[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR49.4291-1]

[Page 270]
 
                       TITLE 26--INTERNAL REVENUE
 
                               (Continued)
 
PART 49--FACILITIES AND SERVICES EXCISE TAXES--Table of Contents
 
        Subpart F--Collection of Tax By Persons Receiving Payment
 
Sec. 49.4291-1  Persons receiving payment must collect tax.


    Except as otherwise provided in section 4263(a), every person 
receiving any payment for facilities or services on which a tax is 
imposed upon the payor thereof under chapter 33 shall collect the amount 
of the tax from the person making that payment. Under section 7501, all 
taxes collected in this manner are held by the collecting agent in trust 
for the United States. If the person from whom the tax is required to be 
collected refuses to pay it or if for any reason it is impossible for 
the collecting agent to collect the tax from that person, the collecting 
agent is required to report to the district director the name and 
address of that person, the nature of the facility provided or service 
rendered, the amount paid therefore, and the date on which paid. Upon 
receipt of this information the district director will proceed against 
the person to whom the facilities were provided or the services rendered 
to assert the amount of tax due, affording that person the same district 
conference, protest, and appellate rights as are available to other 
excise taxpayers. In addition, when a field or office audit of a 
collecting agent's records, or of a taxpayer's records, discloses that 
the collecting agent failed during prior reporting periods to collect 
taxes due, the district director may assert those taxes directly against 
the person to whom the facilities were provided or the services 
rendered, whether or not the collecting agent had attempted collection 
or the person liable for the tax had refused payment thereof.

[T.D. 8685, 61 FR 58007, Nov. 12, 1996]