Crop Care Applicators, Inc. - Page 8

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          Manufacturers & Retailers Excise Tax Regs.  If the waiver                   
          agreement appears on an invoice or other document, however, it              
          must be set off from other material in the document and executed            
          separately from any other item which requires the owner’s,                  
          tenant’s, or operator’s signature.  See id.  The waiver should be           
          sufficient to put the owner, tenant, or operator of the farm on             
          notice that he has waived the right to receive the credit.  See             
          id.  Copies of agreements waiving rights to credits or payments             
          under section 6420 are not to be submitted to the Internal                  
          Revenue Service unless a request is made by the Service.  See               
          sec. 48.6420-4(l)(4), Manufacturers & Retailers Excise Tax Regs.            
               Petitioner did not obtain waivers from its customers at such           
          time and in such form and manner as the Secretary prescribed in             
          section 48.6420-4(l)(2), Manufacturers & Retailers Excise Tax               
          Regs.  The written contracts petitioner and its customers                   
          executed contain no provision explicitly addressing the fuel tax            
          credit.  The waivers petitioner did obtain were received several            
          years after the taxable years in issue and after petitioner                 
          received the notice of deficiency.                                          
               Petitioner does not challenge the validity of the regulation           
          but asserts that it should not be held to the requirements of               
          section 48.6420-4(l)(2), Manufacturers & Retailers Excise Tax               
          Regs., when it accurately completed Form 4136, and the form                 
          instructions do not indicate that a pesticide applicator must               

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Last modified: May 25, 2011