[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.6416(b)(5)-1]

[Page 213-214]
 
                       TITLE 26--INTERNAL REVENUE
 
                  CHAPTER I--INTERNAL REVENUE SERVICE,
                       DEPARTMENT OF THE TREASURY
                               (Continued)
 
PART 48--MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
   Subpart O--Refunds and Other Administrative Provisions of Special 
            Application to Retailers and Manufacturers Taxes
 
Sec. 48.6416(b)(5)-1  Return of installment accounts causing overpayments of tax.

    (a) In general. In the case of any payment of tax under section 
4216(d)(1) in respect of the sale of any installment account that is 
determined to be an overpayment under section 6416(b)(5) and paragraph 
(b) of this section upon return of the installment account, the person 
who paid the tax may file a claim for refund of the overpayment or may 
claim credit for the overpayment on any return of tax under this subpart 
which that person subsequently files. No interest shall be paid on any 
credit or refund allowed under this section. For provisions relating to 
the evidence required in support of a claim for credit or refund under 
this section, see Sec. 301.6402-2 of this chapter (Regulations on 
Procedure and Administration) and paragraph (c) of this section. For 
provisions authorizing the taking of a credit in lieu of filing a claim 
for refund, see section 6416(d) and Sec. 48.6416(f)-1.
    (b) Overpayment of tax allocable to repaid consideration. The 
payment of tax imposed by section 4216(d)(1) on the sale of an 
installment account by the manufacturer will be considered to be an 
overpayment under section 6416(b)(5) to the extent of the tax allocable 
to any consideration repaid or credited to the purchaser of the 
installment account upon the return of the account to the manufacturer 
pursuant to the agreement under which the account originally was sold, 
if the readjustment of the consideration occurs pursuant to the 
provisions of the agreement. The tax allocable to the repaid or credited 
consideration is the amount which bears the same ratio to the total tax 
paid under section 4216(d)(1) with respect to the installment account as 
the amount of consideration repaid or credited to the purchaser bears to 
the total consideration for which the account was sold. This paragraph 
(b) does not apply where an installment account is originally sold 
pursuant to the order of, or subject to the approval of,

[[Page 214]]

a court of competent jurisdiction in a bankruptcy or insolvency 
proceeding.
    (c) Evidence to be submitted by claimant. No claim for credit of 
refund of an overpayment, within the meaning of section 6416(b)(5) and 
paragraph (b) of this section, of tax under section 4216(d)(1) shall be 
allowed unless the person who paid the tax submits with the claim a 
statement supported by sufficient available evidence, indicating--
    (1) The name and address of the person to whom the installment 
account was sold,
    (2) The amount of tax due under section 4216(d)(1) by reason of the 
sale of the installment account, the amount of the tax paid under 
section 4216(d)(1) with respect to the sale, and the date of payment,
    (3) The amount for which the installment account was sold,
    (4) The amount which was repaid or credited to the purchaser of the 
account by reason of the return of the account to the person claiming 
the credit or refund, and
    (5)(i) The fact that the amount repaid or credited to the purchaser 
of the account was so repaid or credited pursuant to the agreement under 
which the account was sold, and
    (ii) The fact that the account was returned to the manufacturer 
pursuant to that agreement.

[T.D. 8043, 50 FR 32033, Aug. 8, 1985]