Treasury Regulations (26 C.F.R.)
26 CFR § 48.6416(b)(1)-3
Readjustment for local advertising charges.
# (a) In general.
If a manufacturer has paid the tax imposed by chapter 32 on the price of any article sold by the manufacturer and thereafter has repaid a portion of the price to the purchaser or any subsequent vendee in reimbursement of expenses for local advertising of the article or any other article sold by the manufacturer which is taxable at the same rate under the same section of chapter 32, the reimbursement will be considered a price readjustment constituting an overpayment which the manufacturer may claim as a credit or refund. The amount of the reimbursement may not, however, exceed the limitation provided by section 4216(e)(2) and § 48.4216(e)-2, determined as of the close of the calendar quarter in which the reimbursement is made or as of the close of any subsequent calendar quarter of the same calendar year in which it is made. The term “local advertising”, as used in this section, has the same meaning as prescribed by section 4216(e)(4) and includes generally, advertising which is broadcast over a radio station or television station, or appears in a newspaper or magazine, or is displayed by means of an outdoor advertising sign or poster.
# (b)
Local advertising charges excluded from taxable price in one year but repaid in following year—(1) Determination of price readjustments for year in which charge is repaid. If the tax imposed by chapter 32 was paid with respect to local advertising charges that were excluded in computing the taxable price of an article sold in any calendar year but are not repaid to the manufacturer's purchaser or any subsequent vendee before May 1 of the following calendar year, the subsequent repayment of those charges by the manufacturer in reimbursement of expenses for local advertising will be considered a price readjustment constituting an overpayment which the manufacturer may claim as a credit or refund. The amount of the reimbursement may not, however, exceed the limitation provided by section 4216(e)(2) and § 48.4216(e)-(2), determined as of the close of the calendar quarter in which the reimbursement is made or as of the close of any subsequent calendar quarter of the same calendar year in which it is made.
(2) Redetermination of price readjustments for year in which charge was made. If the tax imposed by chapter 32 was paid with respect to local advertising charges that were excluded in computing the taxable price of an article sold in any calendar year but are not repaid to the manufacturer's purchaser or any subsequent vendor before May 1 of the following calendar year, the manufacturer may make a redetermination, in respect of the calendar year in which the charge was made, of the price readjustments constituting an overpayment which the manufacturer may claim as a credit or refund. This redetermination may be made by excluding the local advertising charges made in the calendar year that became taxable as of May 1 of the following calendar year.
[T.D. 8043, 50 FR 32026, Aug. 8, 1985]
Source: view the official text
In this part (40 sections)
- 48.4221-3 · Tax-free sale of articles for export, or for resale by the…
- 48.4221-4 · Tax-free sale of articles for use by the purchaser as…
- 48.4221-5 · Tax-free sale of articles to State and local governments…
- 48.4221-6 · Tax-free sales of articles to nonprofit educational…
- 48.4221-7 · Tax-free sales of tires and tubes.
- 48.4221-8 · Tax-free sales of tires, tubes, and tread rubber used on…
- 48.4222(a)-1 · Registration.
- 48.4222(b)-1 · Exceptions to the requirement for registration.
- 48.4222(c)-1 · Revocation or suspension of registration.
- 48.4222(d)-1 · Registration in the case of certain other exemptions.
- 48.4223-1 · Special rules relating to further manufacture.
- 48.4225-1 · Exemption of articles manufactured or produced by Indians.
- 48.6412-1 · Floor stocks credit or refund.
- 48.6412-2 · Definitions for purposes of floor stocks credit or refund.
- 48.6412-3 · Amount of tax paid on each article.
- 48.6416(a)-1 · Claims for credit or refund of overpayments of taxes on…
- 48.6416(a)-2 · Credit or refund of tax on special fuels.
- 48.6416(a)-3 · Credit or refund of manufacturers tax under chapter 32.
- 48.6416(b)(1)-1 · Price readjustments causing overpayments of…
- 48.6416(b)(1)-2 · Determination of price readjustments.
- 48.6416(b)(1)-3 · Readjustment for local advertising charges.
- 48.6416(b)(1)-4 · Supporting evidence required in case of price…
- 48.6416(b)(2)-1 · Certain exportations, uses, sales, or resales causing…
- 48.6416(b)(2)-2 · Exportations, uses, sales, and resales included.
- 48.6416(b)(2)-3 · Supporting evidence required in case of manufacturers…
- 48.6416(b)(2)-4 · Supporting evidence required in case of special fuels…
- 48.6416(b)(3)-1 · Tax-paid articles used for further manufacture and…
- 48.6416(b)(3)-2 · Further manufacture included.
- 48.6416(b)(3)-3 · Supporting evidence required in case of tax-paid…
- 48.6416(b)(5)-1 · Return of installment accounts causing overpayments…
- 48.6416(c)-1 · Credit for tax paid on tires or, prior to January 1,…
- 48.6416(e)-1 · Refund to exporter or shipper.
- 48.6416(f)-1 · Credit on returns.
- 48.6416(h)-1 · Accounting procedures for like articles.
- 48.6420-1 · Credits or payments to ultimate purchaser of gasoline used…
- 48.6420-2 · Time for filing claim for credit or payment.
- 48.6420-3 · Exempt sales; other payments or refunds available.
- 48.6420-4 · Meaning of terms.
- 48.6420-5 · Applicable laws.
- 48.6420-6 · Records to be kept in substantiation of credits or payments.