[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: 26CFR41.6156-1] [Page 30-31] 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. 41.6156-1 Installment payments of tax on use of highway motor vehicle. (a) Privilege to pay tax in installments. Except as provided in paragraph (f) of this section, the liability shown on [[Page 31]] each return on Form 2290 may be paid in equal installments, rather than by a single payment if the return is timely filed and the person filing the return elects in the return, in accordance with the instructions contained therein, to pay the tax in installments. For the tax liabilities of the parties to a transfer, where a vehicle has been transferred during the taxable period and there has been an election to pay tax in installments, see Sec. 41.4481-2. (b) Dates for paying installments. In the case of any tax payable in installments by reason of the election described in paragraph (a) of this section, the installments must be paid in accordance with the following table: ---------------------------------------------------------------------------------------------------------------- 1st install-ment 4th install-ment If the liability was incurred is due on or 2d install-ment is 3d install-ment is is due on or in-- before the last due on or before due on or before before the last day of-- the last day of-- the last day of-- day of-- ---------------------------------------------------------------------------------------------------------------- July............................ Aug............... Dec............... Mar............... June Aug............................. Sept.............. ......do.......... ......do.......... Do. Sept............................ Oct............... ......do.......... ......do.......... Do. Oct............................. Nov............... Mar............... June.............. Nov............................. Dec............... ......do.......... ......do.......... Dec............................. Jan............... ......do.......... ......do.......... Jan............................. Feb............... June.............. Feb............................. Mar............... ......do.......... Mar............................. Apr............... ......do.......... ---------------------------------------------------------------------------------------------------------------- (c) Proration of additional tax to installments. If an election has been made under paragraph (a) of this section to pay the tax imposed by section 4481 in installments, and additional tax is assessed on a return for such tax before the date prescribed for payment of the last installment, the additional tax shall be prorated equally to all the installments, whether paid or unpaid. That part of the additional tax so prorated to any installment which is not yet due shall be collected at the same time and as part of such installment. The part of the additional tax so prorated to any installment, the date for payment of which has arrived, shall be paid upon notice and demand from the district director. (d) Acceleration of payment. If any person elects under the provisions of this section to pay the tax in installments, any installment may be paid prior to the date prescribed for its payment. If an installment is not paid in full on or before the date fixed for its payment, the whole amount of the unpaid tax shall be paid upon notice and demand from the district director. (e) Interest in respect of installment payments. Interest on an underpayment of an installment accrues from the due date for the installment. Where the installment privilege has been terminated and the time for payment of remaining installments has been accelerated by the issuance of a notice and demand, interest on these installments accrues from the date of such notice and demand. Interest on additional tax prorated as described in paragraph (c) of this section accrues from the date prescribed for the payment of the first installment. For provisions generally applicable to interest on delinquent taxes and installment payments, see section 6601 and Sec. 301.6601-1 of this chapter (Regulations on Procedure and Administration). (f) Liabilities to which election does not apply. The privilege to pay tax in installments provided by section 6156, shall not apply to any liability for tax incurred in (1) Any taxable period ending prior to July 1, 1961, and (2) April, May, or June of any taxable period one year in length, or (3) July, August, or September of a taxable period less than one year in length. (g) Cross references. For provisions relating to overpayment of installments, see Sec. 301.6403-1 of this chapter (Regulations on Procedure and Administration). [T.D. 7409, 41 FR 9877, Mar. 8, 1976, as amended by T.D. 7505, 42 FR 42856, Aug. 25, 1977]