[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: 26CFR48.4221-6]

[Page 177-178]
 
                       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 N_Exemptions, Registration, Etc.
 
Sec. 48.4221-6  Tax-free sales of articles to nonprofit educational 
organizations.

    (a) In general. An article (excluding an automobile subject to tax 
under section 4064) subject to tax under Chapter 32 of the Code may be 
sold tax free by the manufacturer, pursuant to section 4221(a)(5) and 
this section, to a nonprofit educational organization for its exclusive 
use. See paragraph (b) of this section for the meaning of the term

[[Page 178]]

``nonprofit educational organization''. An article may be sold tax free 
by the manufacturer under this paragraph only in those cases where the 
sale of an article by the manufacturer is made directly to a nonprofit 
educational organization for its exclusive use. Accordingly, no sale may 
be made tax free to a dealer for resale to a nonprofit educational 
organization for its exclusive use even though it is known at the time 
of sale by the manufacturer that the article will be so resold. See 
section 6416(b)(2)(D), and paragraph (b)(4) of Sec. 48.6416(b)-2, for 
the circumstances under which credit or refund of tax is available where 
tax-paid articles are sold for the exclusive use of a nonprofit 
educational organization.
    (b) Nonprofit educational organization. The term ``nonprofit 
educational organization'' means an organization described in section 
170(b)(1)(A)(ii) that is exempt from income tax under section 501(a). 
Section 170(b)(1)(A)(ii) describes an ``educational organization'' as 
one that normally maintains a regular faculty and curriculum and 
normally has a regularly enrolled body of pupils or students in 
attendance at the place where its educational activities are regularly 
carried on. The term also includes a school operated as an activity of 
an organization described in section 501(c)(3) which is exempt from 
income tax under section 501(a), provided the primary function of such 
school is the presentation of formal instruction and provided such 
school normally maintains a regular faculty and curriculum and normally 
has a regularly enrolled body of pupils or students in attendance at the 
place where its educational activities are regularly carried on.
    (c) Evidence required in support of tax-free sales to nonprofit 
educational organizations. Every nonprofit educational organization 
purchasing tax free under section 4221(a)(5) must furnish the following 
information to the seller:
    (1) The exempt purpose for which the article or articles are being 
purchased, and
    (2) Its registration number, and the district director's office that 
issued the registration number.

Such information must be in writing and may be noted on the purchase 
order or other document furnished by the purchaser to the seller in 
connection with each sale ``except that a single notification containing 
the information described in this paragraph may cover all sales by the 
seller to the purchaser made during a designated period not to exceed 12 
successive calendar quarters.''. See paragraph (c) of Sec. 48.4221-1 
for the evidence required to establish exemption.

[T.D. 7536, 43 FR 13522, Mar. 31, 1978, as amended by T.D. 7686, 45 FR 
17574, Mar. 19, 1980; T.D. 8036, 50 FR 29963, July 23, 1985]