Fuel Tax Credits Introduction and Refunds. Contents. Important Change for Important Reminder. Introduction.

Transcription

1 Deprtment of the Puliction 378 (Rev. Novemer 2001) Ct. No F Contents Importnt Chnge for Importnt Reminder... 1 Tresury Internl Fuel Tx Credits Introduction... 1 Revenue Service 1. Fuels... 2 nd Refunds 2. Definitions of Nontxle Uses Filing Clims Alcohol Fuel Credit How To Get Tx Help...15 Index...17 Importnt Chnge for 2001 Alcohol fuel credit. Beginning in 2001, the stright lcohol credit nd the lcohol mixture credit for the sle or use of ethnol hve een reduced. See Tle 4 1 in chpter 4 nd Form 6478 for the new credit rtes. Importnt Reminder Photogrphs of missing children. The Internl Revenue Service is proud prtner with the Ntionl Center for Missing nd Exploited Children. Photogrphs of missing children selected y the Center my pper in this puliction on pges tht would otherwise e lnk. You cn help ring these children home y looking t the photogrphs nd clling THE LOST ( ) if you recognize child. Introduction This puliction covers federl fuel tx credits you my e le to clim on your income tx return. It lso covers fuel tx refunds you my e le to clim during the yer. This puliction discusses the following sujects. The kinds of fuels tht qulify for credit or refund. The uses of fuels tht qulify for credit or refund. How to clim credit or refund for fuel txes. The lcohol fuel credit. It lso contins n exmple with filled-in forms t the end of chpter 3. Federl, stte, nd locl government gencies nd tx-exempt orgniztions tht re not required to file n income tx return should see Form 8849 nd its instructions for informtion on filing n nnul clim.

2 Tle 1 1. Type of Use Tle gsohol lender is ny person tht regulrly produces gsohol outside of the ulk trnsfer/ No. Type of Use terminl system for sle or use in the lender s 1 On frm for frming purposes trde or usiness. The mount you my clim is sed on the 2 Off-highwy usiness use (for usiness use other thn in highwy vehicle gllons of gsoline used to mke gsohol. You registered or required to e registered for highwy use) cnnot tke refund or credit if the gsoline ws 3 Export txed t reduced rte. 4 In ot engged in commercil fishing Gsohol. Gsohol mens mixture of gsoline nd lcohol tht stisfies the lcohol-con- 5 In certin intercity nd locl uses tent requirements immeditely fter the mixture 6 For diesel fuel, kerosene, nd LPG in qulified locl us is produced. Alcohol includes ethnol nd methnol. 7 In us trnsporting students nd employees of schools Generlly, this includes ethnol used to produce ethyl tertiry utyl ether (ETBE) nd 8 For diesel fuel nd kerosene used other thn s fuel in the propulsion engine of trin or diesel-powered highwy vehicle (ut not off-highwy usiness use) methnol produced from methne gs formed in wste disposl sites. However, lcohol pro- 9 In foreign trde duced from petroleum, nturl gs, col (including 10 Certin helicopter nd fixed-wing ir mulnce uses pet), or ny derivtive or product of these 11 For vition fuel used other thn s fuel in the propulsion engine of n ircrft items, nd lcohol tht is less thn 190 proof do not qulify s lcohol for these rules. Alcohol-content requirements. To qulify s Comments nd suggestions. We welcome to n ultimte purchser. It lso covers the credit gsohol, mixture must contin specific your comments out this puliction nd your or refund llowed gsohol lenders nd regis- mount of lcohol y volume (without rounding). suggestions for future editions. tered ultimte vendors of undyed diesel fuel nd The mount of credit or refund depends on the You cn e-mil us while visiting our we site undyed kerosene. type of gsohol you lend. There re three types t of gsohol. The ultimte purchser of compressed You cn write to us t the following ddress:! nturl gs nd specil motor fuels 10% gsohol. This is mixture tht conother thn liquefied petroleum gs tins t lest 9.8% lcohol. CAUTION Internl Revenue Service used in uses, discussed lter, generlly does Technicl Pulictions Brnch 7.7% gsohol. This is mixture tht connot use txed fuel for nontxle use nd no W:CAR:MP:FP:P tins t lest 7.55%, ut less thn 9.8%, credit or refund would e llowle. These fuels 1111 Constitution Ave. NW lcohol. re descried in Puliction 510. Wshington, DC % gsohol. This is mixture tht contins t lest 5.59%, ut less thn 7.55%, Type tle. Generlly, the nontxle We respond to mny letters y telephone. uses listed under ech fuel re from Tle 1 1, lcohol. Therefore, it would e helpful if you would in- which is contined in the Form 4136 instruc- Any mixture tht contins less thn 5.59% lcoclude your dytime phone numer, including the tions. The first column of the tle is the numer hol is not gsohol. re code, in your correspondence. you enter on Form 4136 for tht type. Figure lcohol content on tch-y-tch Useful Items sis. If you splsh lend tch in n empty You my wnt to see: tnk, figure the volume of lcohol (without djustment for temperture) y dividing the me- Gsoline nd Gsohol Puliction tered gllons of lcohol y the totl metered gllons of lcohol nd gsoline s shown on 510 Excise Txes for 2002 The term gsoline mens ll products (includech delivery ticket. However, if you dd meing gsohol) commonly or commercilly known tered gllons of gsoline nd lcohol to tnk Form (nd Instructions) or sold s gsoline with n octne rting of 75 or lredy contining more thn 0.5% of its cpcmore tht re suitle for use s motor fuel. It 720 Qurterly Federl Excise Tx ity in liquid, you must include the lcohol nd includes gsoline lendstocks, discussed in Return non-lcohol fuel contined in tht liquid in deter- Puliction 510. Avition gsoline is discussed mining the volume of lcohol in tht tch Credit for Federl Tx Pid on lter. Fuels Exmple 1. John uses n empty 8,000 gl- Nontxle Uses 8849 Clim for Refund of Excise Txes lon tnk to lend lcohol nd gsoline. His delivery tickets show tht he lended Btch 1 using 6478 Credit for Alcohol Used s Fuel The following re the uses of gsoline nd gso- 7,200 metered gllons of gsoline nd 800 mehol for which credit or refund my e llowle See chpter 5 for informtion out getting tered gllons of lcohol. John divides the gllons to n ultimte purchser. pulictions nd forms. of lcohol (800) y the totl gllons of lcohol On frm for frming purposes (credit nd gsoline delivered (8,000). Btch 1 qulifies only). s 10% gsohol. Off-highwy usiness use. Exmple 2. John lends Btch 2 in n Export. empty tnk. According to his delivery tickets, he lended 7,220 gllons of gsoline nd 780 gl- In ot engged in commercil fishing. 1. lons of lcohol. Becuse Btch 2 contins only In n intercity or locl us. 9.75% lcohol (780 8,000), it qulifies s 7.7% gsohol. In school us. Btches contining t lest 9.8% lcohol. Fuels If mixture contins t lest 9.8% ut less thn Gsohol Blending 10% lcohol, prt of the mixture is considered to Federl excise txes re imposed on certin e 10% gsohol. To figure tht prt, multiply the fuels. This chpter lists the nontxle uses A gsohol lender my e llowed credit or numer of gllons of lcohol in the mixture y (descried in chpter 2) of ech fuel for which refund for prt of the excise tx imposed on 10. The result is the numer of gllons on which credit or refund of the excise tx my e llowed gsoline the lender uses to produce gsohol. A credit or refund my e climed if the gsoline Pge 2 Chpter 1 Fuels

3 in the mixture ws txed t the full rte. The No credit or refund is llowle for ny use of remining gllons in the mixture re excess liq- Undyed Diesel Fuel dyed diesel fuel nd dyed kerosene. You uy uid on which no credit or refund is llowed. these fuels excise tx free. See Puliction 510 nd Undyed Kerosene for more informtion out these dyed fuels. Exmple. John uses n empty 8,000 gllon tnk to lend gsoline nd lcohol. The delivery The term diesel fuel mens ny liquid tht, Sles y Registered Ultimte tickets show he purchsed nd lended 7,205 without further processing or lending, is suitmetered gllons of gsoline nd 795 metered Vendors le for use s fuel in diesel-powered highwy gllons of lcohol. The gsoline ws txed t the vehicle or trin. Diesel fuel does not include This section descries registered ultimte ven- full rte. The tch contins % lcohol gsoline, kerosene, excluded liquid, No. 5 nd dors tht my e llowed credit or refund of the (795 8,000). John determines tht 7,950 glexcise tx imposed on undyed diesel fuel nd No. 6 fuel oils covered y ASTM specifiction D lons (10 795) of the mixture qulifies s 10% 396, or F-76 (Fuel Nvl Distillte) covered y undyed kerosene. gsohol. The other 50 gllons is excess liquid. militry specifiction MIL-F John reduces the mount of gsoline (7,205 Registered ultimte vendor (frming nd gllons) y the excess liquid (50 gllons) to An excluded liquid is either of the following. stte use). This is person tht sells undyed determine the mount of gsoline used to pro- 1) A liquid tht contins less thn 4% norml diesel fuel or undyed kerosene to ny of the duce the 10% gsohol. He cn clim refund or following. credit for prt of the excise tx imposed on 7,155 prffins. gllons of gsoline. He cnnot clim refund or The owner, tennt, or opertor of frm 2) A liquid with ll the following properties. credit on the 50 gllons of excess liquid. for use y tht person on frm for frm- ) Distilltion rnge of 125 degrees Fhr- ing purposes. Btches contining t lest 7.55% lcohol. enheit or less. If mixture contins t lest 7.55% ut less thn A person other thn the owner, tennt, or 7.7% lcohol, prt of the mixture is considered to ) Sulfur content of 10 ppm or less. opertor of frm for use y tht person e 7.7% gsohol. To figure tht prt, multiply the on frm in connection with cultivting, c) Minimum color of +27 Syolt. numer of gllons of lcohol in the mixture y rising, or hrvesting The result is the numer of gllons on The term kerosene is ny of the following A stte or locl government for its excluwhich credit or refund my e climed if the liquids. sive use. gsoline in the mixture ws txed t the full rte. The remining gllons in the mixture re excess One of the two grdes of kerosene (No. The person must e registered y the IRS s n liquid on which no credit or refund is llowed. 1 K nd No. 2 K) covered y ASTM ultimte vendor. Btches contining t lest 5.59% lcohol. specifiction D A credit or refund my e llowle to the If mixture contins t lest 5.59% ut less thn Kerosene-type jet fuel (vition-grde kerundyed diesel fuel or undyed kerosene to ny of registered ultimte vendor if the vendor sold 5.7% lcohol, prt of the mixture is considered to osene) covered y ASTM specifiction D e 5.7% gsohol. To figure tht prt, multiply the the users listed or militry specifiction numer of gllons of lcohol in the mixture y MIL-DTL-5624T (Grde JP-5) or Registered ultimte vendor (locked pump) The result is the numer of gllons on MIL-DTL-83133E (Grde JP-8). This is person tht sells undyed kerosene from which credit or refund my e climed if the locked pump. The person must e registered gsoline in the mixture ws txed t the full rte. Kerosene lso includes ny liquid tht would y the IRS s n ultimte vendor (locked The remining gllons in the mixture re excess e descried ove ut for the presence of pump). liquid on which no credit or refund is llowed. dye of the type used to dye kerosene for A credit or refund my e llowle to nontxle use. registered ultimte vendor (locked pump) if the However, kerosene does not include n ex- vendor sold undyed kerosene from locked cluded liquid, discussed erlier. pump for its uyer s use other thn s fuel in Avition Gsoline diesel-powered highwy vehicle or trin nd the Nontxle Uses vendor hd no reson to elieve the kerosene The term vition gsoline mens ll specil would not e used in tht mnner. grdes of gsoline suitle for use in vition The following re the uses of undyed diesel fuel reciprocting engines nd covered y ASTM Blocked pump. A locked pump is fuel nd undyed kerosene for which credit or respecifiction D 910 or militry specifiction pump tht meets ll the following requirements. fund my e llowle to n ultimte purchser. MIL-G ) It is used to mke retil sles of undyed Off-highwy usiness use. kerosene for use y the uyer in ny non- Nontxle Uses Export. txle use. The following re the uses of vition gsoline In n intercity or locl us. 2) It is t fixed loction. for which credit or refund my e llowle to In qulified locl us. 3) It is identified with legile nd conspicun ultimte purchser. ous notice stting, UNDYED UNTAXED In school us. On frm for frming purposes (credit KEROSENE, NONTAXABLE USE ONLY. only). Used other thn s fuel. 4) It meets either of the following conditions. Export. In trin. ) It cnnot resonly e used to dis- In foreign trde. pense fuel directly into the fuel supply Only registered ultimte vendor Certin helicopter nd fixed-wing ir m- tnk of diesel-powered highwy vehi- (locked pump), discussed lter, cn ulnce uses.! cle or trin. CAUTION clim credit or refund for ny nontx- In commercil vition (other thn foreign le use of undyed kerosene if the kerosene is ) It is locked y the vendor fter ech trde). sold from locked pump. sle nd unlocked y the vendor only in response to uyer s request for undyed kerosene for use other thn s Note: Only registered ultimte vendor fuel in diesel-powered highwy vehi- (frming nd stte use), discussed lter, cn cle or trin. clim credit or refund for undyed diesel fuel or undyed kerosene used on frm for frming purposes or used y stte or locl govern- Registered ultimte vendor (lending). This ment. is txle fuel registrnt (discussed in Pulic- Chpter 1 Fuels Pge 3

4 tion 510), registered ultimte vendor, or If ny other person, such s neighor or cusregistered ultimte vendor (locked pump). tom opertor, performs service for you on your A credit or refund my e llowle to frm for ny of the purposes listed in (1) or (2), registered ultimte vendor (lending) if the ven- 2. you re considered to e the person tht used dor sold undyed kerosene in n re descried the fuel on frm for frming purposes. Howin n IRS declrtion of extreme cold for the ever, see Custom ppliction of fertilizer nd production of cold wether lend. pesticide, lter. Definitions of Cold wether lend. This is lend of keror the opertor of the frm ought the fuel, If dout exists whether the owner, the tennt, osene nd diesel fuel produced in n re dedetermine who ore the cost of the fuel. For scried in n IRS declrtion of extreme cold Nontxle nd sold for use or used for heting purposes. exmple, if the owner of frm nd the tennt eqully shre the cost of gsoline tht is used on Uses frm for frming purposes, ech cn clim credit for the tx on one-hlf the fuel used. Avition Fuel Custom ppliction of fertilizer nd pesti- This chpter provides definitions relting to the cide. The use of fuel in the eril or other nontxle uses mentioned in chpter 1. The term vition fuel mens ny liquid, other ppliction of fertilizer, pesticides, or other suthn gsoline or diesel fuel, tht is suitle for stnces is use of fuel on frm for frming use s fuel in n ircrft. purposes. You, s the owner, tennt, or oper- tor, re treted s the ultimte purchser of the Nontxle Uses Frming Purposes fuel. However, in the cse of gsoline, you my wive your right to e treted s the ultimte The following re the uses of vition fuel for A credit or refund my e llowed for the excise purchser. If you wive your right, the pplictor which credit or refund my e llowle to n tx on fuel used or sold for use on frm for is treted s hving used the gsoline on frm ultimte purchser. frming purposes. Fuel is used on frm for for frming purposes. frming purposes only if used in crrying on To wive your right to e treted s the On frm for frming purposes. trde or usiness of frming, on frm in the ultimte purchser, you must tke ll the follow- Export. United Sttes, nd for frming purposes. ing ctions. In foreign trde. If undyed diesel fuel or undyed ker- Before the pplictor files his or her clim,! osene is used on frm for frming Certin helicopter nd fixed-wing ir mexecute in writing n irrevocle gree- CAUTION purposes, the clim is mde y the ulnce uses. ment stting tht you knowingly give up registered ultimte vendor. your right to the credit or refund. You my Used other thn s fuel. uthorize n gent, such s coopertive, Frm. A frm includes livestock, diry, fish, In commercil vition (other thn foreign to sign the wiver for you. poultry, fruit, fur-ering nimls, nd truck trde). Identify clerly the period the wiver covfrms, orchrds, plnttions, rnches, nurers. The effective period of your wiver series, rnges, nd feed yrds for fttening ctcnnot extend eyond the lst dy of your tle. It lso includes structures such s tx yer. greenhouses used primrily for the rising of Liquefied Petroleum griculturl or horticulturl commodities. A fish The pplictor must retin copy of the frm is n re where fish re grown or rised wiver nd give you copy. Do not send copy Gs not merely cught or hrvested. to the Internl Revenue Service unless requested to do so. The term liquefied petroleum gs (LPG) in- Frming purposes. As n owner, tennt, or cludes propne, utne, nd pentne, or mixmy pper on n invoice or nother document opertor, you use fuel on frm for frming The wiver my e seprte document or it tures of those gses. purposes if you use it in ny of the following wys. from the pplictor. If the wiver ppers on n invoice or other document, it must e printed in Nontxle Uses 1) To cultivte the soil or to rise or hrvest section clerly set off from ll other mteril, nd The following re the uses of LPG for which ny griculturl or horticulturl commodity. it must e printed in type sufficiently lrge to put credit or refund my e llowle to n ultimte you on notice tht you re wiving your right to 2) To rise, sher, feed, cre for, trin, or purchser. the credit or refund. If the wiver ppers s prt mnge livestock, ees, poultry, fur-er- of n invoice or other document, it must e In n intercity or locl us. ing nimls, or wildlife. signed seprtely from ny other item tht requires In qulified locl us. 3) To operte, mnge, conserve, improve, your signture. In school us. or mintin your frm nd its tools nd The effective period of the wiver cnnot equipment. extend eyond your tx yer. When the period covered y the wiver extends eyond the 4) To hndle, dry, pck, grde, or store ny pplictor s tx yer, the pplictor must wit rw griculturl or horticulturl commodity. until the next tx yer to clim the portion for tht For this use to qulify, you must hve properiod. duced more thn hlf the commodity so treted during the tx yer. Commodity Fuel not used for frming. You do not use mens single rw product. For exmple, fuel on frm for frming purposes when you pples nd peches re two seprte use it in ny of the following wys. commodities. Off the frm, such s on the highwy or in 5) To plnt, cultivte, cre for, or cut trees or noncommercil vition, even if the fuel is to prepre (other thn swing logs into used in trnsporting livestock, feed, crops, lumer, chipping, or other milling) trees for or equipment. mrket, ut only if the plnting, etc., is inci- For personl use, such s mowing the dentl to your frming opertions. Your lwn. tree opertions will e incidentl only if they re minor in nture when compred In processing, pckging, freezing, or cnto the totl frming opertions. ning opertions. Pge 4 Chpter 2 Definitions of Nontxle Uses

5 In processing crude gum into gum spirits ) The chssis hs permnently mounted Use in seprte motor. Off-highwy usiof turpentine or gum resin or in processing to it mchinery or equipment used to ness use includes fuel used in seprte motor mple sp into mple syrup or mple perform certin opertions (construcsugr. to operte specil equipment, such s refriger- tion, mnufcturing, drilling, mining, tion unit, pump, genertor, or mixing unit. If you timering, processing, frming, or simito drw fuel from the sme tnk tht supplies fuel lr opertions) if the opertion of the the propulsion motor, you must figure the mchinery or equipment is unrelted to quntity used in the seprte motor operting trnsporttion on or off the pulic high- the specil equipment. You my mke reson- Off-Highwy Business wys. le estimte sed on your operting experi- ence nd supported y your records. Use ) The chssis hs een specilly de- You cn use devices tht mesure the miles signed to serve only s moile crthe vehicle hs trveled (such s huometers) A credit or refund my e llowed for the excise rige nd mount for the mchinery or tx on fuel used for n off-highwy usiness to figure the gllons of fuel used to propel the equipment, whether or not the mchinvehicle. Add to this mount the fuel consumed use. ery or equipment is in opertion. Off-highwy usiness use is ny use of fuel while idling or wrming up the motor efore in trde or usiness or in n income-producing c) The chssis could not, ecuse of its propelling the vehicle. The difference etween ctivity other thn s fuel in highwy vehicle specil design nd without sustntil your totl fuel used nd the fuel used to propel registered or required to e registered for use on structurl modifiction, e used s prt the vehicle is the fuel used in the seprte mo- pulic highwys. The terms registered nd of vehicle designed to crry ny other tor. pulic highwy re defined lter. Do not conlod. Exmple. Sr owns refrigerted truck. It sider ny use in ot s n off-highwy usihs seprte motor for the refrigertion unit. 2) Vehicles designed for off-highwy trnsness use. porttion. A self-propelled vehicle is not The sme tnk supplies oth motors. Using the Off-highwy usiness use includes fuels highwy vehicle if oth of the following pused in ny of the following wys. truck s huometer, Sr figures tht 90% of the ply. fuel ws used to propel the truck. Therefore, In sttionry mchines such s gener- 10% of the fuel is used in n off-highwy usi) tors, compressors, power sws, nd similr The vehicle is designed primrily to ness use. equipment. crry specific kind of lod other thn over the pulic highwy for certin op- Fuel lost or destroyed. You cnnot tret fuel For clening purposes. ertions (construction, mnufcturing, lost or destroyed through spillge, fire, or other In forklift trucks, ulldozers, nd mining, processing, frming, drilling, csulty s fuel used in n off-highwy usiness erthmovers. timering, or similr opertions). use. ) The vehicle s use in crrying this lod Generlly, this use does not include nonusiover pulic highwys is sustntilly ness use of fuel, such s use y miniikes, limited or impired ecuse of its desnowmoiles, power lwn mowers, chin sws, sign. To mke this determintion, you nd other yrd equipment. cn tke into ccount whether the vehi- Export cle cn trvel t regulr highwy A credit or refund my e llowed for the excise Exmple. Jonn owns lndscping usispeeds, requires specil permit for tx on fuel tht is exported. ness. She uses power lwn mowers nd chin highwy use, or is overweight, Fuel is exported when it is shipped from the sws in her usiness. The gsoline used in the overheight, or overwidth for regulr United Sttes to foreign country or possession power lwn mowers nd chin sws qulifies s highwy use. of the United Sttes with the intention tht the fuel used in n off-highwy usiness use. The fuel remin in the foreign country or possession gsoline used in her personl lwn mower t of the United Sttes. home does not qulify. Pulic highwy. A pulic highwy includes ny rod in the United Sttes tht is not privte Highwy vehicle. A highwy vehicle is ny rodwy. This includes federl, stte, county, self-propelled vehicle designed to crry lod nd city rods nd streets. over pulic highwys, whether or not it is lso Commercil Fishing designed to perform other functions. Exmples Registered. A vehicle is considered regisof vehicles designed to crry lod over pulic A credit or refund my e llowed for the excise tered when it is registered or required to e highwys re pssenger utomoiles, tx on fuel used in ot engged in commer- registered for highwy use under the lw of ny motorcycles, uses, nd highwy-type trucks cil fishing. stte, the District of Columi, or ny foreign nd truck trctors. A vehicle is highwy vehicle Bots engged in commercil fishing in- country in which it is operted or situted. Any even though the vehicle s design llows it to clude only wtercrft used in tking, ctching, highwy vehicle operted under deler s tg, perform highwy trnsporttion function for processing, or trnsporting fish, shellfish, or license, or permit is considered registered. A only one of the following. other qutic life for commercil purposes, such highwy vehicle is not considered registered s selling or processing the ctch, on specific A prticulr type of lod, such s pssentrip sis. They include ots used in oth fresh solely ecuse specil permit llows the vehigers, furnishings, nd personl effects (s cle to e operted t prticulr times nd under nd slt wter fishing. They do not include ots in house, office, or utility triler). specified conditions. used for oth sport fishing nd commercil fishing on the sme trip. A specil kind of crgo, goods, supplies, Dul use of propulsion motor. Off-highwy or mterils. usiness use does not include ny fuel used in Some off-highwy tsk unrelted to highvehicle even though tht motor lso opertes the propulsion motor of registered highwy wy trnsporttion, except s discussed next. specil equipment y mens of power tke-off or power trnsfer. It does not mtter if the spe- Buses Vehicles not considered highwy vehicles. cil equipment is mounted on the vehicle. A credit or refund my e llowed for the excise Generlly, the following kinds of vehicles re not tx on fuel used in certin uses. considered highwy vehicles. Exmple. The motor of registered concrete-mixer truck opertes oth the engine Intercity or Locl Bus 1) Specilly designed moile mchinery for nd the mixing unit y mens of power nontrnsporttion functions. A self-pro- tke-off. The fuel used in the motor to run the An intercity or locl us is us engged in pelled vehicle is not highwy vehicle if ll mixer is not used in n off-highwy usiness furnishing (for compenstion) pssenger lnd the following pply. use. trnsporttion ville to the generl pulic. Chpter 2 Definitions of Nontxle Uses Pge 5

6 The us must e engged in one of the following ctivities. velopment or removl of, hrd minerls, oil, or gs. Used Other Thn s Scheduled trnsporttion long regulr 2) Plnting, cultivting, cutting, trnsporting, Fuel routes regrdless of the size of the us. or cring for trees (including logging oper- tions). Nonscheduled opertions if the seting A credit or refund my e llowed for the excise cpcity of the us is t lest 20 dults, tx on fuel used other thn s fuel in propul- 3) Providing trnsporttion for emergency not including the driver. Vns nd similr sion engine. medicl services. vehicles used for vn-pooling or txi ser- During use descried in items (1) nd (2), vice do not qulify. Diesel Fuel or Kerosene the helicopter must not tke off from, or lnd t, fcility eligile for ssistnce under the Airport This nontxle use pplies to diesel fuel or Aville to the generl pulic. This mens nd Airwy Development Act of 1970, or otherkerosene used other thn s fuel in the propulwise use services provided pursunt to section you offer service to more thn limited numer sion engine of diesel-powered highwy vehicle of persons or orgniztions. If us opertor or 44913() or suchpter I of chpter or diesel-powered trin. This use does not in- 471 of title 49, United Sttes Code. For item (1), normlly provides chrter opertions through clude off-highwy usiness use, discussed ertret ech flight segment s seprte flight. trvel gencies ut hs uses ville for chr- lier. This use pplies to diesel fuel or kerosene tering y the generl pulic, this service is vil- used in the following wys. le to the generl pulic. A us does not qulify Fixed-wing ir mulnce uses. Fuel is 1) For home heting, lighting, nd cooking. used in qulifying fixed-wing ir mulnce when its opertor uses it to provide exclusive use when the ircrft is providing emergency services to only one person, group, or orgniz- 2) In ots. medicl services. The ircrft must e equipped tion. 3) For ny of the following nonusiness uses. for nd exclusively dedicted on tht flight to cute cre emergency medicl services. Qulified Locl Bus ) In sttionry mchines, such s genertors nd compressors. A qulified locl us is us meeting ll the following requirements. It is engged in furnishing (for compenstion) intrcity pssenger lnd trnsporttion ville to the generl pulic. It opertes long scheduled, regulr routes. It hs seting cpcity of t lest 20 dults (excluding the driver). It is under contrct with (or is receiving more thn nominl susidy from) ny stte or locl government to furnish the trnsporttion. Intrcity pssenger lnd trnsporttion. This is the lnd trnsporttion of pssengers etween points locted within the sme metro- ) For clening purposes. c) In miniikes nd snowmoiles. Avition Fuel This nontxle use pplies to vition fuel used other thn s fuel in the propulsion engine of n ircrft. This use pplies to vition fuel used in the following wys. In sttionry mchines, such s genertors nd compressors. For clening purposes. In vehicles. Stte or Locl Government A credit or refund my e llowed for the excise tx on fuel used or sold for use y stte or locl government.! CAUTION dor. If undyed diesel fuel or undyed ker- osene is used y stte, the clim is mde y the registered ultimte ven- The fuel must e purchsed y the stte or locl government for its exclusive use. A stte or locl government is ny stte, ny politicl sudivision thereof, or the District of Columi. An Indin tril government is treted s stte only if the fuel is used in n ctivity tht involves the exercise of n essentil tril government politn re. It includes trnsporttion long Foreign Trde function. The use of gsoline, diesel fuel, nd Under contrct. A us is under contrct with stte or locl government only if the contrct imposes on fide oligtion on the us opertor to furnish the trnsporttion. More thn nominl susidy. A susidy is more thn nominl if it is resonly expected to exceed n mount equl to 3 cents multiplied y A credit or refund my e llowed for the excise tx on fuel used in foreign trde. Used in foreign trde mens used in civil ircrft employed in foreign trde or trde etween the United Sttes nd ny of its posses- sions. In the cse of ircrft registered in foreign country, the country must llow recipro- cl enefits for ircrft registered in the United Sttes. routes tht cross stte, city, or county oundries if the routes remin within the metropolitn re. kerosene y the Americn Red Cross is consid- ered to e the use of these fuels y stte. Commercil Avition A credit or refund my e llowed for the excise tx on fuel used in commercil vition (other thn foreign trde). Commercil vition mens the use of n ircrft in the usiness of trnsporting persons or property y ir for py. However, commercil the numer of gllons of fuel used in uses on Helicopter nd susidized routes. A compny tht opertes its vition does not include ny of the following. uses long susidized nd unsusidized in- Fixed-Wing Air Any use of n ircrft tht hs mximum trcity routes my consider its uses qulified certificted tkeoff weight of 6,000 pounds locl uses only when the uses re used on the Amulnce susidized intrcity routes. School Bus A school us is us engged in the trnsporttion of students or employees of schools. A school is n eductionl orgniztion with regulr fculty nd curriculum nd regulrly enrolled ody of students who ttend the plce where the eductionl ctivities occur. Pge 6 Chpter 2 Definitions of Nontxle Uses A credit or refund my e llowed for the excise tx on fuel used for certin helicopter nd fixed-wing ir mulnce uses. Any use exclusively for the purpose of skydiving. Any use of n ircrft owned or lesed y memer of n ffilited group nd un- ville for hire y nonmemers of the group. The determintion of whether n ircrft is ville for hire y nonmemers is mde on flight-y-flight sis. Certin helicopter uses. Fuel is used in qulifying helicopter use when the helicopter is used for ny of the following purposes. 1) Trnsporting individuls, equipment, or supplies in the explortion for, or the de- or less unless the ircrft is operted on n estlished line.

7 Tle 3-1. Model Certificte A CERTIFICATE OF FARMING USE OR STATE USE (To support vendor s clim for credit or pyment under section 6427 of the Internl Revenue Code) requirements, interest nd penlty provisions, nd when to include the credit or refund in your income. Nme, Address, nd Employer Identifiction Numer of Vendor The undersigned uyer ( Buyer ) herey certifies the following under penlties of perjury: A. Buyer will use the diesel fuel or kerosene to which this certificte reltes (check one): 1. On frm for frming purposes (s defined in of the Mnufcturers nd Retilers Excise Tx Regultions) nd Buyer is the owner, tennt, or opertor of the frm on which the fuel will e used; 2. On frm (s defined in ) for ny of the purposes descried in of tht section (relting to cultivting, rising, or hrvesting) nd Buyer is not the owner, tennt, or opertor of the frm on which the fuel will e used; or 3. For the exclusive use of Stte or locl government, or the District of Columi. B. This certificte pplies to the following (complete s pplicle): 1. If this is single purchse certificte, check here nd enter:. Invoice or delivery ticket numer. Numer of gllons 2. If this is certificte covering ll purchses under specified ccount or order numer, check here nd enter:. Effective dte. Expirtion dte (period not to exceed 1 yer fter effective dte) c. Buyer ccount or order numer Buyer will provide new certificte to the vendor if ny informtion in this certificte chnges. If Buyer uses the diesel fuel or kerosene to which this certificte reltes for purpose other thn stted in the certificte, Buyer will e lile for ny tx. Buyer understnds tht the frudulent use of this certificte my suject Buyer nd ll prties mking such frudulent use of this certificte to fine or imprisonment, or oth, together with the costs of prosecution. Printed or typed nme of person signing Title of person signing Nme of Buyer Employer identifiction numer Address of Buyer Signture nd dte signed Trin A credit or refund my e llowed for the excise tx on fuel used in trin. Use in trin mens use in the propulsion Generl Informtion Generlly, you will provide ll the informtion needed to clim credit or refund when you properly complete the clim form. In some cses, you will hve to ttch dditionl informtion. You need to keep records tht support your clim for credit or refund. Keep t your principl plce of usiness ll records needed to enle the RECORDS IRS to verify tht you re the person entitled to clim credit or refund nd the mount you climed. No specil form is required, ut the records should estlish ll the following informtion. Ultimte purchser. If you re n ultimte purchser, you must keep the following records. The numer of gllons purchsed nd used during the period covered y your clim. The dtes of the purchses. The nmes nd ddresses of suppliers nd mounts purchsed from ech in the period covered y your clim. The nontxle use for which you used the fuel. The numer of gllons used for ech nontxle use. It is importnt tht your records show seprtely the numer of gllons used for ech nontxle use tht qulifies s clim. If the fuel is exported, you must hve proof of exporttion. For more informtion out keeping records, see Puliction 583, Strting Business nd Keeping Records, or Puliction 552, Recordkeeping for Individuls. Gsohol lending. If you re gsohol lender, you must keep the following informtion for ech tch of gsohol. The nme nd ddress of the person tht sold you the gsoline. The dte nd loction of the purchse of the gsoline. The numer of gllons of gsoline. The nme nd ddress of the person tht sold you the lcohol. The dte nd loction of the purchse of the lcohol. The numer of gllons nd type of lcohol. Registered ultimte vendor. If you re reg- 3. istered ultimte vendor (s discussed in chpter 1 under Undyed Diesel Fuel nd Undyed Ker- osene), you must keep certin informtion pertining to the sle of the fuel. engine of equipment or mchinery tht rides on Filing Clims To mke clim, you must hve sold the rils. This includes use in locomotive, work trin, switching engine, nd trck mintennce mchine. This chpter tells you how nd when to mke clim for credit or refund of excise txes on fuels. This chpter lso covers recordkeeping diesel fuel or kerosene t tx-excluded price, repid the tx to the uyer, or otined the uyer s written consent to the llownce of the clim. Chpter 3 Filing Clims Pge 7

8 Tle 3-2. Model Certificte B CERTIFICATE OF BUYER FOR PRODUCTION OF A COLD WEATHER BLEND (To support vendor s clim for credit or pyment under section 6427 of the Internl Revenue Code) of perjury: (Buyer) certifies the following under penlties A. The kerosene to which this certificte pplies will e used y Buyer to produce lend of kerosene nd diesel fuel in n re descried in declrtion of extreme cold nd the lend will e sold for use or used for heting purposes. B. This certificte pplies to percent of Buyer s purchses from If Buyer violtes the terms of this certificte, the Internl Revenue Service my withdrw Buyer s right to provide certificte. Buyer hs not een notified y the Internl Revenue Service tht its right to provide certificte hs een withdrwn. Buyer understnds tht the frudulent use of this certificte my suject Buyer nd ll prties mking such frudulent use of this certificte to fine or imprisonment, or oth, together with the costs of prosecution. Printed or typed nme of person signing Title of person signing Employer identifiction numer Address of Buyer Nme of Buyer (nme, ddress, nd employer identifiction numer of seller) on invoice or delivery ticket numer. Employer identifiction numer (EIN). Socil security numer (SSN). Individul txpyer identifiction numer (ITIN), if you re n lien individul nd do not hve nd re not eligile to get n SSN. If you normlly file only U.S. individul income tx return (such s Form 1040 or 1040NR), use your SSN or ITIN. You get n SSN y filing Form SS 5, Appliction for Socil Security Crd, with the Socil Security Administrtion. To get n ITIN, file Form W 7, Appliction for IRS Individul Txpyer Identifiction Numer, with the IRS. If you operte usiness, use your EIN. You get n EIN y filing Form SS 4, Appliction for Employer Identifiction Numer, with the IRS. Filing dte on holidy or weekend. If the lst dy for filing your clim flls on Sturdy, Sundy, or legl holidy, the due dte is delyed until the next usiness dy. Credit or refund. A credit is n mount you clim on your income tx return when you file it t the end of the yer. If you meet certin requirements (discussed lter), you cn clim refund during the yer. Credit only. You cn clim the following txes only s credit. Tx on gsoline used on frm for frming purposes. Tx on fuels used for nontxle uses if the totl for the tx yer is less thn 750. Tx on fuel you did not include in ny clim for refund previously filed for ny qurter of the tx yer. Signture nd dte signed Climing Credit To mke clim, you must hve registr- Blocked pump. If you sell undyed kerosene tion numer tht hs not een revoked or sus- from pump tht qulifies s locked pump You mke clim for credit on Form 4136 nd pended. If you re n ultimte vendor (frming ecuse it is locked y you fter ech sle nd is ttch it to your income tx return. Do not clim nd stte use), you must hve UV registrtion unlocked y you t the request of the uyer, you credit for ny mount for which you hve filed numer. If you re n ultimte vendor (locked must keep the following informtion for ech refund clim. pump), you must hve UP registrtion num- sle of more thn 5 gllons. er. You cn get either registrtion numer from When to file. You cn clim fuel tx credit on the IRS y completing Form 637, Appliction for The dte of ech sle. your income tx return for the yer you used the Registrtion (For Certin Excise Tx Activities), The nme nd ddress of the uyer. fuel (or sold the fuel in the cse of gsohol nd providing the informtion requested in its lender or registered ultimte vendor clims). instructions. The numer of gllons sold to tht uyer. Once you hve filed Form 4136, you Frming nd stte use. If you sell undyed Blending. If you sell undyed kerosene for! cnnot file n mended return to show diesel fuel or undyed kerosene for use on frm CAUTION lending with diesel fuel in n re under n increse in the numer of gllons for frming purposes or for use y stte or declrtion of extreme cold nd the lend will e reported on line of tht form. See the following locl government, you must keep the following sold for use or used for heting purposes, you discussion for when you cn file clim on n informtion. must keep the following informtion. mended return. The nme nd txpyer identifiction numer of ech person (frmer, custom The numer of gllons sold to ech per- Fuel tx clim on mended return. You hrvester, or government unit) tht ought son. my e le to mke fuel tx clim on n the fuel. mended return for the yer you used or sold the An unexpired certificte from the uyer for fuels. Generlly, you must file n mended reech purchse of kerosene. See Tle The numer of gllons sold to ech per- turn y the lter of 3 yers from the dte you son filed your originl income tx return or within 2 An unexpired certificte from the uyer. yers from the time you pid the income tx. A See Tle 3 1. Txpyer identifiction numer. To file return filed erly is considered to hve een filed clim, you must hve txpyer identifiction on the due dte. numer. Your txpyer identifiction numer You cn file n mended return to clim cn e ny of the following. fuel tx credit if ny of the following pply. Pge 8 Chpter 3 Filing Clims

9 on frm for frming purposes. This is Group I qurter (for which no other clim hs een filed) You did not clim ny credit for fuel txes clim. You cnnot mend your return to clim during the tx yer. on Form 4136 for the tx yer. credit for n mount on line 2 for use of vition If you cnnot clim t lest 750 t the end of Your credit is for gsohol lending, dis- gsoline on frm for frming purposes (Type of qurter, you crry the mount over to the next cussed in chpter 1. Use 1) since tht is lso Group I clim. How- qurter of your tx yer to determine if you cn ever, if you used vition fuel on frm for clim t lest 750 for tht qurter. If you cnnot Your credit is for clim group, explined frming purposes, you cn mend your return to clim t lest 750 t the end of the fourth next, for which you did not previously file clim the credit for tht fuel tx ecuse tht qurter of your tx yer, you must clim credit clim on Form 4136 for the tx yer. would e Group VI clim reported on line 5 on your income tx return using Form (Type of Use 1). Clims on Form 4136 (other thn for gsohol How to file. File the clim for refund y filling lending) re seprted into seven clim How to clim credit. How you clim credit out Schedule 1 (Form 8849) nd ttching it to groups. Once you file Form 4136 with clim depends on whether you re n individul, prtfor group, you cnnot file n mended return Form Send it to the ddress shown in the nership, corportion, S corportion, or frmers instructions. Only one clim my e filed for with nother clim for tht group. However, you coopertive. qurter. cn file n mended return with clim for nother group. Individuls. You clim the credit on line 65 Only the registered ultimte vendor The following tles show wht clims re in of Form Check ox on line 65. If you! cn clim refund for the excise tx on CAUTION ech group. The numers in the second column would not otherwise hve to file n income tx undyed diesel fuel nd undyed ker- of ech tle refer to the line numers on Form return, you must do so to get fuel tx credit. osene in certin situtions, s discussed lter The numers in the third column re from Prtnerships. A prtnership cnnot clim the Type of Use Tle shown s Tle 1 1 in the credit on Form 1065, U.S. Return of Prtnerchpter 1. ship Income. The prtnership must include on dyed diesel fuel. For the first qurter of your tx Exmple. You purchsed gsoline nd un- line 25 of Schedule K-1 (Form 1065), Prtner s yer, the excise tx on fuel you use for n Tle 3 3. Clim Groups for Tx Shre of Income, Credits, Deductions, etc., off-highwy usiness use is 184 for gsoline Yers ech prtner s shre of the numer of gllons of nd 244 for diesel fuel. You cnnot file clim ech fuel sold or used for nontxle use, the for refund since the totl (428) is less thn Group Line Numer Type of Use type, nd the pplicle credit per gllon Ech prtner clims the credit on his or her For the second qurter, the excise tx on fuel I 1, 1d-f, 2 1 income tx return for his or her shre of the fuel you use for n off-highwy usiness use is 92 used y the prtnership. for gsoline nd 244 for diesel fuel. You dd 1, 1d-f 2 An electing lrge prtnership cn clim the the mount from the first qurter (428) to the II credit on line 27 of Form 1065 B, U.S. Return of totl mount from the second qurter (336) nd 2 See line instructions Income for Electing Lrge Prtnerships. determine you cn file clim for refund since the totl is 764. III 1c-f 5, 7 Corportions. To clim the credit, corportions use either line 32g of Form 1120, U.S. When to file. You must file qurterly clim IV your tx yer, you will hve to clim credit for V 7 See line instructions S corportions. To clim the credit, S corportions use line 23c of Form 1120S, U.S. tht mount on your income tx return, s dis- VI 3, 4, 5, 6 See line instructions Income Tx Return for n S Corportion. cussed erlier. Frmers coopertive ssocitions. If the VII 2 10 Gsohol Blending coopertive must file Form 990 C, Frmers Coopertive Assocition Income Tx Return, it If you re gsohol lender, you cn mke Tle 3 4. Clim Groups for Tx uses line 32g to clim the credit. clim to get refund of prt of the excise tx on Yers After 2000 Trusts. Trusts required to file Form 1041, gsoline used to produce gsohol. See Gsohol U.S. Income Tx Return for Esttes nd Trusts, Blending under Gsoline nd Gsohol in chp- Group Line Numer Type of Use use line 24g to clim the credit. ter 1. The following clim requirements pply. The clim must e for gsohol sold or I 1, 1d-f, 2 1 used during period of t lest 1 week. 1c-f 3, 4 Corportion Income Tx Return, or line 28g of y the lst dy of the first qurter following the 2 3, 9 Form 1120 A, U.S. Corportion Short-Form In- lst qurter included in the clim. If you do not come Tx Return. file timely refund clim for the fourth qurter of The clim must e for t lest 200. II The clim cn only e mde y the gso- 2 See line instructions You mke clim for refund on Form hol lender. Complete nd ttch to Form 8849 the ppropri- III 1c-f 5, 7 te Form 8849 schedules. If you file Form 720, How to file. File the clim y filling out Schedyou cn use the Schedule C portion of Form 720 1c-f 3, 4 ule 3 (Form 8849) nd ttching it to Form IV for your refund clims. (See the Form 720 in- The Form 8849 cnnot hve ny other schedule 2 3, 9 structions.) Do not clim refund on Form 8849 ttched if Schedule 3 is ttched. Send it to for ny mount for which you hve filed or will the ddress shown in the instructions. Write V 8 See line instructions file clim on Schedule C (Form 720) or Form Gsohol Clim on the envelope VI 3, 4, 5, 6, 7 See line instructions When to file. The clim must e filed y the Ultimte Purchsers lst dy of the first qurter following the erliest VII 2 10 qurter included in the clim. If you do not meet If you re n ultimte purchser, you cn clim the requirements or file timely refund clim, For ech tx yer, you cn mke only one refund for the excise tx on fuels you purchse you will hve to clim credit on your income tx clim for ech group. nd use for nontxle use. You cn file return, s discussed erlier. clim for refund for ny qurter of your tx yer Exmple. You file your 2001 income tx re- for which you cn clim 750 or more. This You cnnot comine this clim with turn nd clim fuel tx credit. Your Form 4136 mount is the excise tx on ll fuels used for! ny other clim on Form CAUTION shows n mount on line 1 for use of gsoline nontxle use during tht qurter or ny prior 1, 1d-f 2 Climing Refund Chpter 3 Filing Clims Pge 9

10 Registered Ultimte Vendors It files its tx return in It includes this credit (700) in its 2002 gross income. refund clim, discussed erlier, for n excessive mount (without resonle cuse) my hve to If you re registered ultimte vendor, you cn py penlty. The penlty is the greter of two mke clim to get refund of the excise tx on times the excessive mount or 10. undyed diesel fuel or undyed kerosene tht you sold. See Sles y Registered Ultimte Vendors under Undyed Diesel Fuel nd Undyed Ker- Accrul method. If you use n ccrul method, include the mount in gross income for the tx yer in which you used the fuels (or sold the fuels if you re registered ultimte vendor). osene in chpter 1. Including the Credit It does not mtter whether you filed for qurterly refund or climed the entire mount s Undyed diesel fuel. You must meet the fol- or Refund in Income credit. lowing requirements for this clim. Include ny credit or refund of excise txes on The clim must e for undyed diesel fuel Exmple 3. Todd Green uses n ccrul fuels in your gross income if you climed the sold for use on frm for frming purtotl cost of the fuel (including the excise txes) method. He files his 2001 return on April 15, poses or y stte or locl government On Schedule C (Form 1040) he deducts s n expense deduction tht reduced your inthe totl cost of gsoline (including 155 of ex- The clim must e for sles during pe- come tx liility. riod of t lest 1 week. cise txes) used for n off-highwy usiness The yer you include credit or refund in use during On Form 4136, Todd clims The clim must e for t lest 200. gross income depends on whether you use the the 155 s credit. He reports the 155 s Clims for sles y registered ultimte csh or n ccrul method of ccounting. dditionl income on his 2001 Schedule C. vendor of undyed kerosene cn e comined with clims for sles of undyed die- Csh method. If you use the csh method Exmple 4. Use the sme fcts s in Exmsel fuel to meet this requirement. nd file clim for refund, include the refund in ple 2 ove, except tht Mrch Corportion your gross income for the tx yer in which you uses n ccrul method of ccounting. Since Undyed kerosene. You must meet the follow- receive the refund. If you clim credit on your the nontxle use occurred in 2001, the corpoing requirements for this clim. income tx return, include the credit in gross rtion reports the 3,100 of excise txes s income for the tx yer in which you file Form income on its 2001 income tx return. This con- The clim must e for undyed kerosene If you file n mended return nd clim sists of the 2,400 it climed on Form 8849 nd sold for use on frm for frming purthe 700 it climed on Form credit, include the credit in gross income for the poses, for use y stte or locl governtx yer in which you receive the credit. ment, from locked pump, or for lending with diesel fuel to e used for Exmple 1. Ed Brown, csh sis frmer, heting purposes. filed his 2001 Form 1040 on Mrch 1, On The clim must e for sles during pe- his Schedule F, Ed deducted the totl cost of Exmple riod of t lest 1 week. gsoline (including 110 of excise txes) used Steven S. Snds used undyed diesel fuel in The clim must e for t lest 100. on the frm. Then, on Form 4136, Ed climed vehicles used in his construction usiness. The the 110 s credit. Ed reports the 110 s vehicles were not registered (or required to e dditionl income on his 2002 Schedule F. How to file. File the clim y filling out Schedof his 2001 income tx yer, which ends in registered) for highwy use. In the fourth qurter ule 2 (Form 8849) nd ttching it to Form Exmple 2. Mrch Corportion uses the The Form 8849 cnnot hve ny other schedule Decemer, he used 3,000 gllons of fuel. The clendr yer s its tx yer. For 2001, the ttched if Schedule 2 is ttched. Send it to excise tx on the 3,000 gllons of fuel he used corportion climed the following mounts of the ddress shown in the instructions. Write ws 732 (24.4 cents per gllon). excise tx on gsoline it used ech qurter in Diesel Fuel/Kerosene Clim on the envelope. nontxle use: Becuse the tx is less thn 750, Steven must clim credit for the tx on his 2001 When to file. The clim must e filed y the income tx return. He fills out Form 4136 (shown lst dy of the first qurter following the erliest Jnury 1 through Mrch ,300 lter) nd ttches it to his 2001 income tx qurter included in the clim. If you do not meet April 1 through June ,100 return, which he files in He enters the the requirements or file timely refund clim, July 1 through Septemer on line 65 of his Form you will hve to clim credit on your income tx Octoer 1 through Decemer Steven uses the csh method of ccounting. return, s discussed erlier. Totl 3,100 On his 2001 Schedule C (Form 1040), he de- You cnnot comine this clim with ducts the totl cost of the fuel, including the tx.! ny other clim on Form The corportion deducts the entire cost of When Steven files his 2002 Form 1040, he will CAUTION the gsoline (including the 3,100 in excise include the 732 credit shown on his 2001 Form txes) it used during the yer s usiness 4136 s dditionl income on his 2002 Schedule expense on its corportion income tx return, C. Interest therey reducing its corporte income tx liil- For the first two qurters of 2002, Steven s ity for tht yer. records show the following. Form Mrch Corportion files qurterly refund clims for the first two qurters (end- Clim IRS pys no interest on refunds descried in this ing Mrch 31 nd June 30). It cnnot file Qurter Gllons Used Tx Rte Amount puliction other thn refunds to gsohol lendqurterly refund clim for the third or fourth qurers nd registered ultimte vendors (discussed First 2, ter ecuse it did not meet the 750 minimum Second 2, erlier) not pid within 20 dys. Refunds resultrequirement. ing from credits climed on income tx returns Steven could not file clim for refund for my qulify for interest. Since Mrch Corportion uses the csh the first qurter ecuse the mount of the clim method of ccounting, the corportion includes ws less thn 750. He dds the first qurter 2,400 (1, ,100) in its gross income for mount (671) to the second qurter mount Penlties the tx yer in which it receives the refunds (610) nd clims refund of 1,281 y filing (2001). Form 8849 nd Schedule 1 (Form 8849), which Form The corportion clims the re- re shown lter. He will hve to include the There re criminl penlties for flse or fruduits mining mounts ( ) s credit on 1,281 excise tx refund s dditionl income lent clims. In ddition, ny person who files 2001 income tx return y ttching Form on his Schedule C (Form 1040) for Pge 10 Chpter 3 Filing Clims