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H&r Block At Home

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H&r Block At Home

H&r block at home 4. H&r block at home   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. H&r block at home Private communication service. H&r block at home Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. H&r block at home If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. H&r block at home If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. H&r block at home See chapter 14, later. H&r block at home Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. H&r block at home The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. H&r block at home Regular method taxpayers. H&r block at home   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. H&r block at home Alternative method taxpayers. H&r block at home   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. H&r block at home See Alternative method in  chapter 11. H&r block at home Where to file. H&r block at home    Do not file the uncollected tax report with Form 720. H&r block at home Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. H&r block at home  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. H&r block at home Local telephone service. H&r block at home   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. H&r block at home Local telephone service also includes any facility or services provided in connection with this service. H&r block at home The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. H&r block at home Local-only service. H&r block at home   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. H&r block at home Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. H&r block at home Private communication service. H&r block at home   Private communication service is not local telephone service. H&r block at home Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. H&r block at home However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. H&r block at home Teletypewriter exchange service. H&r block at home   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. H&r block at home Figuring the tax. H&r block at home   The tax is based on the sum of all charges for local telephone service included in the bill. H&r block at home However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. H&r block at home The tax on the remaining items not included in any group is based on the charge for each item separately. H&r block at home Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. H&r block at home Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. H&r block at home Nontaxable service. H&r block at home   Nontaxable service means bundled service and long distance service. H&r block at home Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. H&r block at home Bundled service. H&r block at home   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. H&r block at home Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. H&r block at home Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. H&r block at home If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. H&r block at home   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. H&r block at home Long distance service. H&r block at home   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. H&r block at home Pre-paid telephone cards (PTC). H&r block at home   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. H&r block at home Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. H&r block at home The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. H&r block at home The transferee is the person liable for the tax and is eligible to request a credit or refund. H&r block at home For more information, see Regulations section 49. H&r block at home 4251-4. H&r block at home   The holder is the person that purchases a PTC to use and not to resell. H&r block at home Holders are not liable for the tax and cannot request a credit or refund. H&r block at home Pre-paid cellular telephones. H&r block at home   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. H&r block at home The transferee is the person eligible to request the credit or refund. H&r block at home Installation charges. H&r block at home   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. H&r block at home However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. H&r block at home Answering services. H&r block at home   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. H&r block at home Mobile radio telephone service. H&r block at home   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. H&r block at home Coin-operated telephones. H&r block at home   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. H&r block at home But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. H&r block at home Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. H&r block at home Telephone-operated security systems. H&r block at home   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. H&r block at home In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. H&r block at home News services. H&r block at home   The tax on teletypewriter exchange service does not apply to charges for the following news services. H&r block at home Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. H&r block at home Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. H&r block at home This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). H&r block at home For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. H&r block at home Services not exempted. H&r block at home   The tax applies to amounts paid by members of the news media for local telephone service. H&r block at home International organizations and the American Red Cross. H&r block at home   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. H&r block at home Nonprofit hospitals. H&r block at home   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. H&r block at home Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. H&r block at home Nonprofit educational organizations. H&r block at home   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. H&r block at home A nonprofit educational organization is one that satisfies all the following requirements. H&r block at home It normally maintains a regular faculty and curriculum. H&r block at home It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. H&r block at home It is exempt from income tax under section 501(a). H&r block at home This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. H&r block at home Qualified blood collector organizations. H&r block at home   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. H&r block at home A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. H&r block at home Federal, state, and local government. H&r block at home   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. H&r block at home Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. H&r block at home Exemption certificate. H&r block at home   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. H&r block at home See Regulations section 49. H&r block at home 4253-11. H&r block at home File the certificate with the provider of the communication services. H&r block at home An exemption certificate is not required for nontaxable services. H&r block at home   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. H&r block at home The American National Red Cross and other international organizations. H&r block at home Nonprofit hospitals. H&r block at home Nonprofit educational organizations. H&r block at home Qualified blood collector organizations. H&r block at home State and local governments. H&r block at home   The federal government does not have to file any exemption certificate. H&r block at home   All other organizations must furnish exemption certificates when required. H&r block at home Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. H&r block at home Alternatively, the person who paid the tax may claim a refund. H&r block at home For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. H&r block at home Collectors. H&r block at home   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. H&r block at home These requirements also apply to nontaxable service refunds. H&r block at home Collectors using the regular method for deposits. H&r block at home   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. H&r block at home Collectors using the alternative method for deposits. H&r block at home   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. H&r block at home For more information, see the Instructions for Form 720. H&r block at home Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. H&r block at home Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. H&r block at home Percentage tax. H&r block at home   A tax of 7. H&r block at home 5% applies to amounts paid for taxable transportation of persons by air. H&r block at home Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. H&r block at home Mileage awards. H&r block at home   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. H&r block at home For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. H&r block at home   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. H&r block at home Until regulations are issued, the following rules apply to mileage awards. H&r block at home Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. H&r block at home For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. H&r block at home Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. H&r block at home Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. H&r block at home Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. H&r block at home Domestic-segment tax. H&r block at home   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. H&r block at home However, see Rural airports, later. H&r block at home A segment is a single takeoff and a single landing. H&r block at home The amount of the domestic-segment tax is in the Instructions for Form 720. H&r block at home Charter flights. H&r block at home    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. H&r block at home Rural airports. H&r block at home   The domestic-segment tax does not apply to a segment to or from a rural airport. H&r block at home An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. H&r block at home   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. H&r block at home   An updated list of rural airports can be found on the Department of Transportation website at www. H&r block at home dot. H&r block at home gov and enter the phrase “Essential Air Service” in the search box. H&r block at home Taxable transportation. H&r block at home   Taxable transportation is transportation by air that meets either of the following tests. H&r block at home It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). H&r block at home It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. H&r block at home Round trip. H&r block at home   A round trip is considered two separate trips. H&r block at home The first trip is from the point of departure to the destination. H&r block at home The second trip is the return trip from that destination. H&r block at home Uninterrupted international air transportation. H&r block at home   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. H&r block at home For a special rule that applies to military personnel, see Exemptions, later. H&r block at home Transportation between the continental U. H&r block at home S. H&r block at home and Alaska or Hawaii. H&r block at home   This transportation is partially exempt from the tax on transportation of persons by air. H&r block at home The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. H&r block at home Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. H&r block at home 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. H&r block at home Therefore, this transportation is subject to the percentage tax on the part of the trip in U. H&r block at home S. H&r block at home airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. H&r block at home Transportation within Alaska or Hawaii. H&r block at home   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. H&r block at home The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). H&r block at home Package tours. H&r block at home   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. H&r block at home The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. H&r block at home ” This rule also applies to the tax on the use of international air travel facilities, discussed later. H&r block at home Liability for tax. H&r block at home   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. H&r block at home However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. H&r block at home    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. H&r block at home However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. H&r block at home An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. H&r block at home For more information on resellers of air transportation, see Revenue Ruling 2006-52. H&r block at home You can find Revenue Ruling 2006-52 on page 761 of I. H&r block at home R. H&r block at home B. H&r block at home 2006-43 at www. H&r block at home irs. H&r block at home gov/pub/irs-irbs/irb06-43. H&r block at home pdf. H&r block at home   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. H&r block at home But see Certain helicopter uses, later. H&r block at home   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. H&r block at home   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. H&r block at home Exemptions. H&r block at home   The tax on transportation of persons by air does not apply in the following situations. H&r block at home See also Special Rules on Transportation Taxes, later. H&r block at home Military personnel on international trips. H&r block at home   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. H&r block at home However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. H&r block at home The trip must begin or end outside the United States and the 225-mile zone. H&r block at home Certain helicopter uses. H&r block at home   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. H&r block at home Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. H&r block at home Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). H&r block at home Providing emergency medical transportation. H&r block at home   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. H&r block at home For item (1), treat each flight segment as a separate flight. H&r block at home Fixed-wing aircraft uses. H&r block at home   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. H&r block at home Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). H&r block at home Providing emergency medical transportation. H&r block at home The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. H&r block at home   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. H&r block at home Skydiving. H&r block at home   The tax does not apply to any air transportation exclusively for the purpose of skydiving. H&r block at home Seaplanes. H&r block at home   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. H&r block at home Bonus tickets. H&r block at home   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. H&r block at home However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. H&r block at home International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. H&r block at home However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. H&r block at home This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. H&r block at home It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. H&r block at home See the Instructions for Form 720 for the tax rates. H&r block at home Transportation of Property by Air A tax of 6. H&r block at home 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. H&r block at home The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. H&r block at home The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. H&r block at home The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. H&r block at home Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. H&r block at home Exemptions. H&r block at home   The tax on transportation of property by air does not apply in the following situations. H&r block at home See also Special Rules on Transportation Taxes, later. H&r block at home Cropdusting and firefighting service. H&r block at home   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. H&r block at home Exportation. H&r block at home    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. H&r block at home See Form 1363 for more information. H&r block at home Certain helicopter and fixed-wing air ambulance uses. H&r block at home   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. H&r block at home   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. H&r block at home The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. H&r block at home Skydiving. H&r block at home   The tax does not apply to any air transportation exclusively for the purpose of skydiving. H&r block at home Excess baggage. H&r block at home    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. H&r block at home Surtax on fuel used in a fractional ownership program aircraft. H&r block at home   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. H&r block at home Alaska and Hawaii. H&r block at home   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). H&r block at home But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. H&r block at home The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. H&r block at home Liability for tax. H&r block at home   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. H&r block at home   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. H&r block at home Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. H&r block at home Aircraft used by affiliated corporations. H&r block at home   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. H&r block at home However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. H&r block at home Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. H&r block at home   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. H&r block at home Small aircraft. H&r block at home   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. H&r block at home However, the taxes do apply if the aircraft is operated on an established line. H&r block at home “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. H&r block at home However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. H&r block at home   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. H&r block at home   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. H&r block at home Mixed load of persons and property. H&r block at home   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. H&r block at home The allocation must be reasonable and supported by adequate records. H&r block at home Credits or refunds. H&r block at home   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. H&r block at home Alternatively, the person who paid the tax may claim a refund. H&r block at home For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. H&r block at home Prev  Up  Next   Home   More Online Publications
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The H&r Block At Home

H&r block at home 2. H&r block at home   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. H&r block at home Providing information. H&r block at home Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. H&r block at home Fuel used between airfield and farm. H&r block at home Fuel not used for farming. H&r block at home Vehicles not considered highway vehicles. H&r block at home Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. H&r block at home This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. H&r block at home Information on the refund of second tax is included. H&r block at home This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. H&r block at home Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. H&r block at home Exported taxable fuel. H&r block at home   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. H&r block at home Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. H&r block at home Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. H&r block at home Gasoline and Aviation Gasoline Ultimate Purchasers. H&r block at home   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. H&r block at home On a farm for farming purposes (credit only). H&r block at home Off-highway business use. H&r block at home Export. H&r block at home In a boat engaged in commercial fishing. H&r block at home In certain intercity and local buses. H&r block at home In a school bus. H&r block at home Exclusive use by a qualified blood collector organization. H&r block at home In a highway vehicle owned by the United States that is not used on a highway. H&r block at home Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). H&r block at home Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). H&r block at home In an aircraft or vehicle owned by an aircraft museum. H&r block at home   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. H&r block at home On a farm for farming purposes (credit only). H&r block at home Export. H&r block at home In foreign trade. H&r block at home Certain helicopter and fixed-wing air ambulance uses. H&r block at home In commercial aviation (other than foreign trade). H&r block at home Exclusive use by a qualified blood collector organization. H&r block at home Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). H&r block at home Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). H&r block at home In an aircraft owned by an aircraft museum. H&r block at home In military aircraft. H&r block at home Claims by persons who paid the tax to the government. H&r block at home   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. H&r block at home See Filing Claims, later. H&r block at home Sales by registered ultimate vendors. H&r block at home   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. H&r block at home A state or local government for its exclusive use (including essential government use by an Indian tribal government). H&r block at home A nonprofit educational organization for its exclusive use. H&r block at home   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. H&r block at home A sample certificate is included as Model Certificate M in the Appendix. H&r block at home The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. H&r block at home   The ultimate vendor must be registered by the IRS. H&r block at home See Registration Requirements, earlier. H&r block at home Credit card purchases. H&r block at home   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. H&r block at home   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. H&r block at home How to make the claim. H&r block at home   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). H&r block at home Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. H&r block at home Ultimate purchasers. H&r block at home   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. H&r block at home On a farm for farming purposes. H&r block at home Off-highway business use. H&r block at home Export. H&r block at home In a qualified local bus. H&r block at home In a school bus. H&r block at home Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). H&r block at home Exclusive use by a qualified blood collector organization. H&r block at home In a highway vehicle owned by the United States that is not used on a highway. H&r block at home Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). H&r block at home Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). H&r block at home In a vehicle owned by an aircraft museum. H&r block at home As a fuel in a propulsion engine of a diesel-powered train. H&r block at home Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. H&r block at home Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. H&r block at home Registered ultimate vendor (state use). H&r block at home   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). H&r block at home The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. H&r block at home The ultimate vendor must be registered by the IRS. H&r block at home See Registration Requirements, earlier. H&r block at home Registered ultimate vendor (blocked pump). H&r block at home   This is an ultimate vendor that sells undyed kerosene from a blocked pump. H&r block at home   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. H&r block at home Blocked pump. H&r block at home   A blocked pump is a fuel pump that meets all the following requirements. H&r block at home It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. H&r block at home It is at a fixed location. H&r block at home It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. H&r block at home ” It meets either of the following conditions. H&r block at home It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. H&r block at home It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. H&r block at home Registered ultimate vendor (certain intercity and local buses). H&r block at home   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. H&r block at home   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. H&r block at home A sample waiver is included as Model Waiver N in the Appendix. H&r block at home The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. H&r block at home Credit Card Purchases. H&r block at home   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. H&r block at home   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. H&r block at home Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. H&r block at home The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. H&r block at home 198 per gallon is $. H&r block at home 197 (if exported, the claim rate is $. H&r block at home 198). H&r block at home The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. H&r block at home On a farm for farming purposes. H&r block at home Off-highway business use. H&r block at home Export. H&r block at home In a qualified local bus. H&r block at home In a school bus. H&r block at home Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). H&r block at home Exclusive use by a qualified blood collector organization. H&r block at home In a highway vehicle owned by the United States that is not used on a highway. H&r block at home Exclusive use by a nonprofit educational organization. H&r block at home Exclusive use by a state, political subdivision of a state, or the District of Columbia. H&r block at home In an aircraft or vehicle owned by an aircraft museum. H&r block at home Blender claims. H&r block at home   The claim rate for undyed diesel fuel taxed at $. H&r block at home 244 and used to produce a diesel-water fuel emulsion is $. H&r block at home 046 per gallon of diesel fuel so used. H&r block at home The blender must be registered by the IRS in order to make the claim. H&r block at home The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. H&r block at home 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. H&r block at home Kerosene for Use in Aviation Ultimate purchasers. H&r block at home   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. H&r block at home   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. H&r block at home Generally, the ultimate purchaser is the aircraft operator. H&r block at home   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. H&r block at home On a farm for farming purposes. H&r block at home Certain helicopter and fixed-wing aircraft uses. H&r block at home Exclusive use by a qualified blood collector organization. H&r block at home Exclusive use by a nonprofit educational organization. H&r block at home In an aircraft owned by an aircraft museum. H&r block at home In military aircraft. H&r block at home Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. H&r block at home   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. H&r block at home At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. H&r block at home   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. H&r block at home For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. H&r block at home 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. H&r block at home 025 per gallon part of the tax. H&r block at home The ultimate vendor may make this claim. H&r block at home The operator may make a claim for the $. H&r block at home 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. H&r block at home 175 tax per gallon. H&r block at home Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. H&r block at home   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. H&r block at home A sample waiver is included as Model Waiver L in the Appendix. H&r block at home The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. H&r block at home   Noncommercial aviation means any use of an aircraft not described as commercial aviation. H&r block at home For the definition of commercial aviation, see Commercial aviation on page 11. H&r block at home Kerosene for use in nonexempt, noncommercial aviation. H&r block at home   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. H&r block at home The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. H&r block at home A sample certificate is included as Model Certificate Q in the Appendix. H&r block at home The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. H&r block at home Kerosene for use in aviation by a state or local government. H&r block at home   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). H&r block at home The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. H&r block at home The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. H&r block at home A sample certificate is included as Model Certificate P in the Appendix. H&r block at home The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. H&r block at home Credit card purchases. H&r block at home   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. H&r block at home   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. H&r block at home Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. H&r block at home While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. H&r block at home The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. H&r block at home On a farm for farming purposes. H&r block at home Off-highway business use. H&r block at home In a boat engaged in commercial fishing. H&r block at home In certain intercity and local buses. H&r block at home In a school bus. H&r block at home In a qualified local bus. H&r block at home Exclusive use by a qualified blood collector organization. H&r block at home Exclusive use by a nonprofit educational organization. H&r block at home Exclusive use by a state, political subdivision of a state, or the District of Columbia. H&r block at home In an aircraft or vehicle owned by an aircraft museum. H&r block at home Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. H&r block at home See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. H&r block at home Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. H&r block at home This is in addition to all other taxes imposed on the sale or use of the fuel. H&r block at home The section 4081(e) refund (discussed below) cannot be claimed. H&r block at home If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. H&r block at home No credit against any tax is allowed for this tax. H&r block at home For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. H&r block at home Conditions to allowance of refund. H&r block at home   A claim for refund of the tax is allowed only if all the following conditions are met. H&r block at home A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). H&r block at home After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). H&r block at home The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). H&r block at home The person that paid the first tax has met the reporting requirements, discussed next. H&r block at home Reporting requirements. H&r block at home   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. H&r block at home A model first taxpayer's report is shown in the Appendix as Model Certificate B. H&r block at home The report must contain all information needed to complete the model. H&r block at home   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. H&r block at home Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. H&r block at home Optional reporting. H&r block at home   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. H&r block at home However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. H&r block at home Providing information. H&r block at home   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. H&r block at home If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. H&r block at home   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. H&r block at home If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. H&r block at home A model statement of subsequent seller is shown in the Appendix as Model Certificate A. H&r block at home The statement must contain all information necessary to complete the model. H&r block at home   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. H&r block at home Each buyer must be given a copy of the report. H&r block at home Refund claim. H&r block at home   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. H&r block at home You must make your claim for refund on Form 8849. H&r block at home Complete Schedule 5 (Form 8849) and attach it to your Form 8849. H&r block at home Do not include this claim with a claim under another tax provision. H&r block at home You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. H&r block at home You must submit the following information with your claim. H&r block at home A copy of the first taxpayer's report (discussed earlier). H&r block at home A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. H&r block at home Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. H&r block at home If applicable, the type of use number from Table 2-1 is indicated in each heading. H&r block at home Type of use table. H&r block at home   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. H&r block at home For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. H&r block at home Table 2-1. H&r block at home Type of Use Table No. H&r block at home Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. H&r block at home 1). H&r block at home   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. H&r block at home Farm. H&r block at home   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. H&r block at home It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. H&r block at home A fish farm is an area where fish are grown or raised — not merely caught or harvested. H&r block at home Farming purposes. H&r block at home   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. H&r block at home To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. H&r block at home To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. H&r block at home To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. H&r block at home To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. H&r block at home For this use to qualify, you must have produced more than half the commodity so treated during the tax year. H&r block at home Commodity means a single raw product. H&r block at home For example, apples and peaches are two separate commodities. H&r block at home To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. H&r block at home , is incidental to your farming operations. H&r block at home Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. H&r block at home   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. H&r block at home However, see Custom application of fertilizer and pesticide, next. H&r block at home   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. H&r block at home For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. H&r block at home Custom application of fertilizer and pesticide. H&r block at home   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. H&r block at home Generally, the applicator is treated as having used the fuel on a farm for farming purposes. H&r block at home For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. H&r block at home For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. H&r block at home Fuel used between airfield and farm. H&r block at home   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. H&r block at home Fuel not used for farming. H&r block at home   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. H&r block at home Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. H&r block at home For personal use, such as mowing the lawn. H&r block at home In processing, packaging, freezing, or canning operations. H&r block at home In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. H&r block at home Off-highway business use (No. H&r block at home 2). H&r block at home   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. H&r block at home The terms “highway vehicle,” “public highway,” and “registered” are defined below. H&r block at home Do not consider any use in a boat as an off-highway business use. H&r block at home   Off-highway business use includes fuels used in any of the following ways. H&r block at home In stationary machines such as generators, compressors, power saws, and similar equipment. H&r block at home For cleaning purposes. H&r block at home In forklift trucks, bulldozers, and earthmovers. H&r block at home   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. H&r block at home Example. H&r block at home Caroline owns a landscaping business. H&r block at home She uses power lawn mowers and chain saws in her business. H&r block at home The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. H&r block at home The gasoline used in her personal lawn mower at home does not qualify. H&r block at home Highway vehicle. H&r block at home   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. H&r block at home Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. H&r block at home A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. H&r block at home A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). H&r block at home A special kind of cargo, goods, supplies, or materials. H&r block at home Some off-highway task unrelated to highway transportation, except as discussed next. H&r block at home Vehicles not considered highway vehicles. H&r block at home   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. H&r block at home Specially designed mobile machinery for nontransportation functions. H&r block at home A self-propelled vehicle is not a highway vehicle if all the following apply. H&r block at home The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. H&r block at home The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. H&r block at home The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. H&r block at home The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. H&r block at home Vehicles specially designed for off-highway transportation. H&r block at home A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. H&r block at home To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. H&r block at home It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. H&r block at home Nontransportation trailers and semitrailers. H&r block at home A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. H&r block at home For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. H&r block at home Public highway. H&r block at home   A public highway includes any road in the United States that is not a private roadway. H&r block at home This includes federal, state, county, and city roads and streets. H&r block at home Registered. H&r block at home   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. H&r block at home Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. H&r block at home A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. H&r block at home Dual use of propulsion motor. H&r block at home   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. H&r block at home It does not matter if the special equipment is mounted on the vehicle. H&r block at home Example. H&r block at home The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. H&r block at home The fuel used in the motor to run the mixer is not off-highway business use. H&r block at home Use in separate motor. H&r block at home   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. H&r block at home If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. H&r block at home You may make a reasonable estimate based on your operating experience and supported by your records. H&r block at home   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. H&r block at home Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. H&r block at home The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. H&r block at home Example. H&r block at home Hazel owns a refrigerated truck. H&r block at home It has a separate motor for the refrigeration unit. H&r block at home The same tank supplies both motors. H&r block at home Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. H&r block at home Therefore, 10% of the fuel is used in an off-highway business use. H&r block at home Fuel lost or destroyed. H&r block at home   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. H&r block at home Export (No. H&r block at home 3). H&r block at home   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. H&r block at home Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. H&r block at home In a boat engaged in commercial fishing (No. H&r block at home 4). H&r block at home   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. H&r block at home They include boats used in both fresh and salt water fishing. H&r block at home They do not include boats used for both sport fishing and commercial fishing on the same trip. H&r block at home In certain intercity and local buses (No. H&r block at home 5). H&r block at home   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. H&r block at home The bus must be engaged in one of the following activities. H&r block at home Scheduled transportation along regular routes. H&r block at home Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. H&r block at home Vans and similar vehicles used for van-pooling or taxi service do not qualify. H&r block at home Available to the general public. H&r block at home   This means you offer service to more than a limited number of persons or organizations. H&r block at home If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. H&r block at home A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. H&r block at home Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. H&r block at home In a qualified local bus (No. H&r block at home 6). H&r block at home   In a qualified local bus means fuel used in a bus meeting all the following requirements. H&r block at home It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. H&r block at home It operates along scheduled, regular routes. H&r block at home It has a seating capacity of at least 20 adults (excluding the driver). H&r block at home It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. H&r block at home Intracity passenger land transportation. H&r block at home   This is the land transportation of passengers between points located within the same metropolitan area. H&r block at home It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. H&r block at home Under contract. H&r block at home   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. H&r block at home More than a nominal subsidy. H&r block at home   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. H&r block at home A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. H&r block at home In a school bus (No. H&r block at home 7). H&r block at home   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. H&r block at home A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. H&r block at home For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. H&r block at home 8). H&r block at home   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. H&r block at home In foreign trade (No. H&r block at home 9). H&r block at home   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. H&r block at home The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. H&r block at home In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. H&r block at home Certain helicopter and fixed-wing aircraft uses (No. H&r block at home 10). H&r block at home   Includes: Certain helicopter uses. H&r block at home   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. H&r block at home Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. H&r block at home Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). H&r block at home Providing emergency medical transportation. H&r block at home   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. H&r block at home For item (1), treat each flight segment as a separate flight. H&r block at home Fixed-wing aircraft uses. H&r block at home   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. H&r block at home Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). H&r block at home Providing emergency medical transportation. H&r block at home The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. H&r block at home During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. H&r block at home Exclusive use by a qualified blood collector organization (No. H&r block at home 11). H&r block at home   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. H&r block at home Qualified blood collector organization. H&r block at home   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. H&r block at home In a highway vehicle owned by the United States that is not used on a highway (No. H&r block at home 12). H&r block at home   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. H&r block at home This use applies whether or not the vehicle is registered or required to be registered for highway use. H&r block at home Exclusive use by a nonprofit educational organization (No. H&r block at home 13). H&r block at home   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. H&r block at home It has a regular faculty and curriculum. H&r block at home It has a regularly enrolled body of students who attend the place where the instruction normally occurs. H&r block at home   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. H&r block at home Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. H&r block at home 14). H&r block at home   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. H&r block at home A state or local government is any state, any political subdivision thereof, or the District of Columbia. H&r block at home An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. H&r block at home Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. H&r block at home In an aircraft or vehicle owned by an aircraft museum (No. H&r block at home 15). H&r block at home   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. H&r block at home It is exempt from income tax as an organization described in section 501(c)(3). H&r block at home It is operated as a museum under a state (or District of Columbia) charter. H&r block at home It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. H&r block at home   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). H&r block at home In military aircraft (No. H&r block at home 16). H&r block at home   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. H&r block at home In commercial aviation (other than foreign trade). H&r block at home   See Commercial aviation, earlier, for the definition. H&r block at home Use in a train. H&r block at home   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. H&r block at home This includes use in a locomotive, work train, switching engine, and track maintenance machine. H&r block at home Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. H&r block at home The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. H&r block at home Biodiesel or renewable diesel mixture credit claimant. H&r block at home   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. H&r block at home Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). H&r block at home   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. H&r block at home The credit is based on the gallons of biodiesel or renewable diesel in the mixture. H&r block at home Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. H&r block at home Claim requirements. H&r block at home   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. H&r block at home Alternative fuel credit claimant. H&r block at home   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. H&r block at home Carbon capture requirement. H&r block at home   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. H&r block at home Alternative fuel credit. H&r block at home   The registered alternative fueler is the person eligible to make the claim. H&r block at home An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. H&r block at home An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. H&r block at home Alternative fuel mixture credit claimant. H&r block at home   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. H&r block at home The credit is based on the gallons of alternative fuel in the mixture. H&r block at home An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). H&r block at home Registration. H&r block at home   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. H&r block at home See Registration Requirements in chapter 1. H&r block at home Credits for fuel provide incentive for United States production. H&r block at home   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. H&r block at home The United States includes any possession of the United States. H&r block at home Credit for fuels derived from paper or pulp production. H&r block at home   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. H&r block at home How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. H&r block at home Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. H&r block at home See Notice 2005-4 and the Instructions for Form 720 for more information. H&r block at home Also see Notice 2013-26 on page 984 of I. H&r block at home R. H&r block at home B. H&r block at home 2013-18 at www. H&r block at home irs. H&r block at home gov/pub/irs-irbs/irb13-18. H&r block at home pdf; and see chapter 2, later. H&r block at home Coordination with income tax credit. H&r block at home   Only one credit may be taken for any amount of biodiesel or renewable diesel. H&r block at home If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. H&r block at home   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. H&r block at home Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. H&r block at home   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. H&r block at home   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. H&r block at home Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. H&r block at home This section also covers recordkeeping requirements and when to include the credit or refund in your income. H&r block at home Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. H&r block at home In some cases, you will have to attach additional information. H&r block at home You need to keep records that support your claim for a credit or refund. H&r block at home Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. H&r block at home Ultimate purchaser. H&r block at home   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. H&r block at home If you are an ultimate purchaser, you must keep the following records. H&r block at home The number of gallons purchased and used during the period covered by your claim. H&r block at home The dates of the purchases. H&r block at home The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. H&r block at home The nontaxable use for which you used the fuel. H&r block at home The number of gallons used for each nontaxable use. H&r block at home It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. H&r block at home If the fuel is exported, you must have proof of exportation. H&r block at home   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. H&r block at home Exceptions. H&r block at home    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. H&r block at home However, see Claims by credit card issuers, later, for an exception. H&r block at home The ultimate purchaser may not claim a credit or refund as follows. H&r block at home The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. H&r block at home A new certificate is required each year or when any information in the current certificate expires. H&r block at home The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. H&r block at home A new waiver is required each year or when any information in the current waiver expires. H&r block at home The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. H&r block at home A new waiver is required each year or when any information in the current waiver expires. H&r block at home The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. H&r block at home A new certificate is required each year or when any information in the current certificate expires. H&r block at home Registered ultimate vendor. H&r block at home   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. H&r block at home If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. H&r block at home   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. H&r block at home You are required to have a valid certificate or waiver in your possession in order to make the claim. H&r block at home   In addition, you must have a registration number that has not been revoked or suspended. H&r block at home See Form 637. H&r block at home State use. H&r block at home   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. H&r block at home If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. H&r block at home The name and taxpayer identification number of each person (government unit) that bought the fuel. H&r block at home The number of gallons sold to each person. H&r block at home An unexpired certificate from the buyer. H&r block at home See Model Certificate P in the Appendix. H&r block at home The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. H&r block at home Nonprofit educational organization and state use. H&r block at home   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. H&r block at home If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. H&r block at home The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. H&r block at home The number of gallons sold to each person. H&r block at home An unexpired certificate from the buyer. H&r block at home See Model Certificate M in the Appendix. H&r block at home  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. H&r block at home Blocked pump. H&r block at home   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. H&r block at home If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. H&r block at home The date of each sale. H&r block at home The name and address of the buyer. H&r block at home The number of gallons sold to that buyer. H&r block at home Certain intercity and local bus use. H&r block at home   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. H&r block at home You must keep the following information. H&r block at home The date of each sale. H&r block at home The name and address of the buyer. H&r block at home The number of gallons sold to the buyer. H&r block at home A copy of the waiver signed by the buyer at the time the credit or payment is claimed. H&r block at home See Model Waiver N in the Appendix. H&r block at home Kerosene for use in commercial aviation or noncommercial aviation. H&r block at home   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. H&r block at home See Kerosene for use in aviation, earlier, for a list of nontaxable uses. H&r block at home You must keep the following information. H&r block at home The date of each sale. H&r block at home The name and address of the buyer. H&r block at home The number of gallons sold to the buyer. H&r block at home A copy of the waiver signed by the buyer at the time the credit or payment is claimed. H&r block at home See Model Waiver L in the Appendix. H&r block at home Kerosene for use in nonexempt, noncommercial aviation. H&r block at home   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. H&r block at home You must keep the following information. H&r block at home The date of each sale. H&r block at home The name and address of the buyer. H&r block at home The number of gallons sold to the buyer. H&r block at home A copy of the certificate signed by the buyer at the time the credit or payment is claimed. H&r block at home See Model Certificate Q in the Appendix. H&r block at home Claims by credit card issuers. H&r block at home   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. H&r block at home An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). H&r block at home   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. H&r block at home However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. H&r block at home   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. H&r block at home A state is not allowed to make a claim for these fuels. H&r block at home However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. H&r block at home   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. H&r block at home The total number of gallons. H&r block at home Its registration number. H&r block at home A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. H&r block at home A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. H&r block at home Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. H&r block at home Taxpayer identification number. H&r block at home   To file a claim, you must have a taxpayer identification number. H&r block at home Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. H&r block at home   If you normally file only a U. H&r block at home S. H&r block at home individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. H&r block at home You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. H&r block at home To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. H&r block at home   If you operate a business, use your EIN. H&r block at home If you do not have an EIN, you may apply for one online. H&r block at home Go to the IRS website at irs. H&r block at home gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. H&r block at home You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. H&r block at home Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. H&r block at home Complete and attach to Form 8849 the appropriate Form 8849 schedules. H&r block at home The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. H&r block at home If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. H&r block at home See the Instructions for Form 720. H&r block at home Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. H&r block at home The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. H&r block at home The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. H&r block at home To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. H&r block at home Only one claim may be made for any particular amount of alternative fuel. H&r block at home Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. H&r block at home See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. H&r block at home A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. H&r block at home If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. H&r block at home Credit only. H&r block at home   You can claim the following taxes only as a credit on Form 4136. H&r block at home Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. H&r block at home Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. H&r block at home Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. H&r block at home Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). H&r block at home When to file. H&r block at home   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). H&r block at home You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. H&r block at home Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. H&r block at home How to claim a credit. H&r block at home   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. H&r block at home Individuals. H&r block at home   You claim the credit on the “Credits from” line of Form 1040. H&r block at home Also check box b on that line. H&r block at home If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. H&r block at home Partnerships. H&r block at home   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. H&r block at home , showing each partner's share of the number of gallons of each fuel sold or used for a non