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.

OMB No. 1545-0162

1982

Name (as shown on your income tax return)

Social security or employer identification number

Gasoline, Diesel Fuel and Special Motor Fuels

ype of busi Auamper of [mae ot |S auigy. coh
ype of business use Used x Column
1 Nonhighway: HW/F/|/, A You
a Farm (for farming purposes) . . . . wees. 02 3
- os! ll
b Commercial fishing vessel (See instructions C.2 and D.2.(b)):
@) Gasoline ©. ee 02
(ii) Diesel fuel or special fuels . . 02 .
oa" Ql
c Other (specify) .. 02
oa]
2 Intercity, local, and school buses (See instruction C.4.). . . . 02 }.
04
3 Gasoline/alcohol mixture . . . : .04
4 Qualified taxicab. 2... wee ee eee 04
5 Total (add lines 1, 2, 3, and 4) . + wee a ~. -hl1$
(Specify type of business in which oi! used—see instruction E) Lubricating Oil
6 [06 L$ |
Aviation Fuel
7 Farm (for farming purposes) (Aerial applicators see instruction C.1.). . 204 y . _
12 fe
14 W/ V7
8 Aviation (Applies only to commercial and certain helicopter uses as defined 22 yy copsasboosesy
in i ion C7.) . Cee 12}
in instruction C.7.) _ u YV//

9 Total income tax credit claimed (add lines 5, 6, 7, and 8)

bls I

*Use rate paid or allowable rate if lesser

Instructions

(Section references are to the Internal
Revenue Code unless otherwise specified)

Taxpayers who previously filed Form
4136-T to claim a credit for Federal tax
on gasoline, diesel fuel, and special
fuels used in qualified taxicabs should
now file Form 4136 to claim the credit
instead. Form 4136-T has been
obsoleted.

Paperwork Reduction Act Notice.—We
ask for this information to carry out the
Internal Revenue laws of the United States.
We need it to ensure that you are comply-
ing with these laws and to allow us to
figure and collect the right amount of tax.
You are required to give us this informa-
tion.

Refund Instead of Credit.—if ret paid
excise tax of at least $1,000 ($200 for
gasoline/alcohol mixture and $50 for
gasoline, diesel fuel, or special fuels used
in a qualified taxicab) on any fuel cate-
gory or lubricating oil in any one of the fi
three quarters of the tax year, you may
for a refund of the tax instead of claiming
a credit for it on Form 4136. To claim the
refund, file Form 843, Claim, before the end
of the quarter following the one for which
you are claiming the refund. Show sepa-
rate computations for a claim on gasoline,
special fuels, and lubricating oils. You may
use Form 4136 as a worksheet to show
your computations and attach it to the
Form 843 you file.

You must claim a credit, rather than a
refund, for any tax paid during the fourth
uarter, and for any tax under $1,000
($200 for gasoline/alcohol mixture and
$50 for gasoline, diesel fuel, or special
fuels used in a qualified taxicab) for
any of the first three quarters. You must
also claim the credit rather than a refund,
for tax paid on gasoline or special fuels
used on a farm for farming purposes.
Do not claim as a credit on Form 4136
any amount that you previously claimed as
a refund.

A. Purpose of Form 4136.—You must
file this form if you claim credit for Fed-
eral excise tax on certain kinds of fuel.
These include gasoline, special fuels, and
lubricating oil as defined in instructions C,
D, and E.

An individual, estate, trust, or corpora-
tion may file this form, but a partnership
may not. However, when a partnership files
Form 1065, U.S. Partnership Return of In-
come, it must include a statement show-
ing:

@ How many gallons of the fuels are al-

located to each partner.

© The types of use, as shown in this

form.

B. Year To Include the Credit Resulting
from Business Use of Fuel or Oil.—When
you claim a credit or refund, you must
include it in your gross income to the ex-
tent it resulted in a reduction of your in-
come tax. The year in which you include it
depends upon your method of accounting.

1. Cash Method.—lf you use the cash
method, include the amount of credit in
gross income for the tax year in which
you file the tax return that claims the
credit. If you file an amended return, or if
you file a claim for credit or refund (and
claim the credit for the tax), include the
refund that results from the credit in your
gross income for the tax year you receive it.

2. Accrual Method.— If you use the ac-
crual method, figure the amount of the
credit or refund due at the close of your
tax year. Include it in income, even if you
have not filed a claim for refund.

C. What Gasoline To Include.—You may
claim credit for Federal excise tax on gaso-
line for farm uses, commercial fishing ves-
sel uses, business nonhighway uses, inter-
city, local, or school bus uses, gasoline/
alcohol mixture, qualified taxicab use, and
commercial aviation use.

1. Farm Use.—You may claim a credit
for gasoline used for farming on a trade or
business farm in the United States. Such
farms include the following:

© Stock, dairy, poultry, fur-bearing ani-
mal, and truck farms.

@ Plantations, ranches,
ranges, and greenhouses.

@ Orchards.

Gasoline is considered used for farming
only if the owner, tenant, or operator of
the farm uses the gasoline. If gasoline is
used for the farming tasks set forth below
by anyone else, the owner, tenant, or op-

(Continued on back)

nurseries,

363-173-1

Form 4136 1982)


erator is considered the user of the gaso-
line. There is an exception to this rule. An
aerial applicator is considered to have used
gasoline for farming when performing the
farming tasks under the following condi-
tions:
© The applicator is the ultimate pur-
chaser of the gasoline; and
@ The farm owner, tenant, or operator
agrees not to be treated as the user
and ultimate purchaser of the gaso-

line.
__ The following tasks are considered farm-
ing:

(a) Cultivating the soil, and raising or
harvesting any horticultural or agri-
cultural commodity. This includes
raising livestock, bees, poultry, fur-
bearing animals, and wildlife.

(b) Handling, drying, packing, grading,
or storing any horticultural or agri-
cultural commodity before manufac-
ture, but only if the owner, tenant,
or operator produced more than
half of the commodity treated.
Planting, cultivating, or cutting
trees, or preparing them for mar-
ket. This does not include milling the
lumber.

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

Gasoline is not considered used by you
for farming under the following conditions:

(a) It is used off the farm to transport
livestock, feed, crops, or equipment.

(b) It is used in processing, packaging,
freezing, or canning operations.

(c) It is used for personal purposes.

(d) It is used on the farm of another
person, even though used for farm-
ing.

Often a vehicle will be used on the farm
both for farming and for nonfarming pur-
poses. In these cases, show the number of
gallons of gasoline used for each purpose
when claiming credit.

2. Commercial Fishing Vessel Use.—
You may claim a credit for excise tax paid
‘on gasoline used in a commercial fishing
vessel in the amount of 2 cents a gallon. A
commercial fishing vessel is one used in
the fisheries or whaling business and used:

@ Exclusively for catching shrimp and
other types of aquatic life for sale
commercially as bait, or

@ On specific trips exclusively for catch-
ing fish to be sold commercially.

3. Business Nonhighway Uses.—You
may claim a credit of 2 cents a gallon for
gasoline used for business nonhighway
Purposes. Business nonhighway use does
not include gasoline used in a motorboat
or in a highway vehicle that either:

@ Is registered or required to be regis-
tered for highway use under the laws
of any State, the District of Columbia,
or foreign country; or

@ Is owned by the United States and is
used on the highway.

4. Intercity, Local, or School Bus
Uses.—If you are the ultimate purchaser
of gasoline for a bus that provides trans-
portation (1) to the general public for a
fee or (2) to students and schoo! employ-
ees, you may claim a credit for the excise
tax you paid on gasoline used for this
service.

If you provide transportation on inter-
city and local buses on non-scheduled ir-
regular routes, you may take the credit
only if the seating capacity of the bus
at least 20 adults, not including the driver.

«

5. Gasoline/alcohol Mixture.—You may
claim a credit for excise tax paid on gaso-
line mixed with alcohol. The alcohol must
have been made from other than petro-
leum, natural gas, or coal. The mixture
must have included at least 10% of 190
proof alcohol and must have been sold or
used in your trade or business.

6. Qualified Taxicab Use.—The ultimate
purchaser may claim a credit for Federal
excise tax paid on gasoline, diesel fuel, and
special fuels used after December 31,
1978, and before January 1, 1983, in a
qualified taxicab providing qualified taxi-
cab service. Note: At the time this form
went to print, Congress was considering a
proposal that would extend the expiration
date of December 31, 1982. We will use
news media and other means available to
provide you with information on any
change.

A qualified taxicab is a land vehicle that
holds fewer than 10 adults including the
driver. For 1978 and later model years, the
vehicle model must have a fuel economy
rating better than the average fuel econ-
omy standard for the model year (18
mpg for 1978 models, 19 mpg for 1979, 20
mpg for 1980, 22 mpg for 1981, 24 mpg
for 1982, and 26 mpg for 1983). A taxicab
is qualified if the vehicle received or could
have received an exemption from the fuel
economy standard for the model year. Fuel
economy standards do not apply for vehi-
cles acquired before 1979.

Qualified taxicab service means furnish-
ing nonscheduled land transportation for a
fixed fee in a qualified taxicab. The person
operating the taxicab must be properly li-
censed as a taxicab driver and must not
be prohibited from furnishing ride-sharing.

7. Commercial Aviation Use-—You may
claim credit for excise tax on gasoline
used in commercial aviation and certain
helicopter uses.

Commercial aviation is the use of an
aircraft in a business of carrying people
‘or property by air for pay. The use of an
aircraft may be considered noncommercial
aviation if the aircraft:

(a) Has a maximum certificated takeoff
weight of 6,000 pounds or less and
is not operated on an established
line; or

(b) Is owned or leased by a member of
an affiliated group and is not avail-
able for hire to nonmembers.

Certain helicopter uses are:

(a) Transporting individuals, equip-
ment, or supplies in the exploration
for, or the development or removal
of, hard minerals, or

(b) The planting, cultivation, cutting, or
transportation of, or caring for, trees
(including logging operations),

but only if the helicopter does not take off
from, or land at, a facility eligible for as-
sistance under the Airport and Airway De-
velopment Act of 1970, or otherwise use
services provided pursuant to the Airport
and Airway Improvement Act of 1982 dur-
ing such use. The use must have occurred
after August 31, 1982.

D. What Special Fuels To Include.—

1. Definitions of Special Fuels.—

(a) Diese! Fuel—This fuel is a liquid
that is:

(1) Sold for use in a diesel-powered

highway vehicle; or

(2) Used for fuel in such a highway vehi-
cle. (This use is not taxable if there
was a taxable sale of the fuel under
(1) above.)

(b) Special Motor Fuels.—These fuels

include benzol, benzene, naphtha, lique-

‘Yr US, GOVERNMENT PRINTING OFFICE : 1982~-O-363-173

fied petroleum gas, casinghead and natu-
ral gasoline and other liquid, except kero-
sene, gas oil, fuel oil, diesel fuel, or any
product taxable under section 4081. Spe-
cial motor fuels must be:

(1) Sold for use as a fuel in a motor ve-

hicle or motorboat; or

(2) Used for fuel in a motor vehicle or

motorboat. (This use is not taxable
if there was a taxable sale of the
fuel under (1) above.)

2. Uses of Special Fuels.—

(a) Farm Use.—You may claim credit
for Federal excise tax on fuels as defined
in D.1, See instruction C.1. for require-
ments for “farm use.”

(b) Commercial Fishing Vessel Use.—
You may claim a credit for Federal excise
tax on fuels as defined in D.1. of 2¢ or 4¢,
whichever paid, that were used in vessels
while employed in the fisheries or whaling
business. See instruction C.2.

(c) Intercity, Local, and School Bus
Uses.—You may claim credit for Federal
excise tax on fuels as defined in D.1. See
instruction C.4, for intercity, local, and
school bus requirements.

(d) Commercial Aviation and Certain
Helicopter Uses.—You may claim a credit
for Federal excise tax on fuels as defined
in D.1. of 14g. See instruction C.7. for re-
quirements for commercial aviation and
certain helicopter uses.

(e) Nontaxable Uses —

Diesel and Special Motor Fuel.—These
fuels (defined in D.1.) may qualify for a
credit in any of the following cases:

@ You resold the fuel.

@ You used the fuel for a nontaxable

purpose.

© You used the fuel for a purpose that
was not the one you bought it for.
This other purpose must make a
lower tax rate apply.

If any of these three conditions exist,
claim as credit the figure you get by sub-
tracting (a) the tax that applies to the
actual use of the fuel, from (b) the tax im-
posed by section 4041 on the fuel sold to
you.

E. What Lubricating Oil To Include.—
You may claim an income tax credit for lu-
bricating oil that is used in qualified busi-
ness use, in a qualified bus, or in a com-
mercial fishing vessel. You may include:

@ Oil to lubricate plant machinery.

@ Oil to lubricate vehicles such as air-
craft, bulldozers, buses, power shov-
els, and farm tractors.

You may not include:

© Cutting oils.

@ Used oil.

© Oil used in a highway motor vehicle,
such as a truck, if used for other than
business nonhighway use. See in-
struction C.3.

© Oil sold free of the Federal excise tax
on lubricating oil. Such oil includes
transformer or i
motor fuel additives, crude neat’s-
foot oil, castor oil, and oils purchased
excise-tax-free by use of an exemp-
tion certificate.

F, What Fuels Not To Include.—Do not
include gasoline lost or destroyed through
spillage, accident, or shrinkage. Such gaso-
line is not considered to be used and there-
fore does not qualify for credit or refund.

G. Additional Information.—Publication
225, Farmer’s Tax Guide, and Publication
378, Fuel Tax Credits—Alcohol, Nonhigh-
way Business Equipment, Buses, and Ta:
cabs, are available from the Internal Reve-
nue Service.

363-173-2