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Taxact login Publication 510 - Introductory Material Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Excise Taxes Not Covered What's New Medical device excise tax. Taxact login  The Affordable Care Act (the “Act”) (Public Law 111-148, amended by Public Law 111-152) imposes a 2. Taxact login 3% (. Taxact login 023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. Taxact login The tax applies to sales of taxable medical devices after December 31, 2012. Taxact login See Taxable Medical Devices in chapter 5, later. Taxact login Tax on seasonal flu vaccines. Taxact login  Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the existing rate of $. Taxact login 75 per dose of taxable vaccine. Taxact login Previously, only trivalent influenza vaccines were subject to this tax. Taxact login See Vaccines in chapter 5, later. Taxact login Patient-centered outcomes research fee. Taxact login  The Act imposes a fee on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4576) to help fund the Patient-Centered Outcomes Research Institute. Taxact login The fee, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, is based on the average number of lives covered under the policy or plan. Taxact login The fee applies to policy or plan years ending on or after October 1, 2012. Taxact login See chapter 11, later. Taxact login Extension of fuel tax credits. Taxact login  The following section 6426 credits, previously expired on December 31, 2011, are retroactively extended. Taxact login Biodiesel or renewable diesel mixture credit. Taxact login Alternative fuel credit. Taxact login Alternative fuel mixture credit. Taxact login See Notice 2013–26 (fuel tax credits) on page 984 of I. Taxact login R. Taxact login B. Taxact login 2013–18 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb13-18. Taxact login pdf; also see chapter 2, later. Taxact login Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only. Taxact login  For alternative fuel mixtures produced after December 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Schedule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel, and kerosene. Taxact login See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit in chapter 2, later. Taxact login Expiration of alcohol fuel mixture credit. Taxact login  The section 6426 alcohol fuel mixture credit expired after December 31, 2011. Taxact login Expiration of alcohol fuels credits. Taxact login  The section 40 alcohol, alcohol mixture, and small ethanol producer credits expired after December 31, 2011. Taxact login Second generation biofuel producer credit and excise tax. Taxact login  The section 40 cellulosic biofuel producer credit was retroactively extended to include fuel sold or used through January 2, 2013. Taxact login After January 2, 2013, cellulosic biofuel is renamed second generation biofuel, which adds algae-based fuel. Taxact login The second generation biofuel producer credit is for fuel sold or used after January 2, 2013, and before January 1, 2014. Taxact login You are liable for an excise tax on each gallon of cellulosic or second generation biofuel at the rate you used to figure the credit if you do not use the fuel for the purposes described under Qualified Cellulosic Biofuel Production or Qualified Second Generation Biofuel Production, later. Taxact login Report the tax on Form 720. Taxact login See Cellulosic or Second Generation Biofuel Not Used as Fuel, later; also see Form 6478, Biofuel Producer Credit, for more information. Taxact login Extension of section 40A biodiesel fuels credit. Taxact login  The biodiesel fuels credit, previously expired on December 31, 2011, is retroactively extended. Taxact login Future developments. Taxact login  The IRS has created a page on IRS. Taxact login gov that includes information about Publication 510 at www. Taxact login irs. Taxact login gov/pub510. Taxact login Information about any future developments will be posted on that page. Taxact login Reminders Publication 510 updates. Taxact login  Publication 510 is not updated annually. Taxact login Instead, it will be updated only when there are major changes in the tax law. Taxact login Use of international air travel facilities. Taxact login  Generally, the tax on the use of international air travel facilities increases annually. Taxact login See the Instructions for Form 720 for the tax rate. Taxact login For more information, see Air Transportation Taxes in chapter 4. Taxact login Aviation fuels for use in foreign trade. Taxact login  Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax. Taxact login Arrow shafts, tax rate. Taxact login  Generally, the tax on arrow shafts increases annually. Taxact login See Form 720 for the tax rate. Taxact login Disregarded entities and qualified subchapter S subsidiaries. Taxact login  Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. Taxact login QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. Taxact login 31, 51, and 117), register for most excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). Taxact login These actions cannot take place under the owner's taxpayer identification number (TIN). Taxact login Some QSubs and disregarded entities may already have an EIN. Taxact login However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933. Taxact login Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Taxact login For more information on these regulations, see Treasury Decision (T. Taxact login D. Taxact login ) 9356, T. Taxact login D. Taxact login 9462, and T. Taxact login D. Taxact login 9596. Taxact login You can find T. Taxact login D. Taxact login 9356 on page 675 of Internal Revenue Bulletin (I. Taxact login R. Taxact login B. Taxact login ) 2007-39 at  www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb07-39. Taxact login pdf;  T. Taxact login D. Taxact login 9462 on page 504 of I. Taxact login R. Taxact login B. Taxact login 2009-42 at  www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb09-42. Taxact login pdf;  and T. Taxact login D. Taxact login 9596 on page 84 of I. Taxact login R. Taxact login B. Taxact login 2012-30 at  www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb12-30. Taxact login pdf. Taxact login Registration for certain activities. Taxact login  You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. Taxact login See the instructions for Form 637 for the list of activities for which you must register. Taxact login Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Taxact login Each business unit that has, or is required to have, a separate employer identification number must be registered. Taxact login To apply for registration, complete Form 637 and provide the information requested in its instructions. Taxact login If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. Taxact login A copy of Form 637 is not a Letter of Registration. Taxact login Photographs of missing children. Taxact login  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Taxact login Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Taxact login You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Taxact login Introduction This publication covers the excise taxes for which you may be liable and which are reported on Form 720 and other forms. Taxact login It also covers fuel tax credits and refunds. Taxact login For information on fuel credits against income tax (the section 40 credits for the production of cellulosic biofuel and second generation biofuel, and the section 40A credit for biodiesel and renewable diesel used as fuel) see the instructions for Form 6478 and Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Taxact login Comments and suggestions. Taxact login   We welcome your comments about this publication and your suggestions for future editions. Taxact login   You can write to us at the following address: Internal Revenue Service Individual and Specialty Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Taxact login NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Taxact login Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Taxact login   You can email us at taxforms@irs. Taxact login gov. Taxact login Please put “Publications Comment” on the subject line. Taxact login You can also send us comments from www. Taxact login irs. Taxact login gov/Forms-&-Pubs/More-Information/ and select “Comment on Tax Forms and Publications”. Taxact login   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Taxact login Useful Items - You may want to see: Publication 509 Tax Calendars Form (and Instructions) 11-C Occupational Tax and Registration Return for Wagering 637 Application for Registration (For Certain Excise Tax Activities) 720 Quarterly Federal Excise Tax Return 720X Amended Quarterly Federal Excise Tax Return 730 Monthly Tax Return for Wagers 1363 Export Exemption Certificate 2290 Heavy Highway Vehicle Use Tax Return 2290(SP) Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras 4136 Credit for Federal Tax Paid on Fuels 6197 Gas Guzzler Tax 6478 Biofuel Producer Credit 6627 Environmental Taxes 8849 Claim for Refund of Excise Taxes, and Schedules 1–3, 5, 6, and 8 8864 Biodiesel and Renewable Diesel Fuels Credit Information Returns    Form 720-TO, Terminal Operator Report Form 720-CS, Carrier Summary Report   See How To Get Tax Help in chapter 17 for information about ordering forms and publications. Taxact login Guidance    You can find Notice 2005-4 (fuel tax guidance) on page 289 of I. Taxact login R. Taxact login B. Taxact login 2005-2 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb05-02. Taxact login pdf. Taxact login Notice 2005-62 (biodiesel and aviation-grade kerosene) on page 443 of I. Taxact login R. Taxact login B. Taxact login 2005-35 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb05-35. Taxact login pdf. Taxact login Notice 2005-80 (LUST, kerosene, claims by credit card issuers, and mechanical dye injection) on page 953 of I. Taxact login R. Taxact login B. Taxact login 2005-46 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb05-46. Taxact login pdf. Taxact login Notice 2006-92 (alternative fuels and alternative fuel mixtures) on page 774 of I. Taxact login R. Taxact login B. Taxact login 2006-43 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb06-43. Taxact login pdf. Taxact login Notice 2008-110 (biodiesel and cellulosic biofuel) on page 1298 of I. Taxact login R. Taxact login B. Taxact login 2008-51 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb08-51. Taxact login pdf. Taxact login Notice 2010-68 (Alaska dyed diesel exemption) on page 576 of I. Taxact login R. Taxact login B. Taxact login 2010-44 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb10-44. Taxact login pdf. Taxact login Notice 2012-27 (fractional aircraft ownership programs fuel surtax) on page 849 of I. Taxact login R. Taxact login B. Taxact login 2012-17 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb12-17. Taxact login pdf. Taxact login Notice 2013-26 (fuel tax credits) on page 984 of I. Taxact login R. Taxact login B. Taxact login 2013-18 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb13-18. Taxact login pdf. Taxact login T. Taxact login D. Taxact login 9604 and Notice 2012–77 (medical device tax) on pages 730 and 781, respectively, of I. Taxact login R. Taxact login B. Taxact login 2012-52 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb12-52. Taxact login pdf. Taxact login T. Taxact login D. Taxact login 9602 (patient-centered outcomes research fee) on page 746 of I. Taxact login R. Taxact login B. Taxact login 2012-52 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb12-52. Taxact login pdf. Taxact login Revenue Procedure 2012-41 (inflation adjustments) on page 539 of I. Taxact login R. Taxact login B. Taxact login 2012-45 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb12-45. Taxact login pdf. Taxact login T. Taxact login D. Taxact login 9621 (indoor tanning services tax) on page 49 of I. Taxact login R. Taxact login B. Taxact login 2013-28 at www. Taxact login irs. Taxact login gov/pub/irs-irbs/irb13-28. Taxact login pdf. Taxact login Excise Taxes Not Covered In addition to the taxes discussed in this publication, you may have to report certain other excise taxes. Taxact login For tax forms relating to alcohol, firearms, and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www. Taxact login ttb. Taxact login gov. Taxact login Heavy highway vehicle use tax. Taxact login   You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. Taxact login The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Taxact login Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax. Taxact login Note. Taxact login A Spanish version (Formulario 2290(SP)) is also available. Taxact login See How To Get Tax Help in chapter 17. Taxact login Registration of vehicles. Taxact login   Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Taxact login Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment. Taxact login    If you have questions on Form 2290, see its separate instructions, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. Taxact login The hours of service are 8:00 a. Taxact login m. Taxact login to 6:00 p. Taxact login m. Taxact login Eastern time. Taxact login Wagering tax and occupational tax. Taxact login   The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering. 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Topic 515 - Casualty, Disaster, and Theft Losses (Including Federally Declared Disaster Areas)

Generally, you may deduct casualty and theft losses relating to your home, household items and vehicles on your federal income tax return. You may not deduct casualty and theft losses covered by insurance unless you file a timely claim for reimbursement, and you reduce the loss by the amount of any reimbursement or expected reimbursement.

A casualty loss can result from the damage, destruction or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption. A casualty does not include normal wear and tear or progressive deterioration.

A theft is the taking and removing of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and it must have been done with criminal intent.

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

  • The adjusted basis of your property, or
  • The decrease in fair market value of your property as a result of the casualty

The amount of your theft loss is generally the adjusted basis of your property because the fair market value of your property immediately after the theft is considered to be zero.

If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis.

The loss, regardless of whether it is a casualty or theft loss, must be reduced by any salvage value and by any insurance or other reimbursement you receive or expect to receive. The adjusted basis of your property is usually your cost, increased or decreased by certain events such as improvements or depreciation. For more information about the basis of property, refer to Topic 703, Publication 547, Casualties, Disasters, and Thefts, and Publication 551, Basis of Assets. You may determine the decrease in fair market value by appraisal, or if certain conditions are met, by the cost of repairing the property. For more information, refer to Publication 547.

Individuals are required to claim their casualty and theft losses as an itemized deduction on Form 1040, Schedule A (PDF) (or Form 1040NR, Schedule A (PDF), if you are a nonresident alien). For property held by you for personal use, once you have subtracted any salvage value and any insurance or other reimbursement, you must subtract $100 from each casualty or theft event that occurred during the year. Then add up all those amounts and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.

Casualty and theft losses are reported on Form 4684 (PDF), Casualties and Thefts. Section A is used for personal-use property, and Section B is used for business or income-producing property. If personal-use property was damaged, destroyed or stolen, you may wish to refer to Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property). For losses involving business-use property, refer to Publication 584-B (PDF), Business Casualty, Disaster, and Theft Loss Workbook.

Casualty losses are generally deductible in the year the casualty occurred. However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the disaster happened, and you can deduct the loss on your return or amended return for that preceding tax year. Review Disaster Assistance and Emergency Relief for Individuals and Businesses on IRS.gov, for information regarding timeframes and additional information to your specific qualifying event.

Theft losses are generally deductible in the year you discover the property was stolen unless you have a reasonable prospect of recovery through a claim for reimbursement. In that case, no deduction is available until the taxable year in which it can be determined with reasonable certainty whether or not such reimbursement will be received.

Special rules may apply to theft losses from Ponzi-type investment schemes. For more information, see the Form 4684 (PDF) and the Form 4684 Instructions (PDF), Casualties and Thefts. Additionally, review Help for Victims of Ponzi Investment Schemes on IRS.gov.

If your loss deduction is more than your income, you may have a net operating loss. You do not have to be in business to have a net operating loss from a casualty. For more information, refer to Publication 536, Net Operating Losses for Individuals, Estates, and Trusts.

Page Last Reviewed or Updated: December 12, 2013

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