Certain Taxes on Sales and Services

ID: CCA_2011032807510838 Number: 201119029
Release Date: 5/13/2011
Office: ---
UILC: 6416.00-00
From: ---
Sent: Monday, March 28, 2011 7:51:10 AM
To: ---
Cc:
Subject: Section 6416 Question
Section 6402 allows a credit or refund to the person that made an overpayment. An overpayment is a payment of tax that's more than the person owes. Under this rule, the truck mfg did not make an overpayment on its sale to the retailer…but 6416(b)(2) deems as an overpayment the tax paid under section 4051 if the taxed article was sold by any person to a state or local government. So, the truck mfg can get a refund of this overpayment if it meets the requirements of section 6416(a) (the conditions to allowance) and has the proof required by the section 6416(b) regs.