Computation of Credit for Federal Tax on

vow 4136 Gasoline and Lubricating Oil | 1966

U.S. Treasury Department

Internal Revenue Service Attach this form to your income tax return for calendar year 1966
or other taxable year beginning, ono nwnnny 1966, CNGING nee nvnvnenreneneney Uren
Name (as shown on page 1 of your tax return)
Address (number and street or rural route)
City, town or post office, and State ZIP code
Gasoline Lubricating Oil
Number of Rate Column (A) Number of Rate Column (D)
Type of Use Gallons of Multiplied by Gallons of Multiplied by
Used Tax Column (B) Used Tax Column (E)
A @) © (©) © a)
1 Nonhighway:
a Farms. «2 ew eee 204 06
b, Motorboat . 2 2 eee 02 |...
ce. Aviation. «ew ee 02 |.
d. Other (specify) ... 02 |...

2 Local transit systems* - 02

3Totals . 2 ee ee ee ee ee ee

4 Total credit claimed (sum of line 3, columns (C) and (F))

: $

‘Attach a statement with the information required under section 6421 of the Internal Revenue Code and Regulations thereunder. List quali-
nD.

fying “lubricating oil” (see Instruction E) in line 1d column D.

INSTRUCTIONS

A. Who May File.—Any individual, estate, trust, or corpo-
ration, including a small business corporation, claiming
credit for Federal excise tax on the number of gallons of
gasoline and lubricating oil used must file and attach this
form to the income tax return. Partnerships are not re-
quired to file this form because the credit for Federal excise
tax on gasoline and lubricating oil used is claimed by the
partners. However, partnerships must attach a statement
to their returns, Form 1065, showing the allocation of the
number of gallons used of gasoline and lubricating oil to
the partners by the 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 D).

B. Period Covered:

(1) Calendar Y ear Taxpayers —Enter in the appropriate
line the number of gallons of gasoline used after June 30,
1965, and before January 1, 1967, and the number of gal-
lons of lubricating oil used after December 31, 1965, and
before January 1, 1967.

(2) Fiscal Year Taxpayers—For years beginning after
January 1, 1966, and before July 1, 1966, enter the num-
ber of gallons of gasoline used after June 30, 1965, through
the end of your taxable year; for taxable years beginning on
or after July 1, 1966, enter the number of gallons of gaso-
line used during your taxable year.

For years beginning after January 1, 1966, enter the
number of gallons of lubricating oil used after December
31, 1965, through the end of your taxable year.

C. Must Be Timely Filed For Credit on Income Tax
Return.—No credit will be allowed on Form 4136 unless
claimed on a timely filed income tax return (including any
extension).

D. 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: (a) refund of tax of $1,000 or more
for gasoline used (except for farmers), or (b) refund of tax
of $1,000 or more for lubricating oil used. However, no
claim will be allowed unless filed on or before the last day
of the following quarter. A claim for both gasoline and
lubricating oil should provide separate computations follow-
ing the format as shown above,

E. What Lubricating Oil To Include.—A credit may be
claimed for lubricating oil (other than cutting oils and other
than oil which has previously been used) which is used
otherwise than in a highway motor vehicle. Cutting oils
are those oils which are sold for use in cutting and machining
operation (including forging, drawing, rolling, shearing,
punching, and stamping) on metals. 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 bulldozers, power
shovels, farm tractors, etc.

Do not include oil: (a) used in a highway motor vehicle,
such as a truck, even if it is operated off the highway, (b)
sold free of the Federal excise tax on lubricating oil, such

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as transformer or insulating 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 Instruction
D).

F. What Gasoline To Include.

1, Farmers.—A credit may be claimed for Federal
excise tax on gasoline used for farming purposes (must be
a trade or business) on a farm located in the United States.

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

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

(a) cultivating the soil, or in connection with raising
or harvesting any agricultural or horticultural commodity,
including the raising, shearing, feeding, caring for,
training, and management of livestock, bees, poultry, and
fur-bearing animals and wildlife, on a farm of which he is
the owner, tenant, or operator; except that if such use is by
any person other than the owner, tenant, or operator of such
farm, then the owner, tenant, or operator of the farm on
which gasoline is used shall be treated as the user and ulti-
mate purchaser of such gasoline;

(b) handling, drying, packing, grading, or storing any
agricultural or horticultural commodity in its unmanufac-
tured state; but only if such owner, tenant, or operator pro-
duced more than one-half of the commodity which he so
treated during the period with respect to which claim is filed;

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

(d) the operation, management, conservation, improve-
ment, or maintenance of such farm and its tools and
equipment.

Do not include gasoline used: (1) on the highway;
(2) in processing, packaging, freezing, or canning opera-
tions; (3) for personal or other nonfarming purposes; or
(4) on the farm of another person even though used for
farming purposes (for example—a custom operator).

In many instances a vehicle will be used both on the farm
for farming purposes and for nonfarming purposes. In

US. GOVERNMENT PRINTING OFFICE: 1986-0-220-108

such cases an allocation of the gasoline used must be made
in arriving at the total gallons of gasoline used on the farm.

2. Nonhighway Uses.—If gasoline is used other-
wise than as a fuel in a highway vehicle (1) which (at the
time of such use) is registered, or is required to be regis-
tered, for highway use under the laws of any State or for-
eign country, or (2) which, in the case of a highway vehicle
owned by the United States, is used on the highway, such
gasoline is regarded as having been used for a nonhighway
purpose.

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 Instruction D).

3. Local Transit Systems.—If gasoline is used
during any calendar quarter in vehicles while engaged in
furnishing scheduled common carrier public passenger land
transportation service along regular routes, the ultimate pur-
chaser of the gasoline may claim a credit for the amount
determined by multiplying—

(a) 2 cents for each gallon of gasoline so used by

(b) the percentage which the ultimate purchaser's com-
muter fare revenue derived from such scheduled service
during such quarter was of his total passenger fare revenue
derived from such scheduled service during such quarter.

A credit for Federal excise tax may be claimed for gaso-
line used by a local transit system during any calendar quar-
ter only if at least 60 percent of the total passenger fare
revenue derived during such quarter from scheduled service
described above by the person filing the claim was attribut-
able to commuter fare revenue derived during such quarter
by such person from such scheduled service.

Commuter fare revenue means revenue attributable to
fares derived from the transportation of persons and attrib-
utable to—(a) amounts paid for transportation which do
not exceed 60 cents, (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.

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 Instruction D).

G. Additional Information.—See Internal Revenue Serv-
ice Publications No. 308, Farmers Gas Tax Credit, and No.
378, Federal Gas Tax Credit or Refund for Nonhighway
and Transit Users.

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