Treasury Regulations · 26 CFR
§ 48.6416(b)(1)-3. Readjustment for local advertising charges.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 6416(b)(1)
Cite as 26 CFR § 48.6416(b)(1)-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- August 8, 1985 by T.D. 8043
- Issued under
- 26 U.S.C. § 6416(b)(1)
- Length
- 510 words · about 2 min to read
- Cross-references
- cites 1 Code section and 1 regulation; cited by 3
¶(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]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Regulations it cites
Cited by 3 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 8043 (50 FR 32026)
Where it sits in 26 CFR
- Subchapter D Miscellaneous excise taxes
- Part 48 Manufacturers and retailers excise taxes
- Subpart O Refunds and Other Administrative Provisions of Special Application to Retailers and Manufacturers Taxes
Nearby sections
- § 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 manufacturers tax.
- § 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 readjustments.
- § 48.6416(b)(2)-1 Certain exportations, uses, sales, or resales causing overpayments of tax.
- § 48.6416(b)(2)-2 Exportations, uses, sales, and resales included.
- § 48.6416(b)(2)-3 Supporting evidence required in case of manufacturers tax involving exportations, uses, sales, or resales.