You make a claim for refund on Form 8849. Complete and attach to Form 8849 the appropriate Form 8849 schedules. If you file Form 720, you can use the Schedule C portion of Form 720 for your refund claims. (See the Form 720 instructions.)

Nontaxable Uses

You can claim a refund for the excise tax on fuels you purchase and use for a nontaxable use. You can file a claim for refund for any quarter of your tax year for which you can claim $750 or more. This amount is the excise tax on all fuels used for a nontaxable use during that quarter or any prior quarter (for which no other claim has been filed) during the tax year.

If you cannot claim at least $750 at the end of a quarter, you carry the amount over to the next quarter of your tax year to determine if you can claim at least $750 for that quarter. If you cannot claim at least $750 at the end of the fourth quarter of your tax year, you must claim a credit on your income tax return using Form 4136.

File the claim for refund by filling out Schedule 1 (Form 8849) and attaching it to Form 8849. Send it to the address shown in the instructions. Only one claim may be filed for a quarter.

Only the registered ultimate vendor can claim a refund for the excise tax on undyed diesel fuel and undyed kerosene in certain situations, as discussed later.

Example. You purchased gasoline and undyed diesel fuel. For the first quarter of your tax year, the excise tax on fuel you use for an off-highway business use is $184 for gasoline and $244 for diesel fuel. You cannot file a claim for refund since the total ($428) is less than $750.

For the second quarter, the excise tax on fuel you use for an off-highway business use is $92 for gasoline and $244 for diesel fuel. You add the amount from the first quarter ($428) to the total amount from the second quarter ($336) and determine you can file a claim for refund since the total is $764.

When. You must file a quarterly claim by the last day of the first quarter following the last quarter included in the claim. If you do not file a timely refund claim for the fourth quarter of your tax year, you will have to claim a credit for that amount on your income tax return, as discussed earlier.

Gasohol Blending

File the claim by filling out Schedule 3 (Form 8849) and attaching it to Form 8849. The Form 8849 cannot have any other schedule attached if a Schedule 3 is attached. Send it to the address shown in the instructions. Write "Gasohol Claim" on the envelope.

The following claim requirements also apply.

• The claim must be for gasohol sold or used during a period of at least 1 week.
• The claim must be for at least $200.
• The claim can only be made by the gasohol blender.

When. The claim must be filed by the last day of the first quarter following the earliest quarter included in the claim. If you do not meet the requirements or file a timely refund claim, you will have to claim a credit on your income tax return, as discussed earlier.

You cannot combine this claim with any other claim on Form 8849.

Registered Ultimate Vendors

File the claim by filling out Schedule 2 (Form 8849) and attaching it to Form 8849. The Form 8849 cannot have any other schedule attached if a Schedule 2 is attached. Send it to the address shown in the instructions. Write "Diesel Fuel/Kerosene Claim" on the envelope.

Undyed diesel fuel. You must meet the following requirements for this claim.

• The claim must be for undyed diesel fuel sold for use on a farm for farming purposes or by a state or local government.
• The claim must be for sales during a period of at least 1 week.
• The claim must be for at least $200. Claims for sales by a registered ultimate vendor of undyed kerosene may be combined with claims for sales of undyed diesel fuel to meet this requirement.

Undyed kerosene. You must meet the following requirements for this claim.

• The claim must be for undyed kerosene sold for use on a farm for farming purposes, for use by a state or local government, from a blocked pump, or for blending with diesel fuel to be used for heating purposes.
• The claim must be for sales during a period of at least 1 week.
• The claim must be for at least $100.

When. The claim must be filed by the last day of the first quarter following the earliest quarter included in the claim. If you do not meet the requirements or file a timely refund claim, you will have to claim a credit on your income tax return, as discussed earlier.

You cannot combine this claim with any other claim on Form 8849.

Ultimate Purchasers Not Subject to Income Tax

The following purchasers can file an annual claim for refund. They must use Schedule 1 (Form 8849) for these annual claims.

• A department, agency, or instrumentality of the United States.
• A state or local government.
• An organization granted an exemption from the income tax and not required to file an income tax return.

If at the close of your tax year, you are eligible for an amount for which you have not filed a quarterly refund claim, you can file an annual refund claim for these amounts within the time allowed for filing a claim for refund of overpayment of income tax.

A tax year is the 12-month period normally used to keep your financial records. If you have no regularly established tax year, the tax year is the calendar year.

Previous | First | Next

Publication Index | 2000 Tax Help Archives | Tax Help Archives | Home