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How To Amend Previous Tax Returns

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How To Amend Previous Tax Returns

How to amend previous tax returns Publication 3402 - Main Content Table of Contents What is a Limited Liability Company? Classification of an LLC LLCs Classified as Partnerships LLCs Classified as Disregarded Entities LLCs Classified as Corporations Subsequent Elections How To Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What is a Limited Liability Company? For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. How to amend previous tax returns Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. How to amend previous tax returns An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. How to amend previous tax returns 7701-3. How to amend previous tax returns The information in this publication applies to LLCs in general, and different rules may apply to special situations, including banks, insurance companies, or nonprofit organizations that are LLCs or that own LLCs. How to amend previous tax returns Check your state's requirements and the federal tax regulations for further information. How to amend previous tax returns Classification of an LLC Default classification rules. How to amend previous tax returns   An LLC with at least two members is classified as a partnership for federal income tax purposes. How to amend previous tax returns An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes). How to amend previous tax returns Also, an LLC's federal tax classification can subsequently change under certain default rules discussed later. How to amend previous tax returns Elected classification. How to amend previous tax returns   If an LLC does not choose to be classified under the above default classifications, it can elect to be classified as an association taxable as a corporation or as an S corporation. How to amend previous tax returns After an LLC has determined its federal tax classification, it can later elect to change that classification. How to amend previous tax returns For details, see Subsequent Elections, later. How to amend previous tax returns LLCs Classified as Partnerships If an LLC has at least two members and is classified as a partnership, it generally must file Form 1065, U. How to amend previous tax returns S. How to amend previous tax returns Return of Partnership Income. How to amend previous tax returns Generally, an LLC classified as a partnership is subject to the same filing and reporting requirements as partnerships. How to amend previous tax returns For certain purposes, members of an LLC are treated as limited partners in a limited partnership. How to amend previous tax returns For example, LLC members are treated as limited partners for purposes of material participation under the passive activity limitation rules (see Temporary Regulation section 1. How to amend previous tax returns 469-5T(e)). How to amend previous tax returns See the Instructions for Form 1065 for reporting rules that apply specifically to LLCs. How to amend previous tax returns Member manager. How to amend previous tax returns   Only a member manager of an LLC can sign the partnership tax return. How to amend previous tax returns And only a member manager can represent the LLC as the tax matters partner under the consolidated audit proceedings in sections 6221 through 6234. How to amend previous tax returns A member manager is any owner of an interest in the LLC who, alone or together with others, has the continuing authority to make the management decisions necessary to conduct the business for which the LLC was formed. How to amend previous tax returns If there are no elected or designated member managers, each owner is treated as a member manager. How to amend previous tax returns Change in default classification. How to amend previous tax returns   If the number of members in an LLC classified as a partnership is reduced to only one member, it becomes an entity disregarded as separate from its owner under Regulations section 301. How to amend previous tax returns 7701-3(f)(2). How to amend previous tax returns However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a disregarded entity will not apply. How to amend previous tax returns   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. How to amend previous tax returns If a partnership that becomes a disregarded entity as a result of a decrease in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed under Subsequent Elections, later, apply. How to amend previous tax returns Example 1. How to amend previous tax returns Ethel and Francis are members of an LLC classified as a partnership for federal tax purposes. How to amend previous tax returns Each holds an equal membership interest. How to amend previous tax returns The LLC does not hold any unrealized receivables or substantially appreciated inventory. How to amend previous tax returns Ethel sells her entire interest in the LLC to Francis for $10,000. How to amend previous tax returns After the sale, the business is continued by the LLC, which is owned solely by Francis. How to amend previous tax returns No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. How to amend previous tax returns The partnership terminates when Francis buys Ethel's entire interest. How to amend previous tax returns Ethel must treat the transaction as the sale of a partnership interest and must report gain or loss, if any, resulting from the sale of her partnership interest. How to amend previous tax returns For purposes of determining the tax treatment of Francis, the partnership is deemed to make a liquidating distribution of all of its assets to Ethel and Francis, and after this distribution, Francis is treated as acquiring the assets deemed to have been distributed to Ethel in liquidation of Ethel's partnership interest. How to amend previous tax returns Francis's basis in the assets attributable to Ethel's one-half interest in the partnership is $10,000, the purchase price for Ethel's partnership interest. How to amend previous tax returns Upon the termination of the partnership, Francis is considered to receive a distribution of those assets attributable to Francis's former interest in the partnership. How to amend previous tax returns Francis must recognize gain or loss, if any, on the deemed distribution of the assets to the extent required by Internal Revenue Code section 731(a). How to amend previous tax returns See Partnership Distributions in Publication 541. How to amend previous tax returns Example 2. How to amend previous tax returns George and Henrietta are members of an LLC classified as a partnership for federal tax purposes. How to amend previous tax returns Each holds an equal membership interest. How to amend previous tax returns The LLC does not hold any unrealized receivables or substantially appreciated inventory. How to amend previous tax returns George and Henrietta each sell their entire interests in the LLC to Ian, an unrelated person, in exchange for $10,000. How to amend previous tax returns After the sale, the business is continued by the LLC, which is owned solely by Ian. How to amend previous tax returns No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. How to amend previous tax returns The partnership terminates when Ian purchases the entire interests of George and Henrietta in the LLC. How to amend previous tax returns George and Henrietta must report gain or loss, if any, resulting from the sale of their partnership interests. How to amend previous tax returns For purposes of classifying the acquisition by Ian, the partnership is deemed to make a liquidating distribution of its assets to George and Henrietta. How to amend previous tax returns Immediately following this distribution, Ian is deemed to acquire, by purchase, all of the former partnership's assets. How to amend previous tax returns   For more details on the preceding two examples, see Revenue Ruling 99-6, 1999-6 I. How to amend previous tax returns R. How to amend previous tax returns B. How to amend previous tax returns 6. How to amend previous tax returns You can find Revenue Ruling 99-6 at www. How to amend previous tax returns irs. How to amend previous tax returns gov/pub/irs-irbs/irb99-06. How to amend previous tax returns pdf. How to amend previous tax returns LLCs Classified as Disregarded Entities If an LLC has only one member and is classified as an entity disregarded as separate from its owner, its income, deductions, gains, losses, and credits are reported on the owner's income tax return. How to amend previous tax returns For example, if the owner of the LLC is an individual, the LLC's income and expenses would be reported on the following schedules filed with the owner's Form 1040: Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule C-EZ, Net Profit From Business (Sole Proprietorship); Schedule E, Supplemental Income and Loss; or Schedule F, Profit or Loss From Farming. How to amend previous tax returns Employment tax and certain excise taxes. How to amend previous tax returns   A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. How to amend previous tax returns For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. How to amend previous tax returns A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits, and payments on Form 8849. How to amend previous tax returns See the employment and excise tax returns for more information. How to amend previous tax returns Self-employment tax rule for disregarded entity LLCs. How to amend previous tax returns   An individual owner of a single-member LLC classified as a disregarded entity is not an employee of the LLC. How to amend previous tax returns Instead, the owner is subject to tax on the net earnings from self-employment of the LLC which is treated in the same manner as a sole-proprietorship. How to amend previous tax returns Example 3. How to amend previous tax returns LLC is a disregarded entity owned by Irene. How to amend previous tax returns LLC has three employees (Kent, Patricia, and Tex) and pays wages. How to amend previous tax returns LLC is treated as an entity separate from its owner for purposes of employment taxes. How to amend previous tax returns For the wages paid to Kent, Patricia, and Tex, LLC is liable for income tax withholding, Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes. How to amend previous tax returns In addition, LLC must file under its name and EIN the applicable employment tax returns; make timely employment tax deposits; and file with the Social Security Administration and furnish to LLC's employees (Kent, Patricia, and Tex) Forms W-2, Wage and Tax Statement. How to amend previous tax returns Irene is self-employed for purposes of the self-employment tax. How to amend previous tax returns Thus, Irene is subject to self-employment tax on her net earnings from self-employment with respect to LLC's activities. How to amend previous tax returns Irene is not an employee of LLC for purposes of employment taxes. How to amend previous tax returns Because LLC is treated as a sole proprietorship of Irene for income tax purposes, Irene must report the income and expenses from LLC on her Schedule C. How to amend previous tax returns Irene will figure the tax due on her net earnings from self-employment on Schedule SE. How to amend previous tax returns Irene can also deduct one-half of her self-employment tax on line 27 of her Form 1040. How to amend previous tax returns Taxpayer identification number. How to amend previous tax returns   For all income tax purposes, a single-member LLC classified as a disregarded entity must use the owner's social security number (SSN) or EIN. How to amend previous tax returns This includes all information returns and reporting related to income tax. How to amend previous tax returns For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the LLC must provide the owner's SSN or EIN, not the LLC's EIN. How to amend previous tax returns   However, most new single-member LLCs classified as a disregarded entity will need to obtain an EIN for the LLC. How to amend previous tax returns An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed above (see Employment tax and certain excise taxes earlier). How to amend previous tax returns See Form SS-4, Application for Employer Identification Number, for information on applying for an EIN. How to amend previous tax returns Change in default classification. How to amend previous tax returns   If a single-member LLC classified as a disregarded entity for income tax purposes acquires an additional member, it becomes a partnership under Regulations section 301. How to amend previous tax returns 7701-3(f)(2). How to amend previous tax returns However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a partnership will not apply. How to amend previous tax returns   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. How to amend previous tax returns If a disregarded entity that becomes a partnership as a result of an increase in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed in Subsequent Elections, later, apply. How to amend previous tax returns Example 4. How to amend previous tax returns Bart, who is not related to Alain, buys 50% of Alain's interest in an LLC that is a disregarded entity for $5,000. How to amend previous tax returns Alain does not contribute any portion of the $5,000 to the LLC. How to amend previous tax returns Alain and Bart continue to operate the business of the LLC as co-owners of the LLC. How to amend previous tax returns The LLC is converted to a partnership when the new member, Bart, buys an interest in the disregarded entity from the owner, Alain. How to amend previous tax returns Bart's buying a 50% interest in Alain's ownership interest in the LLC is treated as Bart's buying a 50% interest in each of the LLC's assets, which are treated as owned directly by Alain for federal income tax purposes. How to amend previous tax returns Immediately thereafter, Alain and Bart are treated as contributing their respective interests in those assets to a partnership in exchange for ownership interests in the partnership. How to amend previous tax returns Alain recognizes gain or loss from the deemed sale to Bart of the 50% interest in the assets. How to amend previous tax returns Neither Alain nor Bart recognizes any gain or loss as a result of the deemed contribution of the assets to the partnership. How to amend previous tax returns Example 5. How to amend previous tax returns Charles, who is not related to Danielle, contributes $10,000 to an LLC owned by Danielle for a 50% ownership interest in the LLC. How to amend previous tax returns The LLC uses all of the contributed cash in its business. How to amend previous tax returns Charles and Danielle continue to operate the business of the LLC as co-owners of the LLC. How to amend previous tax returns The LLC is converted from a disregarded entity to a partnership when Charles contributes cash to the LLC. How to amend previous tax returns Charles's contribution is treated as a contribution to a partnership in exchange for an ownership interest in the partnership. How to amend previous tax returns Danielle is treated as contributing all of the assets of the LLC to the partnership in exchange for a partnership interest. How to amend previous tax returns Neither Charles nor Danielle recognizes gain or loss as a result of the conversion of the disregarded entity to a partnership. How to amend previous tax returns   For more details on the preceding two examples, see Revenue Ruling 99-5, 1999-6 I. How to amend previous tax returns R. How to amend previous tax returns B. How to amend previous tax returns 8. How to amend previous tax returns You can find Revenue Ruling 99-5 at www. How to amend previous tax returns irs. How to amend previous tax returns gov/pub/irs-irbs/irb99-06. How to amend previous tax returns pdf. How to amend previous tax returns LLCs Classified as Corporations An LLC with either a single member or more than one member can elect to be classified as a corporation rather than be classified as a partnership or disregarded entity under the default rules discussed earlier. How to amend previous tax returns File Form 8832, Entity Classification Election, to elect classification as a C corporation. How to amend previous tax returns File Form 2553, Election by a Small Business Corporation, to elect classification as an S corporation. How to amend previous tax returns LLCs electing classification as an S corporation are not required to file Form 8832 to elect classification as a corporation before filing Form 2553. How to amend previous tax returns By filing Form 2553, an LLC is deemed to have elected classification as a corporation in addition to the S corporation classification. How to amend previous tax returns If the LLC elects to be classified as a corporation by filing Form 8832, a copy of the LLC's Form 8832 must be attached to the federal income tax return of each direct and indirect owner of the LLC for the tax year of the owner that includes the date on which the election took effect. How to amend previous tax returns Example 6. How to amend previous tax returns Classification as a corporation without an S election. How to amend previous tax returns Wanda and Sylvester are members of an LLC. How to amend previous tax returns They agree that the LLC should be classified as a corporation but do not want to elect to have the LLC be treated as an S corporation. How to amend previous tax returns The LLC must file Form 8832. How to amend previous tax returns Example 7. How to amend previous tax returns Classification as a corporation with an S election. How to amend previous tax returns Evelyn and Carol are members of an LLC. How to amend previous tax returns They agree that the LLC should be classified as an S corporation. How to amend previous tax returns The LLC must file Form 2553 instead of Form 8832. How to amend previous tax returns If the LLC is classified as a corporation, it must file a corporation income tax return. How to amend previous tax returns If it is a C corporation, it is taxed on its taxable income and distributions to the members are includible in the members' gross income to the extent of the corporation's earnings and profits (double taxation). How to amend previous tax returns If it is an S corporation, the corporation is generally not subject to any income tax and the income, deductions, gains, losses, and credits of the corporation “pass through” to the members. How to amend previous tax returns Corporations generally file either: Form 1120, U. How to amend previous tax returns S. How to amend previous tax returns Corporation Income Tax Return; or Form 1120S, U. How to amend previous tax returns S. How to amend previous tax returns Income Tax Return for an S Corporation. How to amend previous tax returns For more information on the income taxation of corporations and their shareholders, see Publication 542, Corporations. How to amend previous tax returns For more information on the income taxation of S corporations and their shareholders, see the Instructions for Form 1120S, U. How to amend previous tax returns S. How to amend previous tax returns Income Tax Return for an S Corporation. How to amend previous tax returns Subsequent Elections An LLC can elect to change its classification. How to amend previous tax returns Generally, once an LLC has elected to change its classification, it cannot elect again to change it classification during the 60 months after the effective date of the election. How to amend previous tax returns An election by a newly formed LLC that is effective on the date of formation is not considered a change for purposes of this limitation. How to amend previous tax returns For more information and exceptions, see Regulations section 301. How to amend previous tax returns 7701-3(c) and the Form 8832 instructions. How to amend previous tax returns An election to change classification can have significant tax consequences based on the following transactions that are deemed to occur as a result of the election. How to amend previous tax returns Partnership to corporation. How to amend previous tax returns   An election to change classification from a partnership to a corporation will be treated as if the partnership contributed all of its assets and liabilities to the corporation in exchange for stock and the partnership then immediately liquidated by distributing the stock to its partners. How to amend previous tax returns   For more information, see Partnership Distributions in Publication 541 and Property Exchanged for Stock in Publication 542. How to amend previous tax returns Corporation to partnership. How to amend previous tax returns   An election to change classification from a corporation to a partnership will be treated as if the corporation distributed all of its assets and liabilities to its shareholders in liquidation and the shareholders then immediately contributed all of the distributed assets and liabilities to a new partnership. How to amend previous tax returns   For more information, see Contribution of Property in Publication 541 and Distributions to Shareholders in Publication 542. How to amend previous tax returns Corporation to disregarded entity. How to amend previous tax returns   An election to change classification from a corporation to a disregarded entity will be treated as if the corporation distributed all of its assets and liabilities to its single owner in liquidation. How to amend previous tax returns   For more information, see Distributions to Shareholders in Publication 542. How to amend previous tax returns Disregarded entity to corporation. How to amend previous tax returns   An election to change classification from a disregarded entity to a corporation will be treated as if the owner of the disregarded entity contributed all of the assets and liabilities to the corporation in exchange for stock. How to amend previous tax returns   For more information, see Property Exchanged for Stock in Publication 542. How to amend previous tax returns How To Get More Information This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. How to amend previous tax returns Internal Revenue Service 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. How to amend previous tax returns By selecting the method that is best for you, you will have quick and easy access to tax help. How to amend previous tax returns Contacting your Taxpayer Advocate. How to amend previous tax returns   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. How to amend previous tax returns   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. How to amend previous tax returns You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. How to amend previous tax returns You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. How to amend previous tax returns For more information, go to www. How to amend previous tax returns irs. How to amend previous tax returns gov/advocate. How to amend previous tax returns Low Income Taxpayer Clinics (LITCs). How to amend previous tax returns   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. How to amend previous tax returns The clinics also provide tax education and outreach for taxpayers with limited English proficiency or who speak English as a second language. How to amend previous tax returns Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. How to amend previous tax returns It is available at www. How to amend previous tax returns irs. How to amend previous tax returns gov or at your local IRS office. How to amend previous tax returns Small business workshops. How to amend previous tax returns   Small business workshops are designed to help the small business owner understand and fulfill their federal tax responsibilities. How to amend previous tax returns Workshops are sponsored and presented by IRS partners who are federal tax specialists. How to amend previous tax returns Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. How to amend previous tax returns Although most are free, some workshops have fees associated with them. How to amend previous tax returns Any fees charged for a workshop are paid to the sponsoring organization, not the IRS. How to amend previous tax returns   For more information, visit www. How to amend previous tax returns irs. How to amend previous tax returns gov/businesses/small. How to amend previous tax returns Subscribe to e-news for small businesses. How to amend previous tax returns   Join the e-News for Small Businesses mailing list to receive updates, reminders, and other information useful to small business owners and self employed individuals. How to amend previous tax returns Visit the website at www. How to amend previous tax returns irs. How to amend previous tax returns gov/businesses/small and click on “Subscribe to e-News. How to amend previous tax returns ” Free tax services. How to amend previous tax returns   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. How to amend previous tax returns It contains a list of free tax publications and describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. How to amend previous tax returns   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. How to amend previous tax returns Internet. How to amend previous tax returns You can access the IRS website at www. How to amend previous tax returns irs. How to amend previous tax returns gov 24 hours a day, 7 days a week, to: E-file your return. How to amend previous tax returns Find out about commercial tax preparation and e-file services available free to eligible taxpayers. How to amend previous tax returns Check the status of your refund. How to amend previous tax returns Go to www. How to amend previous tax returns irs. How to amend previous tax returns gov and click on Where's My Refund. How to amend previous tax returns 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. How to amend previous tax returns If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). How to amend previous tax returns 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. How to amend previous tax returns Download forms, instructions, and publications. How to amend previous tax returns Order IRS products online. How to amend previous tax returns Research your tax questions online. How to amend previous tax returns Search publications online by topic or keyword. How to amend previous tax returns View Internal Revenue Bulletins (IRBs) published in the last few years. How to amend previous tax returns Figure your withholding allowances using the withholding calculator online at www. How to amend previous tax returns irs. How to amend previous tax returns gov/individuals. How to amend previous tax returns Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. How to amend previous tax returns Sign up to receive local and national tax news by email. How to amend previous tax returns Get information on starting and operating a small business. How to amend previous tax returns Phone. How to amend previous tax returns Many services are available by phone. How to amend previous tax returns Ordering forms, instructions, and publications. How to amend previous tax returns Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. How to amend previous tax returns You should receive your order within 10 days. How to amend previous tax returns Asking tax questions. How to amend previous tax returns Call the IRS with your tax questions at 1-800-829-1040. How to amend previous tax returns Solving problems. How to amend previous tax returns You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. How to amend previous tax returns An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. How to amend previous tax returns Call your local Taxpayer Assistance Center for an appointment. How to amend previous tax returns To find the number, go to www. How to amend previous tax returns irs. How to amend previous tax returns gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. How to amend previous tax returns TTY/TDD equipment. How to amend previous tax returns If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. How to amend previous tax returns TeleTax topics. How to amend previous tax returns Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. How to amend previous tax returns Refund information. How to amend previous tax returns To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). How to amend previous tax returns 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. How to amend previous tax returns If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). How to amend previous tax returns Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. How to amend previous tax returns Refunds are sent out weekly on Fridays. How to amend previous tax returns 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. How to amend previous tax returns Evaluating the quality of our telephone services. How to amend previous tax returns To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. How to amend previous tax returns One method is for a second IRS representative to listen in on or record random telephone calls. How to amend previous tax returns Another is to ask some callers to complete a short survey at the end of the call. How to amend previous tax returns Walk-in. How to amend previous tax returns Many products and services are available on a walk-in basis. How to amend previous tax returns Products. How to amend previous tax returns You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. How to amend previous tax returns 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. How to amend previous tax returns Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. How to amend previous tax returns Services. How to amend previous tax returns You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. How to amend previous tax returns An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. How to amend previous tax returns 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. How to amend previous tax returns No appointment is necessary—just walk in. How to amend previous tax returns If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. How to amend previous tax returns A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. How to amend previous tax returns If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. How to amend previous tax returns All other issues will be handled without an appointment. How to amend previous tax returns To find the number of your local office, go to www. How to amend previous tax returns irs. How to amend previous tax returns gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. How to amend previous tax returns Mail. How to amend previous tax returns You can send your order for forms, instructions, and publications to the address below. How to amend previous tax returns You should receive a response within 10 days after your request is received. How to amend previous tax returns Internal Revenue Service1201 N. How to amend previous tax returns Mitsubishi MotorwayBloomington, IL 61705–6613 DVD for tax products. How to amend previous tax returns You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. How to amend previous tax returns Prior-year forms, instructions, and publications. How to amend previous tax returns Tax Map: an electronic research tool and finding aid. How to amend previous tax returns Tax law frequently asked questions. How to amend previous tax returns Tax Topics from the IRS telephone response system. How to amend previous tax returns Internal Revenue Code—Title 26 of the U. How to amend previous tax returns S. How to amend previous tax returns Code. How to amend previous tax returns Fill-in, print, and save features for most tax forms. How to amend previous tax returns Internal Revenue Bulletins. How to amend previous tax returns Toll-free and email technical support. How to amend previous tax returns Two releases during the year. How to amend previous tax returns – The first release will ship the beginning of January. How to amend previous tax returns – The final release will ship the beginning of March. How to amend previous tax returns Purchase the DVD from National Technical Information Service (NTIS) at www. How to amend previous tax returns irs. How to amend previous tax returns gov/cdorders for $30 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the DVD for $30 (plus a $6 handling fee). How to amend previous tax returns Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. How to amend previous tax returns The SBA also has publications and videos on a variety of business topics. How to amend previous tax returns The following briefly describes assistance provided by the SBA. How to amend previous tax returns Small Business Development Centers (SBDCs). How to amend previous tax returns   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. How to amend previous tax returns Help is available when beginning, improving, or expanding a small business. How to amend previous tax returns Business Information Centers (BICs). How to amend previous tax returns   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. How to amend previous tax returns BICs also offer one-on-one assistance. How to amend previous tax returns Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. How to amend previous tax returns Service Corps of Retired Executives (SCORE). How to amend previous tax returns   SCORE provides small business counseling and training to current and prospective small business owners. How to amend previous tax returns SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. How to amend previous tax returns SCORE also offers a variety of small business workshops. How to amend previous tax returns    Internet. How to amend previous tax returns You can visit the SBA website at www. How to amend previous tax returns sba. How to amend previous tax returns gov. How to amend previous tax returns While visiting the SBA website, you can find a variety of information of interest to small business owners. How to amend previous tax returns    Phone. How to amend previous tax returns Call the SBA Answer Desk at 1-800-UASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. How to amend previous tax returns    Walk-in. How to amend previous tax returns You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. How to amend previous tax returns To find the location nearest you, visit the SBA website or call the SBA Answer Desk. How to amend previous tax returns Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. How to amend previous tax returns Most of these are available from the Superintendent of Documents at the Government Printing Office. How to amend previous tax returns You can get information and order these publications and pamphlets in several ways. How to amend previous tax returns Internet. How to amend previous tax returns You can visit the GPO website at www. How to amend previous tax returns access. How to amend previous tax returns gpo. How to amend previous tax returns gov. How to amend previous tax returns Mail. How to amend previous tax returns Write to the GPO at the following address. How to amend previous tax returns Superintendent of DocumentsU. How to amend previous tax returns S. How to amend previous tax returns Government Printing OfficeP. How to amend previous tax returns O. How to amend previous tax returns Box 979050St. How to amend previous tax returns Louis, MO 63917-9000 Phone. How to amend previous tax returns Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC area. How to amend previous tax returns Prev  Up  Next   Home   More Online Publications
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Understanding your CP504 Notice

You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully — it explains your due date, amount due, and payment options.
  • Make your payment by your due date. Go to the payments page to find out more about your payment options.

You may want to...


Answers to Common Questions

What is the notice telling me?
This notice is telling you that we intend to issue a levy against your state tax refund because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. It is also telling you that we will begin searching for other assets on which to issue a levy. We may also file a Federal Tax Lien, if we have not already done so.

What do I have to do?
Pay the amount due shown on the notice. Mail us your payment in the envelope we sent you. Include the bottom part of the notice to make sure we correctly credit your account.

If you can't pay the whole amount now, call us at the number printed at the top of the notice to see if you qualify for an installment agreement.

How much time do I have?
You must pay your balance due by the due date shown on your notice.

What happens if I don't pay or contact the IRS?
If you don't pay the amount due, we may seize ("levy") any state tax refund to which you're entitled. This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).

If you still have an outstanding balance after we seize ("levy") your state tax refund, we may send you a notice giving you a right to a hearing before the IRS Office of Appeals, if you have not already received such a notice. We may then seize ("levy") or take possession of your other property or your rights to property. Property includes:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits

If you don't pay the amount due or call us to make payment arrangements, we can file a Notice of Federal Tax Lien on your property at any time, if we haven’t already done so.

If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.

Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.

What if I don't agree or have already taken corrective action?
If you do not agree with this notice, contact us immediately at the number printed at the top of the notice. We will do our best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 05-Mar-2014

The How To Amend Previous Tax Returns

How to amend previous tax returns 1. How to amend previous tax returns   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. How to amend previous tax returns 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. How to amend previous tax returns Reseller statement. How to amend previous tax returns Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. How to amend previous tax returns Deep-draft ocean-going vessels. How to amend previous tax returns Passenger vessels. How to amend previous tax returns Ocean-going barges. How to amend previous tax returns State or local governments. How to amend previous tax returns 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. How to amend previous tax returns Gasoline, including aviation gasoline and gasoline blendstocks. How to amend previous tax returns Diesel fuel, including dyed diesel fuel. How to amend previous tax returns Diesel-water fuel emulsion. How to amend previous tax returns Kerosene, including dyed kerosene and kerosene used in aviation. How to amend previous tax returns Other Fuels (including alternative fuels). How to amend previous tax returns Compressed natural gas (CNG). How to amend previous tax returns Fuels used in commercial transportation on inland waterways. How to amend previous tax returns Any liquid used in a fractional ownership program aircraft as fuel. How to amend previous tax returns The following terms are used throughout the discussion of fuel taxes. How to amend previous tax returns Other terms are defined in the discussion of the specific fuels to which they pertain. How to amend previous tax returns Agri-biodiesel. How to amend previous tax returns   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. How to amend previous tax returns Approved terminal or refinery. How to amend previous tax returns   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. How to amend previous tax returns Biodiesel. How to amend previous tax returns   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. How to amend previous tax returns Blended taxable fuel. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns Blender. How to amend previous tax returns   This is the person that produces blended taxable fuel. How to amend previous tax returns Bulk transfer. How to amend previous tax returns   This is the transfer of taxable fuel by pipeline or vessel. How to amend previous tax returns Bulk transfer/terminal system. How to amend previous tax returns   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. How to amend previous tax returns 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. How to amend previous tax returns Cellulosic biofuel. How to amend previous tax returns   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. How to amend previous tax returns Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). How to amend previous tax returns 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. How to amend previous tax returns Also see Second generation biofuel below. How to amend previous tax returns Diesel-water fuel emulsion. How to amend previous tax returns   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. How to amend previous tax returns 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. How to amend previous tax returns Dry lease aircraft exchange. How to amend previous tax returns   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. How to amend previous tax returns Enterer. How to amend previous tax returns   This is the importer of record (under customs law) for the taxable fuel. How to amend previous tax returns 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. How to amend previous tax returns If there is no importer of record, the owner at the time of entry into the United States is the enterer. How to amend previous tax returns Entry. How to amend previous tax returns   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. How to amend previous tax returns This does not apply to fuel brought into Puerto Rico (which is part of the U. How to amend previous tax returns S. How to amend previous tax returns customs territory), but does apply to fuel brought into the United States from Puerto Rico. How to amend previous tax returns Fractional ownership aircraft program and fractional program aircraft. How to amend previous tax returns   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. How to amend previous tax returns Measurement of taxable fuel. How to amend previous tax returns   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. How to amend previous tax returns Other fuels. How to amend previous tax returns   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. How to amend previous tax returns Pipeline operator. How to amend previous tax returns   This is the person that operates a pipeline within the bulk transfer/terminal system. How to amend previous tax returns Position holder. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns A terminal operator that owns taxable fuel in its terminal is a position holder. How to amend previous tax returns Rack. How to amend previous tax returns   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. How to amend previous tax returns Refiner. How to amend previous tax returns   This is any person that owns, operates, or otherwise controls a refinery. How to amend previous tax returns Refinery. How to amend previous tax returns   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. How to amend previous tax returns However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. How to amend previous tax returns For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. How to amend previous tax returns Registrant. How to amend previous tax returns   This is a taxable fuel registrant (see Registration Requirements, later). How to amend previous tax returns Removal. How to amend previous tax returns   This is any physical transfer of taxable fuel. How to amend previous tax returns It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. How to amend previous tax returns However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. How to amend previous tax returns Renewable diesel. How to amend previous tax returns   See Renewable Diesel Credits in chapter 2. How to amend previous tax returns Sale. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns Second generation biofuel. How to amend previous tax returns   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. How to amend previous tax returns S. How to amend previous tax returns C. How to amend previous tax returns 7545). How to amend previous tax returns It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. How to amend previous tax returns It is not alcohol of less than 150 proof (disregard any added denaturants). How to amend previous tax returns See Form 6478 for more information. How to amend previous tax returns State. How to amend previous tax returns   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. How to amend previous tax returns An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. How to amend previous tax returns Taxable fuel. How to amend previous tax returns   This means gasoline, diesel fuel, and kerosene. How to amend previous tax returns Terminal. How to amend previous tax returns   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns Terminal operator. How to amend previous tax returns   This is any person that owns, operates, or otherwise controls a terminal. How to amend previous tax returns Throughputter. How to amend previous tax returns   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). How to amend previous tax returns Vessel operator. How to amend previous tax returns   This is the person that operates a vessel within the bulk transfer/terminal system. How to amend previous tax returns However, vessel does not include a deep draft ocean-going vessel. How to amend previous tax returns Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. How to amend previous tax returns A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. How to amend previous tax returns For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. How to amend previous tax returns The returns are due the last day of the month following the month in which the transaction occurs. How to amend previous tax returns Generally, these returns can be filed on paper or electronically. How to amend previous tax returns For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. How to amend previous tax returns Publication 3536 is only available on the IRS website. How to amend previous tax returns Form 720-TO. How to amend previous tax returns   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. How to amend previous tax returns Each terminal operator must file a separate form for each approved terminal. How to amend previous tax returns Form 720-CS. How to amend previous tax returns   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. How to amend previous tax returns Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. How to amend previous tax returns See Form 637 for other persons who must register and for more information about registration. How to amend previous tax returns Persons that are required to be registered. How to amend previous tax returns   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. How to amend previous tax returns Persons that may register. How to amend previous tax returns   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. How to amend previous tax returns Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. How to amend previous tax returns However, they must be registered to file claims for certain sales and uses of fuel. How to amend previous tax returns See Form 637 for more information. How to amend previous tax returns Taxable fuel registrant. How to amend previous tax returns   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. How to amend previous tax returns The term registrant as used in the discussions of these fuels means a taxable fuel registrant. How to amend previous tax returns Additional information. How to amend previous tax returns   See the Form 637 instructions for the information you must submit when you apply for registration. How to amend previous tax returns Failure to register. How to amend previous tax returns   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. How to amend previous tax returns Gasoline and Aviation Gasoline Gasoline. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns Gasoline also includes gasoline blendstocks, discussed later. How to amend previous tax returns Aviation gasoline. How to amend previous tax returns   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. How to amend previous tax returns Taxable Events The tax on gasoline is $. How to amend previous tax returns 184 per gallon. How to amend previous tax returns The tax on aviation gasoline is $. How to amend previous tax returns 194 per gallon. How to amend previous tax returns When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. How to amend previous tax returns 141 per gallon. How to amend previous tax returns See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. How to amend previous tax returns Tax is imposed on the removal, entry, or sale of gasoline. How to amend previous tax returns Each of these events is discussed later. How to amend previous tax returns Also, see the special rules that apply to gasoline blendstocks, later. How to amend previous tax returns If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. How to amend previous tax returns See Refunds of Second Tax in chapter 2. How to amend previous tax returns Removal from terminal. How to amend previous tax returns   All removals of gasoline at a terminal rack are taxable. How to amend previous tax returns The position holder for that gasoline is liable for the tax. How to amend previous tax returns Two-party exchanges. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. How to amend previous tax returns 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. How to amend previous tax returns The transaction is subject to a written contract. How to amend previous tax returns Terminal operator's liability. How to amend previous tax returns   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. How to amend previous tax returns   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. How to amend previous tax returns The terminal operator is a registrant. How to amend previous tax returns The terminal operator has an unexpired notification certificate (discussed later) from the position holder. How to amend previous tax returns The terminal operator has no reason to believe any information on the certificate is false. How to amend previous tax returns Removal from refinery. How to amend previous tax returns   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. How to amend previous tax returns 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. How to amend previous tax returns It is made at the refinery rack. How to amend previous tax returns The refiner is liable for the tax. How to amend previous tax returns Exception. How to amend previous tax returns   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. How to amend previous tax returns The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. How to amend previous tax returns The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. How to amend previous tax returns The removal from the refinery is by railcar. How to amend previous tax returns The same person operates the refinery and the facility at which the gasoline is received. How to amend previous tax returns Entry into the United States. How to amend previous tax returns   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. How to amend previous tax returns It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. How to amend previous tax returns It is not made by bulk transfer. How to amend previous tax returns The enterer is liable for the tax. How to amend previous tax returns Importer of record's liability. How to amend previous tax returns   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. How to amend previous tax returns   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. How to amend previous tax returns The importer of record has an unexpired notification certificate (discussed later) from the enterer. How to amend previous tax returns The importer of record has no reason to believe any information in the certificate is false. How to amend previous tax returns Customs bond. How to amend previous tax returns   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. How to amend previous tax returns Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. How to amend previous tax returns   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. How to amend previous tax returns The position holder is liable for the tax. How to amend previous tax returns The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. How to amend previous tax returns However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. How to amend previous tax returns Bulk transfers not received at approved terminal or refinery. How to amend previous tax returns   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. How to amend previous tax returns No tax was previously imposed (as discussed earlier) on any of the following events. How to amend previous tax returns The removal from the refinery. How to amend previous tax returns The entry into the United States. How to amend previous tax returns The removal from a terminal by an unregistered position holder. How to amend previous tax returns Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). How to amend previous tax returns   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. How to amend previous tax returns However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. How to amend previous tax returns The owner is a registrant. How to amend previous tax returns The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. How to amend previous tax returns The owner has no reason to believe any information on the certificate is false. How to amend previous tax returns The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. How to amend previous tax returns The operator is jointly and severally liable if the owner does not meet these conditions. How to amend previous tax returns Sales to unregistered person. How to amend previous tax returns   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. How to amend previous tax returns   The seller is liable for the tax. How to amend previous tax returns However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. How to amend previous tax returns   The seller is a registrant. How to amend previous tax returns The seller has an unexpired notification certificate (discussed later) from the buyer. How to amend previous tax returns The seller has no reason to believe any information on the certificate is false. How to amend previous tax returns The buyer of the gasoline is liable for the tax if the seller meets these conditions. How to amend previous tax returns The buyer is jointly and severally liable if the seller does not meet these conditions. How to amend previous tax returns Exception. How to amend previous tax returns   The tax does not apply to a sale if all of the following apply. How to amend previous tax returns The buyer's principal place of business is not in the United States. How to amend previous tax returns The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. How to amend previous tax returns The seller is a registrant and the exporter of record. How to amend previous tax returns The fuel was exported. How to amend previous tax returns Removal or sale of blended gasoline. How to amend previous tax returns   The removal or sale of blended gasoline by the blender is taxable. How to amend previous tax returns See Blended taxable fuel under Definitions, earlier. How to amend previous tax returns   The blender is liable for the tax. How to amend previous tax returns The tax is figured on the number of gallons not previously subject to the tax on gasoline. How to amend previous tax returns   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. How to amend previous tax returns See Form 720 to report this tax. How to amend previous tax returns You also must be registered with the IRS as a blender. How to amend previous tax returns See Form 637. How to amend previous tax returns   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. How to amend previous tax returns Notification certificate. How to amend previous tax returns   The notification certificate is used to notify a person of the registration status of the registrant. How to amend previous tax returns A copy of the registrant's letter of registration cannot be used as a notification certificate. How to amend previous tax returns A model notification certificate is shown in the Appendix as Model Certificate C. How to amend previous tax returns A notification certificate must contain all information necessary to complete the model. How to amend previous tax returns   The certificate may be included as part of any business records normally used for a sale. How to amend previous tax returns 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. How to amend previous tax returns The registrant must provide a new certificate if any information on a certificate has changed. How to amend previous tax returns Additional persons liable. How to amend previous tax returns   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. How to amend previous tax returns Gasoline Blendstocks Gasoline blendstocks may be subject to $. How to amend previous tax returns 001 per gallon LUST tax as discussed below. How to amend previous tax returns Gasoline includes gasoline blendstocks. How to amend previous tax returns The previous discussions apply to these blendstocks. How to amend previous tax returns However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. How to amend previous tax returns 001 per gallon or are not subject to the excise tax. How to amend previous tax returns Blendstocks. How to amend previous tax returns   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. How to amend previous tax returns   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. How to amend previous tax returns Not used to produce finished gasoline. How to amend previous tax returns   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. How to amend previous tax returns Removals and entries not connected to sale. How to amend previous tax returns   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. How to amend previous tax returns Removals and entries connected to sale. How to amend previous tax returns   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. How to amend previous tax returns The person has an unexpired certificate (discussed later) from the buyer. How to amend previous tax returns The person has no reason to believe any information in the certificate is false. How to amend previous tax returns Sales after removal or entry. How to amend previous tax returns   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. How to amend previous tax returns The seller is liable for the tax. How to amend previous tax returns However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. How to amend previous tax returns The seller has an unexpired certificate (discussed next) from the buyer. How to amend previous tax returns The seller has no reason to believe any information in the certificate is false. How to amend previous tax returns Certificate of buyer. How to amend previous tax returns   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. How to amend previous tax returns The certificate may be included as part of any business records normally used for a sale. How to amend previous tax returns A model certificate is shown in the Appendix as Model Certificate D. How to amend previous tax returns The certificate must contain all information necessary to complete the model. How to amend previous tax returns   A certificate expires on the earliest of the following dates. How to amend previous tax returns The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to amend previous tax returns The date a new certificate is provided to the seller. How to amend previous tax returns The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. How to amend previous tax returns The buyer must provide a new certificate if any information on a certificate has changed. How to amend previous tax returns   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. How to amend previous tax returns Received at approved terminal or refinery. How to amend previous tax returns   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. How to amend previous tax returns The person is a registrant. How to amend previous tax returns The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. How to amend previous tax returns The person has no reason to believe any information on the certificate is false. How to amend previous tax returns Bulk transfers to registered industrial user. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns Credits or Refunds. How to amend previous tax returns   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. How to amend previous tax returns For more information, see chapter 2. How to amend previous tax returns Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. How to amend previous tax returns 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. How to amend previous tax returns Diesel fuel does not include gasoline, kerosene, excluded liquid, No. How to amend previous tax returns 5 and No. How to amend previous tax returns 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. How to amend previous tax returns An excluded liquid is either of the following. How to amend previous tax returns A liquid that contains less than 4% normal paraffins. How to amend previous tax returns A liquid with all the following properties. How to amend previous tax returns Distillation range of 125 degrees Fahrenheit or less. How to amend previous tax returns Sulfur content of 10 ppm or less. How to amend previous tax returns Minimum color of +27 Saybolt. How to amend previous tax returns Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. How to amend previous tax returns Kerosene. How to amend previous tax returns   This means any of the following liquids. How to amend previous tax returns One of the two grades of kerosene (No. How to amend previous tax returns 1-K and No. How to amend previous tax returns 2-K) covered by ASTM specification D3699. How to amend previous tax returns 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). How to amend previous tax returns See Kerosene for Use in Aviation, later. How to amend previous tax returns   However, kerosene does not include excluded liquid, discussed earlier. How to amend previous tax returns   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. How to amend previous tax returns Diesel-powered highway vehicle. How to amend previous tax returns   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. How to amend previous tax returns Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. How to amend previous tax returns For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. How to amend previous tax returns 2) in chapter 2. How to amend previous tax returns Diesel-powered train. How to amend previous tax returns   This is any diesel-powered equipment or machinery that rides on rails. How to amend previous tax returns The term includes a locomotive, work train, switching engine, and track maintenance machine. How to amend previous tax returns Taxable Events The tax on diesel fuel and kerosene is $. How to amend previous tax returns 244 per gallon. How to amend previous tax returns It is imposed on the removal, entry, or sale of diesel fuel and kerosene. How to amend previous tax returns Each of these events is discussed later. How to amend previous tax returns Only the $. How to amend previous tax returns 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. How to amend previous tax returns 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. How to amend previous tax returns See Refunds of Second Tax in chapter 2. How to amend previous tax returns Use in certain intercity and local buses. How to amend previous tax returns   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. How to amend previous tax returns A claim for $. How to amend previous tax returns 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. How to amend previous tax returns An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. How to amend previous tax returns The bus must be engaged in one of the following activities. How to amend previous tax returns Scheduled transportation along regular routes regardless of the size of the bus. How to amend previous tax returns Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). How to amend previous tax returns 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. How to amend previous tax returns Removal from terminal. How to amend previous tax returns   All removals of diesel fuel and kerosene at a terminal rack are taxable. How to amend previous tax returns The position holder for that fuel is liable for the tax. How to amend previous tax returns Two-party exchanges. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. How to amend previous tax returns 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. How to amend previous tax returns The transaction is subject to a written contract. How to amend previous tax returns Terminal operator's liability. How to amend previous tax returns   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). How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns The terminal operator is a registrant. How to amend previous tax returns The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. How to amend previous tax returns The terminal operator has no reason to believe any information on the certificate is false. How to amend previous tax returns Removal from refinery. How to amend previous tax returns   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. How to amend previous tax returns 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. How to amend previous tax returns It is made at the refinery rack. How to amend previous tax returns The refiner is liable for the tax. How to amend previous tax returns Exception. How to amend previous tax returns   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. How to amend previous tax returns The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. How to amend previous tax returns The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. How to amend previous tax returns 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. How to amend previous tax returns Entry into the United States. How to amend previous tax returns   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. How to amend previous tax returns It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. How to amend previous tax returns It is not made by bulk transfer. How to amend previous tax returns The enterer is liable for the tax. How to amend previous tax returns Importer of record's liability. How to amend previous tax returns   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. How to amend previous tax returns   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. How to amend previous tax returns The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. How to amend previous tax returns The importer of record has no reason to believe any information in the certificate is false. How to amend previous tax returns Customs bond. How to amend previous tax returns   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. How to amend previous tax returns Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. How to amend previous tax returns   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. How to amend previous tax returns The position holder is liable for the tax. How to amend previous tax returns The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. How to amend previous tax returns However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. How to amend previous tax returns Bulk transfers not received at approved terminal or refinery. How to amend previous tax returns   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. How to amend previous tax returns No tax was previously imposed (as discussed earlier) on any of the following events. How to amend previous tax returns The removal from the refinery. How to amend previous tax returns The entry into the United States. How to amend previous tax returns The removal from a terminal by an unregistered position holder. How to amend previous tax returns 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). How to amend previous tax returns   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. How to amend previous tax returns However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. How to amend previous tax returns The owner is a registrant. How to amend previous tax returns 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. How to amend previous tax returns The owner has no reason to believe any information on the certificate is false. How to amend previous tax returns The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. How to amend previous tax returns The operator is jointly and severally liable if the owner does not meet these conditions. How to amend previous tax returns Sales to unregistered person. How to amend previous tax returns   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. How to amend previous tax returns   The seller is liable for the tax. How to amend previous tax returns However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. How to amend previous tax returns The seller is a registrant. How to amend previous tax returns The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. How to amend previous tax returns The seller has no reason to believe any information on the certificate is false. How to amend previous tax returns The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. How to amend previous tax returns The buyer is jointly and severally liable if the seller does not meet these conditions. How to amend previous tax returns Exception. How to amend previous tax returns   The tax does not apply to a sale if all of the following apply. How to amend previous tax returns The buyer's principal place of business is not in the United States. How to amend previous tax returns The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. How to amend previous tax returns The seller is a registrant and the exporter of record. How to amend previous tax returns The fuel was exported. How to amend previous tax returns Removal or sale of blended diesel fuel or kerosene. How to amend previous tax returns   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. How to amend previous tax returns Blended taxable fuel produced using biodiesel is subject to the tax. How to amend previous tax returns See Blended taxable fuel under Definitions, earlier. How to amend previous tax returns   The blender is liable for the tax. How to amend previous tax returns The tax is figured on the number of gallons not previously subject to the tax. How to amend previous tax returns   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. How to amend previous tax returns Generally, the biodiesel mixture must be diesel fuel (defined earlier). How to amend previous tax returns See Form 720 to report this tax. How to amend previous tax returns You also must be registered by the IRS as a blender. How to amend previous tax returns See Form 637 for more information. How to amend previous tax returns   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. How to amend previous tax returns Additional persons liable. How to amend previous tax returns   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. How to amend previous tax returns Credits or Refunds. How to amend previous tax returns   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. How to amend previous tax returns For more information, see chapter 2. How to amend previous tax returns Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. How to amend previous tax returns 001 per gallon LUST tax as discussed below, unless the fuel is for export. How to amend previous tax returns 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. How to amend previous tax returns The person otherwise liable for tax (for example, the position holder) is a registrant. How to amend previous tax returns In the case of a removal from a terminal, the terminal is an approved terminal. How to amend previous tax returns The diesel fuel or kerosene satisfies the dyeing requirements (described next). How to amend previous tax returns Dyeing requirements. How to amend previous tax returns   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. How to amend previous tax returns It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. How to amend previous tax returns 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. How to amend previous tax returns Is indelibly dyed by mechanical injection. How to amend previous tax returns See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. How to amend previous tax returns Notice required. How to amend previous tax returns   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. How to amend previous tax returns   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. How to amend previous tax returns   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). How to amend previous tax returns That seller is subject to the penalty described next. How to amend previous tax returns Penalty. How to amend previous tax returns   A penalty is imposed on a person if any of the following situations apply. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. How to amend previous tax returns 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. How to amend previous tax returns   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. How to amend previous tax returns After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. How to amend previous tax returns   This penalty is in addition to any tax imposed on the fuel. How to amend previous tax returns   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. How to amend previous tax returns   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. How to amend previous tax returns   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. How to amend previous tax returns However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. How to amend previous tax returns 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. How to amend previous tax returns Exception to penalty. How to amend previous tax returns   The penalty under item (3) will not apply in any of the following situations. How to amend previous tax returns Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. How to amend previous tax returns 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. How to amend previous tax returns The alteration or attempted alteration occurs in an exempt area of Alaska. How to amend previous tax returns See Removal for sale or use in Alaska, later. How to amend previous tax returns 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. How to amend previous tax returns Alaska and Feedstocks Tax of $. How to amend previous tax returns 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). How to amend previous tax returns Undyed kerosene used for feedstock purposes. How to amend previous tax returns Removal for sale or use in Alaska. How to amend previous tax returns   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. How to amend previous tax returns The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. How to amend previous tax returns 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. How to amend previous tax returns In the case of a removal from a terminal, the terminal is an approved terminal. How to amend previous tax returns 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. How to amend previous tax returns   If all three of the requirements above are not met, then tax is imposed at $. How to amend previous tax returns 244 per gallon. How to amend previous tax returns   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. How to amend previous tax returns Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. How to amend previous tax returns Later sales. How to amend previous tax returns   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. How to amend previous tax returns The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. How to amend previous tax returns However, the sale is not taxable (other than the LUST tax at $. How to amend previous tax returns 001 per gallon) if all the following requirements are met. How to amend previous tax returns The fuel is sold in Alaska for certain nontaxable uses. How to amend previous tax returns The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. How to amend previous tax returns The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. How to amend previous tax returns Feedstock purposes. How to amend previous tax returns   The $. How to amend previous tax returns 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. How to amend previous tax returns The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. How to amend previous tax returns In the case of a removal from a terminal, the terminal is an approved terminal. How to amend previous tax returns 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. How to amend previous tax returns   If all of the requirements above are not met, then tax is imposed at $. How to amend previous tax returns 244 per gallon. How to amend previous tax returns   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. How to amend previous tax returns For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. How to amend previous tax returns A feedstock user is a person that uses kerosene for a feedstock purpose. How to amend previous tax returns A registered feedstock user is a person that has been registered by the IRS as a feedstock user. How to amend previous tax returns See Registration Requirements, earlier. How to amend previous tax returns Later sales. How to amend previous tax returns   The excise tax ($. How to amend previous tax returns 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. How to amend previous tax returns The tax is imposed at the time of the later sale and that seller is liable for the tax. How to amend previous tax returns Certificate. How to amend previous tax returns   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. How to amend previous tax returns The certificate may be included as part of any business records normally used for a sale. How to amend previous tax returns A model certificate is shown in the Appendix as Model Certificate G. How to amend previous tax returns Your certificate must contain all information necessary to complete the model. How to amend previous tax returns   A certificate expires on the earliest of the following dates. How to amend previous tax returns The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to amend previous tax returns The date the seller is provided a new certificate or notice that the current certificate is invalid. How to amend previous tax returns The date the seller is notified the buyer's registration has been revoked or suspended. How to amend previous tax returns   The buyer must provide a new certificate if any information on a certificate has changed. How to amend previous tax returns 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. How to amend previous tax returns Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. How to amend previous tax returns Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. How to amend previous tax returns Any liquid other than gasoline, diesel fuel, or kerosene. How to amend previous tax returns Generally, this back-up tax is imposed at a rate of $. How to amend previous tax returns 244 per gallon. How to amend previous tax returns Liability for tax. How to amend previous tax returns   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. How to amend previous tax returns 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. How to amend previous tax returns Exemptions from the back-up tax. How to amend previous tax returns   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. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns A reduced tax rate of $. How to amend previous tax returns 198 per gallon is imposed on a diesel-water fuel emulsion. How to amend previous tax returns 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. How to amend previous tax returns 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 $. How to amend previous tax returns 244 per gallon. How to amend previous tax returns Credits or refunds. How to amend previous tax returns   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. How to amend previous tax returns Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. How to amend previous tax returns 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). How to amend previous tax returns For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. How to amend previous tax returns 219. How to amend previous tax returns The rate of $. How to amend previous tax returns 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. How to amend previous tax returns The airport terminal does not need to be a secured airport terminal for this rate to apply. How to amend previous tax returns 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. How to amend previous tax returns For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. How to amend previous tax returns 044 per gallon. How to amend previous tax returns For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. How to amend previous tax returns 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. How to amend previous tax returns See Terminal located within a secured area of an airport, later. How to amend previous tax returns In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. How to amend previous tax returns 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 $. How to amend previous tax returns 001. How to amend previous tax returns There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. How to amend previous tax returns 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. How to amend previous tax returns See Terminal located within a secured area of an airport, later. How to amend previous tax returns In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. How to amend previous tax returns The position holder is liable for the $. How to amend previous tax returns 001 per gallon tax. How to amend previous tax returns For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. How to amend previous tax returns 141 per gallon applies. How to amend previous tax returns Certain refueler trucks, tankers, and tank wagons treated as terminals. How to amend previous tax returns   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. How to amend previous tax returns Such terminal is located within an area of an airport. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns Information reporting will be required by terminal operators regarding this provision. How to amend previous tax returns 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. How to amend previous tax returns Terminal located within a secured area of an airport. How to amend previous tax returns   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. How to amend previous tax returns 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. How to amend previous tax returns 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 $. How to amend previous tax returns 044 per gallon. How to amend previous tax returns 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). How to amend previous tax returns For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. How to amend previous tax returns For the aircraft operator to be liable for the tax $. How to amend previous tax returns 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. How to amend previous tax returns Commercial aviation. How to amend previous tax returns   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. How to amend previous tax returns However, commercial aviation does not include any of the following uses. How to amend previous tax returns Any use exclusively for the purpose of skydiving. How to amend previous tax returns Certain air transportation by seaplane. How to amend previous tax returns See Seaplanes under Transportation of Persons by Air in chapter 4. How to amend previous tax returns Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. How to amend previous tax returns For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. How to amend previous tax returns 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. How to amend previous tax returns For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. How to amend previous tax returns Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. How to amend previous tax returns See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. How to amend previous tax returns 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 $. How to amend previous tax returns 141 per gallon. How to amend previous tax returns The fractional ownership program manager is liable for the tax. How to amend previous tax returns The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. How to amend previous tax returns If the surtax is imposed, the following air transportation taxes do not apply. How to amend previous tax returns Transportation of persons by air. How to amend previous tax returns Transportation of property by air. How to amend previous tax returns Use of international air travel facilities. How to amend previous tax returns These taxes are described under Air Transportation Taxes, later. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns Fractional program aircraft. How to amend previous tax returns   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. How to amend previous tax returns S. How to amend previous tax returns   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. How to amend previous tax returns In such situations, the flight is not commercial aviation. How to amend previous tax returns Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. How to amend previous tax returns Fractional owner. How to amend previous tax returns   Any person owning any interest (including the entire interest) in a fractional program aircraft. How to amend previous tax returns Dry lease aircraft exchange. How to amend previous tax returns   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. How to amend previous tax returns Special rule relating to deadhead service. How to amend previous tax returns   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. How to amend previous tax returns More information. How to amend previous tax returns   See section 4043 for more information on the surtax. How to amend previous tax returns 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. How to amend previous tax returns Certificate. How to amend previous tax returns   The certificate may be included as part of any business records normally used for a sale. How to amend previous tax returns See Model Certificate K in the Appendix. How to amend previous tax returns   A certificate expires on the earliest of the following dates. How to amend previous tax returns The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to amend previous tax returns The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. How to amend previous tax returns The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. How to amend previous tax returns   The buyer must provide a new certificate if any information on a certificate has changed. How to amend previous tax returns   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. How to amend previous tax returns Exempt use. How to amend previous tax returns   The rate on kerosene for use in aviation is $. How to amend previous tax returns 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. How to amend previous tax returns An exempt use includes kerosene for the exclusive use of a state or local government. How to amend previous tax returns There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. How to amend previous tax returns Flash title transaction. How to amend previous tax returns   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. How to amend previous tax returns 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. How to amend previous tax returns 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. How to amend previous tax returns Reseller statement. How to amend previous tax returns   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. How to amend previous tax returns Credits or Refunds. How to amend previous tax returns   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). How to amend previous tax returns A claim may be made by a registered ultimate vendor for certain sales. How to amend previous tax returns For more information, see chapter 2. How to amend previous tax returns Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. How to amend previous tax returns Other Fuels include alternative fuels. How to amend previous tax returns 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. How to amend previous tax returns Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. How to amend previous tax returns Qualified methanol and ethanol fuels. How to amend previous tax returns   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. How to amend previous tax returns The tax rates are listed in the Instructions for Form 720. How to amend previous tax returns Partially exempt methanol and ethanol fuels. How to amend previous tax returns   A reduced tax rate applies to these fuels. How to amend previous tax returns Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. How to amend previous tax returns The tax rates are listed in the Instructions for Form 720. How to amend previous tax returns Motor vehicles. How to amend previous tax returns   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. How to amend previous tax returns They are propelled by a motor. How to amend previous tax returns They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t