rom 4136

Department of the Treasury
Internal Revenue Service

Computation of Credit for Federal Tax on
Gasoline, Special Fuels, and Lubricating Oil

Attach this form to your income tax return for calendar year 1973

1978

or other taxable year beginning + 1973, ending - 2p WD aren
Name (as shown on page 1 of your income tax return) Identifying number
_ Gasoline, Diesel Fuel .. .
Part | and Special Motor Fuels Lubricating Oil
Number of Col (A)
emp’ | wate or | eaumnd®, | Mamberof Tate or | sgaumnt®,
Type of Use Used Column (8) Used be Column (E)
_ _ a ®) © ©) © a)
T Nonhighway:
a. Farm (for farming pure
poses) . . .06
b. Motorboat . 06

c. Other (specify)

2 Local transit system. (See in-
struction E.3.)

| LOMA

3 Aircraft Lae y
a pls WII
viation Fuels
Type of Use eamee ia ah | Number of Gallons Used Rat ohio
“@ WI © (0)

5 a. Farm (for farming  pur-

Wd

YMA

poses)

b. Aviation (only applicable to
commercial use as defined

in instruction F.4.(c))

“SS Lidl

6 Total . . . oe

7 Total income tax credit claimed (sum of line 4, columns © and © and line 6, column (D)) .

*Rate of Tax (per gallon used)

Gasoli
Type of Use isvonavietion Diesel Fuel and Special Motor Fuel Aviation, Fuel
Farm (farming purposes) 4 2¢ or 4¢ whatever paid 4g or 7¢ whatever paid

Other

2¢ or 4¢ whatevi

MMMM

er_paid

Aviation (only applicable to commercial use as

defined in instruction F.4.(c))

ee eee

Instructions

A. Who May File.—Any individual, estate,
trust, or corporation, including a small
business corporation and domestic in-
ternational sales corporation, claiming
credit for Federal excise tax on the num-
ber of gallons of gasoline, special fuels
and lubricating oil used ‘must file th
form. It should be attached to the in-
come tax return,

Partnerships are not required to file
tais form because the credit for Federal
excise tax on gasoline, special fuels, and
lubricating oil used is claimed by the
partners. However, partnerships must at-
tach_a statement to their returns, Form
1065, showing the allocation to the
partners of the number of gallons of
gasoline, special fuels, and lubricating
oil used by type of use as shown above.

Special refund provisions are available
if the credit for any of the first three
quarters of your taxable year amounts
to $1,000 or more. (See Instruction C.)
B. Time for Filing a Claim for Credit.—
An income tax credit will be allowed if
claimed within the time prescribed by
law for filing a claim for credit or refund
of overpayment of income tax for such
taxable years.

C. Quarterly Tax Refund of $1,000 or
More.—For any of the first three quarters
of your taxable year, a claim, Form 843,
may be filed for refund of tax of $1,000
or more for: (a) gasoline used (except,
on the farm for farming purposes), (b)
lubricating oil used, or (c) special fuels
used (except, on the farm for farming
purposes) during a calendar quarter.
However, no claim will be allowed unless
filed on or before the last day of the
following quarter. A claim for gasoline,

special fuels, and lubricating oil should
provide separate computations as in the
format shown above. (If you prefer, you
may use the above schedule instead of
your own statement to show the separate
computations.)

D. What Lubricating Oil to Include.—An
income tax credit may be claimed for
lubricating oil (other than cutting oils
and used oil) that is used otherwise than
in a highway motor vehicle, Cutting oils
are those oils sold for use on metals in
cutting and machining operations (in-
cluding forging, drawing, rolling, shear-
ing, punching, and stamping). Examples
of uses of lubricating oil otherwise than
in a highway motor vehicle are oiling
plant machinery and lubricating vehicles
other than highway motor vehicles, such
as aircraft, bulldozers, power shovels,
farm tractors, ete.

16—89935-1 (Continued on back)


instructions (Continued)

Do not include oil (a) used in a high-
way motor vehicle, such as a truck, even
if it is operated off the highway, (b) sold
free of the Federal excise tax on lubri-
cating oil, such as transformer or insulat-
ing oil, certain motor fuel additives,
crude neatsfoot oil, castor oil, or oils
purchased excise-tax-free by use of an
exemption certificate, or (c) for which a
refund has been claimed on a timely
filed Form 843 for any of the first three
quarters of your taxable year. (See In-
struction C.)

E. What Gasoline to Include.

1. Farm for Farming Purposes.—An
income tax credit may be claimed for
Federal excise tax on gasoline used for
farming purposes on a farm that must be
a trade or business located in the United
States.

The term “farm” includes stock, dairy,
poultry, fruit, fur-bearing animal, and
truck farm; plantations, ranches, nurs:
eries, ranges, greenhouses, or other
similar structures used primarily for the
raising of agricultural or horticultural
commodities; and orchards.

Gasoline shall be treated as used for
farming purposes only if used by the
owner, tenant, or operator of a farm in
connection with—

(a) cultivating the soil, or raising or
harvesting any agricultural or horticul-
tural commodity, including the raising,
shearing, feeding, caring for, training
and management of livestock, bees,
poultry, fur-bearing animals and wildlife.
If the gasoline usage is by other than the
owner, tenant, or operator of the farm
(for example, a custom operator), the
owner, tenant, or operator shall be
treated as the user and ultimate pur-
chaser of the gasoline;

(b) handling, drying, packing, grading,
or storing any agricultural or horticultural
commodity in its unmanufactured state;
but only if the owner, tenant, or operator
produced more than half the commodity
he so treated during the period for which
the claim is filed;

(c) planting, cultivating, caring for,
or cutting of trees, or the preparation
(other than milling) of trees for market,
incidental to farming operations; or

(d) operating, managing, conserving,
improving, or maintaining the farm and
its tools and equipment.

Do not include gasoline used (1) off
the farm, such as on the highway to trans-
port livestock, feed, crops, or equipment;
(2) in processing, packaging, freezing,
or canning operations; (3) for personal
or other nonfarming purposes; or (4) on
the farm of another person, even though
used for farming purposes.

In many instances a vehicle will be
used both on the farm for farming pur-
poses and for nonfarming purposes. In
such cases an allocation of the gasoline
used must be made in arriving at the
total gallons of gasoline used on the
farm for farming purposes.

2. Nonhighway Uses.—Gasoline is re-
garded as having been used for a non-
highway purpose if used otherwise than
as fuel in a highway vehicle which, (1)
at the time of such use, is registered or
required to be registered for highway use
under the laws of any State or foreign

country, or (2) in the case of a highway
vehicle owned by the United States, is
used on the highway.

Do not include gasoline used for which
a refund has been claimed on a timely
filed Form 843 for any of the first three
quarters of your taxable year. (See In-
struction C.)

3. Local Transit Systems.—This re-
lates to gasoline used during any calen-
dar quarter in vehicles while engaged in
furnishing scheduled common carrier
public passenger land transportation
service along regular routes. The ulti-
mate purchaser of the gasoline may
claim a credit of 2 cents for each gallon
of gasoline so used. The amount to be
entered as ‘Number of Gallons Used”
on line 2, column A is determined by
multiplying—

(a) the total number of gallons used
in connection with the total passenger
fare revenue from scheduled service dur-
ing the quarter by;

(b) the percentage the ultimate pur-
chaser’s commuter fare revenue was of
his total passenger fare revenue, both
kinds of revenue being from scheduled
service during the quarter. (Note—To
justify a claim for credit this percentage
must be at least 60 percent.)

Commuter fare revenue means reve-
nue attributable to fares from the trans-
portation of persons and_ attributable
to—(a) amounts not exceeding 60 cents
paid for transportation, (b) amounts paid
for commutation or season tickets for
single trips of less than 30 miles, or (c)
amounts paid for commutation tickets for
1 month or less.

Local transit systems must attach a
statement with the information required
under section 6421 of the Internal Rev-
enue Code and its Regulations in making
claim for refund or credit.

Do not include gasoline used for which
a refund has been claimed on a timely
filed Form 843 for any of the first three
quarters of your taxable year. (See In-
struction C.)

F. What Special Fuels to Include.

1. Farm for Farming Purposes.—An
income tax credit may be claimed for
Federal excise tax imposed on those
fuels defined under paragraphs 4(a),
(b), and (c), and which are used on a
farm for farming purposes within the
meaning of Instruction E.1.

2. Local Transit Systems.—This ap-
plies to those fuels defined under para-
graphs 4(a) and (b), and which are used
by the purchaser during any calendar
quarter in vehicles while engaged in fur-
nishing scheduled common carrier public
passenger land transportation service
along regular routes. (See Instruction
E.3., above, to figure the “Number of
gallons used.”’)

Do not include special fuels used for
which a refund has been claimed on a
timely filed Form 843 for any of the first
three quarters of your taxable year. (See
Instruction C.)

3. Nontaxable Uses.—This relates to
those fuels defined under paragraphs
4(a), (b), and (c), which the purchaser
uses for a purpose taxable at a lower
rate than the purpose for which it was

‘$x US. GOVERNMENT PRINTING OFFICE:1973—-O-500-139

sold, uses for a nontaxable purpose, or
resells. The purchaser may claim a credit
for the tax on the sale of the fuel to him,
but if he uses the fuel he must reduce that
amount by the tax applicable for such
use under section 4041 of the Code.

Do not include special fuels used for
which a refund has been claimed on a
timely filed Form 843 for any of the first
three quarters of your taxable year. (See
Instruction C.)

4. Definitions.

(a) Diesel Fuel.—Any liquid (other
than any product taxable as gasoline
under section 4081 of the Code) tha

(i) sold by any person to an owner,
lessee, or other operator of a diesel-
powered highway vehicle, for use as a fuel
in such vehicle; or

(ii) used by any person as a fuel in
a diesel-powered highway vehicle unless
there was a taxable sale of such liquid
under (i) above.

(b) Special Motor Fuels.—These fuels
are benzol, benzene, naphtha, liquefied
petroleum gas, casinghead and natural
gasoline, or any other liquid (other than
Kerosene, gas oil, or fuel oil, or any
product taxable under section 4081 of
the Code or paragraph 4(a) above) that
is:

(i) sold by any person to an owner,
lessee, or other operator of a motor ve-
hicle or motorboat, for use as a fuel in
such motor vehicle or motorboat; or

(il) used by any ‘person as a fuel in
a motor vehicle or motorboat, unless
there was a taxable sale of such liquid
under (i) above.

(c) Aviation Fuel—Any liquid (for
example, jet fuel) other than any product
taxable under section 4081 of the Code,
on which there is imposed a tax of 7
cents a gallon, and gasoline taxable under
section 4081 of the Code on which there
is imposed a tax of 3 cents a gallon
that is:

(i) sold by any person to an owner,
lessee, or other operator of an aircraft,
for use as a fuel in such aircraft in other
than commercial aviation; or

(ii) used by any person as a fuel in
an aircraft in other than commercial avia-
tion, unless there was a taxable sale of
such liquid under (i) above.

Commercial aviation means any use of
an aircraft in a business of transporting
persons or property for compensation or
hire by air. This term does not include
any use of an aircraft, in a business de-
scribed in the previous sentence, which is
properly allocable to any transportation
exempt from the taxes imposed on the
transportation of persons or property by
air by reason of: (a) the aircraft having a
maximum certified takeoff weight of 6,000
pounds or less and not operated on an
established line, or (b) a member of an
affiliated group is the owner or lessee of
an aircraft which is not available for hire
by persons who are not members of such
group.

G. Additional Information.—Internal Rev-
enue Service Publications 225, Farmer’s
Tax Guide, and 378, Federal Fuel Tax
Credit or Refund for Nonhighway and
Transit Users, are available free at your
Internal Revenue Service office.

16—82335-1