§ 6416. Certain taxes on sales and services
(a)
Condition to allowance
(1)
General rule
No credit or refund of any overpayment of tax imposed by chapter 31 (relating to retail excise taxes), or chapter 32 (manufacturers taxes), shall be allowed or made unless the person who paid the tax establishes, under regulations prescribed by the Secretary, that he—
(A)
has not included the tax in the price of the article with respect to which it was imposed and has not collected the amount of the tax from the person who purchased such article;
(2)
Exceptions
This subsection shall not apply to—
(A)
the tax imposed by section
4041 (relating to tax on special fuels) on the use of any liquid, and
(3)
Special rule
For purposes of this subsection, in any case in which the Secretary determines that an article is not taxable, the term “ultimate purchaser” (when used in paragraph (1)(B) of this subsection) includes a wholesaler, jobber, distributor, or retailer who, on the 15th day after the date of such determination, holds such article for sale; but only if claim for credit or refund by reason of this paragraph is filed on or before the date for filing the return with respect to the taxes imposed under chapter 32 for the first period which begins more than 60 days after the date on such determination.
(4)
Registered ultimate vendor or credit card issuer to administer credits and refunds of gasoline tax
(A)
In general
For purposes of this subsection, except as provided in subparagraph (B), if an ultimate vendor purchases any gasoline on which tax imposed by section
4081 has been paid and sells such gasoline to an ultimate purchaser described in subparagraph (C) or (D) of subsection (b)(2) (and such gasoline is for a use described in such subparagraph), such ultimate vendor shall be treated as the person (and the only person) who paid such tax, but only if such ultimate vendor is registered under section
4101.
(B)
Credit card issuer
For purposes of this subsection, if the purchase of gasoline described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, paragraph (1) shall not apply and the person extending the credit to the ultimate purchaser shall be treated as the person (and the only person) who paid the tax, but only if such person—
(iii)
has so established that such person—
(II)
has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or
(III)
has otherwise made arrangements which directly or indirectly provides the ultimate vendor with reimbursement of such tax.
If clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such credit or payment.
(C)
Timing of claims
The procedure and timing of any claim under subparagraph (A) or (B) shall be the same as for claims under section
6427
(i)(4), except that the rules of section
6427
(i)(3)(B) regarding electronic claims shall not apply unless the ultimate vendor or credit card issuer has certified to the Secretary for the most recent quarter of the taxable year that all ultimate purchasers of the vendor or credit card issuer are certified and entitled to a refund under subparagraph (C) or (D) of subsection (b)(2).
(b)
Special cases in which tax payments considered overpayments
Under regulations prescribed by the Secretary, credit or refund (without interest) shall be allowed or made in respect of the overpayments determined under the following paragraphs:
(1)
Price readjustments
(A)
In general
Except as provided in subparagraph (B) or (C), if the price of any article in respect of which a tax, based on such price, is imposed by chapter 31 or 32, is readjusted by reason of the return or repossession of the article or a covering or container, or by a bona fide discount, rebate, or allowance, including a readjustment for local advertising (but only to the extent provided in section
4216
(e)(2) and (3)), the part of the tax proportionate to the part of the price repaid or credited to the purchaser shall be deemed to be an overpayment.
(B)
Further manufacture
Subparagraph (A) shall not apply in the case of an article in respect of which tax was computed under section
4223
(b)(2); but if the price for which such article was sold is readjusted by reason of the return or repossession of the article, the part of the tax proportionate to the part of such price repaid or credited to the purchaser shall be deemed to be an overpayment.
(C)
Adjustment of tire price
No credit or refund of any tax imposed by subsection (a) or (b) of section
4071 shall be allowed or made by reason of an adjustment of a tire pursuant to a warranty or guarantee.
(2)
Specified uses and resales
The tax paid under chapter 32 (or under subsection (a) or (d) of section
4041 in respect of sales or under section
4051) in respect of any article shall be deemed to be an overpayment if such article was, by any person—
(E)
sold to a qualified blood collector organization (as defined in section
7701
(a)(49)) for such organization’s exclusive use in the collection, storage, or transportation of blood;
(F)
in the case of any tire taxable under section
4071
(a), sold to any person for use as described in section
4221
(e)(3); or
(G)
in the case of gasoline, used or sold for use in the production of special fuels referred to in section
4041.
Subparagraphs (C), (D), and (E) shall not apply in the case of any tax paid under section
4064. In the case of the tax imposed by section
4131, subparagraphs (B), (C), (D), and (E) shall not apply and subparagraph (A) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe. This paragraph shall not apply in the case of any tax imposed under section
4041
(a)(1) or
4081 on diesel fuel or kerosene and any tax paid under section
4121. Subparagraphs (C) and (D) shall not apply in the case of any tax imposed on gasoline under section
4081 if the requirements of subsection (a)(4) are not met. In the case of taxes imposed by subchapter C or D of chapter 32, subparagraph (E) shall not apply. In the case of the tax imposed by section
4191, subparagraphs (B), (C), (D), and (E) shall not apply.
(3)
Tax-paid articles used for further manufacture, etc.
If the tax imposed by chapter 32 has been paid with respect to the sale of any article (other than coal taxable under section
4121) by the manufacturer, producer, or importer thereof and such article is sold to a subsequent manufacturer or producer before being used, such tax shall be deemed to be an overpayment by such subsequent manufacturer or producer if—
(A)
in the case of any article other than any fuel taxable under section
4081, such article is used by the subsequent manufacturer or producer as material in the manufacture or production of, or as a component part of—
manufactured or produced by him; or
(B)
in the case of any fuel taxable under section
4081, such fuel is used by the subsequent manufacturer or producer, for nonfuel purposes, as a material in the manufacture or production of any other article manufactured or produced by him.
(4)
Tires
If—
(A)
the tax imposed by section
4071 has been paid with respect to the sale of any tire by the manufacturer, producer, or importer thereof, and
(B)
such tire is sold by any person on or in connection with, or with the sale of, any other article, such tax shall be deemed to be an overpayment by such person if such other article is—
(5)
Return of certain installment accounts
If—
(6)
Truck chassis, bodies, and semitrailers used for further manufacture
If—
(B)
before any other use, such article is by any person used as a component part of another article taxable under section
4051 manufactured or produced by him,
such tax shall be deemed to be an overpayment by such person. For purposes of the preceding sentence, an article shall be treated as having been used as a component part of another article if, had it not been broken or rendered useless in the manufacture or production of such other article, it would have been so used.
This subsection shall apply in respect of an article only if the exportation or use referred to in the applicable provision of this subsection occurs before any other use, or, in the case of a sale or resale, the use referred to in the applicable provision of this subsection is to occur before any other use.
(c)
Refund to exporter or shipper
Under regulations prescribed by the Secretary the amount of any tax imposed by chapter 31, or chapter 32 erroneously or illegally collected in respect of any article exported to a foreign country or shipped to a possession of the United States may be refunded to the exporter or shipper thereof, if the person who paid such tax waives his claim to such amount.
(d)
Credit on returns
Any person entitled to a refund of tax imposed by chapter 31 or 32, paid to the Secretary may, instead of filing a claim for refund, take credit therefor against taxes imposed by such chapter due on any subsequent return. The preceding sentence shall not apply to the tax imposed by section
4081 in the case of refunds described in section
4081
(e).
(e)
Accounting procedures for like articles
Under regulations prescribed by the Secretary, if any person uses or resells like articles, then for purposes of this section the manufacturer, producer, or importer of any such article may be identified, and the amount of tax paid under chapter 32 in respect of such article may be determined—
(f)
Meaning of terms
For purposes of this section, any term used in this section has the same meaning as when used in chapter 31, 32, or 33, as the case may be.