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Hnr block com 1. Hnr block com   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. Hnr block com Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. Hnr block com Reseller statement. Hnr block com Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. Hnr block com Deep-draft ocean-going vessels. Hnr block com Passenger vessels. Hnr block com Ocean-going barges. Hnr block com State or local governments. Hnr block com Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. Hnr block com Gasoline, including aviation gasoline and gasoline blendstocks. Hnr block com Diesel fuel, including dyed diesel fuel. Hnr block com Diesel-water fuel emulsion. Hnr block com Kerosene, including dyed kerosene and kerosene used in aviation. Hnr block com Other Fuels (including alternative fuels). Hnr block com Compressed natural gas (CNG). Hnr block com Fuels used in commercial transportation on inland waterways. Hnr block com Any liquid used in a fractional ownership program aircraft as fuel. Hnr block com The following terms are used throughout the discussion of fuel taxes. Hnr block com Other terms are defined in the discussion of the specific fuels to which they pertain. Hnr block com Agri-biodiesel. Hnr block com   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. Hnr block com Approved terminal or refinery. Hnr block com   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. Hnr block com Biodiesel. Hnr block com   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. Hnr block com Blended taxable fuel. Hnr block com   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. Hnr block com This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. Hnr block com Blender. Hnr block com   This is the person that produces blended taxable fuel. Hnr block com Bulk transfer. Hnr block com   This is the transfer of taxable fuel by pipeline or vessel. Hnr block com Bulk transfer/terminal system. Hnr block com   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Hnr block com Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. Hnr block com Cellulosic biofuel. Hnr block com   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. Hnr block com Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). Hnr block com For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. Hnr block com Also see Second generation biofuel below. Hnr block com Diesel-water fuel emulsion. Hnr block com   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. Hnr block com The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. Hnr block com Dry lease aircraft exchange. Hnr block com   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Hnr block com Enterer. Hnr block com   This is the importer of record (under customs law) for the taxable fuel. Hnr block com However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. Hnr block com If there is no importer of record, the owner at the time of entry into the United States is the enterer. Hnr block com Entry. Hnr block com   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. Hnr block com This does not apply to fuel brought into Puerto Rico (which is part of the U. Hnr block com S. Hnr block com customs territory), but does apply to fuel brought into the United States from Puerto Rico. Hnr block com Fractional ownership aircraft program and fractional program aircraft. Hnr block com   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Hnr block com Measurement of taxable fuel. Hnr block com   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. Hnr block com Other fuels. Hnr block com   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. Hnr block com Pipeline operator. Hnr block com   This is the person that operates a pipeline within the bulk transfer/terminal system. Hnr block com Position holder. Hnr block com   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. Hnr block com You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. Hnr block com A terminal operator that owns taxable fuel in its terminal is a position holder. Hnr block com Rack. Hnr block com   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. Hnr block com Refiner. Hnr block com   This is any person that owns, operates, or otherwise controls a refinery. Hnr block com Refinery. Hnr block com   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. Hnr block com However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. Hnr block com For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. Hnr block com Registrant. Hnr block com   This is a taxable fuel registrant (see Registration Requirements, later). Hnr block com Removal. Hnr block com   This is any physical transfer of taxable fuel. Hnr block com It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. Hnr block com However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. Hnr block com Renewable diesel. Hnr block com   See Renewable Diesel Credits in chapter 2. Hnr block com Sale. Hnr block com   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. Hnr block com For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. Hnr block com Second generation biofuel. Hnr block com   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. Hnr block com S. Hnr block com C. Hnr block com 7545). Hnr block com It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. Hnr block com It is not alcohol of less than 150 proof (disregard any added denaturants). Hnr block com See Form 6478 for more information. Hnr block com State. Hnr block com   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. Hnr block com An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. Hnr block com Taxable fuel. Hnr block com   This means gasoline, diesel fuel, and kerosene. Hnr block com Terminal. Hnr block com   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. Hnr block com It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. Hnr block com A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. Hnr block com Terminal operator. Hnr block com   This is any person that owns, operates, or otherwise controls a terminal. Hnr block com Throughputter. Hnr block com   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). Hnr block com Vessel operator. Hnr block com   This is the person that operates a vessel within the bulk transfer/terminal system. Hnr block com However, vessel does not include a deep draft ocean-going vessel. Hnr block com Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. Hnr block com A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. Hnr block com For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. Hnr block com The returns are due the last day of the month following the month in which the transaction occurs. Hnr block com Generally, these returns can be filed on paper or electronically. Hnr block com For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. Hnr block com Publication 3536 is only available on the IRS website. Hnr block com Form 720-TO. Hnr block com   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. Hnr block com Each terminal operator must file a separate form for each approved terminal. Hnr block com Form 720-CS. Hnr block com   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. Hnr block com Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. Hnr block com See Form 637 for other persons who must register and for more information about registration. Hnr block com Persons that are required to be registered. Hnr block com   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. Hnr block com Persons that may register. Hnr block com   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. Hnr block com Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. Hnr block com However, they must be registered to file claims for certain sales and uses of fuel. Hnr block com See Form 637 for more information. Hnr block com Taxable fuel registrant. Hnr block com   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. Hnr block com The term registrant as used in the discussions of these fuels means a taxable fuel registrant. Hnr block com Additional information. Hnr block com   See the Form 637 instructions for the information you must submit when you apply for registration. Hnr block com Failure to register. Hnr block com   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. Hnr block com Gasoline and Aviation Gasoline Gasoline. Hnr block com   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. Hnr block com Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. Hnr block com Gasoline also includes gasoline blendstocks, discussed later. Hnr block com Aviation gasoline. Hnr block com   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. Hnr block com Taxable Events The tax on gasoline is $. Hnr block com 184 per gallon. Hnr block com The tax on aviation gasoline is $. Hnr block com 194 per gallon. Hnr block com When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. Hnr block com 141 per gallon. Hnr block com See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. Hnr block com Tax is imposed on the removal, entry, or sale of gasoline. Hnr block com Each of these events is discussed later. Hnr block com Also, see the special rules that apply to gasoline blendstocks, later. Hnr block com If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. Hnr block com See Refunds of Second Tax in chapter 2. Hnr block com Removal from terminal. Hnr block com   All removals of gasoline at a terminal rack are taxable. Hnr block com The position holder for that gasoline is liable for the tax. Hnr block com Two-party exchanges. Hnr block com   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. Hnr block com A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. Hnr block com The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. Hnr block com The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. Hnr block com The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. Hnr block com The transaction is subject to a written contract. Hnr block com Terminal operator's liability. Hnr block com   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. Hnr block com   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. Hnr block com The terminal operator is a registrant. Hnr block com The terminal operator has an unexpired notification certificate (discussed later) from the position holder. Hnr block com The terminal operator has no reason to believe any information on the certificate is false. Hnr block com Removal from refinery. Hnr block com   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. Hnr block com It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. Hnr block com It is made at the refinery rack. Hnr block com The refiner is liable for the tax. Hnr block com Exception. Hnr block com   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. Hnr block com The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Hnr block com The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Hnr block com The removal from the refinery is by railcar. Hnr block com The same person operates the refinery and the facility at which the gasoline is received. Hnr block com Entry into the United States. Hnr block com   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. Hnr block com It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Hnr block com It is not made by bulk transfer. Hnr block com The enterer is liable for the tax. Hnr block com Importer of record's liability. Hnr block com   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. Hnr block com   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Hnr block com The importer of record has an unexpired notification certificate (discussed later) from the enterer. Hnr block com The importer of record has no reason to believe any information in the certificate is false. Hnr block com Customs bond. Hnr block com   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. Hnr block com Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Hnr block com   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. Hnr block com The position holder is liable for the tax. Hnr block com The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Hnr block com However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Hnr block com Bulk transfers not received at approved terminal or refinery. Hnr block com   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. Hnr block com No tax was previously imposed (as discussed earlier) on any of the following events. Hnr block com The removal from the refinery. Hnr block com The entry into the United States. Hnr block com The removal from a terminal by an unregistered position holder. Hnr block com Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). Hnr block com   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. Hnr block com However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Hnr block com The owner is a registrant. Hnr block com The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. Hnr block com The owner has no reason to believe any information on the certificate is false. Hnr block com The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. Hnr block com The operator is jointly and severally liable if the owner does not meet these conditions. Hnr block com Sales to unregistered person. Hnr block com   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. Hnr block com   The seller is liable for the tax. Hnr block com However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Hnr block com   The seller is a registrant. Hnr block com The seller has an unexpired notification certificate (discussed later) from the buyer. Hnr block com The seller has no reason to believe any information on the certificate is false. Hnr block com The buyer of the gasoline is liable for the tax if the seller meets these conditions. Hnr block com The buyer is jointly and severally liable if the seller does not meet these conditions. Hnr block com Exception. Hnr block com   The tax does not apply to a sale if all of the following apply. Hnr block com The buyer's principal place of business is not in the United States. Hnr block com The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Hnr block com The seller is a registrant and the exporter of record. Hnr block com The fuel was exported. Hnr block com Removal or sale of blended gasoline. Hnr block com   The removal or sale of blended gasoline by the blender is taxable. Hnr block com See Blended taxable fuel under Definitions, earlier. Hnr block com   The blender is liable for the tax. Hnr block com The tax is figured on the number of gallons not previously subject to the tax on gasoline. Hnr block com   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. Hnr block com See Form 720 to report this tax. Hnr block com You also must be registered with the IRS as a blender. Hnr block com See Form 637. Hnr block com   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. Hnr block com Notification certificate. Hnr block com   The notification certificate is used to notify a person of the registration status of the registrant. Hnr block com A copy of the registrant's letter of registration cannot be used as a notification certificate. Hnr block com A model notification certificate is shown in the Appendix as Model Certificate C. Hnr block com A notification certificate must contain all information necessary to complete the model. Hnr block com   The certificate may be included as part of any business records normally used for a sale. Hnr block com A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. Hnr block com The registrant must provide a new certificate if any information on a certificate has changed. Hnr block com Additional persons liable. Hnr block com   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. Hnr block com Gasoline Blendstocks Gasoline blendstocks may be subject to $. Hnr block com 001 per gallon LUST tax as discussed below. Hnr block com Gasoline includes gasoline blendstocks. Hnr block com The previous discussions apply to these blendstocks. Hnr block com However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. Hnr block com 001 per gallon or are not subject to the excise tax. Hnr block com Blendstocks. Hnr block com   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. Hnr block com   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. Hnr block com Not used to produce finished gasoline. Hnr block com   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. Hnr block com Removals and entries not connected to sale. Hnr block com   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. Hnr block com Removals and entries connected to sale. Hnr block com   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. Hnr block com The person has an unexpired certificate (discussed later) from the buyer. Hnr block com The person has no reason to believe any information in the certificate is false. Hnr block com Sales after removal or entry. Hnr block com   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. Hnr block com The seller is liable for the tax. Hnr block com However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. Hnr block com The seller has an unexpired certificate (discussed next) from the buyer. Hnr block com The seller has no reason to believe any information in the certificate is false. Hnr block com Certificate of buyer. Hnr block com   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. Hnr block com The certificate may be included as part of any business records normally used for a sale. Hnr block com A model certificate is shown in the Appendix as Model Certificate D. Hnr block com The certificate must contain all information necessary to complete the model. Hnr block com   A certificate expires on the earliest of the following dates. Hnr block com The date 1 year after the effective date (not earlier than the date signed) of the certificate. Hnr block com The date a new certificate is provided to the seller. Hnr block com The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. Hnr block com The buyer must provide a new certificate if any information on a certificate has changed. Hnr block com   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. Hnr block com Received at approved terminal or refinery. Hnr block com   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. Hnr block com The person is a registrant. Hnr block com The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. Hnr block com The person has no reason to believe any information on the certificate is false. Hnr block com Bulk transfers to registered industrial user. Hnr block com   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. Hnr block com An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. Hnr block com Credits or Refunds. Hnr block com   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. Hnr block com For more information, see chapter 2. Hnr block com Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). Hnr block com However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. Hnr block com Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. Hnr block com A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. Hnr block com A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. Hnr block com However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. Hnr block com Diesel fuel does not include gasoline, kerosene, excluded liquid, No. Hnr block com 5 and No. Hnr block com 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. Hnr block com An excluded liquid is either of the following. Hnr block com A liquid that contains less than 4% normal paraffins. Hnr block com A liquid with all the following properties. Hnr block com Distillation range of 125 degrees Fahrenheit or less. Hnr block com Sulfur content of 10 ppm or less. Hnr block com Minimum color of +27 Saybolt. Hnr block com Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. Hnr block com Kerosene. Hnr block com   This means any of the following liquids. Hnr block com One of the two grades of kerosene (No. Hnr block com 1-K and No. Hnr block com 2-K) covered by ASTM specification D3699. Hnr block com Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). Hnr block com See Kerosene for Use in Aviation, later. Hnr block com   However, kerosene does not include excluded liquid, discussed earlier. Hnr block com   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. Hnr block com Diesel-powered highway vehicle. Hnr block com   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. Hnr block com Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. Hnr block com For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. Hnr block com 2) in chapter 2. Hnr block com Diesel-powered train. Hnr block com   This is any diesel-powered equipment or machinery that rides on rails. Hnr block com The term includes a locomotive, work train, switching engine, and track maintenance machine. Hnr block com Taxable Events The tax on diesel fuel and kerosene is $. Hnr block com 244 per gallon. Hnr block com It is imposed on the removal, entry, or sale of diesel fuel and kerosene. Hnr block com Each of these events is discussed later. Hnr block com Only the $. Hnr block com 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. Hnr block com If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. Hnr block com See Refunds of Second Tax in chapter 2. Hnr block com Use in certain intercity and local buses. Hnr block com   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. Hnr block com A claim for $. Hnr block com 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. Hnr block com An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Hnr block com The bus must be engaged in one of the following activities. Hnr block com Scheduled transportation along regular routes regardless of the size of the bus. Hnr block com Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). Hnr block com A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. Hnr block com Removal from terminal. Hnr block com   All removals of diesel fuel and kerosene at a terminal rack are taxable. Hnr block com The position holder for that fuel is liable for the tax. Hnr block com Two-party exchanges. Hnr block com   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. Hnr block com A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. Hnr block com The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. Hnr block com The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. Hnr block com The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. Hnr block com The transaction is subject to a written contract. Hnr block com Terminal operator's liability. Hnr block com   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). Hnr block com   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. Hnr block com However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. Hnr block com The terminal operator is a registrant. Hnr block com The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. Hnr block com The terminal operator has no reason to believe any information on the certificate is false. Hnr block com Removal from refinery. Hnr block com   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. Hnr block com It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. Hnr block com It is made at the refinery rack. Hnr block com The refiner is liable for the tax. Hnr block com Exception. Hnr block com   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. Hnr block com The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Hnr block com The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Hnr block com The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. Hnr block com Entry into the United States. Hnr block com   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. Hnr block com It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Hnr block com It is not made by bulk transfer. Hnr block com The enterer is liable for the tax. Hnr block com Importer of record's liability. Hnr block com   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. Hnr block com   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Hnr block com The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. Hnr block com The importer of record has no reason to believe any information in the certificate is false. Hnr block com Customs bond. Hnr block com   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. Hnr block com Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Hnr block com   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. Hnr block com The position holder is liable for the tax. Hnr block com The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Hnr block com However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Hnr block com Bulk transfers not received at approved terminal or refinery. Hnr block com   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. Hnr block com No tax was previously imposed (as discussed earlier) on any of the following events. Hnr block com The removal from the refinery. Hnr block com The entry into the United States. Hnr block com The removal from a terminal by an unregistered position holder. Hnr block com Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). Hnr block com   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. Hnr block com However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Hnr block com The owner is a registrant. Hnr block com The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. Hnr block com The owner has no reason to believe any information on the certificate is false. Hnr block com The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. Hnr block com The operator is jointly and severally liable if the owner does not meet these conditions. Hnr block com Sales to unregistered person. Hnr block com   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. Hnr block com   The seller is liable for the tax. Hnr block com However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Hnr block com The seller is a registrant. Hnr block com The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. Hnr block com The seller has no reason to believe any information on the certificate is false. Hnr block com The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. Hnr block com The buyer is jointly and severally liable if the seller does not meet these conditions. Hnr block com Exception. Hnr block com   The tax does not apply to a sale if all of the following apply. Hnr block com The buyer's principal place of business is not in the United States. Hnr block com The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Hnr block com The seller is a registrant and the exporter of record. Hnr block com The fuel was exported. Hnr block com Removal or sale of blended diesel fuel or kerosene. Hnr block com   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. Hnr block com Blended taxable fuel produced using biodiesel is subject to the tax. Hnr block com See Blended taxable fuel under Definitions, earlier. Hnr block com   The blender is liable for the tax. Hnr block com The tax is figured on the number of gallons not previously subject to the tax. Hnr block com   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. Hnr block com Generally, the biodiesel mixture must be diesel fuel (defined earlier). Hnr block com See Form 720 to report this tax. Hnr block com You also must be registered by the IRS as a blender. Hnr block com See Form 637 for more information. Hnr block com   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. Hnr block com Additional persons liable. Hnr block com   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. Hnr block com Credits or Refunds. Hnr block com   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. Hnr block com For more information, see chapter 2. Hnr block com Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. Hnr block com 001 per gallon LUST tax as discussed below, unless the fuel is for export. Hnr block com The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. Hnr block com The person otherwise liable for tax (for example, the position holder) is a registrant. Hnr block com In the case of a removal from a terminal, the terminal is an approved terminal. Hnr block com The diesel fuel or kerosene satisfies the dyeing requirements (described next). Hnr block com Dyeing requirements. Hnr block com   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. Hnr block com It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. Hnr block com 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. Hnr block com Is indelibly dyed by mechanical injection. Hnr block com See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. Hnr block com Notice required. Hnr block com   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. Hnr block com   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. Hnr block com   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). Hnr block com That seller is subject to the penalty described next. Hnr block com Penalty. Hnr block com   A penalty is imposed on a person if any of the following situations apply. Hnr block com Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. Hnr block com Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. Hnr block com The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. Hnr block com The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. Hnr block com   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Hnr block com After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Hnr block com   This penalty is in addition to any tax imposed on the fuel. Hnr block com   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. Hnr block com   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. Hnr block com   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. Hnr block com However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. Hnr block com The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. Hnr block com Exception to penalty. Hnr block com   The penalty under item (3) will not apply in any of the following situations. Hnr block com Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. Hnr block com Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. Hnr block com The alteration or attempted alteration occurs in an exempt area of Alaska. Hnr block com See Removal for sale or use in Alaska, later. Hnr block com Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. Hnr block com Alaska and Feedstocks Tax of $. Hnr block com 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). Hnr block com Undyed kerosene used for feedstock purposes. Hnr block com Removal for sale or use in Alaska. Hnr block com   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. Hnr block com The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. Hnr block com The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. Hnr block com In the case of a removal from a terminal, the terminal is an approved terminal. Hnr block com The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. Hnr block com   If all three of the requirements above are not met, then tax is imposed at $. Hnr block com 244 per gallon. Hnr block com   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. Hnr block com Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. Hnr block com Later sales. Hnr block com   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. Hnr block com The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. Hnr block com However, the sale is not taxable (other than the LUST tax at $. Hnr block com 001 per gallon) if all the following requirements are met. Hnr block com The fuel is sold in Alaska for certain nontaxable uses. Hnr block com The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. Hnr block com The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. Hnr block com Feedstock purposes. Hnr block com   The $. Hnr block com 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. Hnr block com The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. Hnr block com In the case of a removal from a terminal, the terminal is an approved terminal. Hnr block com Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. Hnr block com   If all of the requirements above are not met, then tax is imposed at $. Hnr block com 244 per gallon. Hnr block com   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. Hnr block com For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. Hnr block com A feedstock user is a person that uses kerosene for a feedstock purpose. Hnr block com A registered feedstock user is a person that has been registered by the IRS as a feedstock user. Hnr block com See Registration Requirements, earlier. Hnr block com Later sales. Hnr block com   The excise tax ($. Hnr block com 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. Hnr block com The tax is imposed at the time of the later sale and that seller is liable for the tax. Hnr block com Certificate. Hnr block com   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. Hnr block com The certificate may be included as part of any business records normally used for a sale. Hnr block com A model certificate is shown in the Appendix as Model Certificate G. Hnr block com Your certificate must contain all information necessary to complete the model. Hnr block com   A certificate expires on the earliest of the following dates. Hnr block com The date 1 year after the effective date (not earlier than the date signed) of the certificate. Hnr block com The date the seller is provided a new certificate or notice that the current certificate is invalid. Hnr block com The date the seller is notified the buyer's registration has been revoked or suspended. Hnr block com   The buyer must provide a new certificate if any information on a certificate has changed. Hnr block com Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. Hnr block com Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. Hnr block com Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. Hnr block com Any liquid other than gasoline, diesel fuel, or kerosene. Hnr block com Generally, this back-up tax is imposed at a rate of $. Hnr block com 244 per gallon. Hnr block com Liability for tax. Hnr block com   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. Hnr block com In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. Hnr block com Exemptions from the back-up tax. Hnr block com   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. Hnr block com   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. Hnr block com Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which 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. Hnr block com A reduced tax rate of $. Hnr block com 198 per gallon is imposed on a diesel-water fuel emulsion. Hnr block com To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. Hnr block com If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. Hnr block com 244 per gallon. Hnr block com Credits or refunds. Hnr block com   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. Hnr block com Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. Hnr block com 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). Hnr block com For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. Hnr block com 219. Hnr block com The rate of $. Hnr block com 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. Hnr block com The airport terminal does not need to be a secured airport terminal for this rate to apply. Hnr block com However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. Hnr block com For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. Hnr block com 044 per gallon. Hnr block com For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. Hnr block com 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. Hnr block com See Terminal located within a secured area of an airport, later. Hnr block com In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Hnr block com For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. Hnr block com 001. Hnr block com There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Hnr block com The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. Hnr block com See Terminal located within a secured area of an airport, later. Hnr block com In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Hnr block com The position holder is liable for the $. Hnr block com 001 per gallon tax. Hnr block com For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. Hnr block com 141 per gallon applies. Hnr block com Certain refueler trucks, tankers, and tank wagons treated as terminals. Hnr block com   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. Hnr block com Such terminal is located within an area of an airport. Hnr block com Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. Hnr block com Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. Hnr block com The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. Hnr block com Information reporting will be required by terminal operators regarding this provision. Hnr block com Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. Hnr block com Terminal located within a secured area of an airport. Hnr block com   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. Hnr block com This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. Hnr block com Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. Hnr block com 044 per gallon. Hnr block com However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). Hnr block com For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. Hnr block com For the aircraft operator to be liable for the tax $. Hnr block com 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. Hnr block com Commercial aviation. Hnr block com   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. Hnr block com However, commercial aviation does not include any of the following uses. Hnr block com Any use exclusively for the purpose of skydiving. Hnr block com Certain air transportation by seaplane. Hnr block com See Seaplanes under Transportation of Persons by Air in chapter 4. Hnr block com Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. Hnr block com For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. Hnr block com Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. Hnr block com For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. Hnr block com Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. Hnr block com See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. Hnr block com Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. Hnr block com 141 per gallon. Hnr block com The fractional ownership program manager is liable for the tax. Hnr block com The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. Hnr block com If the surtax is imposed, the following air transportation taxes do not apply. Hnr block com Transportation of persons by air. Hnr block com Transportation of property by air. Hnr block com Use of international air travel facilities. Hnr block com These taxes are described under Air Transportation Taxes, later. Hnr block com A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. Hnr block com Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. Hnr block com Fractional program aircraft. Hnr block com   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. Hnr block com S. Hnr block com   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. Hnr block com In such situations, the flight is not commercial aviation. Hnr block com Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. Hnr block com Fractional owner. Hnr block com   Any person owning any interest (including the entire interest) in a fractional program aircraft. Hnr block com Dry lease aircraft exchange. Hnr block com   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. Hnr block com Special rule relating to deadhead service. Hnr block com   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. Hnr block com More information. Hnr block com   See section 4043 for more information on the surtax. Hnr block com Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. Hnr block com Certificate. Hnr block com   The certificate may be included as part of any business records normally used for a sale. Hnr block com See Model Certificate K in the Appendix. Hnr block com   A certificate expires on the earliest of the following dates. Hnr block com The date 1 year after the effective date (not earlier than the date signed) of the certificate. Hnr block com The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. Hnr block com The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. Hnr block com   The buyer must provide a new certificate if any information on a certificate has changed. Hnr block com   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. Hnr block com Exempt use. Hnr block com   The rate on kerosene for use in aviation is $. Hnr block com 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. Hnr block com An exempt use includes kerosene for the exclusive use of a state or local government. Hnr block com There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Hnr block com Flash title transaction. Hnr block com   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. Hnr block com In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. Hnr block com In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. Hnr block com Reseller statement. Hnr block com   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. Hnr block com Credits or Refunds. Hnr block com   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation 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). Hnr block com A claim may be made by a registered ultimate vendor for certain sales. Hnr block com For more information, see chapter 2. Hnr block com Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. Hnr block com Other Fuels include alternative fuels. Hnr block com Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. Hnr block com Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. Hnr block com Qualified methanol and ethanol fuels. Hnr block com   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. Hnr block com The tax rates are listed in the Instructions for Form 720. Hnr block com Partially exempt methanol and ethanol fuels. Hnr block com   A reduced tax rate applies to these fuels. Hnr block com Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. Hnr block com The tax rates are listed in the Instructions for Form 720. Hnr block com Motor vehicles. Hnr block com   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. Hnr block com They are propelled by a motor. Hnr block com They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t
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Hnr block com Publication 947 - Main Content Table of Contents Practice Before the IRSWhat Is Practice Before the IRS? Who Can Practice Before the IRS? Who Cannot Practice Before the IRS? How Does an Individual Become Enrolled? What Are the Rules of Practice? Authorizing a RepresentativeWhat Is a Power of Attorney? When Is a Power of Attorney Required? When Is a Power of Attorney Not Required? How Do I Fill Out Form 2848? What Happens to the Power of Attorney When Filed? How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Hnr block com Practice Before the IRS The Office of Professional Responsibility and the Return Preparer Office generally are responsible for administering and enforcing the regulations governing practice before the IRS. Hnr block com The Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. Hnr block com The Return Preparer Office is responsible for matters related to the authority to practice, including acting on applications for enrollment and administering competency testing and continuing education. Hnr block com What Is Practice Before the IRS? Practice before the IRS covers all matters relating to any of the following. Hnr block com Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. Hnr block com Representing a taxpayer at conferences, hearings, or meetings with the IRS. Hnr block com Preparing and filing documents, including tax returns, with the IRS for a taxpayer. Hnr block com Providing a client with written advice which has a potential for tax avoidance or evasion. Hnr block com Furnishing information at the request of the IRS or appearing as a witness for the taxpayer is not practice before the IRS. Hnr block com Who Can Practice Before the IRS? The following individuals can practice before the IRS. Hnr block com However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's representative and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. Hnr block com Form 2848 can be used for this purpose. Hnr block com Attorneys. Hnr block com   Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Hnr block com Certified public accountants (CPAs). Hnr block com   Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Hnr block com Enrolled agents. Hnr block com   Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Hnr block com Enrolled retirement plan agents. Hnr block com   Any enrolled retirement plan agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Hnr block com The practice of enrolled retirement plan agents is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Hnr block com Enrolled actuaries. Hnr block com   Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Hnr block com The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Hnr block com Student. Hnr block com    Under certain circumstances, a student who is supervised by a practitioner may request permission to represent another person before the IRS. Hnr block com For more information, see Authorization for special appearances, later. Hnr block com Registered tax return preparers and unenrolled return preparers. Hnr block com   A registered tax return preparer is an individual who has passed an IRS competency test and is authorized to prepare and sign tax returns as the preparer. Hnr block com An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return. Hnr block com   Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. Hnr block com Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. Hnr block com Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer. Hnr block com   If the unenrolled return preparer does not meet the requirements for limited representation, you may file Form 8821 to allow the preparer to inspect your tax information and receive copies of notices sent to you by the IRS. Hnr block com See Form 8821. Hnr block com Practice denied. Hnr block com   Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. Hnr block com Disreputable conduct includes, but is not limited to, the list of items under Incompetence and Disreputable Conduct shown later under What Are the Rules of Practice. Hnr block com Other individuals who may serve as representatives. Hnr block com   Because of their special relationship with a taxpayer, the following individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer. Hnr block com An individual. Hnr block com An individual can represent himself or herself before the IRS and does not have to file a written declaration of qualification and authority. Hnr block com A family member. Hnr block com An individual can represent members of his or her immediate family. Hnr block com Immediate family includes a spouse, child, parent, brother, or sister of the individual. Hnr block com An officer. Hnr block com A bona fide officer of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group can represent the corporation, association, or organized group. Hnr block com An officer of a governmental unit, agency, or authority, in the course of his or her official duties, can represent the organization before the IRS. Hnr block com A partner. Hnr block com A general partner may represent the partnership before the IRS. Hnr block com An employee. Hnr block com A regular full-time employee can represent his or her employer. Hnr block com An employer can be, but is not limited to, an individual, partnership, corporation (including a parent, subsidiary, or other affiliated corporation), association, trust, receivership, guardianship, estate, organized group, governmental unit, agency, or authority. Hnr block com A fiduciary. Hnr block com A fiduciary (trustee, executor, personal representative, administrator, receiver, or guardian) stands in the position of a taxpayer and acts as the taxpayer, not as a representative. Hnr block com See Fiduciary under When Is a Power of Attorney Not Required, later. Hnr block com Representation Outside the United States Any individual may represent an individual or entity, who is outside the United States, before personnel of the IRS when such representation occurs outside the United States. Hnr block com See section 10. Hnr block com 7(c)(1)(vii) of Circular 230. Hnr block com Authorization for Special Appearances The Commissioner of Internal Revenue, or delegate, can authorize an individual who is not otherwise eligible to practice before the IRS to represent another person for a particular matter. Hnr block com The prospective representative must request this authorization in writing from the Office of Professional Responsibility. Hnr block com However, it is granted only when extremely compelling circumstances exist. Hnr block com If granted, the Commissioner, or delegate, will issue a letter that details the conditions related to the appearance and the particular tax matter for which the authorization is granted. Hnr block com The authorization letter should not be confused with a letter from an IRS center advising an individual that he or she has been assigned a Centralized Authorization File (CAF) number. Hnr block com The issuance of a CAF number does not indicate that an individual is either recognized or authorized to practice before the IRS. Hnr block com It merely confirms that a centralized file for authorizations has been established for the individual under that number. Hnr block com Students in LITCs and the STCP. Hnr block com   A student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) who is supervised by a practitioner may request permission to represent another person before the IRS. Hnr block com Authorization requests must be made to the Office of Professional Responsibility. Hnr block com If granted, a letter authorizing the student's special appearance and detailing any conditions related to the appearance will be issued. Hnr block com Students receiving an authorization letter generally can represent taxpayers before any IRS function or office subject to any conditions in the authorization letter. Hnr block com If you intend to have a student represent you, review the authorization letter and ask your student, your student's supervisor, or the Office of Professional Responsibility if you have questions about the terms of the authorization. Hnr block com Who Cannot Practice Before the IRS? In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. Hnr block com If an individual loses eligibility to practice, the IRS will not recognize a power of attorney that names the individual as a representative. Hnr block com Corporations, associations, partnerships, and other persons that are not individuals. Hnr block com   These organizations (or persons) are not eligible to practice before the IRS. Hnr block com Loss of Eligibility Generally, individuals lose their eligibility to practice before the IRS in the following ways. Hnr block com Not meeting the requirements for renewal of enrollment (such as continuing professional education). Hnr block com Requesting to be placed in inactive retirement status. Hnr block com Being suspended or disbarred by the Office of Professional Responsibility for violating the regulations governing practice before the IRS. Hnr block com Failure to meet requirements. Hnr block com   Individuals who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the IRS. Hnr block com The notice will explain the reason for noncompliance and provide the individual with an opportunity to furnish information for reconsideration. Hnr block com The individual has 60 days from the date of the notice to respond. Hnr block com Inactive roster. Hnr block com   An individual will be placed on the roster of inactive individuals for a period of three years, if he or she: Fails to respond timely to the notice of noncompliance with the renewal requirements, Fails to file timely the application for renewal, or Does not satisfy the requirements of eligibility for renewal. Hnr block com The individual must file an application for renewal and satisfy all requirements for renewal after being placed in inactive status. Hnr block com Otherwise, at the conclusion of the next renewal cycle, he or she will be removed from the roster and the enrollment or registration terminated. Hnr block com Inactive retirement status. Hnr block com   Individuals who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. Hnr block com They must continue to adhere to all renewal requirements. Hnr block com They can be reinstated to an active enrollment status by filing an application for renewal and providing evidence that they have completed the required continuing professional education hours for the enrollment cycle or registration year. Hnr block com Suspension and disbarment. Hnr block com   Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. Hnr block com This includes engaging in acts of disreputable conduct. Hnr block com For more information, see Incompetence and Disreputable Conduct under What are the Rules of Practice, later. Hnr block com   Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. Hnr block com See What Is Practice Before the IRS, earlier. Hnr block com   Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. Hnr block com However, a practitioner can seek reinstatement from the Office of Professional Responsibility five years after disbarment. Hnr block com   If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Office of Professional Responsibility authorizes reinstatement. Hnr block com The Office of Professional Responsibility may reinstate the practitioner if it is determined that: The practitioner's future conduct is not likely to be in violation of the regulations, and Granting the reinstatement would not be contrary to the public interest. Hnr block com How Does an Individual Become Enrolled? The Return Preparer Office can grant enrollment to practice before the IRS to an applicant who demonstrates special competence in tax matters by passing a written examination administered by the IRS. Hnr block com Enrollment also can be granted to an applicant who qualifies because of past service and technical experience in the IRS. Hnr block com In either case, certain application forms, discussed next, must be filed. Hnr block com Additionally, an applicant must not have engaged in any conduct that would justify suspension or disbarment from practice before the IRS. Hnr block com See Incompetence and Disreputable Conduct, later. Hnr block com Form 2587. Hnr block com   Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. Hnr block com Form 2587 can be filed online, by mail, or by fax. Hnr block com For more information, see instructions and fees listed on the form. Hnr block com To get Form 2587, see How To Get Tax Help, later. Hnr block com Form 23 and Form 23-EP. Hnr block com   Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, or Form 23-EP, Application for Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent. Hnr block com The application must include a check or money order in the amount of the fee shown on Form 23 or Form 23-EP. Hnr block com Alternatively, payment may be made electronically pursuant to instructions on the forms. Hnr block com To get Form 23 or Form 23-EP, see How To Get Tax Help, later. Hnr block com Form 5434. Hnr block com   An individual may apply as an enrolled actuary on the basis of past employment with the IRS and technical experience by filing Form 5434, Application for Enrollment, with the Joint Board for the Enrollment of Actuaries. Hnr block com The application must include a check or money order in the amount of the fee shown on Form 5434. Hnr block com To get Form 5434, see How To Get Tax Help, later. Hnr block com Period of enrollment. Hnr block com   An enrollment card will be issued to each individual whose enrollment application is approved. Hnr block com The individual is enrolled until the expiration date shown on the enrollment card or certificate. Hnr block com To continue practicing beyond the expiration date, the individual must request renewal of the enrollment by filing Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, or Form 8554-EP, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent (ERPA). Hnr block com What Are the Rules of Practice? The rules governing practice before the IRS are published in the Code of Federal Regulations at 31 C. Hnr block com F. Hnr block com R. Hnr block com part 10 and reprinted in Treasury Department Circular No. Hnr block com 230 (Circular 230). Hnr block com An attorney, CPA, enrolled agent, enrolled retirement plan agent, registered tax return preparer, or enrolled actuary authorized to practice before the IRS (referred to hereafter as a practitioner) has the duty to perform certain acts and is restricted from performing other acts. Hnr block com In addition, a practitioner cannot engage in disreputable conduct (discussed later). Hnr block com Any practitioner who does not comply with the rules of practice or engages in disreputable conduct is subject to disciplinary action. Hnr block com Also, unenrolled preparers must comply with the rules of practice and conduct to exercise the privilege of limited practice before the IRS. Hnr block com See Publication 470 for a discussion of the special rules for limited practice by unenrolled preparers. Hnr block com Duties Practitioners must promptly submit records or information requested by officers or employees of the IRS, except when the practitioner believes on reasonable belief and good faith that the information is privileged. Hnr block com Communications with respect to tax advice between a federally authorized tax practitioner and a taxpayer generally are confidential to the same extent that communication would be privileged if it were between a taxpayer and an attorney if the advice relates to: Noncriminal tax matters before the IRS, or Noncriminal tax proceedings brought in federal court by or against the United States. Hnr block com Communications regarding corporate tax shelters. Hnr block com   This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and any person, including a director, shareholder, officer, employee, agent, or representative of a corporation if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter. Hnr block com Duty to advise. Hnr block com   A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission, and the consequences of the noncompliance, error, or omission. Hnr block com Due diligence. Hnr block com   A practitioner must exercise due diligence when performing the following duties. Hnr block com Preparing or assisting in the preparing, approving, and filing of returns, documents, affidavits, and other papers relating to IRS matters. Hnr block com Determining the correctness of oral or written representations made by him or her to the Department of the Treasury. Hnr block com Determining the correctness of oral or written representations made by him or her to clients with reference to any matter administered by the IRS. Hnr block com Restrictions Practitioners are restricted from engaging in certain practices. Hnr block com The following paragraphs discuss some of these restricted practices. Hnr block com Delays. Hnr block com   A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS. Hnr block com Assistance from disbarred or suspended persons and former IRS employees. Hnr block com   A practitioner must not knowingly, directly or indirectly, do the following. Hnr block com Accept assistance from, or assist, any person who is under disbarment or suspension from practice before the IRS if the assistance relates to matters considered practice before the IRS. Hnr block com Accept assistance from any former government employee where provisions of Circular 230 or any federal law would be violated. Hnr block com Performance as a notary. Hnr block com   A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter. Hnr block com Negotiations of taxpayer refund checks. Hnr block com   Practitioners must not endorse or otherwise negotiate (cash) any refund check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to the taxpayer. Hnr block com Incompetence and Disreputable Conduct Any practitioner or unenrolled return preparer may be disbarred or suspended from practice before the IRS, or censured, for incompetence or disreputable conduct. Hnr block com The following list contains examples of conduct that is considered disreputable. Hnr block com Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust. Hnr block com Knowingly giving false or misleading information in connection with federal tax matters, or participating in such activity. Hnr block com Soliciting employment by prohibited means as discussed in section 10. Hnr block com 30 of Circular 230. Hnr block com Willfully failing to file a federal tax return, evading or attempting to evade any federal tax or payment, or participating in such actions. Hnr block com Misappropriating, or failing to properly and promptly remit, funds received from clients for payment of taxes or other obligations due the United States. Hnr block com Directly or indirectly attempting to influence the official action of IRS employees by the use of threats, false accusations, duress, or coercion, or by offering gifts, favors, or any special inducements. Hnr block com Being disbarred or suspended from practice as an attorney, CPA, public accountant, or actuary, by the District of Columbia or any state, possession, territory, commonwealth, or any federal court, or any federal agency, body, or board. Hnr block com Knowingly aiding and abetting another person to practice before the IRS during a period of suspension, disbarment, or ineligibility of that other person. Hnr block com Using abusive language, making false accusations and statements knowing them to be false, circulating or publishing malicious or libelous matter, or engaging in any contemptuous conduct in connection with practice before the IRS. Hnr block com Giving a false opinion knowingly, recklessly, or through gross incompetence; or following a pattern of providing incompetent opinions in questions arising under the federal tax laws. Hnr block com Censure, Disbarments, and Suspensions The Office of Professional Responsibility may censure or institute proceedings to censure, suspend or disbar any attorney, CPA, or enrolled agent who has violated Circular 230. Hnr block com A practitioner will be given the opportunity to demonstrate compliance with the rules before any disciplinary action is taken. Hnr block com Authorizing a Representative You may either represent yourself, or you may authorize an individual to represent you before the IRS. Hnr block com If you chose to have someone represent you, your representative must be a person eligible to practice before the IRS. Hnr block com See Who Can Practice Before the IRS, earlier. Hnr block com What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. Hnr block com If the authorization is not limited, the individual generally can perform all acts that you can perform. Hnr block com The authority granted to a registered tax return preparer or an unenrolled preparer is limited. Hnr block com For information on the limits regarding registered tax return preparers, see Circular 230 §10. Hnr block com 3(f). Hnr block com For information on the limits regarding unenrolled preparers, see Publication 470. Hnr block com Acts performed. Hnr block com   Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. Hnr block com Represent you before any office of the IRS. Hnr block com Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. Hnr block com Sign a consent to extend the statutory time period for assessment or collection of a tax. Hnr block com Sign a closing agreement. Hnr block com Signing your return. Hnr block com   The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1. Hnr block com 6012-1(a)(5)). Hnr block com You specifically authorize this in your power of attorney. Hnr block com For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. Hnr block com Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. Hnr block com Other good cause if specific permission is requested of and granted by the IRS. Hnr block com When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. Hnr block com For more information, see the Form 2848 instructions. Hnr block com Limitation on substitution or delegation. Hnr block com   A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. Hnr block com   After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. Hnr block com If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. Hnr block com Disclosure of returns to a third party. Hnr block com   Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. Hnr block com Incapacity or incompetency. Hnr block com   A power of attorney is generally terminated if you become incapacitated or incompetent. Hnr block com   The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. Hnr block com See Non-IRS powers of attorney, later. Hnr block com When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. Hnr block com A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. Hnr block com Represent you at a meeting with the IRS. Hnr block com Prepare and file a written response to the IRS. Hnr block com Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. Hnr block com Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Hnr block com Your representative must complete that part of the form. Hnr block com Non-IRS powers of attorney. Hnr block com   The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. Hnr block com For more information, see Processing a non-IRS power of attorney, later. Hnr block com   If you want to use a power of attorney document other than Form 2848, it must contain the following information. Hnr block com Your name and mailing address. Hnr block com Your social security number and/or employer identification number. Hnr block com Your employee plan number, if applicable. Hnr block com The name and mailing address of your representative(s). Hnr block com The types of tax involved. Hnr block com The federal tax form number. Hnr block com The specific year(s) or period(s) involved. Hnr block com For estate tax matters, the decedent's date of death. Hnr block com A clear expression of your intention concerning the scope of authority granted to your representative(s). Hnr block com Your signature and date. Hnr block com You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. Hnr block com This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. Hnr block com The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601. Hnr block com 502(b). Hnr block com Required information missing. Hnr block com   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. Hnr block com You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. Hnr block com If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. Hnr block com Procedure for perfecting a non-IRS power of attorney. Hnr block com   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. Hnr block com The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). Hnr block com The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. Hnr block com Example. Hnr block com John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. Hnr block com The power of attorney grants Ed the authority to perform any and all acts on John's behalf. Hnr block com However, it does not list specific tax-related information such as types of tax or tax form numbers. Hnr block com Shortly after John signs the power of attorney, he is declared incompetent. Hnr block com Later, a federal tax matter arises concerning a prior year return filed by John. Hnr block com Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. Hnr block com If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. Hnr block com If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Hnr block com Otherwise, he must name another individual who can practice before the IRS. Hnr block com Processing a non-IRS power of attorney. Hnr block com   The IRS has a centralized computer database system called the CAF system. Hnr block com This system contains information on the authority of taxpayer representatives. Hnr block com Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Hnr block com Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. Hnr block com It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. Hnr block com   You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. Hnr block com Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848). Hnr block com Preparation of Form — Helpful Hints The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. Hnr block com However, the following will also assist you in preparing the form. Hnr block com Line-by-line hints. Hnr block com   The following hints are summaries of some of the line-by-line instructions for Form 2848. Hnr block com Line 1—Taxpayer information. Hnr block com   If a joint return is involved, the husband and wife each file a separate Form 2848 if they both want to be represented. Hnr block com If only one spouse wants to be represented in the matter, that spouse files a Form 2848. Hnr block com Line 2—Representative(s). Hnr block com   Only individuals may be named as representatives. Hnr block com If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to your representative. Hnr block com If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Hnr block com Enter your representative's fax number if available. Hnr block com   If you want to name more than three representatives, attach additional Form(s) 2848. Hnr block com The IRS can send copies of notices and communications to two of your representatives. Hnr block com You must, however, check the boxes on line 2 of the Form 2848 if you want the IRS to routinely send copies of notices and communications to your representatives. Hnr block com If you do not check the boxes, your representatives will not routinely receive copies of notices and communications. Hnr block com Line 3—Tax matters. Hnr block com   You may list any tax years or periods that have already ended as of the date you sign the power of attorney. Hnr block com However, you may include on a power of attorney only future tax periods that end no later than 3 years after the date the power of attorney is received by the IRS. Hnr block com The 3 future periods are determined starting after December 31 of the year the power of attorney is received by the IRS. Hnr block com However, avoid general references such as “all years” or “all taxes. Hnr block com ” Any Form 2848 with general references will be returned. Hnr block com Line 4—Specific use not recorded on Centralized Authorization File (CAF). Hnr block com   Certain matters cannot be recorded on the CAF system. Hnr block com Examples of such matters include, but are not limited to, the following. Hnr block com Requests for a private letter ruling or technical advice. Hnr block com Applications for an employer identification number (EIN). Hnr block com Claims filed on Form 843, Claim for Refund and Request for Abatement. Hnr block com Corporate dissolutions. Hnr block com Requests for change of accounting method. Hnr block com Requests for change of accounting period. Hnr block com Applications for recognition of exemption under sections 501(c)(3), 501(a), or 521 (Forms 1023, 1034, or 1028). Hnr block com Request for a determination of the qualified status of an employee benefit plan (Forms 5300, 5307, or 5310). Hnr block com Application for Award for Original Information under section 7623. Hnr block com Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS). Hnr block com Freedom of Information Act requests. Hnr block com If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. Hnr block com If this box is checked, the representative should mail or fax the power of attorney to the IRS office handling the matter. Hnr block com Otherwise, the representative should bring a copy of the power of attorney to each meeting with the IRS. Hnr block com Where To File a Power of Attorney Generally, you can mail or fax a paper Form 2848 directly to the IRS. Hnr block com To determine where you should file Form 2848, see Where To File in the instructions for Form 2848. Hnr block com If Form 2848 is for a specific use, mail or fax it to the office handling that matter. Hnr block com For more information on specific use, see the Instructions for Form 2848, line 4. Hnr block com FAX copies. Hnr block com   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). Hnr block com If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. Hnr block com Your representative may be able to file Form 2848 electronically via the IRS website. Hnr block com For more information, your representative can go to www. Hnr block com irs. Hnr block com gov and under the Tax Professionals tab, click on e-services–Online Tools for Tax Professionals. Hnr block com If you complete Form 2848 for electronic signature authorization, do not file Form 2848 with the IRS. Hnr block com Instead, give it to your representative, who will retain the document. Hnr block com Updating a power of attorney. Hnr block com   Submit any update or modification to an existing power of attorney in writing. Hnr block com Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Hnr block com Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed. Hnr block com   A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. Hnr block com To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed. Hnr block com A written notice of substitution or delegation signed by the recognized representative. Hnr block com A written declaration of representative made by the new representative. Hnr block com A copy of the power of attorney that specifically authorizes the substitution or delegation. Hnr block com Retention/Revocation of Prior Power(s) of Attorney A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. Hnr block com However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney. Hnr block com A copy of the unrevoked prior power of attorney, or A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney. Hnr block com Note. Hnr block com The filing of Form 2848 will not revoke any  Form 8821 that is in effect. Hnr block com Revocation of Power of Attorney/Withdrawal of Representative If you want to revoke an existing power of attorney and do not want to name a new representative, or if a representative wants to withdraw from representation, mail or fax a copy of the previously executed power of attorney to the IRS, or if the power of attorney is for a specific matter, to the IRS office handling the matter. Hnr block com If the taxpayer is revoking the power of attorney, the taxpayer must write “REVOKE” across the top of the first page with a current signature and date below this annotation. Hnr block com If the representative is withdrawing from the representation, the representative must write “WITHDRAW” across the top of the first page with a current signature and date below this annotation. Hnr block com If you do not have a copy of the power of attorney you want to revoke or withdraw, send a statement to the IRS. Hnr block com The statement of revocation or withdrawal must indicate that the authority of the power of attorney is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as applicable. Hnr block com If the taxpayer is revoking, list the name and address of each recognized representative whose authority is revoked. Hnr block com When the taxpayer is completely revoking authority, the form should state “remove all years/periods” instead of listing the specific tax matter, years, or periods. Hnr block com If the representative is withdrawing, list the name, TIN, and address (if known) of the taxpayer. Hnr block com To revoke a specific use power of attorney, send the power of attorney or statement of revocation to the IRS office handling your case, using the above instructions. Hnr block com A power of attorney held by a student will be recorded on the CAF system for 130 days from the receipt date. Hnr block com If you are authorizing a student to represent you after that time, you will need to submit a current and valid Form 2848. Hnr block com When Is a Power of Attorney Not Required? A power of attorney is not required when the third party is not dealing with the IRS as your representative. Hnr block com The following situations do not require a power of attorney. Hnr block com Providing information to the IRS. Hnr block com Authorizing the disclosure of tax return information through Form 8821, Tax Information Authorization, or other written or oral disclosure consent. Hnr block com Allowing the IRS to discuss return information with a third party via the checkbox provided on a tax return or other document. Hnr block com Allowing a tax matters partner or person (TMP) to perform acts for the partnership. Hnr block com Allowing the IRS to discuss return information with a fiduciary. Hnr block com How Do I Fill Out Form 2848? The following example illustrates how to complete Form 2848. Hnr block com The two completed forms for this example are shown on the next pages. Hnr block com Example. Hnr block com Stan and Mary Doe have been notified that their joint tax returns (Forms 1040) for 2009, 2010, and 2011 are being examined. Hnr block com They have decided to appoint Jim Smith, an enrolled agent, to represent them in this matter and any future matters concerning these returns. Hnr block com Jim, who has prepared returns at the same location for years, already has a Centralized Authorization File (CAF) number assigned to him. Hnr block com Mary does not want Jim to sign any agreements on her behalf, but Stan is willing to have Jim do so. Hnr block com They want copies of all notices and written communications sent to Jim. Hnr block com This is the first time Stan and Mary have given power of attorney to anyone. Hnr block com They should each complete a Form 2848 as follows. Hnr block com Line 1—Taxpayer information. Hnr block com   Stan and Mary must each file a separate Form 2848. Hnr block com On his separate Form 2848, Stan enters his name, street address, and social security number in the spaces provided. Hnr block com Mary does likewise on her separate Form 2848. Hnr block com Line 2—Representative(s). Hnr block com   On their separate Forms 2848, Stan and Mary each enters the name and current address of their chosen representative, Jim Smith. Hnr block com Both Stan and Mary want Jim Smith to receive notices and communications concerning the matters identified in line 3, so on their separate Forms 2848, Stan and Mary each checks the box in the first column of line 2. Hnr block com They also enter Mr. Hnr block com Smith's CAF number, his telephone number, and his fax number. Hnr block com Mr. Hnr block com Smith's address, telephone number, and fax number have not changed since the IRS issued his CAF number, so Stan and Mary do not check the boxes in the second column. Hnr block com Line 3—Tax Matters. Hnr block com   On their separate Forms 2848, Stan and Mary each enters “income” for the type of tax, “1040” for the form number, and “2009, 2010, and 2011” for the tax years. Hnr block com Line 4—Specific use not recorded on Centralized Authorization File (CAF). Hnr block com   On their separate Forms 2848, Stan and Mary make no entry on this line because they do not want to restrict the use of their powers of attorney to a specific use that is not recorded on the CAF. Hnr block com See Preparation of Form — Helpful Hints, earlier. Hnr block com Line 5—Acts authorized. Hnr block com   Mary wants to sign any agreement that reflects changes to her and Stan's joint 2009, 2010, and 2011 income tax liability, so she writes “Taxpayer must sign any agreement form” on line 5 of her Form 2848. Hnr block com Stan does not wish to restrict the authority of Jim Smith in this regard, so he leaves line 5 of his Form 2848 blank. Hnr block com If either Mary or Stan had chosen, they could have listed other restrictions on line 5 of their separate Forms 2848. Hnr block com Line 6—Retention/revocation of prior power(s) of attorney. Hnr block com   Stan and Mary are each filing their first powers of attorney, so they make no entry on this line. Hnr block com However, if they had filed prior powers of attorney, the filing of this current power would revoke any earlier ones for the same tax matter(s) unless they checked the box on line 6 and attached a copy of the prior power of attorney that they wanted to remain in effect. Hnr block com   If Mary later decides that she can handle the examination on her own, she can revoke her power of attorney even though Stan does not revoke his power of attorney. Hnr block com (See Revocation of Power of Attorney/Withdrawal of Representative, earlier, for the special rules that apply. Hnr block com ) Line 7—Signature of taxpayer. Hnr block com   Stan and Mary each signs and dates his or her Form 2848. Hnr block com If a taxpayer does not sign, the IRS cannot accept the form. Hnr block com Part II—Declaration of Representative. Hnr block com   Jim Smith must complete this part of Form 2848. Hnr block com If he does not sign this part, the IRS cannot accept the form. Hnr block com What Happens to the Power of Attorney When Filed? A power of attorney will be recognized after it is received, reviewed, and determined by the IRS to contain the required information. Hnr block com However, until a power of attorney is entered on the CAF system, IRS personnel may be unaware of the authority of the person you have named to represent you. Hnr block com Therefore, during this interim period, IRS personnel may request that you or your representative bring a copy to any meeting with the IRS. Hnr block com This image is too large to be displayed in the current screen. Hnr block com Please click the link to view the image. Hnr block com Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Hnr block com Please click the link to view the image. Hnr block com Filled-in Form 2848 - Page 2 This image is too large to be displayed in the current screen. Hnr block com Please click the link to view the image. Hnr block com Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Hnr block com Please click the link to view the image. Hnr block com Filled-in Form 2848 - Page 2 Processing and Handling How the power of attorney is processed and handled depends on whether it is a complete or incomplete document. Hnr block com Incomplete document. Hnr block com   If Form 2848 is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. Hnr block com For example, if your signature or signature date is missing, the IRS will contact you. Hnr block com If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative. Hnr block com   In either case, the power of attorney is not considered valid until all required information is entered on the document. Hnr block com The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS. Hnr block com Complete document. Hnr block com   If the power of attorney is complete and valid, the IRS will take action to recognize the representative. Hnr block com In most instances, this includes processing the document on the CAF system. Hnr block com Recording the data on the CAF system enables the IRS to direct copies of mailings to authorized representatives and to readily recognize the scope of authority granted. Hnr block com Documents not processed on CAF. Hnr block com   Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form – Helpful Hints, earlier). Hnr block com For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. Hnr block com These documents remain with the related case files. Hnr block com In this situation, you should check the box on line 4 of Form 2848. Hnr block com In these situations, the representative should bring a copy of the power of attorney to each meeting with the IRS. Hnr block com Dealing With the Representative After a valid power of attorney is filed, the IRS will recognize your representative. Hnr block com However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, nonprivileged information, the IRS can contact you directly. Hnr block com For example, in most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide lists of required items. Hnr block com However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. Hnr block com If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. Hnr block com Notices and other correspondence. Hnr block com   If you have a recognized representative, you and the representative will routinely receive notices and other correspondence from the IRS (either the original or a copy) if you checked the box in the left column of line 2 of Form 2848. Hnr block com If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. Hnr block com This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers. Hnr block com The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization. Hnr block com How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Hnr block com By selecting the method that is best for you, you will have quick and easy access to tax help. Hnr block com Free help with your return. Hnr block com   Free help in preparing your return is available nationwide from IRS-certified volunteers. Hnr block com The Volunteer Income Tax Assistance (VITA) program is designed to help low and moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Hnr block com Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Hnr block com To find the nearest VITA or TCE site, visit IRS. Hnr block com gov or call 1-800-906-9887 or 1-800-829-1040. Hnr block com   As part of the TCE program, AARP offers the Tax-Aide counseling program. Hnr block com To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Hnr block com aarp. Hnr block com org/money/taxaide. Hnr block com   For more information on these programs, go to IRS. Hnr block com gov and enter keyword “VITA” in the upper right-hand corner. Hnr block com Internet. Hnr block com You can access the IRS website at IRS. Hnr block com gov 24 hours a day, 7 days a week to: E-file your return. Hnr block com Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Hnr block com Check the status of your refund. Hnr block com Go to IRS. Hnr block com gov and click on Where's My Refund. Hnr block com Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Hnr block com If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Hnr block com Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Hnr block com Download forms, including talking tax forms, instructions, and publications. Hnr block com Order IRS products online. Hnr block com Research your tax questions online. Hnr block com Search publications online by topic or keyword. Hnr block com Use the online Internal Revenue Code, regulations, or other official guidance. Hnr block com View Internal Revenue Bulletins (IRBs) published in the last few years. Hnr block com Figure your withholding allowances using the withholding calculator online at www. Hnr block com irs. Hnr block com gov/individuals. Hnr block com Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Hnr block com irs. Hnr block com gov/individuals. Hnr block com Sign up to receive local and national tax news by email. Hnr block com Get information on starting and operating a small business. Hnr block com Phone. Hnr block com Many services are available by phone. Hnr block com   Ordering forms, instructions, and publications. Hnr block com Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Hnr block com You should receive your order within 10 days. Hnr block com Asking tax questions. Hnr block com Call the IRS with your tax questions at 1-800-829-1040. Hnr block com Solving problems. Hnr block com You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Hnr block com An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Hnr block com Call your local Taxpayer Assistance Center for an appointment. Hnr block com To find the number, go to www. Hnr block com irs. Hnr block com gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Hnr block com TTY/TDD equipment. Hnr block com If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Hnr block com TeleTax topics. Hnr block com Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Hnr block com Refund information. Hnr block com To check the status of your refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Hnr block com Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Hnr block com If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Hnr block com Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Hnr block com If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Hnr block com Other refund information. Hnr block com To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Hnr block com Evaluating the quality of our telephone services. Hnr block com To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Hnr block com One method is for a second IRS representative to listen in on or record random telephone calls. Hnr block com Another is to ask some callers to complete a short survey at the end of the call. Hnr block com Walk-in. Hnr block com Many products and services are available on a walk-in basis. Hnr block com   Products. Hnr block com You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Hnr block com Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Hnr block com Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Hnr block com Services. Hnr block com You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Hnr block com An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Hnr block com If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Hnr block com No appointment is necessary—just walk in. Hnr block com If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Hnr block com A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Hnr block com If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Hnr block com All other issues will be handled without an appointment. Hnr block com To find the number of your local office, go to  www. Hnr block com irs. Hnr block com gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Hnr block com Mail. Hnr block com You can send your order for forms, instructions, and publications to the address below. Hnr block com You should receive a response within 10 days after your request is received. Hnr block com  Internal Revenue Service 1201 N. Hnr block com Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Hnr block com   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Hnr block com Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Hnr block com We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Hnr block com Remember, the worst thing you can do is nothing at all. Hnr block com   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Hnr block com You face (or your business is facing) an immediate threat of adverse action. Hnr block com You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Hnr block com   If you qualify for our help, we’ll do everything we can to get your problem resolved. Hnr block com You will be assigned to one advocate who will be with you at every turn. Hnr block com We have offices in every state, the District of Columbia, and Puerto Rico. Hnr block com Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Hnr block com And our services are always free. Hnr block com   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Hnr block com Our tax toolkit at www. Hnr block com TaxpayerAdvocate. Hnr block com irs. Hnr block com gov can help you understand these rights. Hnr block com   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Hnr block com irs. Hnr block com gov/advocate. Hnr block com You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Hnr block com   TAS also handles large-scale or systemic problems that affect many taxpayers. Hnr block com If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Hnr block com irs. Hnr block com gov/advocate. Hnr block com Low Income Taxpayer Clinics (LITCs). Hnr block com   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Hnr block com Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Hnr block com These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Hnr block com Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Hnr block com For more information and to find a clinic near you, see the LITC page on www. Hnr block com irs. Hnr block com gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Hnr block com This publication is also available by calling 1-800-829-3676 or at your local IRS office. Hnr block com Free tax services. Hnr block com   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Hnr block com Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Hnr block com The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Hnr block com The majority of the information and services listed in this publication are available to you free of charge. Hnr block com If there is a fee associated with a resource or service, it is listed in the publication. Hnr block com   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Hnr block com DVD for tax products. Hnr block com You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Hnr block com Prior-year forms, instructions, and publications. Hnr block com Tax Map: an electronic research tool and finding aid. Hnr block com Tax law frequently asked questions. Hnr block com Tax Topics from the IRS telephone response system. Hnr block com Internal Revenue Code—Title 26 of the U. Hnr block com S. Hnr block com Code. Hnr block com Links to other Internet based Tax Research Materials. Hnr block com Fill-in, print, and save features for most tax forms. Hnr block com Internal Revenue Bulletins. Hnr block com Toll-free and email technical support. Hnr block com Two releases during the year. Hnr block com  – The first release will ship the beginning of January. Hnr block com  – The final release will ship the beginning of March. Hnr block com Purchase the DVD from National Technical Information Service (NTIS) at www. Hnr block com irs. Hnr block com gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Hnr block com Prev  Up  Next   Home   More Online Publications