[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR41.6001-2]

[Page 25-28]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 41_EXCISE TAX ON USE OF CERTAIN HIGHWAY MOTOR VEHICLES--Table of Contents
 
Subpart C_Administrative Provisions of Special Application to Tax On Use 
                    of Certain Highway Motor Vehicles
 
Sec. 41.6001-2  Proof of payment for State registration purposes.

    (a) In general. This section sets forth the circumstances under 
which a State must require proof of payment of the tax imposed by 
section 4481(a), and the required manner in which such proof of payment 
is to be received by the State as a condition of issuing a registration 
for a highway motor vehicle. A State must either comply with the 
provisions of this section or, in the alternative, comply with such 
other rules regarding the satisfaction of this proof of payment 
requirement as may be prescribed by the Commissioner (by Revenue 
Procedure or otherwise), in order to avoid a reduction of Federal-aid 
highway funds apportioned under 23 U.S.C. 104(b)(4). The rules of this 
section apply to highway motor vehicles for which applications for 
registration are received by a State on or after October 1, 1985. For 
purposes of this section, an application for registration which is 
mailed will be considered to be received by a State on the date on which 
it is postmarked.
    (b) Proof of payment required--(1) In general. 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(a) (or proof of suspension of such tax under Sec. 41.4483-3)

[[Page 26]]

unless otherwise provided in this paragraph (b)(1), or paragraph (b)(2) 
or (5) of this section. See paragraph (c) of this section for the 
meaning of ``proof of payment''. Such proof of payment must be received 
by the State before the State issues a registration for such vehicle 
unless the State is using a system of registration provided in paragraph 
(b)(3) of this section. The term ``proof of payment'', when used in this 
section, shall be considered to refer in appropriate cases to proof of 
suspension of the tax imposed by section 4481(a). Except as provided in 
paragraph (b)(4) of this section, any proof of payment presented to a 
State must relate to tax paid (or suspended under Sec. 41.4483-3) for 
the taxable period which includes the date that the State receives the 
application for registration. A ``base state'' must be presented proof 
of payment when issuing an ``apportioned plate'' under the International 
Registration Plan (IRP) (or similar agreement) for a highway motor 
vehicle, but no proof of payment of the tax imposed by section 4481(a) 
is required to be presented to the other states for which the vehicle is 
proportionally registered and which are listed on the IRP cab card 
issued by the base state. Further, a State is not required to receive 
proof of payment in order to issue special temporary travel permits 
which 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. Further, a State may register a highway motor vehicle without 
proof of payment if the person registering the vehicle presents the 
original or a photocopy of a bill of sale (or other document evidencing 
transfer) indicating that the vehicle was purchased by the owner either 
as a new or used vehicle during the preceding 60 days before the date 
that the State receives the application for registration of such 
vehicle.
    (2) States required to receive proof of payment with respect to 
vehicles subject to tax--(i) Registration in States that register 
vehicles on the basis of gross weight. A State that registers vehicles 
on the basis of gross weight must require proof of payment with respect 
to any highway motor vehicle that has a declared gross weight in that 
State of 55,000 pounds or more. If no declaration of a specific gross 
weight is made with respect to a highway motor vehicle registered on the 
basis of gross weight, then the State must require proof of payment with 
respect to such vehicle if the minimum weight of the registered weight 
category for such vehicle is 55,000 pounds or more. No such proof of 
payment is required for any vehicle that does not have a declared gross 
weight in that State of 55,000 pounds or more.
    (ii) Registration in States that register vehicles other than on the 
basis of gross weight. A State that registers vehicles other than on the 
basis of gross weight must require proof of payment in order to register 
a highway motor vehicle unless the State receives a written statement 
stating that during the taxable period which includes the date on which 
the State receives the application for registration, such vehicle had a 
taxable gross weight of less than 55,000 pounds. The written statement 
must state the number of vehicles being registered that have a taxable 
gross weight of less than 55,000 pounds and must be signed by the person 
registering the vehicles. A State may register a highway motor vehicle 
without receiving either proof of payment or a written statement as 
described above if such vehicle has an unladen weight of 8,000 pounds or 
less. However, the State must require proof of payment when issuing a 
``base plate'' registration for a vehicle if a gross weight declaration 
of 55,000 pounds or more is made to the State with respect to such 
vehicle in order to proportionally register the vehicle in another State 
under the IRP.
    (iii) State may require additional proof. Nothing contained in this 
section shall prohibit a State from refusing to register a highway motor 
vehicle without additional proof that the vehicle is not subject to tax 
under section 4481(a) even though the person registering the vehicle 
submits a written statement declaring that the taxable gross weight of 
such vehicle is less than 55,000 pounds.

[[Page 27]]

    (3) Suspension registration system. A State may issue a registration 
with respect to any or all highway motor vehicles subject to tax under 
section 4481(a) without receiving proof of payment if such vehicles are 
registered under a ``suspension'' registration system. Registration of a 
vehicle subject to tax under a suspension system must be on the 
condition that, (i) the State receive proof of payment with respect to 
such vehicle no later than 4 months (or any lesser time to be determined 
by the State) after the beginning of the vehicle's registration period, 
and (ii) the State's system provides for the automatic suspension (e.g. 
through the use of computer-generated notices) of such vehicle's 
registration if no proof of payment is received within the required 
time. Following such a suspension of registration, the State must not 
allow the vehicle to be registered until valid proof of payment is 
received. A State may either register all vehicles subject to tax under 
section 4481(a) in the manner described in this paragraph (b)(3) or 
adopt this manner of registration only in situations which the State 
deems appropriate. A State that registers vehicles other than on the 
basis of gross weight may also register vehicles not subject to tax 
under a suspension registration system for purposes of receiving the 
written statement described in paragraph (b)(2)(ii).
    (4) Registration during certain months. In the case of a highway 
motor vehicle subject to tax under section 4481(a) for which a State 
receives an application for registration during the months of July, 
August or September, proof of payment for the immediately preceding 
taxable period may be used to verify payment of the tax imposed by 
section 4481(a).
    (5) Registration in a State several times during the taxable period. 
A State is required to receive proof of payment with respect to a 
highway motor vehicle subject to tax under section 4481(a) only once 
during a taxable period. Thus, in the case of a State that allows a 
highway motor vehicle to be registered on a quarterly basis, rather than 
annually, proof of payment will be required to be presented to the State 
only once during the taxable period. The State may designate any one of 
the four quarterly registration periods as the time for submitting proof 
of payment.
    (6) Proof of payment records. See 23 CFR Part 669 for a description 
of the supporting documentation and records that will be required by the 
Federal Highway Administration (FHWA) in order to allow the FHWA to 
verify that the State is in compliance with the rules of this section.
    (c) Proof of payment--(1) In general. (i) The proof of payment 
required in paragraph (b) of this section shall consist of a receipted 
Schedule 1 (Form 2290) that is returned by the Internal Revenue Service 
to a taxpayer who files a return of tax under section 4481(a) and pays 
the amount of tax (or installment thereof) due with such return. A 
photocopy of such receipted Schedule 1 shall also serve as proof of 
payment. Such Schedule 1 shall serve as proof of suspension of such tax 
under Sec. 41.4483-3 for the number of vehicles entered in that part of 
the Schedule 1 designated for vehicles for which tax has been suspended. 
Except as provided in paragraph (c)(1)(ii) of this section, the vehicle 
identification number of the vehicle being registered must appear on the 
Schedule 1 (or an attached page) in order for the Schedule 1 to be a 
valid proof of payment for such vehicle.
    (ii) With respect to taxable periods beginning before July 1, 2000, 
if a receipted Schedule 1 is submitted as proof of payment for the 
registration of one or more highway motor vehicles and--
    (A)(1) The total of the number of vehicles on such Schedule 1 for 
which tax has not been suspended under Sec. 41.4483-3 exceeds 21, or
    (2) The total of the number of vehicles on such Schedule 1 for which 
tax has been suspended under Sec. 41.4483-3 exceeds 9, and
    (B) The name of the taxpayer appearing on such Schedule 1 is one of 
the names in which such vehicles are sought to be registered,

such Schedule 1 shall be accepted as proof of payment in support of the 
registration of a number of vehicles equal to or less than such total 
and a list of the vehicles (or their vehicle identification numbers) is 
not required as part of such proof of payment.

[[Page 28]]

    (iii) With respect to taxable periods beginning before July 1, 2000, 
if a Schedule 1 which does not include a list of vehicle identification 
numbers is submitted as proof of payment for the registration of one or 
more highway motor vehicles and the name of the taxpayer appearing on 
such Schedule 1 is not one of the names in which such vehicles are 
sought to be registered then such Schedule 1 shall be accepted as proof 
of payment in support of the registration of a number of vehicles equal 
to or less than the total number of vehicles on such Schedule 1 provided 
the Schedule 1 is accompanied by a written statement executed by the 
taxpayer. Such written statement shall contain the vehicle 
identification numbers of the vehicles sought to be registered and a 
statement that the tax under section 4481(a) has been paid with respect 
to such vehicles for the taxable period. The statement must be signed by 
the taxpayer whose name appears on the Schedule 1.
    (2) Acceptable substitute for receipted Schedule 1. For purposes of 
this section, a State shall accept as proof of payment a photocopy of 
the Form 2290 (with the Schedule 1 attached) which was filed with the 
Internal Revenue Service for the vehicle being registered with 
sufficient documentation of payment of tax due at the time the Form 2290 
was filed (such as a photocopy of both sides of a cancelled check). This 
substitute proof of payment may be used to register a vehicle when, for 
example, the receipted Schedule 1 has been lost, or when at the time 
required for registration of a vehicle, a receipted Schedule 1 has not 
been received by a taxpayer who has filed a Form 2290 with respect to 
such vehicle. The rules of paragraph (c)(1)(ii) of this section 
regarding the circumstances in which a list of vehicle identification 
numbers is not required as part of a valid proof of payment, apply to a 
non-receipted Schedule 1 received by a State with a Form 2290 as a 
substitute proof of payment under this paragraph (c)(2).
    (d) Examples. The application of this section may be illustrated by 
the following examples:

    Example (1). A applies to register a 3-axle single unit truck in 
State R, a member of the International Registration Plan, on November 1, 
1985. State R registers vehicles based on unladen weight. At the same 
time, A applies for a proportional registration under the IRP to use the 
truck in State S. State S does not register vehicles on the basis of 
unladen weight. For purposes of the proportional registration in State 
S, A declares the gross weight of his truck at 50,000 pounds. A does not 
register the truck in any other states. A's truck has a taxable gross 
weight, as determined under Sec. 41.4482(b)-1, of less than 55,000 
pounds and therefore is not subject to tax under section 4481(a). A 
submits a written statement along with his application for registration 
in State R. The written statement states that A's vehicle has a taxable 
gross weight of less than 55,000 pounds and is signed by A. State R may 
register A's truck and issue a proportional registration for A to use 
his truck in State S without receiving proof of payment.
    Example (2). Assume the same facts as in example (1) except that A 
applies for proportional registration under the IRP in State S and 
declares the truck to have a gross weight of 60,000 pounds. The taxable 
gross weight of A's truck, as determined under Sec. 41.4482(b)-1 is 
60,000 pounds. State R may not register A's truck unless it receives 
proof of payment within the meaning of paragraph (c) of this section.
    Example (3). On October 10, 1985, C applies to register 9 vehicles 
in State U and declares the gross weight of each vehicle to be 70,000 
pounds. C has not applied for registration in any other states. At the 
time of applying for registration, C presents a photocopy of a receipted 
Schedule 1 (Form 2290) that shows a total of 9 vehicles which are 
subject to tax under section 4481(a) and for which tax is not suspended 
under Sec. 41.4483-3(a). The vehicle identification numbers of the 
vehicles that C is seeking to register must be listed on the Schedule 1 
in order for State U to register the vehicles.


[T.D. 8027, 50 FR 21251, May 23, 1985, as amended by T.D. 8879, 65 FR 
17154, Mar. 31, 2000]