid-October. the address below as much in advance of the filing period for the form as possible. This is to permit adequate time for analysis and response. Please provide your substitute form after you have examined the official form. Include how the form will be prepared and the weight of the paper used in printing the form. Internal Revenue Service Attn: Substitute Forms Program Coor- .03 Your request should state if you are requesting approval for the design of the form, placement/readability of the scanline, or for both of the aforementioned. .04 If approval for placement/readability of the scanline is requested, please submit fifty (50) completed Forms 1040ES which will be tested through a remittance processing system. (NOTE: The fifty documents can consist of five (5) different entities.) .05 If we approve the placement/readability of your substitute form, an approval number will be assigned. This number should be printed or typewritten in the area of the bottom left margin. This approval number on Form 1040ES will indicate to the Service that the form has been approved for processing through an Optical Character Recognition/Remittance Processing System. .06 The Service sends a formal letter of approval/disapproval. Disapproval letters will specify the changes required for approval and will also require resubmission for approval. Telephone contact will be used to clarify a request. .07 Approval is good for only one tax year. (April through January) SECTION 8. USE OF THE EDITION WHICH IS MAILED TO THE TAXPAYER .01 The edition of Form 1040ES which is mailed to the taxpayer has the scan line already entered. This package also includes four envelopes each coded to identify the contents. The preparer is asked to use the edition sent to the taxpayer. The preparer is also asked to instruct the taxpayers to use the envelopes, received with their package, in sending their voucher and payment to the Service. Any privately provided envelopes must contain the caption "Form 1040ES" on left center of envelope face. The envelope size must be 35% × 82 inches. .02 Beginning April 1, 1989, Form 1040ES will be processed Nationwide via lockbox at a commercial facility. See exhibit 4 for a listing of Service Centers and their respective lockbox site. SECTION 9. AGREEMENT Any person who uses substitute forms and makes all or part of the changes specified in this revenue procedure agrees to the following stipulation: The Service presumes the changes are made in accordance with these procedures and, as such, will be noninterruptive to the processing of the tax return. Should any of the changes prove to be not exactly as described, and as a result become disruptive to the Service during processing of the tax return, the preparer agrees to accept the determination of the Service as to whether or not the form may continue to be used during the filing season, and also agrees to work with the Service in correcting noted deficiencies. Notification of deficiencies may be made by letter, phone call or both. SECTION 10. EFFECT ON OTHER DOCUMENTS This revenue procedure supersedes Revenue Procedure 87-38, 1987-2 C.B.503. SECTION 11. EXHIBITS SECTION This Revenue Procedure may change from year to year as new technology is developed. |