Rev. Proc. 82-17

SECTION 1. PURPOSE

The purpose of this revenue procedure is to amplify Rev. Proc. 80-19, 1980-1 C.B. 628, which specifies the method that tire manufacturers, producers, and importers must use if they want to determine tire and inner tube weights on an average-weight basis for the purpose of computing the manufacturers excise tax imposed by section 4071(a) of the Internal Revenue Code.

SEC. 2. BACKGROUND

.01 Section 4071 of the Code imposes an excise tax on the sale by the manufacturer, producer or importer of tires and inner tubes, computed on their total weight.

.02 Section 48.4071-2(b) of the Manufactures and Retailers Excise Tax Regulations provides that a manufacturer, producer, or importer who has received permission from the Commissioner, subject to the conditions prescribed by the Commissioner, may determine total weight of tires and inner tubes on the basis of the average weight of each type, size, grade, and classification shown in schedules published by the tire industry.

.03 Section 48.4071-2(b) of the regulations does not set forth a specific method for computing average weight. Rev. Proc. 80-19 prescribes the conditions under which manufacturers, producers, and importers may use the industry schedule of average weights. It also prescribes the method by which the industry schedule is compiled.

.04 Rev. Proc. 80-19 requires manufacturers, producers and importers who received permission to use the industry schedule to submit annually to the industry group specification weights and production figures for the preceding fiscal year (as defined in the revenue procedure). The revenue procedure further requires verification of the specification weights during the current fiscal year by the taking of a ten-tire sample.

.05 It has come to the attention of the Service that manufacturers, producers, and importers are able to provide adequate verification of specification weights by methods other than the ten-tire sample prescribed in Rev. Proc. 80-19.

SEC. 3. APPLICATION

.01 Manufacturers, producers, and importers who determine their manufacturers excise tax liability for tires and tubes on the basis of average weight under the provisions of Rev. Proc. 80-19 may apply to the Service for permission to verify specification weights by a method other than the specific method (ten-tire sample) prescribed in Rev. Proc. 80-19.

.02 This application must be in the form of a request for a ruling, following the procedures described in Rev. Proc. 80-20, 1980-1 C.B. 633, as modified, clarified, and amplified by Rev. Proc. 81-33, 1981-2 C.B. 564.

.03 Upon approval, the manufacturer, producer or importer must submit a copy of the ruling to the industry group.

SEC. 4. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 80-19 is amplified.

SEC. 5. EFFECTIVE DATE

This revenue procedure is effective June 23, 1980, publication date of Rev. Proc. 80-19.