Publication 378

(Rev. December 2002) Contents

Cat. No. 46455F Important Reminder ............... 1 Department

of the Introduction ..................... 1 Treasury

Internal Fuel Tax Credits 1. Fuels ........................ 2

Revenue

Service and Refunds 2. Definitions of Nontaxable Uses ..... 4

3. Filing Claims .................. 6

4. Alcohol Fuel Credit .............. 15

5. How To Get Tax Help ............ 15

Index .......................... 17

Important Reminder

Photographs of missing children. The Internal Revenue Service is a proud partner with the

National Center for Missing and Exploited Children. Photographs of missing children selected

by the Center may appear in this publication on

pages that would otherwise be blank. You can

help bring these children home by looking at the

photographs and calling 1–800–THE–LOST

(1–800–843–5678) if you recognize a child.

Introduction

This publication covers federal fuel tax credits

you may be able to claim on your income tax

return. It also covers fuel tax refunds you may be

able to claim during the year.

This publication discusses the following subjects.

• The kinds of fuels that qualify for a credit

or refund.

• The uses of fuels that qualify for a credit or

refund.

• How to claim a credit or refund for fuel

taxes.

• The alcohol fuel credit.

It also contains an example with filled-in forms

at the end of chapter 3.

Comments and suggestions. We welcome

your comments about this publication and your

suggestions for future editions.

You can e-mail us while visiting our web site

at www.irs.gov.

You can write to us at the following address:

Internal Revenue Service

Tax Forms and Publications

W:CAR:MP:FP

1111 Constitution Ave. NW

Washington, DC 20224

We respond to many letters by telephone.

Therefore, it would be helpful if you would include your daytime phone number, including the

area code, in your correspondence.
Useful Items The type of use table in the instructions is produced. Alcohol includes ethanol and methYou may want to see: for Form 8849 contains additional non- anol. Generally, this includes ethanol used to CAUTION taxable uses. These uses are not dis- produce ethyl tertiary butyl ether (ETBE) and

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Publication cussed in this publication because the ultimate methanol produced from methane gas formed in

purchaser is generally a government entity or a waste disposal sites. However, alcohol pro- ❏ 510 Excise Taxes for 2003 tax-exempt organization. duced from petroleum, natural gas, coal (including peat), or any derivative or product of these Form (and Instructions) items, and alcohol that is less than 190 proof, do

❏ 720 Quarterly Federal Excise Tax not qualify as alcohol for these rules.

Return

Alcohol-content requirements. To qualify as

❏ 4136 Credit for Federal Tax Paid on Gasoline and Gasohol gasohol, a mixture must contain a specific

Fuels amount of alcohol by volume (without rounding). The term gasoline means all products (includ- The amount of credit or refund depends on the ❏ 8849 Claim for Refund of Excise Taxes ing gasohol) commonly or commercially known type of gasohol you blend. There are three types

❏ 6478 Credit for Alcohol Used as Fuel or sold as gasoline with an octane rating of 75 or of gasohol. more that are suitable for use as a motor fuel. It See chapter 5 for information about getting • 10% gasohol. This is a mixture that con- includes gasoline blendstocks, discussed in publications and forms. Publication 510. Aviation gasoline is discussed tains at least 9.8% alcohol.

later. • 7.7% gasohol. This is a mixture that contains at least 7.55%, but less than 9.8%,

Nontaxable Uses alcohol.

• 5.7% gasohol. This is a mixture that con- The following are the uses of gasoline and gaso- tains at least 5.59%, but less than 7.55%, 1. hol for which a credit or refund may be allowable alcohol. to an ultimate purchaser.

Any mixture that contains less than 5.59% alco- • On a farm for farming purposes (credit hol is not gasohol. only). Fuels Figure alcohol content on a batch-by-batch • Off-highway business use. basis. If you splash blend a batch in an empty • Export. Federal excise taxes are imposed on certain tank, figure the volume of alcohol (without adjustment for temperature) by dividing the me- fuels. This chapter lists the nontaxable uses • In a boat engaged in commercial fishing.

(described in chapter 2) of each fuel for which a tered gallons of alcohol by the total metered

credit or refund of the excise tax may be allowed • In an intercity or local bus. gallons of alcohol and gasoline as shown on

each delivery ticket. However, if you add me- to an ultimate purchaser. It also covers the credit • In a school bus.

tered gallons of gasoline and alcohol to a tank or refund allowed gasohol blenders and regis- already containing more than 0.5% of its capac- tered ultimate vendors of undyed diesel fuel and Gasohol Blending ity in a liquid, you must include the alcohol and undyed kerosene. non-alcohol fuel contained in that liquid in deterThe ultimate purchaser of compressed A gasohol blender may be allowed a credit or mining the volume of alcohol in that batch. natural gas and special motor fuels refund for part of the excise tax imposed on

other than liquefied petroleum gas gasoline the blender uses to produce gasohol. A Example 1. John uses an empty 8,000 gal- CAUTION

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used in buses, discussed later, generally does gasohol blender is any person that regularly lon tank to blend alcohol and gasoline. His delivnot use taxed fuel for a nontaxable use and no produces gasohol outside of the bulk transfer/ ery tickets show that he blended Batch 1 using

credit or refund would be allowable. These fuels terminal system for sale or use in the blender’s 7,200 metered gallons of gasoline and 800 meare described in Publication 510. trade or business. tered gallons of alcohol. John divides the gallons

The amount you may claim is based on the of alcohol (800) by the total gallons of alcohol

gallons of gasoline used to make gasohol. You and gasoline delivered (8,000). Batch 1 qualifies

cannot take a refund or credit if the gasoline was as 10% gasohol. Type of use table. Generally, the nontaxable taxed at a reduced rate.

uses listed under each fuel are from Table 1–1, Example 2. John blends Batch 2 in an

which is contained in the Form 4136 instruc- Gasohol. Gasohol means a mixture of gaso- empty tank. According to his delivery tickets, he tions. The first column of the table is the number line and alcohol that satisfies the alcohol-con- blended 7,220 gallons of gasoline and 780 gal- you enter on Form 4136 for that type of use. tent requirements immediately after the mixture lons of alcohol. Because Batch 2 contains only

9.75% alcohol (780 ÷ 8,000), it qualifies as 7.7% Table 1–1. Type of Use Table gasohol.

Batches containing at least 9.8% alcohol. No. Type of Use If a mixture contains at least 9.8% but less than

1 On a farm for farming purposes 10% alcohol, part of the mixture is considered to

be 10% gasohol. To figure that part, multiply the 2 Off-highway business use (for business use other than in a highway vehicle number of gallons of alcohol in the mixture by registered or required to be registered for highway use) 10. The result is the number of gallons on which 3 Export a credit or refund may be claimed if the gasoline

4 In a boat engaged in commercial fishing in the mixture was taxed at the full rate. The

remaining gallons in the mixture are excess liq- 5 In certain intercity and local buses uid on which no credit or refund is allowed.

6 For diesel fuel in a qualified local bus

Example. John uses an empty 8,000 gallon 7 In a bus transporting students and employees of schools (school buses) tank to blend gasoline and alcohol. The delivery 8 For diesel fuel and kerosene used other than as a fuel in the propulsion engine of tickets show he purchased and blended 7,205 a train or diesel-powered highway vehicle (but not off-highway business use) metered gallons of gasoline and 795 metered

9 In foreign trade gallons of alcohol. The gasoline was taxed at the

full rate. The batch contains 9.9375% alcohol 10 Certain helicopter and fixed-wing air ambulance uses (795 ÷ 8,000). John determines that 7,950 gal11 For aviation fuel used other than as a fuel in the propulsion engine of an aircraft lons (10 × 795) of the mixture qualifies as 10%

gasohol. The other 50 gallons is excess liquid.

Page 2 Chapter 1 Fuels
John reduces the amount of gasoline (7,205 a) Distillation range of 125 degrees Fahr- excise tax imposed on undyed diesel fuel and

gallons) by the excess liquid (50 gallons) to enheit or less. undyed kerosene.

determine the amount of gasoline used to pro- b) Sulfur content of 10 ppm or less. duce the 10% gasohol. He can claim a refund or Registered ultimate vendor (farming and

credit for part of the excise tax imposed on 7,155 c) Minimum color of +27 Saybolt. state use). This is a person that sells undyed

diesel fuel or undyed kerosene to any of the gallons of gasoline. He cannot claim a refund or

The term kerosene following. credit on the 50 gallons of excess liquid. means any of the following liquids. Batches containing at least 7.55% alcohol. • The owner, tenant, or operator of a farm

for use by that person on a farm for farm- If a mixture contains at least 7.55% but less than • One of the two grades of kerosene (No.

7.7% alcohol, part of the mixture is considered to ing purposes. 1–K and No. 2–K) covered by ASTM

be 7.7% gasohol. To figure that part, multiply the specification D 3699. • A person other than the owner, tenant, or number of gallons of alcohol in the mixture by operator of a farm for use by that person • Kerosene-type jet fuel (aviation-grade ker- 12.987. The result is the number of gallons on on a farm in connection with cultivating, osene) covered by ASTM specification D which a credit or refund may be claimed if the raising, or harvesting. 1655 or military specification gasoline in the mixture was taxed at the full rate. MIL-DTL-5624T (Grade JP-5) or • A state or local government for its exclu- The remaining gallons in the mixture are excess MIL-DTL-83133E (Grade JP-8). sive use. liquid on which no credit or refund is allowed.

Batches containing at least 5.59% alcohol. Kerosene also includes any liquid that would The person must be registered by the IRS as an

ultimate vendor. If a mixture contains at least 5.59% but less than be described above but for the presence of a

5.7% alcohol, part of the mixture is considered to dye of the type used to dye kerosene for a A credit or refund may be allowable to the be 5.7% gasohol. To figure that part, multiply the nontaxable use. registered ultimate vendor if the vendor sold number of gallons of alcohol in the mixture by However, kerosene does not include an ex- undyed diesel fuel or undyed kerosene to any of

17.544. The result is the number of gallons on cluded liquid, discussed earlier. the users listed.

which a credit or refund may be claimed if the

gasoline in the mixture was taxed at the full rate. Nontaxable Uses Registered ultimate vendor (blocked pump).

The remaining gallons in the mixture are excess This is a person that sells undyed kerosene from

liquid on which no credit or refund is allowed. The following are the uses of undyed diesel fuel a blocked pump. The person must be registered

for which a credit or refund may be allowable to by the IRS as an ultimate vendor (blocked

an ultimate purchaser. pump).

A credit or refund may be allowable to a • Off-highway business use. Aviation Gasoline registered ultimate vendor (blocked pump) if the

vendor sold undyed kerosene from a blocked • Export.

The term pump for its buyer’s use other than as a fuel in a aviation gasoline means all special • In an intercity or local bus. diesel-powered highway vehicle and the vendor grades of gasoline suitable for use in aviation had no reason to believe the kerosene would not reciprocating engines and covered by ASTM • In a qualified local bus. be used in that manner. specification D 910 or military specification • In a school bus. MIL-G-5572. Blocked pump. A blocked pump is a fuel • Used other than as a fuel. pump that meets all the following requirements.

Nontaxable Uses • In a train. 1) It is used to make retail sales of undyed

The following are the uses of aviation gasoline kerosene for use by the buyer in any non- The following are the uses of undyed ker- for which a credit or refund may be allowable to taxable use. osene for which a credit or refund may be allow- an ultimate purchaser. able to an ultimate purchaser. 2) It is at a fixed location.

• On a farm for farming purposes (credit • Off-highway business use. 3) It is identified with a legible and conspicu- only). ous notice stating, “UNDYED UNTAXED • Export. KEROSENE, NONTAXABLE USE ONLY.” • Export.

• In a school bus. 4) It meets either of the following conditions. • In foreign trade.

• Used other than as a fuel. • Certain helicopter and fixed-wing air am- a) It cannot reasonably be used to disbulance uses. pense fuel directly into the fuel supply

Only a registered ultimate vendor tank of a diesel-powered highway vehi- • In commercial aviation (other than foreign (blocked pump), discussed later, can cle. trade). claim a credit or refund for any nontax- CAUTION

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b) It is locked by the vendor after each able use of undyed kerosene if the kerosene is sale and unlocked by the vendor only in sold from a blocked pump. response to a buyer’s request for undyed kerosene for use other than as a Undyed Diesel Fuel fuel in a diesel-powered highway vehiNote: Only a registered ultimate vendor cle. and Undyed Kerosene (farming and state use), discussed later, can

claim a credit or refund for undyed diesel fuel or

The term diesel fuel means any liquid that, undyed kerosene used on a farm for farming Registered ultimate vendor (blending). This

without further processing or blending, is suita- purposes or used by a state or local govern- is a taxable fuel registrant (discussed in Publicable for use as a fuel in a diesel-powered highway ment. tion 510), a registered ultimate vendor, or a

vehicle or train. Diesel fuel does not include No credit or refund is allowable for any use of registered ultimate vendor (blocked pump).

gasoline, kerosene, excluded liquid, No. 5 and dyed diesel fuel and dyed kerosene. You buy A credit or refund may be allowable to a

No. 6 fuel oils covered by ASTM specification D registered ultimate vendor (blending) if the ven- these fuels excise tax free. See Publication 510

396, or F-76 (Fuel Naval Distillate) covered by for more information about these dyed fuels. dor sold undyed kerosene in an area described

military specification MIL-F-16884. in an IRS declaration of extreme cold for the

An excluded liquid is either of the following. Sales by Registered Ultimate production of a cold weather blend.

Vendors Cold weather blend. This is a blend of ker- 1) A liquid that contains less than 4% normal osene and diesel fuel produced in an area de- paraffins. This section describes registered ultimate ven- scribed in an IRS declaration of extreme cold

2) A liquid with all the following properties. dors that may be allowed a credit or refund of the and sold for use or used for heating purposes.

Chapter 1 Fuels Page 3
If undyed diesel fuel or undyed ker- • Before the applicator files his or her claim, Aviation Fuel osene is used on a farm for farming execute in writing an irrevocable agree- CAUTION purposes, the claim is made by the

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ment stating that you knowingly give up registered ultimate vendor. The term aviation fuel means any liquid, other your right to the credit or refund. You may

than gasoline or diesel fuel, that is suitable for authorize an agent, such as a cooperative,

use as a fuel in an aircraft. to sign the waiver for you.

Farm. A farm includes livestock, dairy, fish, • Identify clearly the period the waiver cov- Nontaxable Uses poultry, fruit, fur-bearing animals, and truck ers. farms, orchards, plantations, ranches, nurThe following are the uses of aviation fuel for series, ranges, and feed yards for fattening cat- The applicator must retain a copy of the which a credit or refund may be allowable to an tle. It also includes structures such as waiver and give you a copy. Do not send a copy ultimate purchaser. greenhouses used primarily for the raising of to the Internal Revenue Service unless re- agricultural or horticultural commodities. A fish • On a farm for farming purposes. quested to do so. farm is an area where fish are grown or raised

— not merely caught or harvested. The waiver may be a separate document or it • Export. may appear on an invoice or another document

• In foreign trade. Farming purposes. As an owner, tenant, or from the applicator. If the waiver appears on an

operator, you use fuel on a farm for farming invoice or other document, it must be printed in a • Certain helicopter and fixed-wing air am- section clearly set off from all other material, and bulance uses. purposes if you use it in any of the following

ways. it must be printed in type sufficiently large to put

• Used other than as a fuel. you on notice that you are waiving your right to

1) To cultivate the soil or to raise or harvest the credit or refund. If the waiver appears as part • In commercial aviation (other than foreign any agricultural or horticultural commodity. of an invoice or other document, it must be trade). signed separately from any other item that re- 2) To raise, shear, feed, care for, train, or quires your signature. manage livestock, bees, poultry, fur-bear- The effective period of the waiver cannot ing animals, or wildlife. extend beyond your tax year. When the period Liquefied Petroleum 3) To operate, manage, conserve, improve, covered by the waiver extends beyond the

or maintain your farm and its tools and applicator’s tax year, the applicator can only Gas equipment. claim a credit or refund for gasoline used in the

part of the waiver period included in the 4) To handle, dry, pack, grade, or store any The term liquefied petroleum gas (LPG) in- applicator’s tax year. The applicator must wait raw agricultural or horticultural commodity. cludes propane, butane, and pentane, or mix- until the next tax year to file a claim for gasoline For this use to qualify, you must have pro- tures of those gases. used in the rest of the waiver period. duced more than half the commodity so

treated during the tax year. Commodity Fuel not used for farming. You do not use Nontaxable Uses means a single raw product. For example, fuel on a farm for farming purposes when you

apples and peaches are two separate use it in any of the following ways. The following are the uses of LPG for which a commodities. credit or refund may be allowable to an ultimate • Off the farm, such as on the highway or in

purchaser. 5) To plant, cultivate, care for, or cut trees or noncommercial aviation, even if the fuel is

to prepare (other than sawing logs into used in transporting livestock, feed, crops, • In an intercity or local bus. lumber, chipping, or other milling) trees for or equipment.

• In a qualified local bus. market, but only if the planting, etc., is inci- • For personal use, such as mowing the dental to your farming operations. Your • In a school bus. lawn. tree operations will be incidental only if

they are minor in nature when compared • In processing, packaging, freezing, or canto the total farming operations. ning operations.

If any other person, such as a neighbor or cus- • In processing crude gum into gum spirits

tom operator, performs a service for you on your of turpentine or gum resin or in processing

farm for any of the purposes listed in (1) or (2), maple sap into maple syrup or maple

2. you are considered to be the ultimate purchaser sugar.

that used the fuel on a farm for farming purposes. However, see Custom application of fertilizer and pesticide, next.

Definitions of If doubt exists whether the owner, the tenant,

or the operator of the farm bought the fuel, Off-Highway Business

determine who bore the cost of the fuel. For Nontaxable example, if the owner of a farm and the tenant Use

equally share the cost of gasoline that is used on A credit or refund may be allowed for the excise Uses a farm for farming purposes, each can claim a tax on fuel used for an off-highway business credit for the tax on one-half the fuel used. use.

Custom application of fertilizer and pesti- Off-highway business use is any use of fuel This chapter provides definitions relating to the cide. The use of fuel in the aerial or other in a trade or business or in an income-producing nontaxable uses mentioned in chapter 1. application of fertilizer, pesticides, or other sub- activity other than as a fuel in a highway vehicle stances is a use of fuel on a farm for farming registered or required to be registered for use on purposes. You, as the owner, tenant, or opera- public highways. The terms “registered” and tor, are treated as the ultimate purchaser of the “public highway” are defined later. Do not con- Farming Purposes fuel. However, in the case of gasoline, you may sider any use in a boat as an off-highway busi- waive your right to be treated as the ultimate ness use. A credit or refund may be allowed for the excise purchaser. If you waive your right, the applicator Off-highway business use includes fuels tax on fuel used or sold for use on a farm for is treated as having used the gasoline on a farm used in any of the following ways. for farming purposes. farming purposes. Fuel is used on a farm for

farming purposes only if used in carrying on a To waive your right to be treated as the • In stationary machines such as generatrade or business of farming, on a farm in the tors, compressors, power saws, and simi- ultimate purchaser, you must take all the followUnited States, and for farming purposes. lar equipment. ing actions.

Page 4 Chapter 2 Definitions of Nontaxable Uses
• For cleaning purposes. mining, processing, farming, drilling,

• In forklift trucks, bulldozers, and timbering, or similar operations). Export

earthmovers. b) The vehicle’s use in carrying this load

over public highways is substantially A credit or refund may be allowed for the excise

Generally, this use does not include nonbusi- limited or impaired because of its de- tax on fuel that is exported.

ness use of fuel, such as use by minibikes, sign. To make this determination, you Fuel is exported when it is shipped from the

snowmobiles, power lawn mowers, chain saws, can take into account whether the vehi- United States to a foreign country or possession

and other yard equipment. cle can travel at regular highway of the United States with the intention that the

speeds, requires a special permit for fuel remain in the foreign country or possession

Example. Joanna owns a landscaping busi- highway use, or is overweight, of the United States.

ness. She uses power lawn mowers and chain overheight, or overwidth for regular

saws in her business. The gasoline used in the highway use.

power lawn mowers and chain saws qualifies as

fuel used in an off-highway business use. The Public highway. A public highway includes Commercial Fishing gasoline used in her personal lawn mower at any road in the United States that is not a private home does not qualify. A credit or refund may be allowed for the excise roadway. This includes federal, state, county,

Highway vehicle. A highway vehicle is any tax on fuel used in a boat engaged in commer- and city roads and streets.

self-propelled vehicle designed to carry a load cial fishing.

Registered. A vehicle is considered regis- over public highways, whether or not it is also Boats engaged in commercial fishing indesigned to perform other functions. Examples tered when it is registered or required to be clude only watercraft used in taking, catching,

of vehicles designed to carry a load over public registered for highway use under the law of any processing, or transporting fish, shellfish, or

highways are passenger automobiles, state, the District of Columbia, or any foreign other aquatic life for commercial purposes, such

motorcycles, buses, and highway-type trucks country in which it is operated or situated. Any as selling or processing the catch, on a specific highway vehicle operated under a dealer’s tag, and truck tractors. A vehicle is a highway vehicle trip basis. They include boats used in both fresh

even though the vehicle’s design allows it to license, or permit is considered registered. A and salt water fishing. They do not include boats

perform a highway transportation function for highway vehicle is not considered registered used for both sport fishing and commercial fish- solely because a special permit allows the vehi- only one of the following. ing on the same trip. cle to be operated at particular times and under • A particular type of load, such as passen- specified conditions. gers, furnishings, and personal effects (as

in a house, office, or utility trailer). Dual use of propulsion motor. Off-highway

business use does not include any fuel used in Buses • A special kind of cargo, goods, supplies, the propulsion motor of a registered highway or materials. vehicle even though that motor also operates A credit or refund may be allowed for the excise

special equipment by means of a power take-off tax on fuel used in certain buses. • Some off-highway task unrelated to highway transportation, except as discussed or power transfer. It does not matter if the spenext. cial equipment is mounted on the vehicle. Intercity or Local Bus

Vehicles not considered highway vehicles. Example. The motor of a registered An intercity or local bus is a bus engaged in

Generally, the following kinds of vehicles are not concrete-mixer truck operates both the engine furnishing (for compensation) passenger land

considered highway vehicles. and the mixing unit by means of a power transportation available to the general public.

take-off. The fuel used in the motor to run the The bus must be engaged in one of the following

1) Specially designed mobile machinery for mixer is not used in an off-highway business activities.

nontransportation functions. A self-pro- use. pelled vehicle is not a highway vehicle if all • Scheduled transportation along regular

Use in separate motor. Off-highway busi- routes regardless of the size of the bus. the following apply.

ness use includes fuel used in a separate motor • Nonscheduled operations if the seating a) The chassis has permanently mounted to operate special equipment, such as a refriger- capacity of the bus is at least 20 adults, to it machinery or equipment used to ation unit, pump, generator, or mixing unit. If you not including the driver. Vans and similar perform certain operations (construc- draw fuel from the same tank that supplies fuel vehicles used for van-pooling or taxi serv- tion, manufacturing, drilling, mining, to the propulsion motor, you must figure the ice do not qualify. timbering, processing, farming, or simi- quantity used in the separate motor operating

lar operations) if the operation of the the special equipment. You may make a reasonmachinery or equipment is unrelated to able estimate based on your operating experi- Available to the general public. This means

transportation on or off the public high- you offer service to more than a limited number ence and supported by your records.

ways. You can use devices that measure the miles of persons or organizations. If a bus operator

the vehicle has traveled (such as hubometers) normally provides charter operations through b) The chassis has been specially de- to figure the gallons of fuel used to propel the travel agencies but has buses available for char- signed to serve only as a mobile car- vehicle. Add to this amount the fuel consumed tering by the general public, this service is avail- riage and mount for the machinery or while idling or warming up the motor before able to the general public. A bus does not qualify equipment, whether or not the machin- propelling the vehicle. The difference between when its operator uses it to provide exclusive ery or equipment is in operation. your total fuel used and the fuel used to propel services to only one person, group, or organizac) The chassis could not, because of its the vehicle is the fuel used in the separate mo- tion.

special design and without substantial tor.

structural modification, be used as part Qualified Local Bus

of a vehicle designed to carry any other Example. Sara owns a refrigerated truck. It

load. has a separate motor for the refrigeration unit. A qualified local bus is a bus meeting all the

The same tank supplies both motors. Using the following requirements.

2) Vehicles designed for off-highway trans- truck’s hubometer, Sara figures that 90% of the • It is engaged in furnishing (for compensa- portation. A self-propelled vehicle is not a fuel was used to propel the truck. Therefore, tion) intracity passenger land transporta- highway vehicle if both of the following ap- 10% of the fuel is used in an off-highway busi- tion available to the general public. ply. ness use.

• It operates along scheduled, regular a) The vehicle is designed primarily to Fuel lost or destroyed. You cannot treat fuel routes. carry a specific kind of load other than lost or destroyed through spillage, fire, or other

over the public highway for certain op- casualty as fuel used in an off-highway business • It has a seating capacity of at least 20

erations (construction, manufacturing, use. adults (excluding the driver).

Chapter 2 Definitions of Nontaxable Uses Page 5
• It is under contract with (or is receiving • For cleaning purposes. local government is any state, any political submore than a nominal subsidy from) any division thereof, or the District of Columbia. An • In vehicles. state or local government to furnish the Indian tribal government is treated as a state

transportation. only if the fuel is used in an activity that involves

the exercise of an essential tribal government

function. The use of gasoline, diesel fuel, and Intracity passenger land transportation. Foreign Trade kerosene by the American Red Cross is consid- This is the land transportation of passengers ered to be the use of these fuels by a state. between points located within the same metropolitan area. It includes transportation along A credit or refund may be allowed for the excise

tax on fuel used in foreign trade. routes that cross state, city, or county boundaries if the routes remain within the metropolitan Used in foreign trade means used in civil

area. aircraft employed in foreign trade or trade be- Commercial Aviation

tween the United States and any of its posses- Under contract. A bus is under contract with a sions. In the case of aircraft registered in a A credit or refund may be allowed for the excise state or local government only if the contract foreign country, the country must allow recipro- tax on fuel used in commercial aviation (other imposes a bona fide obligation on the bus opera- cal benefits for aircraft registered in the United than foreign trade). tor to furnish the transportation. States. Commercial aviation means the use of an

More than a nominal subsidy. A subsidy is aircraft in the business of transporting persons

more than nominal if it is reasonably expected to or property by air for pay. However, commercial

exceed an amount equal to 3 cents multiplied by aviation does not include any of the following.

the number of gallons of fuel used in buses on Helicopter and • Any use of an aircraft that has a maximum subsidized routes. A company that operates its Fixed-Wing Air certificated takeoff weight of 6,000 pounds buses along subsidized and unsubsidized in- or less unless the aircraft is operated on tracity routes may consider its buses qualified Ambulance an established line. local buses only when the buses are used on the

subsidized intracity routes. • Any use exclusively for the purpose of A credit or refund may be allowed for the excise skydiving. tax on fuel used for certain helicopter and School Bus fixed-wing air ambulance uses. • Any use of an aircraft owned or leased by

a member of an affiliated group and un- A school bus is a bus engaged in the transporta- Certain helicopter uses. Fuel is used in a available for hire by nonmembers of the tion of students or employees of schools. A qualifying helicopter use when the helicopter is group. The determination of whether an school is an educational organization with a reg- used for any of the following purposes. aircraft is available for hire by nonmem- ular faculty and curriculum and a regularly en- bers is made on a flight-by-flight basis. rolled body of students who attend the place 1) Transporting individuals, equipment, or where the educational activities occur. supplies in the exploration for, or the development or removal of, hard minerals,

oil, or gas. Train Used Other Than as a 2) Planting, cultivating, cutting, transporting,

or caring for trees (including logging oper- A credit or refund may be allowed for the excise Fuel ations). tax on fuel used in a train.

3) Providing emergency medical services. Use in a train means use in the propulsion A credit or refund may be allowed for the excise engine of equipment or machinery that rides on tax on fuel used other than as a fuel in a propul- During a use described in items (1) and (2), rails. This includes use in a locomotive, work sion engine. the helicopter must not take off from, or land at, train, switching engine, and track maintenance a facility eligible for assistance under the Airport machine. Diesel Fuel and Kerosene and Airway Development Act of 1970, or otherwise use services provided pursuant to section

This nontaxable use applies to diesel fuel and 44509 or 44913(b) or subchapter I of chapter

kerosene used other than as a fuel in the propul- 471 of title 49, United States Code. For item (1),

sion engine of a diesel-powered highway vehicle treat each flight segment as a separate flight.

or diesel-powered train. This use does not include off-highway business use, discussed ear- Fixed-wing air ambulance uses. Fuel is 3. lier. This use applies to diesel fuel and kerosene used in a qualifying fixed-wing air ambulance

used in the following ways. use when the aircraft is providing emergency

medical services. The aircraft must be equipped

1) For home heating, lighting, and cooking. for and exclusively dedicated on that flight to

acute care emergency medical services. Filing Claims 2) In boats.

3) For any of the following nonbusiness uses. This chapter tells you how and when to make a

claim for a credit or refund of excise taxes on

a) In stationary machines, such as gener- State or Local fuels. This chapter also covers recordkeeping ators and compressors. requirements, interest and penalty provisions,

Government and when to include the credit or refund in your b) For cleaning purposes. income.

c) In minibikes and snowmobiles. A credit or refund may be allowed for the excise

tax on fuel used or sold for use by a state or local

government. Aviation Fuel

If undyed diesel fuel or undyed ker- General Information

This nontaxable use applies to aviation fuel osene is used by a state, the claim is Generally, you will provide all the information used other than as a fuel in the propulsion en- made by the registered ultimate ven- CAUTION

!

needed to claim a credit or refund when you gine of an aircraft. This use applies to aviation dor. properly complete the claim form. In some fuel used in the following ways. cases, you will have to attach additional informa-

• In stationary machines, such as genera- The fuel must be purchased by the state or tion. You need to keep records that support your

tors and compressors. local government for its exclusive use. A state or claim for a credit or refund.

Page 6 Chapter 3 Filing Claims
Keep at your principal place of busi- • The number of gallons used for each non- • The number of gallons purchased and ness all records needed to enable the taxable use. used during the period covered by your RECORDS IRS to verify that you are the person claim. It is important that your records show separately entitled to claim a credit or refund and the the number of gallons used for each nontaxable amount you claimed. No special form is re- • The dates of the purchases. use that qualifies as a claim. If the fuel is ex- quired, but the records should establish all the • The names and addresses of suppliers ported, you must have proof of exportation. following information. and amounts purchased from each in the For more information about keeping records, period covered by your claim. see Publication 583, Starting a Business and

• The nontaxable use for which you used Keeping Records, or Publication 552, RecordUltimate purchaser. the fuel. keeping for Individuals. If you are an ultimate

purchaser, you must keep the following records. Gasohol blending. If you are a gasohol

blender, you must keep the following information

for each batch of gasohol. 

• The name and address of the person that

sold you the gasoline.

• The date and location of the purchase of

the gasoline.

• The number of gallons of gasoline.

• The name and address of the person that

sold you the alcohol.

• The date and location of the purchase of

the alcohol.

• The number of gallons and type of alcohol.

Registered ultimate vendor. If you are a registered ultimate vendor (as discussed in chapter

1 under Undyed Diesel Fuel and Undyed Kerosene), you must keep certain information pertaining to the sale of the fuel.

To make a claim, you must have sold the

diesel fuel or kerosene at a tax-excluded price,

repaid the tax to the buyer, or obtained the

buyer’s written consent to the allowance of the

claim.

To make a claim, you must have a registration number that has not been revoked or suspended. If you are an ultimate vendor (farming

and state use), you must have a UV registration

number. If you are an ultimate vendor (blocked

pump), you must have a UP registration number. You can get either registration number from

the IRS by completing Form 637, Application for

Registration (For Certain Excise Tax Activities),

and providing the information requested in its

instructions.

Farming and state use. If you sell undyed

diesel fuel or undyed kerosene for use on a farm

for farming purposes or for use by a state or

local government, you must keep the following

information.

• The name and taxpayer identification

number of each person (farmer, custom

harvester, or government unit) that bought

the fuel.

• The number of gallons sold to each person.

• An unexpired certificate from the buyer.

See Table 3–1.

Blocked pump. If you sell undyed kerosene

from a pump that qualifies as a blocked pump

because it is locked by you after each sale and is

unlocked by you at the request of the buyer, you

must keep the following information for each

sale of more than 5 gallons.

• The date of each sale.

• The name and address of the buyer.

• The number of gallons sold to that buyer.

Table 3-1. Model Certificate A

Name, Address, and Employer Identification Number of Vendor

CERTIFICATE OF FARMING USE OR STATE USE

(To support vendor’s claim for credit or payment under section 6427 of the Internal Revenue Code)

The undersigned buyer (“Buyer”) hereby certifies the following under penalties of

perjury:

■ Buyer will provide a new certificate to the vendor if any information in this certificate

changes.

Printed or typed name of person signing

Title of person signing

Name of Buyer

A.

1.

Buyer will use the diesel fuel or kerosene to which this certificate relates — (check

one):

On a farm for farming purposes (as defined in §48.6420-4 of the

Manufacturers and Retailers Excise Tax Regulations) and Buyer is the

owner, tenant, or operator of the farm on which the fuel will be used;

2. On a farm (as defined in §48.6420-4(c)) for any of the purposes described in

¶ (d) of that section (relating to cultivating, raising, or harvesting) and Buyer

is not the owner, tenant, or operator of the farm on which the fuel will be

used; or

B.

1.

This certificate applies to the following (complete as applicable):

If this is a single purchase certificate, check here and enter:

a. Invoice or delivery ticket number

b. Number of gallons

2. If this is a certificate covering all purchases under a specified account or order

number, check here and enter:

a. Effective date

b. Expiration date

(period not to exceed 1 year after effective date)

■ If Buyer uses the diesel fuel or kerosene to which this certificate relates for a

purpose other than stated in the certificate, Buyer will be liable for any tax.

■ Buyer understands that the fraudulent use of this certificate may subject Buyer

and all parties making such fraudulent use of this certificate to a fine or

imprisonment, or both, together with the costs of prosecution.

c. Buyer account or order number

3. For the exclusive use of a State or local government, or the District of

Columbia.

Employer identification number

Address of Buyer

Signature and date signed

Chapter 3 Filing Claims Page 7
Credit only. You can claim the following

taxes only as a credit.

• Tax on gasoline, gasohol, or aviation gasoline used on a farm for farming purposes.

• Tax on fuels used for nontaxable uses if

the total for the tax year is less than $750.

• Tax on fuel you did not include in any

claim for refund previously filed for any

quarter of the tax year.

Claiming a Credit

You make a claim for credit on Form 4136 and

attach it to your income tax return. Do not claim

a credit for any amount for which you have filed

a refund claim.

When to file. You can claim a fuel tax credit on

your income tax return for the year you used the

fuel (or sold the fuel in the case of gasohol

blender or registered ultimate vendor claims).

Once you have filed a Form 4136, you

cannot file an amended return to show

an increase in the number of gallons CAUTION

!

reported on a line of that form. See the following

discussion for when you can file a claim on an

amended return.

Fuel tax claim on amended return. You

may be able to make a fuel tax claim on an

amended return for the year you used or sold the

fuels. Generally, you must file an amended return by the later of 3 years from the date you

filed your original income tax return or within 2

years from the time you paid the income tax. A

return filed early is considered to have been filed

on the due date.

You can file an amended return to claim a

Table 3-2. Model Certificate B

CERTIFICATE OF BUYER FOR PRODUCTION OF A

COLD WEATHER BLEND

(To support vendor’s claim for credit or payment under section 6427 of the Internal Revenue Code)

 (Buyer) certifies the following under penalties

of perjury:

■ If Buyer violates the terms of this certificate, the Internal Revenue Service may

withdraw Buyer’s right to provide a certificate.

Printed or typed name of person signing

Title of person signing

A. The kerosene to which this certificate applies will be used by Buyer to produce a

blend of kerosene and diesel fuel in an area described in a declaration of extreme

cold and the blend will be sold for use or used for heating purposes.

B. This certificate applies to percent of Buyer’s purchases from

■ Buyer has not been notified by the Internal Revenue Service that its right to

provide a certificate has been withdrawn.

■ Buyer understands that the fraudulent use of this certificate may subject Buyer

and all parties making such fraudulent use of this certificate to a fine or

imprisonment, or both, together with the costs of prosecution.

Employer identification number

Address of Buyer

Signature and date signed

Name of Buyer

(name, address, and employer identification number of seller) on invoice or delivery

ticket number .

fuel tax credit if any of the following apply.

Blending. If you sell undyed kerosene for If you normally file only a U.S. individual inblending with diesel fuel in an area under a • You did not claim any credit for fuel taxes come tax return (such as Form 1040 or

declaration of extreme cold and the blend will be on Form 4136 for the tax year. 1040NR), use your SSN or ITIN. You get an

sold for use or used for heating purposes, you SSN by filing Form SS–5, Application for a • Your credit is for gasohol blending, dis- must keep the following information. Social Security Card, with the Social Security cussed in chapter 1. Administration. To get an ITIN, file Form W–7, • The number of gallons sold to each per- • Your credit is for a claim group, explained Application for IRS Individual Taxpayer Identifi- son. next, for which you did not previously file a cation Number, with the IRS. • An unexpired certificate from the buyer for claim on Form 4136 for the tax year. If you operate a business, use your EIN. You each purchase of kerosene. See Table get an EIN by filing Form SS–4, Application for 3–2. Claims on Form 4136 (other than for gasohol Employer Identification Number, with the IRS. blending) are separated into seven claim

groups. Once you file Form 4136 with a claim Taxpayer identification number. To file a

Filing date on holiday or weekend. If the last for a group, you cannot file an amended return claim, you must have a taxpayer identification day for filing your claim falls on a Saturday, with another claim for that group. However, you number. Your taxpayer identification number

can be any of the following. Sunday, or legal holiday, the due date is delayed can file an amended return with a claim for

until the next business day. another group. • Employer identification number (EIN). The following tables show what claims are in • Social security number (SSN). Credit or refund. A credit is an amount you each group. The numbers in the second column

• Individual taxpayer identification number claim on your income tax return when you file it of each table refer to the line numbers on Form

(ITIN), if you are an alien individual and do at the end of the year. If you meet certain re- 4136. The numbers in the third column are from

not have and are not eligible to get an quirements (discussed later), you can claim a the Type of Use Table shown as Table 1–1 in

SSN. refund during the year. chapter 1.

Page 8 Chapter 3 Filing Claims
Table 3–3. Claim Groups for Tax would not otherwise have to file an income tax Form 8849. Send it to the address shown in the

Years 1999–2000 return, you must do so to get a fuel tax credit. instructions. Only one claim may be filed for a

quarter. Partnerships. A partnership cannot claim Group Line Number Type of Use the credit on Form 1065, U.S. Return of Partner- Only the registered ultimate vendor

1b No entry* ship Income. The partnership must include on can claim a refund for the excise tax on

I line 25 of Schedule K-1 (Form 1065), Partner’s undyed diesel fuel and undyed ker- CAUTION

!

1d-f, 2b 1 Share of Income, Credits, Deductions, etc., osene in certain situations, as discussed later.

1d-f 2 each partner’s share of the number of gallons of

II each fuel sold or used for a nontaxable use, the

1a, 2a No entry* type of use, and the applicable credit per gallon. Example. You purchased gasoline and un- Each partner claims the credit on his or her III 1c-f 5, 7 dyed diesel fuel. For the first quarter of your tax income tax return for his or her share of the fuel year, the excise tax on fuel you use for an 1c-f 3, 4 used by the partnership. off-highway business use is $184 for gasoline IV An electing large partnership can claim the 2b 3, 9 and $244 for diesel fuel. You cannot file a claim credit on line 27 of Form 1065–B, U.S. Return of for refund since the total ($428) is less than V 7 No entry* Income for Electing Large Partnerships. $750.

3a 2, 3, 6, 7, 8 Corporations. To claim the credit, corpora- For the second quarter, the excise tax on fuel

tions use either line 32g of Form 1120, U.S. you use for an off-highway business use is $92 VI 3b-c, 4a, 5, 6 No entry* Corporation Income Tax Return, or line 28g of for gasoline and $244 for diesel fuel. You add

Form 1120–A, U.S. Corporation Short-Form In- the amount from the first quarter ($428) to the 4b 1, 3, 9, 10, 11

come Tax Return. total amount from the second quarter ($336) and

VII 2b 10 determine you can file a claim for refund since S corporations. To claim the credit, S cor- the total is $764. *You cannot enter a type of use number on Form porations use line 23c of Form 1120S, U.S.

4136 for the line number(s) shown in column 2 Income Tax Return for an S Corporation. When to file. You must file a quarterly claim

Farmers’ cooperative associations. If the by the last day of the first quarter following the

Table 3–4. Claim Groups for Tax cooperative must file Form 990–C, Farmers’ last quarter included in the claim. If you do not

Years After 2000 Cooperative Association Income Tax Return, file a timely refund claim for the fourth quarter of it

uses line 32g to claim the credit. your tax year, you will have to claim a credit for

Group Line Number Type of Use that amount on your income tax return, as dis- Trusts. Trusts required to file Form 1041, cussed earlier. 1b No entry* U.S. Income Tax Return for Estates and Trusts, I Generally, an annual claim must be made on use line 24g to claim the credit. 1d-f, 2b 1 Form 4136. However, the following must use

Schedule 1 (Form 8849) to file an annual claim. 1d-f 2

II • The United States. 1a, 2a No entry* Claiming a Refund • A state, political subdivision of a state, and III 1c-f 5, 7 the District of Columbia.

You can claim a refund on Form 8849. Com- 1c-f 3, 4 plete and attach to Form 8849 the appropriate • An organization exempt from income tax IV

2b 3, 9 Form 8849 schedules. If you file Form 720, you under section 501(a) of the Internal Revecan use the Schedule C portion of Form 720 for nue Code that is not required to file an V 8 No entry* your refund claims. (See the Form 720 instruc- income tax return.

3a, 4a 2, 3, 6, 7, 8 tions.) Do not claim a refund on Form 8849 for

any amount for which you have filed or will file a VI 5b-c 1, 3, 9, 10, 11 Gasohol Blending claim on Schedule C (Form 720) or Form 4136.

3b-c, 5a, 6, 7 No entry* The type of use table in the instructions If you are a gasohol blender, you can make a

for Form 8849 includes nontaxable claim to get a refund of part of the excise tax on VII 2b 10 CAUTION uses that are not discussed in this pub- gasoline used to produce gasohol. See Gasohol

!

*You cannot enter a type of use number on Form lication. The ultimate purchaser for these uses is Blending under Gasoline and Gasohol in chap4136 for the line number(s) shown in column 2 generally a government entity or a tax-exempt ter 1. The following claim requirements apply.

organization. • The claim must be for gasohol sold or For each tax year, you can make only one used during a period of at least 1 week. claim for each group.

• The claim must be for at least $200.

Example. You file your 2002 income tax re- Ultimate Purchasers • The claim can only be made by the gaso- turn and claim a fuel tax credit. Your Form 4136 hol blender. If you are an ultimate purchaser, you can claim a shows an amount on line 1b for use of gasoline refund for the excise tax on fuels you purchase on a farm for farming purposes. This is a Group I

claim. You cannot amend your return to claim a and use for a nontaxable use. You can file a How to file. File the claim by filling out Sched- claim for refund for any quarter of your tax year credit for an amount on line 2b for use of aviation ule 3 (Form 8849) and attaching it to Form 8849. for which you can claim $750 or more. This gasoline on a farm for farming purposes (Type of The Form 8849 cannot have any other schedule amount is the excise tax on all fuels used for a Use 1) since that is also a Group I claim. How- attached if a Schedule 3 is attached. Send it to

nontaxable use during that quarter or any prior ever, if you used aviation fuel on a farm for the address shown in the instructions. Write

quarter (for which no other claim has been filed) farming purposes, you can amend your return to “Gasohol Claim” on the envelope. during the tax year. claim the credit for that fuel tax because that

would be a Group VI claim reported on line 5b If you cannot claim at least $750 at the end of When to file. The claim must be filed by the

a quarter, you carry the amount over to the next (Type of Use 1). last day of the first quarter following the earliest

quarter of your tax year to determine if you can quarter included in the claim. If you do not meet claim at least $750. If you cannot claim at least How to claim a credit. How you claim a credit the requirements or file a timely refund claim, $750 at the end of the fourth quarter of your tax you will have to claim a credit on your income tax depends on whether you are an individual, part- year, you must claim a credit on your income tax return, as discussed earlier. nership, corporation, S corporation, or farmers’ return using Form 4136. cooperative. You cannot combine this claim with

any other claim on Form 8849. Individuals. You claim the credit on line 68 How to file. File the claim for refund by filling

of Form 1040. Check box b on line 68. If you out Schedule 1 (Form 8849) and attaching it to CAUTION

!

Chapter 3 Filing Claims Page 9
refund claim, discussed earlier, for an excessive its 2002 income tax return by attaching Form

amount (without reasonable cause) may have to 4136. It files its tax return in 2003. It includes this

Registered Ultimate Vendors pay a penalty. An excessive amount is the credit ($700) in its 2003 gross income.

amount claimed that is more than the allowable

If you are a registered ultimate vendor, you can amount. The penalty is the greater of two times Accrual method. If you use an accrual make a claim to get a refund of the excise tax on the excessive amount or $10. method, include the amount in gross income for undyed diesel fuel or undyed kerosene that you the tax year in which you used the fuels (or sold sold. See Sales by Registered Ultimate Vendors the fuels if you are a registered ultimate vendor). under Undyed Diesel Fuel and Undyed Kerosene It does not matter whether you filed for a quar- in chapter 1. Including the Credit terly refund or claimed the entire amount as a

Undyed diesel fuel. You must meet the fol- credit.

lowing requirements for this claim. or Refund in Income

Example 3. Todd Green uses an accrual • The claim must be for undyed diesel fuel Include any credit or refund of excise taxes on method. He files his 2002 return on April 15, sold for use on a farm for farming pur- fuels in your gross income if you claimed the 2003. On Schedule C (Form 1040) he deducts poses or by a state or local government. total cost of the fuel (including the excise taxes) the total cost of gasoline (including $155 of ex- as an expense deduction that reduced your in- • The claim must be for sales during a pe- cise taxes) used for an off-highway business come tax liability. riod of at least 1 week. use during 2002. On Form 4136, Todd claims The year you include a credit or refund in the $155 as a credit. He reports the $155 as • The claim must be for at least $200. gross income depends on whether you use the Claims for sales by a registered ultimate additional income on his 2002 Schedule C.

cash or an accrual method of accounting. vendor of undyed kerosene can be com- Example 4. Use the same facts as in Exam- bined with claims for sales of undyed die- ple 2 above, except that March Corporation sel fuel to meet this requirement. Cash method. If you use the cash method uses an accrual method of accounting. Since and file a claim for refund, include the refund in

the nontaxable use occurred in 2002, the corpo- your gross income for the tax year in which you Undyed kerosene. You must meet the follow- ration reports the $3,100 of excise taxes as receive the refund. If you claim a credit on your ing requirements for this claim. income on its 2002 income tax return. This con- income tax return, include the credit in gross

• The claim must be for undyed kerosene income for the tax year in which you file Form sists of the $2,400 it claimed on Form 8849 and

sold for use on a farm for farming pur- the $700 it claimed on Form 4136. 4136. If you file an amended return and claim a

poses, for use by a state or local govern- credit, include the credit in gross income for the ment, from a blocked pump, or for tax year in which you receive the credit. blending with diesel fuel to be used for

heating purposes. Example 1. Ed Brown, a cash basis farmer, Example filed his 2002 Form 1040 on March 3, 2003. On • The claim must be for sales during a period of at least 1 week. his Schedule F, Ed deducted the total cost of Steven S. Sands used undyed diesel fuel in gasoline (including $110 of excise taxes) used vehicles used in his construction business. The • The claim must be for at least $100. on the farm. Then, on Form 4136, Ed claimed vehicles were not registered (or required to be the $110 as a credit. Ed reports the $110 as registered) for highway use. In the fourth quarter

How to file. File the claim by filling out Sched- additional income on his 2003 Schedule F. of his 2002 income tax year, which ends in ule 2 (Form 8849) and attaching it to Form 8849. December, he used 3,000 gallons of fuel. The The Form 8849 cannot have any other schedule Example 2. March Corporation uses the excise tax on the 3,000 gallons of fuel he used attached if a Schedule 2 is attached. Send it to calendar year as its tax year. For 2002, the was $732 (24.4 cents per gallon). the address shown in the instructions. Write following amounts of excise tax were included in

the cost of gasoline the corporation used each Because the tax is less than $750, Steven “Diesel Fuel/Kerosene Claim” on the envelope.

quarter in a nontaxable use: must claim a credit for the tax on his 2002

When to file. The claim must be filed by the income tax return. He fills out Form 4136 (shown

last day of the first quarter following the earliest later) and attaches it to his 2002 income tax

quarter included in the claim. If you do not meet January 1 through March 31 ....... $1,300 return, which he files in 2003. He enters the

the requirements or file a timely refund claim, April 1 through June 30 $732 on line 68 of his Form 1040. ........... 1,100 you will have to claim a credit on your income tax Steven uses the cash method of accounting. July 1 through September 30 . . . . . . . 400 return, as discussed earlier. On his 2002 Schedule C (Form 1040), he de- October 1 through December 31 . . . . . 300 You cannot combine this claim with ducts the total cost of the fuel, including the tax.

any other claim on Form 8849. Total $3,100 When Steven files his 2003 Form 1040, he will CAUTION include the $732 credit shown on his 2002 Form

!

The corporation deducts the entire cost of 4136 as additional income on his Schedule C

the gasoline (including the $3,100 in excise (Form 1040) for 2003. taxes) it used during the year as a business For the first two quarters of 2003, Steven’s expense on its corporation income tax return, records show the following. thereby reducing its corporate income tax liabil- Interest ity for that year. Claim

Form 8849. March Corporation files quar- Quarter Gallons Used Tax Rate Amount IRS pays no interest on refunds described in this terly refund claims for the first two quarters (end- publication other than refunds to gasohol blend- First 2,750 .244 $671 ing March 31 and June 30). It cannot file a Second 2,500 .244 610 ers and registered ultimate vendors (discussed quarterly refund claim for the third or fourth quar- earlier) not paid within 20 days. Refunds result- ter because it did not meet the $750 minimum Steven could not file a claim for a refund for ing from credits claimed on income tax returns requirement. the first quarter because the amount of the claim may qualify for interest. Since March Corporation uses the cash was less than $750. He adds the first quarter

method of accounting, the corporation includes amount ($671) to the second quarter amount

$2,400 ($1,300 + $1,100) in its gross income for ($610) and claims a refund of $1,281 by filing

Penalties the tax year in which it receives the refunds Form 8849 and Schedule 1 (Form 8849), which

(2002). are shown later. He will have to include the

$1,281 excise tax refund as additional income There are criminal penalties for false or fraudu- Form 4136. The corporation claims the remaining amounts ($400 + $300) as a credit on on his Schedule C (Form 1040) for 2003. lent claims. In addition, any person who files a

Page 10 Chapter 3 Filing Claims
Steven S. Sands 514-00-3894

3,000

732 00

2

OMB No. 1545-0162 Credit for Federal Tax Paid on Fuels

Form 4136

Department of the Treasury

Internal Revenue Service

Attachment

 Attach this form to your income tax return. Sequence No. 23

Name (as shown on your income tax return) Taxpayer identification number

2 Nontaxable Use of Aviation Gasoline

375

10% gasohol

7.7% gasohol

5.7% gasohol

Nontaxable Use of Gasoline and Gasohol

(b)

Rate

(c)

Gallons

(d)

Amount of credit

Off-highway business use of gasoline $

1

(e)

CRN

362

3 Nontaxable Use of Undyed Diesel Fuel

Use of gasoline on a farm for farming purposes

e

d

f

a

b

c Other nontaxable use of gasoline

 See the Instructions on page 3.

(a) Type

of use

Claimant certifies that the diesel fuel did not contain visible evidence of dye.

Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation and

check here 

(b)

Rate

(c)

Gallons

(d)

Amount of credit

Use in commercial aviation (other than foreign trade) $

(e)

CRN

354

Other nontaxable use

a

b

(a) Type

of use

Claimant has the name and address of the person(s) who sold the diesel fuel to the claimant and the date(s) of the purchase(s) and if

exported, the required proof of export.

Caution: Claims cannot be made on line 3 for diesel fuel used

on a farm for farming purposes. Only registered ultimate

vendors may make those claims (see line 6).

(b)

Rate

(c)

Gallons

(d)

Amount of credit

$

(e)

CRN

(a) Type

of use

Nontaxable use

Use in certain intercity and local buses

a

b

c

Use in trains

350

353

$

4

$

$

$





360 

.184

.184

.184

.184

.131

.14319

.15379

.15

.194

.194

.244

.244

.20

.17

359

376

324

Nontaxable Use of Undyed Kerosene

Claimant certifies that the kerosene did not contain visible evidence of dye.

Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach a detailed explanation and check

here 

Claimant has the name and address of the person(s) who sold the kerosene to the claimant and the date(s) of the purchase(s) and if

exported, the required proof of export.

Caution: Claims cannot be made on line 4 for kerosene used

on a farm for farming purposes or for kerosene sold from a

blocked pump. Only registered ultimate vendors may make

those claims (see line 7). For lines 4b and 4c, see A Change

To Note on page 3.

(b)

Rate

(c)

Gallons

(d)

Amount of credit

$

(e)

CRN

(a) Type

of use

Nontaxable use

Use in certain intercity and local buses

a

b

c

Use in trains

347

348

$ 346  .244

.244

2002

Caution: ● You cannot claim any amounts on Form 4136 that you claimed on Form 8849 or Schedule C (Form 720).

● Sales by gasoline wholesale distributors cannot be claimed on Form 4136. Instead, use Schedule 4 (Form 8849)

or Schedule C, line 11 (Form 720) to make these claims.

Chapter 3 Filing Claims Page 11
$

Form 4136 (2002) Page 2

10

10 Total income tax credit claimed. Add lines 1 through 9, column (d). Enter here and on

Form 1040, line 68 (also check box b on line 68); Form 1120, line 32g; Form 1120-A, line

28g; Form 1120S, line 23c; Form 1041, line 24g; or the proper line of other returns. 

6 Sales by Registered Ultimate Vendors of Undyed Diesel Fuel

Claimant certifies that the diesel fuel did not contain visible evidence of dye.

Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation and check here 

Claimant sold the diesel fuel at a tax-excluded price, repaid the amount of tax to the buyer, or has obtained written consent of the

buyer to take the claim; and obtained the required certificate from the buyer and has no reason to believe any information in the

certificate is false. See the instructions for additional information to be submitted.

UV Registration No. 

(b)

Rate

(c)

Gallons

(d)

Amount of credit

(e)

CRN

(a) Type

of use

Use on a farm for farming purposes 360

Use by a state or local government

a

b

$

$

7 Sales by Registered Ultimate Vendors of Undyed Kerosene

Claimant certifies that the kerosene did not contain visible evidence of dye.

Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach a detailed explanation and check here 

Claimant sold the kerosene at a tax-excluded price, repaid the amount of tax to the buyer, or has obtained written consent of the buyer

to take the claim; and obtained the required certificate (for lines 7a and 7b) from the buyer and has no reason to believe any information

in the certificate is false, or has the Regulations section 48.6427-10(e)(4) statement, if required, for line 7c. See the instructions for

additional information to be submitted.

UV Registration No. 

(b)

Rate

(c)

Gallons

(d)

Amount of credit

(e)

CRN

(a) Type

of use

Use on a farm for farming purposes

346

Use by a state or local government

a

b

$

$

c Sales from a blocked pump

8 Nontaxable Use of Liquefied Petroleum Gas (LPG) in Certain Buses

(b)

Rate

(c)

Gallons

(d)

Amount of credit

(e)

CRN

(a) Type

of use

Use in certain intercity and local buses

352

Use in qualified local and school buses

a

b

$

$

9 Gasohol Blending

Claimant bought gasoline taxed at the full rate and blended it with alcohol to make gasohol. The gasohol was sold or used in

claimant’s trade or business. For each batch of gasohol, claimant has the required information relating to the purchase of the

gasoline and alcohol used to make the gasohol and to support the amount claimed.

(a)

Rate (b)

Gasoline

(d)

Amount of credit

(col. (a) col. (b))

(e)

CRN

10% gasohol

357

7.7% gasohol

a

b

$

$

c 5.7% gasohol

(c)

Alcohol

Gallons of





UP Registration No. 

.244

.244

.244

.244

.244

.062

.136

.03845

.02887

.02092

Form 4136 (2002)

Nontaxable Use of Aviation Fuel

(b)

Rate

(c)

Gallons

(d)

Amount of credit

(e)

CRN

(a) Type

of use

Use in commercial aviation (other than foreign trade)

Other nontaxable use 369

a

b

$

$ .175

.219

.044

5

355

377

361

356

363

c Other nontaxable uses

732 00

Page 12 Chapter 3 Filing Claims
Proof as of

December 2, 2002

(subject to change)

OMB No. 1545-1420 Claim for Refund of Excise Taxes

(Rev. January 2003)

Department of the Treasury—Internal Revenue Service

Name of claimant

Address (number, street, room or suite no.)

Form

8849

City and state or province. If you have a foreign address, see page 2.

Foreign country, if applicable. Do not abbreviate.

Month claimant’s income

tax year ends

ZIP code

Social security number (SSN)

Employer identification number (EIN)

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Schedules Attached

Schedule 1

Schedule 2

Schedule 3

Schedule 4

Schedule 5

Schedule 6

Caution: Do not use Form 8849 to make adjustments to liability reported on Forms 720 for prior quarters or to claim any amounts

that were or will be claimed on Schedule C (Form 720), Claims, Form 4136, Credit for Federal Tax Paid on Fuels, Form 2290,

Heavy Highway Vehicle Use Tax Return, or Form 730, Monthly Tax Return On Wagers.

Nontaxable Use of Fuels

Sales by Registered Ultimate Vendors of Undyed Diesel Fuel and Undyed Kerosene

Gasohol Blending

Sales by Gasoline Wholesale Distributors

Section 4081(e) Claims

Other Claims

Sign

Here

Under penalties of perjury, I declare (1) that I have examined this claim, including accompanying schedules and statements, and to the best

of my knowledge and belief, it is true, correct, and complete, and (2) that amounts claimed on this form have not been, and will not be, claimed

on any other form.

Signature and title (if applicable) Date

Type or print your name below signature.

Cat. No. 20027J Form 8849 (Rev. 1-2003)

Print clearly. Leave a blank box between words.

Daytime telephone number (optional)

Check () the appropriate box(es) for the schedule(s) you attach to Form 8849. Only attach the schedules on which you are claiming

a refund. Schedules 2, 3, 5, and section 4091(d) claims on Schedule 6 cannot be filed with any other schedules on Form 8849.

File each of these schedules with a separate Form 8849.

S T EV EN S SAN DS

987 WEST ST RE E

A NYT OWN US A

1 0 9 8 7 65 4 3

1 2 345

1 2

9 8 7 5 5 5 00 0 0

Steven S. Sands

Steven S. Sands

9/29/2003



T

Chapter 3 Filing Claims Page 13
Proof as of

December 2, 2002

(subject to change)

Nontaxable Use of Fuels OMB No. 1545-1420

(Rev. January 2003)

Department of the Treasury—Internal Revenue Service

Name as shown on Form 8849

Period of claim: Enter month, day, and year

in MMDDYYYY format.

(Form 8849)

 Attach to Form 8849.

Total refund (see instructions)

Nontaxable Use of Aviation Gasoline

Use in commercial aviation

(other than foreign trade)

Nontaxable Use of Undyed Diesel Fuel

Nontaxable use (see Caution

above)

Use in trains

Use in certain intercity

and local buses

Nontaxable Use of Aviation Fuel

Use in commercial aviation

(other than foreign trade)

Other nontaxable use

(a)

Type

of use

(e)

CRN

For Privacy Act and Paperwork Reduction Act Notice, see Form 8849 instructions. Cat. No. 27449T Schedule 1 (Form 8849) (Rev. 1-2003)

From  To 

362

375

324

360

353

350

369

1 Nontaxable Use of

Gasoline and Gasohol

a

b

c

d

Gasoline

10% gasohol

7.7% gasohol

5.7% gasohol

2

3

5

a

a

a

b

b

b

c

Other nontaxable use

Claimant certifies that the diesel fuel did not contain visible evidence of dye.

Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation

and check here 

Claimant has the name and address of the person(s) who sold the diesel fuel to the claimant and the date(s) of the

purchase(s) and if exported, the required proof of export.

Caution: Claims cannot be made on line 3 for diesel fuel used on a farm for farming purposes or for the exclusive use by a

state or local government. Only registered ultimate vendors may make those claims using Schedule 2.

6 Nontaxable Use of Liquefied Petroleum Gas LPG in Certain Buses

a

b

Use in certain intercity and local

buses

Use in qualified local buses 361

(a)

Type

of use

(e)

CRN

(b) Rate (c) Gallons (d) Amount of refund

(b) Rate (c) Gallons (d) Amount of refund

.184

.132

.184

.14396

.15436

.15

.194

.194

.244

.244

.20

.17

.175

.219

.044

.062

.136

$

$

Multiply col. (b) by col. (c)

$

Multiply col. (b) by col. (c)

$

$

EIN or SSN

$

$

$

$

$

$

359

376

354

355

377

352

c Other nontaxable use

Nontaxable Use of Undyed Kerosene

Nontaxable use (see Caution

above) 346

4

Claimant certifies that the kerosene did not contain visible evidence of dye.

Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach a detailed explanation

and check here 

Claimant has the name and address of the person(s) who sold the kerosene to the claimant and the date(s) of the

purchase(s) and if exported, the required proof of export.

Caution: Claims cannot be made on line 4 for kerosene used on a farm for farming purposes, for the exclusive use by a state or local

government, or for sales from a blocked pump. Only registered ultimate vendors may make those claims using Schedule 2.

(a)

Type

of use

(e)

CRN

(b) Rate (c) Gallons (d) Amount of refund

.244

.244

$

Multiply col. (b) by col. (c)

$

Use in school buses .136

Steven S. Sands 109876543 1281

01012003 06302003

2 5250 1281

Page 14 Chapter 3 Filing Claims
If you combine alcohol eligible for the credit purpose listed under Qualified ethanol fuel prowith alcohol that is not eligible and use the com- duction, you must pay a tax equal to the credit.

bined alcohol in a way that qualifies for the Report this tax on Form 720. 4. credit, you figure the credit based on the proportionate amount of eligible alcohol contained in How to claim the credit. You take the alcohol

the combined alcohol. fuel credit by completing Form 6478 and attachAlcohol Fuel ing it to your income tax return. All individuals Separation or failure to use as fuel. If the and corporations taking the credit use Form credit applied to alcohol used in the production 6478. Partnerships (including electing large of a qualified mixture, and you later separate the Credit partnerships), S corporations, estates, and alcohol from the mixture or do not use the mix- trusts figure the credit on Form 6478 but divide ture as fuel, you must pay a tax equal to the the credit among their partners, shareholders, or If you sell or use alcohol as a fuel, you may be credit. Report this tax on Form 720. beneficiaries. eligible for an income tax credit. The alcohol fuel If you take the alcohol fuel credit, you must credit consists of a straight alcohol credit, an Amount of credit. The straight alcohol credit include the credit for the tax year in your gross alcohol mixture credit, and a small ethanol pro- and the alcohol mixture credit are based on the income for that year. ducer credit. Each of these credits is discussed proof content of the alcohol. You figure the proof

later. without considering denaturants added to the General business credit. You combine the

Alcohol eligible for the credit includes metha- alcohol. Use Form 6478 to determine the credit alcohol fuel credit with other credits on Form

nol and ethanol. This includes methanol pro- for each gallon of alcohol. 3800, General Business Credit, to figure your duced from methane gas formed in waste general business credit for the year. See the Reduced credit for certain excise tax bene- disposal sites. But it does not include any of the Form 3800 instructions for a list of these credits fits. You may have been entitled to a reduced following. and whether you must file Form 3800. rate, an exemption, credit, or refund for the fed-

• Alcohol produced from petroleum, natural eral excise tax on certain fuel-alcohol mixtures.

gas, or coal (including peat). You must reduce the credit allowable on these

mixtures (such as gasohol) by the amount of • Alcohol with a proof of less than 150. these benefits.

• Ethanol produced as a by-product from Volume of alcohol. When figuring the num- manufacturing ethylcellulose derived from ber of gallons of alcohol sold or used, include the 5. ethane. volume of any denaturant (including gasoline)

In figuring the proof of any alcohol, disregard added under formulas approved by the Secreany denaturants (additives that make the alco- tary of the Treasury. Also include the denaturant

hol unfit for human consumption). when you figure the percentage of any mixture How To Get Tax

that is alcohol. However, denaturants can be

Straight alcohol credit.

credit for any alcohol not mixed with gasoline or

You can claim the counted only up to 5% of the total volume of

alcohol (including denaturants). Help

a special fuel other than denaturants.

You are eligible for the credit for straight Small ethanol producer credit. If you are an You can get help with unresolved tax issues,

alcohol only if you met one of the following eligible small ethanol producer, you qualify for a order free publications and forms, ask tax quesrequirements during the tax year. credit on up to 15 million gallons of your qualified tions, and get more information from the IRS in

ethanol fuel production for any tax year. This several ways. By selecting the method that is • You used it as a fuel in your trade or additional alcohol fuel credit is 10 cents for each best for you, you will have quick and easy ac- business. gallon. cess to tax help.

• You sold it at retail and placed it in the fuel You are an eligible small ethanol producer if,

tank of the buyer’s vehicle. at all times during the tax year, you have an Contacting your Taxpayer Advocate. If you

annual productive capacity of not more than 30 have attempted to deal with an IRS problem

The buyer cannot claim the credit for the alco- million gallons of any type of alcohol. unsuccessfully, you should contact your Taxhol bought at retail, even if the buyer uses it as a For a partnership, trust, or S corporation, the payer Advocate.

fuel in a trade or business. 15- and 30-million gallon limits apply at both the The Taxpayer Advocate represents your inentity level and the partner, beneficiary, or terests and concerns within the IRS by protect- Mixing or failure to use as fuel. If the credit shareholder level. ing your rights and resolving problems that have applied to alcohol you bought and you later mix not been fixed through normal channels. While the alcohol or do not use it as a fuel, you must Qualified ethanol fuel production. Your Taxpayer Advocates cannot change the tax law pay a tax equal to the credit. Report this tax on qualified ethanol fuel production is any ethanol or make a technical tax decision, they can clear Form 720. you produce and sell during the tax year to up problems that resulted from previous con- another person for any of the following pur- tacts and ensure that your case is given a com- Alcohol mixture credit. You can take the poses. plete and impartial review. credit for alcohol you use to produce a qualified • Use in the production of a qualified mix- To contact your Taxpayer Advocate: mixture. A qualified mixture is a mixture of alco- ture in that person’s trade or business (ex- hol with gasoline or with a special fuel. You do • Call the Taxpayer Advocate at cept casual off-farm production). not treat adding denaturants to alcohol as the 1–877–777–4778.

production of a mixture. • Use as a fuel in that person’s trade or • Call, write, or fax the Taxpayer Advocate You can take the credit only for a mixture you business. office in your area. produce. You must sell the mixture for use as a • Sale at retail by that person who puts the fuel, not merely as an octane enhancer, or use it • Call 1–800–829–4059 if you are a ethanol in the fuel tank of the buyer’s vehi- as a fuel in your trade or business. You can TTY/TDD user. cle. claim the credit whether you sell the fuels directly to the user or to a buyer for resale to the For more information, see Publication 1546, It also includes your use or sale of the ethanol user. Take into account alcohol you use to pro- The Taxpayer Advocate Service of the IRS. for these purposes. duce a qualified mixture only if the sale or use is Qualified ethanol fuel production does not in your trade or business and only for the tax Free tax services. To find out what services include any alcohol bought by a producer who year in which the sale or use occurs. are available, get Publication 910, Guide to Free then increases the proof of the alcohol by addi- A special fuel includes any liquid fuel, other Tax Services. It contains a list of free tax publi- tional distillation. than gasoline, suitable for use in an internal cations and an index of tax topics. It also decombustion engine. Failure to use for qualifying purposes. If scribes other free tax information services,

You cannot take a credit for the casual the credit applied to an eligible small ethanol including tax education and assistance prooff-farm production of a qualified mixture. producer and you do not use the ethanol for a grams and a list of TeleTax topics.

Chapter 5 How To Get Tax Help Page 15
Personal computer. With your per- • Solving problems. Take advantage of Eve- your request is received. Find the address that

sonal computer and modem, you can ryday Tax Solutions service by calling your applies to your part of the country.

access the IRS on the Internet at local IRS office to set up an in-person ap- • Western part of U.S.: www.irs.gov. While visiting our web site, you pointment at your convenience. Check Western Area Distribution Center can: your local directory assistance or

www.irs.gov for the numbers. Rancho Cordova, CA 95743–0001 • See answers to frequently asked tax ques-

• TTY/TDD equipment. • Central part of U.S.: tions or request help by e-mail. If you have access

to TTY/TDD equipment, call 1–800–829– Central Area Distribution Center • Download forms and publications or 4059 to ask tax questions or to order P.O. Box 8903

search for forms and publications by topic forms and publications. Bloomington, IL 61702–8903 or keyword. • TeleTax topics. Call 1–800–829–4477 to • Eastern part of U.S. and foreign • Order IRS products on-line. listen to pre-recorded messages covering addresses:

• View forms that may be filled in electroni- various tax topics. Eastern Area Distribution Center

cally, print the completed form, and then P.O. Box 85074

save the form for recordkeeping. Evaluating the quality of our telephone serv- Richmond, VA 23261–5074

ices. To ensure that IRS representatives give • View Internal Revenue Bulletins published accurate, courteous, and professional answers, in the last few years. CD-ROM for tax products. You can we use several methods to evaluate the quality order IRS Publication 1796, Federal • Search regulations and the Internal Reve- of our telephone services. One method is for a Tax Products on CD-ROM, and obtain: nue Code. second IRS representative to sometimes listen

in on or record telephone calls. Another is to ask • Receive our electronic newsletters on hot

some callers to complete a short survey at the • Current tax forms, instructions, and publi- tax issues and news.

end of the call. cations.

• Learn about the benefits of filing electroni- • Prior-year tax forms and instructions. cally (IRS e-file). Walk-in. Many products and services • Popular tax forms that may be filled in • Get information on starting and operating are available on a walk-in basis. electronically, printed out for submission, a small business.

and saved for recordkeeping.

You can also reach us with your computer • Internal Revenue Bulletins. • Products. You can walk in to many post using File Transfer Protocol at ftp.irs.gov. offices, libraries, and IRS offices to pick up The CD-ROM can be purchased from Na- certain forms, instructions, and publica- TaxFax Service. Using the phone at- tional Technical Information Service (NTIS) by tions. Some IRS offices, libraries, grocery tached to your fax machine, you can stores, copy centers, city and county gov- calling 1–877–233–6767 or on the Internet at receive forms and instructions by call- ernments, credit unions, and office supply http://www.irs.gov/cdorders. The first release ing 703–368–9694. Follow the directions from stores have an extensive collection of is available in early January and the final release the prompts. When you order forms, enter the products available to print from a CD-ROM is available in late February. catalog number for the form you need. The items or photocopy from reproducible proofs. you request will be faxed to you. Also, some IRS offices and libraries have CD-ROM for small businesses. IRS

For help with transmission problems, call the the Internal Revenue Code, regulations, Publication 3207, Small Business ReFedWorld Help Desk at 703–487–4608. Internal Revenue Bulletins, and Cumula- source Guide, is a must for every small

tive Bulletins available for research pur- business owner or any taxpayer about to start a

poses. business. This handy, interactive CD contains Phone. Many services are available by all the business tax forms, instructions and pub- phone. • Services. You can walk in to your local lications needed to successfully manage a busi- IRS office to ask tax questions or get help

with a tax problem. Now you can set up an ness. In addition, the CD provides an

appointment by calling your local IRS of- abundance of other helpful information, such as • Ordering forms, instructions, and publica- fice number and, at the prompt, leaving a how to prepare a business plan, finding financ- tions. Call 1–800–829–3676 to order cur- message requesting Everyday Tax Solu- ing for your business, and much more. The de- rent and prior year forms, instructions, and tions help. A representative will call you sign of the CD makes finding information easy publications. back within 2 business days to schedule and quick and incorporates file formats and an in-person appointment at your conve- • Asking tax questions. Call the IRS Tax browsers that can be run on virtually any nience. Help Line for Individuals with your tax desktop or laptop computer.

questions at 1–800–829–1040. Or, if It is available in March. You can get a free your question pertains to a partnership or Mail. You can send your order for copy by calling 1-800-829-3676 or by visiting the corporate return, call the Business and forms, instructions, and publications to website at www.irs.gov/smallbiz. Specialty Tax Help Line at the Distribution Center nearest to you

1–800–829–4933. and receive a response within 10 workdays after

Page 16 Chapter 5 How To Get Tax Help
To help us develop a more useful index, please let us know if you have ideas for index entries. Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A LT Farming and state use . . . . 3, 7

Air ambulance ............ 6 Fishing ................ 5 Liquefied petroleum gas Tax help . . . . . . . . . . . . . . . 15

Alcohol fuel credit . . . . . . . . 15 Foreign trade ............ 6 (LPG) ................ 4 Taxpayer Advocate . . . . . . . 15

Amended return .......... 8 Form: Taxpayer identification

Assistance (See Tax help) 4136 ................ 8 M number ............... 8

Aviation: 6478 . . . . . . . . . . . . . . . 15 More information (See Tax help) Train .................. 6

Fuel 720 . . . . . . . . . . . . . . . . . 9 ................. 4 TTY/TDD information . . . . . . 15

Gasoline 8849 ................ 9 .............. 3

Free tax services . . . . . . . . . 15 O

Off-highway use .......... 4 U

B Ultimate purchaser . . . . . . . 7, 9

Blocked pump ............ 3 G Used other than as a fuel .... 6

Gasohol: P Boats ................. 5 Uses, nontaxable: Blender ............... 2 Penalties . . . . . . . . . . . . . . 10 Buses . . . . . . . . . . . . . . . 5, 6 Aviation fuel ............ 4

Blending . . . . . . . . . . . . 7, 9 Publications (See Tax help) Aviation gasoline ........ 3

Defined ............... 2 Diesel fuel ............. 3 C Gasoline ............... 2 Q Gasohol .............. 2 Comments .............. 1 Qualified local bus ......... 5 Gasoline .............. 2 Commercial aviation ........ 6 H Kerosene ............. 3

Commercial fishing ........ 5 Helicopter Liquefied petroleum gas Credits ................. 8 ............... 6 R (LPG) .............. 4 Help (See Tax help) Records ................ 7

Highway vehicle .......... 5 Refunds ................ 9 D Registered ultimate V

Diesel fuel .............. 3 Vendors, registered I vendor . . . . . . . . . . . 3, 7, 10 ultimate . . . . . . . . . . . 3, 7, 10 Identifying number ......... 8 E Income, include in . . . . . . . . 10 S ■

Excluded liquid ........... 3 Intercity or local bus ........ 5 School bus .............. 6

Export ................. 5 Interest . . . . . . . . . . . . . . . 10 State or local governments . . . 6

Suggestions ............. 1

F K

Farming ................ 4 Kerosene ............... 3

Page 17
Tax Publications for Business Taxpayers

General Guides

Commonly Used Tax Forms

Spanish Language Publications

Your Rights as a Taxpayer

Your Federal Income Tax (For

Individuals)

Farmer’s Tax Guide

Tax Guide for Small Business (For

Individuals Who Use Schedule C or

C-EZ)

Tax Calendars for 2003

Highlights of 2002 Tax Changes

Guide to Free Tax Services

Circular E, Employer’s Tax Guide

Employer’s Supplemental Tax Guide

Circular A, Agricultural Employer’s Tax

Guide

Circular SS, Federal Tax Guide For

Employers in the U.S. Virgin Islands,

Guam, American Samoa, and the

Commonwealth of the Northern

Mariana Islands

Household Employer’s Tax Guide

Circular PR Guía Contributiva Federal

Para Patronos Puertorriqueños

Travel, Entertainment, Gift, and Car

Expenses

Tax Withholding and Estimated Tax

Excise Taxes for 2003

Withholding of Tax on Nonresident

Aliens and Foreign Entities

Social Security and Other Information

for Members of the Clergy and

Religious Workers

Residential Rental Property

Self-Employment Tax

Depreciating Property Placed in

Service Before 1987

Business Expenses

Net Operating Losses (NOLs) for

Individuals, Estates, and Trusts

Installment Sales

Accounting Periods and Methods

Corporations

Sales and Other Dispositions of Assets

Basis of Assets

Examination of Returns, Appeal Rights,

and Claims for Refund

Retirement Plans for Small Business

(SEP, SIMPLE, and Qualified Plans)

Determining the Value of Donated

Property

Starting a Business and Keeping

Records

The IRS Collection Process

Information on the United StatesCanada Income Tax Treaty

Bankruptcy Tax Guide

Direct Sellers

Passive Activity and At-Risk Rules

How To Depreciate Property

Reporting Cash Payments of Over

$10,000

The Taxpayer Advocate Service of the

IRS

Derechos del Contribuyente

Cómo Preparar la Declaración de

Impuesto Federal

English-Spanish Glossary of Words

and Phrases Used in Publications

Issued by the Internal Revenue

Service

Tax on Unrelated Business Income of

Exempt Organizations

Wage and Tax Statement

Itemized Deductions & Interest and

Ordinary Dividends*

Profit or Loss From Business*

Net Profit From Business*

Capital Gains and Losses*

Supplemental Income and Loss*

Profit or Loss From Farming*

Credit for the Elderly or the Disabled*

Estimated Tax for Individuals*

Self-Employment Tax*

Amended U.S. Individual Income Tax Return*

Capital Gains and Losses

Partner’s Share of Income,

Credits, Deductions, etc.

U.S. Corporation Income Tax Return

U.S. Income Tax Return for an S Corporation

Employee Business Expenses*

Unreimbursed Employee Business Expenses*

Power of Attorney and Declaration of

Representative*

Child and Dependent Care Expenses*

General Business Credit

Application for Automatic Extension of Time To File

U.S. Individual Income Tax Return*

Moving Expenses*

Additional Taxes on Qualified Plans (Including

IRAs) and Other Tax-Favored Accounts

Installment Sale Income*

Noncash Charitable Contributions*

Change of Address*

Expenses for Business Use of Your Home*

Tax Highlights for Commercial

Fishermen

910

595

553

509

334

225

17

1

Nondeductible IRAs*

Passive Activity Loss Limitations*

15

15-A

51

80

179

926

378

463

505

510

515

517

527

533

534

535

536

537

541

538

542

Partnerships

544

551

556

560

561

583

594

597

598

901

911

925

946

947

908

1544

1546

1SP

850

579SP

594SP Comprendiendo el Proceso de Cobro

10134

Sch A & B

Sch C

Sch C-EZ

Sch D

Sch E

Sch F

Sch H Household Employment Taxes*

Sch R

Sch SE

1040-ES

1040X

Sch D

Sch K-1

1120

1120S

1065 U.S. Return of Partnership Income

2106

2106-EZ

2441

2848

3800

4868

3903

5329

6252

8283

8582

8606

8822

8829

Specialized Publications

Fuel Tax Credits and Refunds

W-4 Employee’s Withholding Allowance Certificate*

Employer’s Annual Federal Unemployment

(FUTA) Tax Return*

940

940-EZ

1040 U.S. Individual Income Tax Return*

Employer’s Annual Federal Unemployment

(FUTA) Tax Return*

Business Use of Your Home (Including

Use by Day-Care Providers)

587

U.S. Tax Treaties

Practice Before the IRS and Power of

Attorney

Tax Incentives for Empowerment

Zones and Other Distressed

Communities

Employer’s Guides

Certification for Reduced Tax Rates in

Tax Treaty Countries

686

954

Capital Gains and Losses and Built-In Gains

Shareholder’s Share of Income, Credits,

Deductions, etc.

Sch D

Sch K-1

Underpayment of Estimated Tax by Individuals,

Estates, and Trusts*

2210

Report of Cash Payments Over $10,000 Received

in a Trade or Business*

8300

4562 Depreciation and Amortization*

4797 Sales of Business Property*

Informe de Pagos en Efectivo en

Exceso de $10,000 (Recibidos en

una Ocupación o Negocio)

1544SP

U.S. Corporation Short-Form Income

Tax Return

1120-A

See How To Get Tax Help for a variety of ways to get publications, including by

computer, phone, and mail.

See How To Get Tax Help for a variety of ways to get forms, including by computer, fax, phone,

and mail. Items with an asterisk are available by fax. For these orders only, use the catalog number

when ordering.

Form Number and Title

Catalog

Number

W-2

10220

11234

10983

17001

11320

11330

11334

14374

11338

11344

11346

12187

11358

11340

11360

941 Employer’s Quarterly Federal Tax Return

11359

Sch J Farm Income Averaging* 25513

11510

Catalog

Number

20604

11744

11862

11980

12392

12490

12906

13086

13141

13329

13601

62299

63966

12081

13232

63704

62133

11390

11393

11394

11450

11456

11700

11520

11516

Form Number and Title

Sch D-1 Continuation Sheet for Schedule D 10424

Employer’s Tax Guide to Fringe

Benefits

15-B

Page 18