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Www Irs Gov Form1040x

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Www Irs Gov Form1040x

Www irs gov form1040x 1. Www irs gov form1040x   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. Www irs gov form1040x Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. Www irs gov form1040x Reseller statement. Www irs gov form1040x Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. Www irs gov form1040x Deep-draft ocean-going vessels. Www irs gov form1040x Passenger vessels. Www irs gov form1040x Ocean-going barges. Www irs gov form1040x State or local governments. Www irs gov form1040x Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. Www irs gov form1040x Gasoline, including aviation gasoline and gasoline blendstocks. Www irs gov form1040x Diesel fuel, including dyed diesel fuel. Www irs gov form1040x Diesel-water fuel emulsion. Www irs gov form1040x Kerosene, including dyed kerosene and kerosene used in aviation. Www irs gov form1040x Other Fuels (including alternative fuels). Www irs gov form1040x Compressed natural gas (CNG). Www irs gov form1040x Fuels used in commercial transportation on inland waterways. Www irs gov form1040x Any liquid used in a fractional ownership program aircraft as fuel. Www irs gov form1040x The following terms are used throughout the discussion of fuel taxes. Www irs gov form1040x Other terms are defined in the discussion of the specific fuels to which they pertain. Www irs gov form1040x Agri-biodiesel. Www irs gov form1040x   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. Www irs gov form1040x Approved terminal or refinery. Www irs gov form1040x   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. Www irs gov form1040x Biodiesel. Www irs gov form1040x   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. Www irs gov form1040x Blended taxable fuel. Www irs gov form1040x   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. Www irs gov form1040x This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. Www irs gov form1040x Blender. Www irs gov form1040x   This is the person that produces blended taxable fuel. Www irs gov form1040x Bulk transfer. Www irs gov form1040x   This is the transfer of taxable fuel by pipeline or vessel. Www irs gov form1040x Bulk transfer/terminal system. Www irs gov form1040x   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Www irs gov form1040x Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. Www irs gov form1040x Cellulosic biofuel. Www irs gov form1040x   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. Www irs gov form1040x Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). Www irs gov form1040x For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. Www irs gov form1040x Also see Second generation biofuel below. Www irs gov form1040x Diesel-water fuel emulsion. Www irs gov form1040x   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. Www irs gov form1040x The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. Www irs gov form1040x Dry lease aircraft exchange. Www irs gov form1040x   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Www irs gov form1040x Enterer. Www irs gov form1040x   This is the importer of record (under customs law) for the taxable fuel. Www irs gov form1040x However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. Www irs gov form1040x If there is no importer of record, the owner at the time of entry into the United States is the enterer. Www irs gov form1040x Entry. Www irs gov form1040x   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. Www irs gov form1040x This does not apply to fuel brought into Puerto Rico (which is part of the U. Www irs gov form1040x S. Www irs gov form1040x customs territory), but does apply to fuel brought into the United States from Puerto Rico. Www irs gov form1040x Fractional ownership aircraft program and fractional program aircraft. Www irs gov form1040x   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Www irs gov form1040x Measurement of taxable fuel. Www irs gov form1040x   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. Www irs gov form1040x Other fuels. Www irs gov form1040x   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. Www irs gov form1040x Pipeline operator. Www irs gov form1040x   This is the person that operates a pipeline within the bulk transfer/terminal system. Www irs gov form1040x Position holder. Www irs gov form1040x   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. Www irs gov form1040x You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. Www irs gov form1040x A terminal operator that owns taxable fuel in its terminal is a position holder. Www irs gov form1040x Rack. Www irs gov form1040x   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. Www irs gov form1040x Refiner. Www irs gov form1040x   This is any person that owns, operates, or otherwise controls a refinery. Www irs gov form1040x Refinery. Www irs gov form1040x   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. Www irs gov form1040x However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. Www irs gov form1040x For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. Www irs gov form1040x Registrant. Www irs gov form1040x   This is a taxable fuel registrant (see Registration Requirements, later). Www irs gov form1040x Removal. Www irs gov form1040x   This is any physical transfer of taxable fuel. Www irs gov form1040x It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. Www irs gov form1040x However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. Www irs gov form1040x Renewable diesel. Www irs gov form1040x   See Renewable Diesel Credits in chapter 2. Www irs gov form1040x Sale. Www irs gov form1040x   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. Www irs gov form1040x For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. Www irs gov form1040x Second generation biofuel. Www irs gov form1040x   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. Www irs gov form1040x S. Www irs gov form1040x C. Www irs gov form1040x 7545). Www irs gov form1040x It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. Www irs gov form1040x It is not alcohol of less than 150 proof (disregard any added denaturants). Www irs gov form1040x See Form 6478 for more information. Www irs gov form1040x State. Www irs gov form1040x   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. Www irs gov form1040x An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. Www irs gov form1040x Taxable fuel. Www irs gov form1040x   This means gasoline, diesel fuel, and kerosene. Www irs gov form1040x Terminal. Www irs gov form1040x   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. Www irs gov form1040x It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. Www irs gov form1040x A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. Www irs gov form1040x Terminal operator. Www irs gov form1040x   This is any person that owns, operates, or otherwise controls a terminal. Www irs gov form1040x Throughputter. Www irs gov form1040x   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). Www irs gov form1040x Vessel operator. Www irs gov form1040x   This is the person that operates a vessel within the bulk transfer/terminal system. Www irs gov form1040x However, vessel does not include a deep draft ocean-going vessel. Www irs gov form1040x Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. Www irs gov form1040x A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. Www irs gov form1040x For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. Www irs gov form1040x The returns are due the last day of the month following the month in which the transaction occurs. Www irs gov form1040x Generally, these returns can be filed on paper or electronically. Www irs gov form1040x For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. Www irs gov form1040x Publication 3536 is only available on the IRS website. Www irs gov form1040x Form 720-TO. Www irs gov form1040x   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. Www irs gov form1040x Each terminal operator must file a separate form for each approved terminal. Www irs gov form1040x Form 720-CS. Www irs gov form1040x   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. Www irs gov form1040x Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. Www irs gov form1040x See Form 637 for other persons who must register and for more information about registration. Www irs gov form1040x Persons that are required to be registered. Www irs gov form1040x   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. Www irs gov form1040x Persons that may register. Www irs gov form1040x   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. Www irs gov form1040x Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. Www irs gov form1040x However, they must be registered to file claims for certain sales and uses of fuel. Www irs gov form1040x See Form 637 for more information. Www irs gov form1040x Taxable fuel registrant. Www irs gov form1040x   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. Www irs gov form1040x The term registrant as used in the discussions of these fuels means a taxable fuel registrant. Www irs gov form1040x Additional information. Www irs gov form1040x   See the Form 637 instructions for the information you must submit when you apply for registration. Www irs gov form1040x Failure to register. Www irs gov form1040x   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. Www irs gov form1040x Gasoline and Aviation Gasoline Gasoline. Www irs gov form1040x   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. Www irs gov form1040x Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. Www irs gov form1040x Gasoline also includes gasoline blendstocks, discussed later. Www irs gov form1040x Aviation gasoline. Www irs gov form1040x   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. Www irs gov form1040x Taxable Events The tax on gasoline is $. Www irs gov form1040x 184 per gallon. Www irs gov form1040x The tax on aviation gasoline is $. Www irs gov form1040x 194 per gallon. Www irs gov form1040x When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. Www irs gov form1040x 141 per gallon. Www irs gov form1040x See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. Www irs gov form1040x Tax is imposed on the removal, entry, or sale of gasoline. Www irs gov form1040x Each of these events is discussed later. Www irs gov form1040x Also, see the special rules that apply to gasoline blendstocks, later. Www irs gov form1040x If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. Www irs gov form1040x See Refunds of Second Tax in chapter 2. Www irs gov form1040x Removal from terminal. Www irs gov form1040x   All removals of gasoline at a terminal rack are taxable. Www irs gov form1040x The position holder for that gasoline is liable for the tax. Www irs gov form1040x Two-party exchanges. Www irs gov form1040x   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. Www irs gov form1040x A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. Www irs gov form1040x The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. Www irs gov form1040x The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. Www irs gov form1040x The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. Www irs gov form1040x The transaction is subject to a written contract. Www irs gov form1040x Terminal operator's liability. Www irs gov form1040x   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. Www irs gov form1040x   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. Www irs gov form1040x The terminal operator is a registrant. Www irs gov form1040x The terminal operator has an unexpired notification certificate (discussed later) from the position holder. Www irs gov form1040x The terminal operator has no reason to believe any information on the certificate is false. Www irs gov form1040x Removal from refinery. Www irs gov form1040x   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. Www irs gov form1040x It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. Www irs gov form1040x It is made at the refinery rack. Www irs gov form1040x The refiner is liable for the tax. Www irs gov form1040x Exception. Www irs gov form1040x   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. Www irs gov form1040x The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Www irs gov form1040x The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Www irs gov form1040x The removal from the refinery is by railcar. Www irs gov form1040x The same person operates the refinery and the facility at which the gasoline is received. Www irs gov form1040x Entry into the United States. Www irs gov form1040x   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. Www irs gov form1040x It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Www irs gov form1040x It is not made by bulk transfer. Www irs gov form1040x The enterer is liable for the tax. Www irs gov form1040x Importer of record's liability. Www irs gov form1040x   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. Www irs gov form1040x   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Www irs gov form1040x The importer of record has an unexpired notification certificate (discussed later) from the enterer. Www irs gov form1040x The importer of record has no reason to believe any information in the certificate is false. Www irs gov form1040x Customs bond. Www irs gov form1040x   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. Www irs gov form1040x Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Www irs gov form1040x   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. Www irs gov form1040x The position holder is liable for the tax. Www irs gov form1040x The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Www irs gov form1040x However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Www irs gov form1040x Bulk transfers not received at approved terminal or refinery. Www irs gov form1040x   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. Www irs gov form1040x No tax was previously imposed (as discussed earlier) on any of the following events. Www irs gov form1040x The removal from the refinery. Www irs gov form1040x The entry into the United States. Www irs gov form1040x The removal from a terminal by an unregistered position holder. Www irs gov form1040x Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). Www irs gov form1040x   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. Www irs gov form1040x However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Www irs gov form1040x The owner is a registrant. Www irs gov form1040x The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. Www irs gov form1040x The owner has no reason to believe any information on the certificate is false. Www irs gov form1040x The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. Www irs gov form1040x The operator is jointly and severally liable if the owner does not meet these conditions. Www irs gov form1040x Sales to unregistered person. Www irs gov form1040x   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. Www irs gov form1040x   The seller is liable for the tax. Www irs gov form1040x However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Www irs gov form1040x   The seller is a registrant. Www irs gov form1040x The seller has an unexpired notification certificate (discussed later) from the buyer. Www irs gov form1040x The seller has no reason to believe any information on the certificate is false. Www irs gov form1040x The buyer of the gasoline is liable for the tax if the seller meets these conditions. Www irs gov form1040x The buyer is jointly and severally liable if the seller does not meet these conditions. Www irs gov form1040x Exception. Www irs gov form1040x   The tax does not apply to a sale if all of the following apply. Www irs gov form1040x The buyer's principal place of business is not in the United States. Www irs gov form1040x The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Www irs gov form1040x The seller is a registrant and the exporter of record. Www irs gov form1040x The fuel was exported. Www irs gov form1040x Removal or sale of blended gasoline. Www irs gov form1040x   The removal or sale of blended gasoline by the blender is taxable. Www irs gov form1040x See Blended taxable fuel under Definitions, earlier. Www irs gov form1040x   The blender is liable for the tax. Www irs gov form1040x The tax is figured on the number of gallons not previously subject to the tax on gasoline. Www irs gov form1040x   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. Www irs gov form1040x See Form 720 to report this tax. Www irs gov form1040x You also must be registered with the IRS as a blender. Www irs gov form1040x See Form 637. Www irs gov form1040x   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. Www irs gov form1040x Notification certificate. Www irs gov form1040x   The notification certificate is used to notify a person of the registration status of the registrant. Www irs gov form1040x A copy of the registrant's letter of registration cannot be used as a notification certificate. Www irs gov form1040x A model notification certificate is shown in the Appendix as Model Certificate C. Www irs gov form1040x A notification certificate must contain all information necessary to complete the model. Www irs gov form1040x   The certificate may be included as part of any business records normally used for a sale. Www irs gov form1040x A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. Www irs gov form1040x The registrant must provide a new certificate if any information on a certificate has changed. Www irs gov form1040x Additional persons liable. Www irs gov form1040x   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. Www irs gov form1040x Gasoline Blendstocks Gasoline blendstocks may be subject to $. Www irs gov form1040x 001 per gallon LUST tax as discussed below. Www irs gov form1040x Gasoline includes gasoline blendstocks. Www irs gov form1040x The previous discussions apply to these blendstocks. Www irs gov form1040x However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. Www irs gov form1040x 001 per gallon or are not subject to the excise tax. Www irs gov form1040x Blendstocks. Www irs gov form1040x   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. Www irs gov form1040x   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. Www irs gov form1040x Not used to produce finished gasoline. Www irs gov form1040x   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. Www irs gov form1040x Removals and entries not connected to sale. Www irs gov form1040x   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. Www irs gov form1040x Removals and entries connected to sale. Www irs gov form1040x   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. Www irs gov form1040x The person has an unexpired certificate (discussed later) from the buyer. Www irs gov form1040x The person has no reason to believe any information in the certificate is false. Www irs gov form1040x Sales after removal or entry. Www irs gov form1040x   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. Www irs gov form1040x The seller is liable for the tax. Www irs gov form1040x However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. Www irs gov form1040x The seller has an unexpired certificate (discussed next) from the buyer. Www irs gov form1040x The seller has no reason to believe any information in the certificate is false. Www irs gov form1040x Certificate of buyer. Www irs gov form1040x   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. Www irs gov form1040x The certificate may be included as part of any business records normally used for a sale. Www irs gov form1040x A model certificate is shown in the Appendix as Model Certificate D. Www irs gov form1040x The certificate must contain all information necessary to complete the model. Www irs gov form1040x   A certificate expires on the earliest of the following dates. Www irs gov form1040x The date 1 year after the effective date (not earlier than the date signed) of the certificate. Www irs gov form1040x The date a new certificate is provided to the seller. Www irs gov form1040x The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. Www irs gov form1040x The buyer must provide a new certificate if any information on a certificate has changed. Www irs gov form1040x   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. Www irs gov form1040x Received at approved terminal or refinery. Www irs gov form1040x   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. Www irs gov form1040x The person is a registrant. Www irs gov form1040x The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. Www irs gov form1040x The person has no reason to believe any information on the certificate is false. Www irs gov form1040x Bulk transfers to registered industrial user. Www irs gov form1040x   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. Www irs gov form1040x An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. Www irs gov form1040x Credits or Refunds. Www irs gov form1040x   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. Www irs gov form1040x For more information, see chapter 2. Www irs gov form1040x Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). Www irs gov form1040x However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. Www irs gov form1040x Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. Www irs gov form1040x A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. Www irs gov form1040x A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. Www irs gov form1040x However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. Www irs gov form1040x Diesel fuel does not include gasoline, kerosene, excluded liquid, No. Www irs gov form1040x 5 and No. Www irs gov form1040x 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. Www irs gov form1040x An excluded liquid is either of the following. Www irs gov form1040x A liquid that contains less than 4% normal paraffins. Www irs gov form1040x A liquid with all the following properties. Www irs gov form1040x Distillation range of 125 degrees Fahrenheit or less. Www irs gov form1040x Sulfur content of 10 ppm or less. Www irs gov form1040x Minimum color of +27 Saybolt. Www irs gov form1040x Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. Www irs gov form1040x Kerosene. Www irs gov form1040x   This means any of the following liquids. Www irs gov form1040x One of the two grades of kerosene (No. Www irs gov form1040x 1-K and No. Www irs gov form1040x 2-K) covered by ASTM specification D3699. Www irs gov form1040x Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). Www irs gov form1040x See Kerosene for Use in Aviation, later. Www irs gov form1040x   However, kerosene does not include excluded liquid, discussed earlier. Www irs gov form1040x   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. Www irs gov form1040x Diesel-powered highway vehicle. Www irs gov form1040x   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. Www irs gov form1040x Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. Www irs gov form1040x For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. Www irs gov form1040x 2) in chapter 2. Www irs gov form1040x Diesel-powered train. Www irs gov form1040x   This is any diesel-powered equipment or machinery that rides on rails. Www irs gov form1040x The term includes a locomotive, work train, switching engine, and track maintenance machine. Www irs gov form1040x Taxable Events The tax on diesel fuel and kerosene is $. Www irs gov form1040x 244 per gallon. Www irs gov form1040x It is imposed on the removal, entry, or sale of diesel fuel and kerosene. Www irs gov form1040x Each of these events is discussed later. Www irs gov form1040x Only the $. Www irs gov form1040x 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. Www irs gov form1040x If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. Www irs gov form1040x See Refunds of Second Tax in chapter 2. Www irs gov form1040x Use in certain intercity and local buses. Www irs gov form1040x   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. Www irs gov form1040x A claim for $. Www irs gov form1040x 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. Www irs gov form1040x An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Www irs gov form1040x The bus must be engaged in one of the following activities. Www irs gov form1040x Scheduled transportation along regular routes regardless of the size of the bus. Www irs gov form1040x Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). Www irs gov form1040x A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. Www irs gov form1040x Removal from terminal. Www irs gov form1040x   All removals of diesel fuel and kerosene at a terminal rack are taxable. Www irs gov form1040x The position holder for that fuel is liable for the tax. Www irs gov form1040x Two-party exchanges. Www irs gov form1040x   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. Www irs gov form1040x A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. Www irs gov form1040x The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. Www irs gov form1040x The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. Www irs gov form1040x The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. Www irs gov form1040x The transaction is subject to a written contract. Www irs gov form1040x Terminal operator's liability. Www irs gov form1040x   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). Www irs gov form1040x   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. Www irs gov form1040x However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. Www irs gov form1040x The terminal operator is a registrant. Www irs gov form1040x The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. Www irs gov form1040x The terminal operator has no reason to believe any information on the certificate is false. Www irs gov form1040x Removal from refinery. Www irs gov form1040x   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. Www irs gov form1040x It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. Www irs gov form1040x It is made at the refinery rack. Www irs gov form1040x The refiner is liable for the tax. Www irs gov form1040x Exception. Www irs gov form1040x   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. Www irs gov form1040x The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Www irs gov form1040x The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Www irs gov form1040x The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. Www irs gov form1040x Entry into the United States. Www irs gov form1040x   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. Www irs gov form1040x It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Www irs gov form1040x It is not made by bulk transfer. Www irs gov form1040x The enterer is liable for the tax. Www irs gov form1040x Importer of record's liability. Www irs gov form1040x   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. Www irs gov form1040x   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Www irs gov form1040x The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. Www irs gov form1040x The importer of record has no reason to believe any information in the certificate is false. Www irs gov form1040x Customs bond. Www irs gov form1040x   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. Www irs gov form1040x Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Www irs gov form1040x   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. Www irs gov form1040x The position holder is liable for the tax. Www irs gov form1040x The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Www irs gov form1040x However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Www irs gov form1040x Bulk transfers not received at approved terminal or refinery. Www irs gov form1040x   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. Www irs gov form1040x No tax was previously imposed (as discussed earlier) on any of the following events. Www irs gov form1040x The removal from the refinery. Www irs gov form1040x The entry into the United States. Www irs gov form1040x The removal from a terminal by an unregistered position holder. Www irs gov form1040x Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). Www irs gov form1040x   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. Www irs gov form1040x However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Www irs gov form1040x The owner is a registrant. Www irs gov form1040x The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. Www irs gov form1040x The owner has no reason to believe any information on the certificate is false. Www irs gov form1040x The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. Www irs gov form1040x The operator is jointly and severally liable if the owner does not meet these conditions. Www irs gov form1040x Sales to unregistered person. Www irs gov form1040x   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. Www irs gov form1040x   The seller is liable for the tax. Www irs gov form1040x However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Www irs gov form1040x The seller is a registrant. Www irs gov form1040x The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. Www irs gov form1040x The seller has no reason to believe any information on the certificate is false. Www irs gov form1040x The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. Www irs gov form1040x The buyer is jointly and severally liable if the seller does not meet these conditions. Www irs gov form1040x Exception. Www irs gov form1040x   The tax does not apply to a sale if all of the following apply. Www irs gov form1040x The buyer's principal place of business is not in the United States. Www irs gov form1040x The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Www irs gov form1040x The seller is a registrant and the exporter of record. Www irs gov form1040x The fuel was exported. Www irs gov form1040x Removal or sale of blended diesel fuel or kerosene. Www irs gov form1040x   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. Www irs gov form1040x Blended taxable fuel produced using biodiesel is subject to the tax. Www irs gov form1040x See Blended taxable fuel under Definitions, earlier. Www irs gov form1040x   The blender is liable for the tax. Www irs gov form1040x The tax is figured on the number of gallons not previously subject to the tax. Www irs gov form1040x   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. Www irs gov form1040x Generally, the biodiesel mixture must be diesel fuel (defined earlier). Www irs gov form1040x See Form 720 to report this tax. Www irs gov form1040x You also must be registered by the IRS as a blender. Www irs gov form1040x See Form 637 for more information. Www irs gov form1040x   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. Www irs gov form1040x Additional persons liable. Www irs gov form1040x   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. Www irs gov form1040x Credits or Refunds. Www irs gov form1040x   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. Www irs gov form1040x For more information, see chapter 2. Www irs gov form1040x Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. Www irs gov form1040x 001 per gallon LUST tax as discussed below, unless the fuel is for export. Www irs gov form1040x The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. Www irs gov form1040x The person otherwise liable for tax (for example, the position holder) is a registrant. Www irs gov form1040x In the case of a removal from a terminal, the terminal is an approved terminal. Www irs gov form1040x The diesel fuel or kerosene satisfies the dyeing requirements (described next). Www irs gov form1040x Dyeing requirements. Www irs gov form1040x   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. Www irs gov form1040x It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. Www irs gov form1040x 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. Www irs gov form1040x Is indelibly dyed by mechanical injection. Www irs gov form1040x See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. Www irs gov form1040x Notice required. Www irs gov form1040x   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. Www irs gov form1040x   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. Www irs gov form1040x   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). Www irs gov form1040x That seller is subject to the penalty described next. Www irs gov form1040x Penalty. Www irs gov form1040x   A penalty is imposed on a person if any of the following situations apply. Www irs gov form1040x Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. Www irs gov form1040x Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. Www irs gov form1040x The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. Www irs gov form1040x The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. Www irs gov form1040x   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Www irs gov form1040x After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Www irs gov form1040x   This penalty is in addition to any tax imposed on the fuel. Www irs gov form1040x   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. Www irs gov form1040x   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. Www irs gov form1040x   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. Www irs gov form1040x However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. Www irs gov form1040x The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. Www irs gov form1040x Exception to penalty. Www irs gov form1040x   The penalty under item (3) will not apply in any of the following situations. Www irs gov form1040x Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. Www irs gov form1040x Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. Www irs gov form1040x The alteration or attempted alteration occurs in an exempt area of Alaska. Www irs gov form1040x See Removal for sale or use in Alaska, later. Www irs gov form1040x Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. Www irs gov form1040x Alaska and Feedstocks Tax of $. Www irs gov form1040x 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). Www irs gov form1040x Undyed kerosene used for feedstock purposes. Www irs gov form1040x Removal for sale or use in Alaska. Www irs gov form1040x   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. Www irs gov form1040x The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. Www irs gov form1040x The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. Www irs gov form1040x In the case of a removal from a terminal, the terminal is an approved terminal. Www irs gov form1040x The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. Www irs gov form1040x   If all three of the requirements above are not met, then tax is imposed at $. Www irs gov form1040x 244 per gallon. Www irs gov form1040x   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. Www irs gov form1040x Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. Www irs gov form1040x Later sales. Www irs gov form1040x   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. Www irs gov form1040x The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. Www irs gov form1040x However, the sale is not taxable (other than the LUST tax at $. Www irs gov form1040x 001 per gallon) if all the following requirements are met. Www irs gov form1040x The fuel is sold in Alaska for certain nontaxable uses. Www irs gov form1040x The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. Www irs gov form1040x The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. Www irs gov form1040x Feedstock purposes. Www irs gov form1040x   The $. Www irs gov form1040x 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. Www irs gov form1040x The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. Www irs gov form1040x In the case of a removal from a terminal, the terminal is an approved terminal. Www irs gov form1040x Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. Www irs gov form1040x   If all of the requirements above are not met, then tax is imposed at $. Www irs gov form1040x 244 per gallon. Www irs gov form1040x   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. Www irs gov form1040x For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. Www irs gov form1040x A feedstock user is a person that uses kerosene for a feedstock purpose. Www irs gov form1040x A registered feedstock user is a person that has been registered by the IRS as a feedstock user. Www irs gov form1040x See Registration Requirements, earlier. Www irs gov form1040x Later sales. Www irs gov form1040x   The excise tax ($. Www irs gov form1040x 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. Www irs gov form1040x The tax is imposed at the time of the later sale and that seller is liable for the tax. Www irs gov form1040x Certificate. Www irs gov form1040x   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. Www irs gov form1040x The certificate may be included as part of any business records normally used for a sale. Www irs gov form1040x A model certificate is shown in the Appendix as Model Certificate G. Www irs gov form1040x Your certificate must contain all information necessary to complete the model. Www irs gov form1040x   A certificate expires on the earliest of the following dates. Www irs gov form1040x The date 1 year after the effective date (not earlier than the date signed) of the certificate. Www irs gov form1040x The date the seller is provided a new certificate or notice that the current certificate is invalid. Www irs gov form1040x The date the seller is notified the buyer's registration has been revoked or suspended. Www irs gov form1040x   The buyer must provide a new certificate if any information on a certificate has changed. Www irs gov form1040x Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. Www irs gov form1040x Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. Www irs gov form1040x Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. Www irs gov form1040x Any liquid other than gasoline, diesel fuel, or kerosene. Www irs gov form1040x Generally, this back-up tax is imposed at a rate of $. Www irs gov form1040x 244 per gallon. Www irs gov form1040x Liability for tax. Www irs gov form1040x   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. Www irs gov form1040x In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. Www irs gov form1040x Exemptions from the back-up tax. Www irs gov form1040x   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. Www irs gov form1040x   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. Www irs gov form1040x Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. Www irs gov form1040x A reduced tax rate of $. Www irs gov form1040x 198 per gallon is imposed on a diesel-water fuel emulsion. Www irs gov form1040x To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. Www irs gov form1040x If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. Www irs gov form1040x 244 per gallon. Www irs gov form1040x Credits or refunds. Www irs gov form1040x   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. Www irs gov form1040x Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. Www irs gov form1040x 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). Www irs gov form1040x For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. Www irs gov form1040x 219. Www irs gov form1040x The rate of $. Www irs gov form1040x 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. Www irs gov form1040x The airport terminal does not need to be a secured airport terminal for this rate to apply. Www irs gov form1040x However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. Www irs gov form1040x For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. Www irs gov form1040x 044 per gallon. Www irs gov form1040x For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. Www irs gov form1040x 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. Www irs gov form1040x See Terminal located within a secured area of an airport, later. Www irs gov form1040x In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Www irs gov form1040x For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. Www irs gov form1040x 001. Www irs gov form1040x There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Www irs gov form1040x The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. Www irs gov form1040x See Terminal located within a secured area of an airport, later. Www irs gov form1040x In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Www irs gov form1040x The position holder is liable for the $. Www irs gov form1040x 001 per gallon tax. Www irs gov form1040x For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. Www irs gov form1040x 141 per gallon applies. Www irs gov form1040x Certain refueler trucks, tankers, and tank wagons treated as terminals. Www irs gov form1040x   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. Www irs gov form1040x Such terminal is located within an area of an airport. Www irs gov form1040x Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. Www irs gov form1040x Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. Www irs gov form1040x The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. Www irs gov form1040x Information reporting will be required by terminal operators regarding this provision. Www irs gov form1040x Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. Www irs gov form1040x Terminal located within a secured area of an airport. Www irs gov form1040x   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. Www irs gov form1040x This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. Www irs gov form1040x Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. Www irs gov form1040x 044 per gallon. Www irs gov form1040x However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). Www irs gov form1040x For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. Www irs gov form1040x For the aircraft operator to be liable for the tax $. Www irs gov form1040x 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. Www irs gov form1040x Commercial aviation. Www irs gov form1040x   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. Www irs gov form1040x However, commercial aviation does not include any of the following uses. Www irs gov form1040x Any use exclusively for the purpose of skydiving. Www irs gov form1040x Certain air transportation by seaplane. Www irs gov form1040x See Seaplanes under Transportation of Persons by Air in chapter 4. Www irs gov form1040x Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. Www irs gov form1040x For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. Www irs gov form1040x Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. Www irs gov form1040x For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. Www irs gov form1040x Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. Www irs gov form1040x See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. Www irs gov form1040x Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. Www irs gov form1040x 141 per gallon. Www irs gov form1040x The fractional ownership program manager is liable for the tax. Www irs gov form1040x The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. Www irs gov form1040x If the surtax is imposed, the following air transportation taxes do not apply. Www irs gov form1040x Transportation of persons by air. Www irs gov form1040x Transportation of property by air. Www irs gov form1040x Use of international air travel facilities. Www irs gov form1040x These taxes are described under Air Transportation Taxes, later. Www irs gov form1040x A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. Www irs gov form1040x Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. Www irs gov form1040x Fractional program aircraft. Www irs gov form1040x   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. Www irs gov form1040x S. Www irs gov form1040x   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. Www irs gov form1040x In such situations, the flight is not commercial aviation. Www irs gov form1040x Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. Www irs gov form1040x Fractional owner. Www irs gov form1040x   Any person owning any interest (including the entire interest) in a fractional program aircraft. Www irs gov form1040x Dry lease aircraft exchange. Www irs gov form1040x   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. Www irs gov form1040x Special rule relating to deadhead service. Www irs gov form1040x   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. Www irs gov form1040x More information. Www irs gov form1040x   See section 4043 for more information on the surtax. Www irs gov form1040x Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. Www irs gov form1040x Certificate. Www irs gov form1040x   The certificate may be included as part of any business records normally used for a sale. Www irs gov form1040x See Model Certificate K in the Appendix. Www irs gov form1040x   A certificate expires on the earliest of the following dates. Www irs gov form1040x The date 1 year after the effective date (not earlier than the date signed) of the certificate. Www irs gov form1040x The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. Www irs gov form1040x The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. Www irs gov form1040x   The buyer must provide a new certificate if any information on a certificate has changed. Www irs gov form1040x   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. Www irs gov form1040x Exempt use. Www irs gov form1040x   The rate on kerosene for use in aviation is $. Www irs gov form1040x 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. Www irs gov form1040x An exempt use includes kerosene for the exclusive use of a state or local government. Www irs gov form1040x There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Www irs gov form1040x Flash title transaction. Www irs gov form1040x   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. Www irs gov form1040x In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. Www irs gov form1040x In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. Www irs gov form1040x Reseller statement. Www irs gov form1040x   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. Www irs gov form1040x Credits or Refunds. Www irs gov form1040x   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). Www irs gov form1040x A claim may be made by a registered ultimate vendor for certain sales. Www irs gov form1040x For more information, see chapter 2. Www irs gov form1040x Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. Www irs gov form1040x Other Fuels include alternative fuels. Www irs gov form1040x Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. Www irs gov form1040x Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. Www irs gov form1040x Qualified methanol and ethanol fuels. Www irs gov form1040x   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. Www irs gov form1040x The tax rates are listed in the Instructions for Form 720. Www irs gov form1040x Partially exempt methanol and ethanol fuels. Www irs gov form1040x   A reduced tax rate applies to these fuels. Www irs gov form1040x Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. Www irs gov form1040x The tax rates are listed in the Instructions for Form 720. Www irs gov form1040x Motor vehicles. Www irs gov form1040x   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. Www irs gov form1040x They are propelled by a motor. Www irs gov form1040x They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t
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Time May be Running Out -- March 31 is an Important Deadline

IRS Health Care Tax Tip 2014-11, March 25, 2014                                                Español

Time May be Running Out – March 31 is an Important Deadline

Health Care Law Considerations for 2014

For most people, the Affordable Care Act has no effect on the 2013 income tax return they are filing in 2014. However, some people may need to make important decisions by the March 31, 2014 deadline for open enrollment. 

Below are five things about the health care law you may need to consider soon.

  • Currently Insured – No Change: If you already insured, you do not need to do anything more than continue your insurance.
  • Uninsured – Enroll by March 31: The open enrollment period to purchase health care coverage through the Health Insurance Marketplace for 2014 runs through March 31, 2014. When you get health insurance through the marketplace, you may be able to get advance payments of the premium tax credit that will immediately help lower your monthly premium. Learn more at HealthCare.gov.
  • Premium Tax Credit To Lower Your Monthly Premium: If you get insurance through the Marketplace, you may be eligible to claim the premium tax credit. You can elect to have advance payments of the tax credit sent directly to your insurer during 2014 so that the monthly premium you pay is lower, or wait to claim the credit when you file your tax return in 2015. If you choose to have advance payments sent to your insurer, you will have to reconcile the payments on your 2014 tax return, which will be filed in 2015. If you’re already receiving advance payments of the credit, you need to do nothing at this time unless you have a change in circumstance like a change in income or family size. Learn More.
  • Change in Circumstances: If you're receiving advance payments of the premium tax credit to help pay for your insurance coverage, you should report life changes, such as income, marital status or family size changes, to the Marketplace. Reporting changes will help to make sure you have the right coverage and are getting the proper amount of advance payments of the premium tax credit.
  • Individual Shared Responsibility Payment: Starting January 2014, you and your family have been required to have health care coverage or have an exemption from coverage.  Most people already have qualifying health care coverage.  These individuals will not need to do anything more than maintain that coverage throughout 2014. If you can afford coverage but decide not to buy it and remain uninsured, you may have to make an individual shared responsibility payment when you file your 2014 tax return in 2015. Learn More.

 

More Information

Find out more tax-related provisions of the health care law at IRS.gov/aca

Find out more about the Health Insurance Marketplace at HealthCare.gov.

To receive copies of IRS tax tips via email, subscribe at www.irs.gov/uac/Subscribe-to-IRS-Tax-Tips.

Page Last Reviewed or Updated: 26-Mar-2014

 

The Www Irs Gov Form1040x

Www irs gov form1040x Publication 600 - Main Contents Table of Contents Actual Expenses Optional Sales Tax Tables Instructions for the State and Local General Sales Tax Deduction WorksheetWhat if you lived in more than one state? What if you lived in more than one locality? What if your local general sales tax rate changed during 2006? What if you lived in more than one locality in the same state during 2006? Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2006 if the tax rate was the same as the general sales tax rate. Www irs gov form1040x However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Www irs gov form1040x If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Www irs gov form1040x Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Www irs gov form1040x Also include any state and local general sales taxes paid for a leased motor vehicle. Www irs gov form1040x Do not include sales taxes paid on items used in your trade or business. Www irs gov form1040x To deduct your actual expenses, enter the amount on Schedule A, line 5, and enter “ST” on the dotted line to the left of the line 5 entry space. Www irs gov form1040x You must keep your actual receipts showing general sales taxes paid to use this method. Www irs gov form1040x Refund of general sales taxes. Www irs gov form1040x   If you received a refund of state or local general sales taxes in 2006 for amounts paid in 2006, reduce your actual 2006 state and local general sales taxes by this amount. Www irs gov form1040x If you received a refund of state or local general sales taxes in 2006 for prior year purchases, do not reduce your 2006 state and local general sales taxes by this amount. Www irs gov form1040x But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. Www irs gov form1040x See Recoveries in Pub. Www irs gov form1040x 525 for details. Www irs gov form1040x Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages 5 through 7 to figure your state and local general sales tax deduction. Www irs gov form1040x You may also be able to add the state and local general sales taxes paid on certain specified items. Www irs gov form1040x To figure your state and local general sales tax deduction using the tables, complete the worksheet below. Www irs gov form1040x If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. Www irs gov form1040x State and Local General Sales Tax Deduction Worksheet (See the instructions that begin on page 3. Www irs gov form1040x ) Before you begin: See the instructions for line 1 on page 3 if: You lived in more than one state during 2006, or You had any nontaxable income in 2006. Www irs gov form1040x   1. Www irs gov form1040x Enter your state general sales taxes from the applicable table on page 5 or 6 (see page 3 of the instructions) 1. Www irs gov form1040x $     Next. Www irs gov form1040x If, for all of 2006, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Www irs gov form1040x Otherwise, go to line 2       2. Www irs gov form1040x Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2006?         No. Www irs gov form1040x Enter -0-                   Yes. Www irs gov form1040x Enter your local general sales taxes from the applicable table on page 7 (see page 3 of the instructions)     2. Www irs gov form1040x $       3. Www irs gov form1040x Did your locality impose a local general sales tax in 2006? Residents of California, Nevada, and Texarkana, Arkansas, see page 3 of the instructions             No. Www irs gov form1040x Skip lines 3 through 5, enter -0- on line 6, and go to line 7             Yes. Www irs gov form1040x Enter your local general sales tax rate, but omit the percentage sign. Www irs gov form1040x For example, if your local general sales tax rate was 2. Www irs gov form1040x 5%, enter 2. Www irs gov form1040x 5. Www irs gov form1040x If your local general sales tax rate changed or you lived in more than one locality in the same state during 2006, see page 3 of the instructions. Www irs gov form1040x (If you do not know your local general sales tax rate, contact your local government. Www irs gov form1040x ) 3. Www irs gov form1040x . Www irs gov form1040x       4. Www irs gov form1040x Did you enter -0- on line 2 above?             No. Www irs gov form1040x Skip lines 4 and 5 and go to line 6             Yes. Www irs gov form1040x Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. Www irs gov form1040x For example, if your state general sales tax rate is 6%, enter 6. Www irs gov form1040x 0 4. Www irs gov form1040x . Www irs gov form1040x       5. Www irs gov form1040x Divide line 3 by line 4. Www irs gov form1040x Enter the result as a decimal (rounded to at least three places) 5. Www irs gov form1040x . Www irs gov form1040x       6. Www irs gov form1040x Did you enter -0- on line 2 above?             No. Www irs gov form1040x Multiply line 2 by line 3   6. Www irs gov form1040x $     Yes. Www irs gov form1040x Multiply line 1 by line 5. Www irs gov form1040x If you lived in more than one locality in the same state during 2006, see page 4 of the instructions           7. Www irs gov form1040x Enter your state and local general sales taxes paid on specified items, if any (see page 4 of the instructions) 7. Www irs gov form1040x $   8. Www irs gov form1040x Deduction for general sales taxes. Www irs gov form1040x Add lines 1, 6, and 7. Www irs gov form1040x Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. Www irs gov form1040x Be sure to enter “ST” on the dotted line to the left of the entry space 8. Www irs gov form1040x $     Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. Www irs gov form1040x    If you lived in the same state for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional state sales tax table for your state on page 5 or 6. Www irs gov form1040x Read down the “At least-But less than” columns for your state and find the line that includes your 2006 income. Www irs gov form1040x If married filing separately, do not include your spouse's income. Www irs gov form1040x Your 2006 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. Www irs gov form1040x Tax-exempt interest. Www irs gov form1040x Veterans' benefits. Www irs gov form1040x Nontaxable combat pay. Www irs gov form1040x Workers' compensation. Www irs gov form1040x Nontaxable part of social security and railroad retirement benefits. Www irs gov form1040x Nontaxable part of IRA, pension, or annuity distributions. Www irs gov form1040x Do not include rollovers. Www irs gov form1040x Public assistance payments. Www irs gov form1040x The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Www irs gov form1040x Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Www irs gov form1040x What if you lived in more than one state?    If you lived in more than one state during 2006, look up the table amount for each state using the above rules. Www irs gov form1040x If there is no table for your state, the table amount is considered to be zero. Www irs gov form1040x Multiply the table amount for each state you lived in by a fraction. Www irs gov form1040x The numerator of the fraction is the number of days you lived in the state during 2006 and the denominator is the total number of days in the year (365). Www irs gov form1040x Enter the total of the prorated table amounts for each state on line 1. Www irs gov form1040x However, if you also lived in a locality during 2006 that imposed a local general sales tax, do not enter the total on line 1. Www irs gov form1040x Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. Www irs gov form1040x Example. Www irs gov form1040x You lived in State A from January 1 through August 31, 2006 (243 days), and in State B from September 1 through December 31, 2006 (122 days). Www irs gov form1040x The table amount for State A is $500. Www irs gov form1040x The table amount for State B is $400. Www irs gov form1040x You would figure your state general sales tax as follows. Www irs gov form1040x State A: $500 x 243/365 = $333   State B: $400 x 122/365 = 134   Total = $467   If none of the localities in which you lived during 2006 imposed a local general sales tax, enter $467 on line 1 of your worksheet. Www irs gov form1040x Otherwise, complete a separate worksheet for State A and State B. Www irs gov form1040x Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Www irs gov form1040x Line 2. Www irs gov form1040x   If you checked the “No” box, enter -0- on line 2, and go to line 3. Www irs gov form1040x If you checked the “Yes” box and lived in the same locality for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional local sales tax table for your locality on page 7. Www irs gov form1040x Read down the “At least-But less than” columns for your locality and find the line that includes your 2006 income. Www irs gov form1040x See the line 1 instructions on this page to figure your 2006 income. Www irs gov form1040x The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Www irs gov form1040x Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Www irs gov form1040x What if you lived in more than one locality?   If you lived in more than one locality during 2006, look up the table amount for each locality using the above rules. Www irs gov form1040x If there is no table for your locality, the table amount is considered to be zero. Www irs gov form1040x Multiply the table amount for each locality you lived in by a fraction. Www irs gov form1040x The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Www irs gov form1040x If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. Www irs gov form1040x Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. Www irs gov form1040x Example. Www irs gov form1040x You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Www irs gov form1040x The table amount for Locality 1 is $100. Www irs gov form1040x The table amount for Locality 2 is $150. Www irs gov form1040x You would figure the amount to enter on line 2 as follows. Www irs gov form1040x Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Www irs gov form1040x Locality 1: $100 x 243/365 = $67   Locality 2: $150 x 122/365 = 50   Total = $117   Line 3. Www irs gov form1040x   If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7. Www irs gov form1040x 25%. Www irs gov form1040x Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 7. Www irs gov form1040x 25%. Www irs gov form1040x   If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6. Www irs gov form1040x 5%. Www irs gov form1040x Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6. Www irs gov form1040x 5%. Www irs gov form1040x   If you lived in Texarkana, Arkansas, check the “Yes” box and enter “4. Www irs gov form1040x 0” on line 3. Www irs gov form1040x Your local general sales tax rate of 4. Www irs gov form1040x 0% includes the additional 1. Www irs gov form1040x 0% Arkansas state sales tax rate for Texarkana and the 1. Www irs gov form1040x 5% sales tax rate for Miller County. Www irs gov form1040x What if your local general sales tax rate changed during 2006?    If you checked the “Yes” box and your local general sales tax rate changed during 2006, figure the rate to enter on line 3 as follows. Www irs gov form1040x Multiply each tax rate for the period it was in effect by a fraction. Www irs gov form1040x The numerator of the fraction is the number of days the rate was in effect during 2006 and the denominator is the total number of days in the year (365). Www irs gov form1040x Enter the total of the prorated tax rates on line 3. Www irs gov form1040x Example. Www irs gov form1040x Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2006 (273 days). Www irs gov form1040x The rate increased to 1. Www irs gov form1040x 75% for the period from October 1 through December 31, 2006 (92 days). Www irs gov form1040x You would enter “1. Www irs gov form1040x 189” on line 3, figured as follows. Www irs gov form1040x January 1 - September 30: 1. Www irs gov form1040x 00 x 273/365 = 0. Www irs gov form1040x 748   October 1 - December 31: 1. Www irs gov form1040x 75 x 92/365 = 0. Www irs gov form1040x 441   Total = 1. Www irs gov form1040x 189   What if you lived in more than one locality in the same state during 2006?    Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2006 and either of the following applies. Www irs gov form1040x Each locality did not have the same local general sales tax rate. Www irs gov form1040x You lived in Texarkana, AR, or Los Angeles County, CA. Www irs gov form1040x   To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page 7 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. Www irs gov form1040x The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Www irs gov form1040x Example. Www irs gov form1040x You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Www irs gov form1040x The local general sales tax rate for Locality 1 is 1%. Www irs gov form1040x The rate for Locality 2 is 1. Www irs gov form1040x 75%. Www irs gov form1040x You would enter “0. Www irs gov form1040x 666” on line 3 for the Locality 1 worksheet and “0. Www irs gov form1040x 585” for the Locality 2 worksheet, figured as follows. Www irs gov form1040x Locality 1: 1. Www irs gov form1040x 00 x 243/365 = 0. Www irs gov form1040x 666   Locality 2: 1. Www irs gov form1040x 75 x 122/365 = 0. Www irs gov form1040x 585   Line 6. Www irs gov form1040x   If you lived in more than one locality in the same state during 2006, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2006. Www irs gov form1040x If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Www irs gov form1040x Line 7. Www irs gov form1040x    Enter on line 7 any state and local general sales taxes paid on the following specified items. Www irs gov form1040x If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. Www irs gov form1040x A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Www irs gov form1040x Also include any state and local general sales taxes paid for a leased motor vehicle. Www irs gov form1040x If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. Www irs gov form1040x An aircraft or boat, if the tax rate was the same as the general sales tax rate. Www irs gov form1040x A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. Www irs gov form1040x Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. Www irs gov form1040x You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. Www irs gov form1040x Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. Www irs gov form1040x The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. Www irs gov form1040x In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. Www irs gov form1040x   Do not include sales taxes paid on items used in your trade or business. Www irs gov form1040x If you received a refund of state or local general sales taxes in 2006, see Refund of general sales taxes on page 1. Www irs gov form1040x Prev  Up  Next   Home   More Online Publications