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10 40 Ez Form

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10 40 Ez Form

10 40 ez form 1. 10 40 ez form   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. 10 40 ez form Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. 10 40 ez form Reseller statement. 10 40 ez form Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. 10 40 ez form Deep-draft ocean-going vessels. 10 40 ez form Passenger vessels. 10 40 ez form Ocean-going barges. 10 40 ez form State or local governments. 10 40 ez form Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. 10 40 ez form Gasoline, including aviation gasoline and gasoline blendstocks. 10 40 ez form Diesel fuel, including dyed diesel fuel. 10 40 ez form Diesel-water fuel emulsion. 10 40 ez form Kerosene, including dyed kerosene and kerosene used in aviation. 10 40 ez form Other Fuels (including alternative fuels). 10 40 ez form Compressed natural gas (CNG). 10 40 ez form Fuels used in commercial transportation on inland waterways. 10 40 ez form Any liquid used in a fractional ownership program aircraft as fuel. 10 40 ez form The following terms are used throughout the discussion of fuel taxes. 10 40 ez form Other terms are defined in the discussion of the specific fuels to which they pertain. 10 40 ez form Agri-biodiesel. 10 40 ez form   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. 10 40 ez form Approved terminal or refinery. 10 40 ez form   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. 10 40 ez form Biodiesel. 10 40 ez form   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. 10 40 ez form Blended taxable fuel. 10 40 ez form   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. 10 40 ez form This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. 10 40 ez form Blender. 10 40 ez form   This is the person that produces blended taxable fuel. 10 40 ez form Bulk transfer. 10 40 ez form   This is the transfer of taxable fuel by pipeline or vessel. 10 40 ez form Bulk transfer/terminal system. 10 40 ez form   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. 10 40 ez form Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. 10 40 ez form Cellulosic biofuel. 10 40 ez form   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. 10 40 ez form Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). 10 40 ez form For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. 10 40 ez form Also see Second generation biofuel below. 10 40 ez form Diesel-water fuel emulsion. 10 40 ez form   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. 10 40 ez form The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. 10 40 ez form Dry lease aircraft exchange. 10 40 ez form   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. 10 40 ez form Enterer. 10 40 ez form   This is the importer of record (under customs law) for the taxable fuel. 10 40 ez form However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. 10 40 ez form If there is no importer of record, the owner at the time of entry into the United States is the enterer. 10 40 ez form Entry. 10 40 ez form   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. 10 40 ez form This does not apply to fuel brought into Puerto Rico (which is part of the U. 10 40 ez form S. 10 40 ez form customs territory), but does apply to fuel brought into the United States from Puerto Rico. 10 40 ez form Fractional ownership aircraft program and fractional program aircraft. 10 40 ez form   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. 10 40 ez form Measurement of taxable fuel. 10 40 ez form   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. 10 40 ez form Other fuels. 10 40 ez form   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. 10 40 ez form Pipeline operator. 10 40 ez form   This is the person that operates a pipeline within the bulk transfer/terminal system. 10 40 ez form Position holder. 10 40 ez form   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. 10 40 ez form You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. 10 40 ez form A terminal operator that owns taxable fuel in its terminal is a position holder. 10 40 ez form Rack. 10 40 ez form   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. 10 40 ez form Refiner. 10 40 ez form   This is any person that owns, operates, or otherwise controls a refinery. 10 40 ez form Refinery. 10 40 ez form   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. 10 40 ez form However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. 10 40 ez form For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. 10 40 ez form Registrant. 10 40 ez form   This is a taxable fuel registrant (see Registration Requirements, later). 10 40 ez form Removal. 10 40 ez form   This is any physical transfer of taxable fuel. 10 40 ez form It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. 10 40 ez form However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. 10 40 ez form Renewable diesel. 10 40 ez form   See Renewable Diesel Credits in chapter 2. 10 40 ez form Sale. 10 40 ez form   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. 10 40 ez form For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. 10 40 ez form Second generation biofuel. 10 40 ez form   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. 10 40 ez form S. 10 40 ez form C. 10 40 ez form 7545). 10 40 ez form It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. 10 40 ez form It is not alcohol of less than 150 proof (disregard any added denaturants). 10 40 ez form See Form 6478 for more information. 10 40 ez form State. 10 40 ez form   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. 10 40 ez form An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. 10 40 ez form Taxable fuel. 10 40 ez form   This means gasoline, diesel fuel, and kerosene. 10 40 ez form Terminal. 10 40 ez form   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. 10 40 ez form It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. 10 40 ez form A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. 10 40 ez form Terminal operator. 10 40 ez form   This is any person that owns, operates, or otherwise controls a terminal. 10 40 ez form Throughputter. 10 40 ez form   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). 10 40 ez form Vessel operator. 10 40 ez form   This is the person that operates a vessel within the bulk transfer/terminal system. 10 40 ez form However, vessel does not include a deep draft ocean-going vessel. 10 40 ez form Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. 10 40 ez form A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. 10 40 ez form For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. 10 40 ez form The returns are due the last day of the month following the month in which the transaction occurs. 10 40 ez form Generally, these returns can be filed on paper or electronically. 10 40 ez form For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. 10 40 ez form Publication 3536 is only available on the IRS website. 10 40 ez form Form 720-TO. 10 40 ez form   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. 10 40 ez form Each terminal operator must file a separate form for each approved terminal. 10 40 ez form Form 720-CS. 10 40 ez form   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. 10 40 ez form Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. 10 40 ez form See Form 637 for other persons who must register and for more information about registration. 10 40 ez form Persons that are required to be registered. 10 40 ez form   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. 10 40 ez form Persons that may register. 10 40 ez form   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. 10 40 ez form Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. 10 40 ez form However, they must be registered to file claims for certain sales and uses of fuel. 10 40 ez form See Form 637 for more information. 10 40 ez form Taxable fuel registrant. 10 40 ez form   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. 10 40 ez form The term registrant as used in the discussions of these fuels means a taxable fuel registrant. 10 40 ez form Additional information. 10 40 ez form   See the Form 637 instructions for the information you must submit when you apply for registration. 10 40 ez form Failure to register. 10 40 ez form   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. 10 40 ez form Gasoline and Aviation Gasoline Gasoline. 10 40 ez form   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. 10 40 ez form Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. 10 40 ez form Gasoline also includes gasoline blendstocks, discussed later. 10 40 ez form Aviation gasoline. 10 40 ez form   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. 10 40 ez form Taxable Events The tax on gasoline is $. 10 40 ez form 184 per gallon. 10 40 ez form The tax on aviation gasoline is $. 10 40 ez form 194 per gallon. 10 40 ez form When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. 10 40 ez form 141 per gallon. 10 40 ez form See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. 10 40 ez form Tax is imposed on the removal, entry, or sale of gasoline. 10 40 ez form Each of these events is discussed later. 10 40 ez form Also, see the special rules that apply to gasoline blendstocks, later. 10 40 ez form If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. 10 40 ez form See Refunds of Second Tax in chapter 2. 10 40 ez form Removal from terminal. 10 40 ez form   All removals of gasoline at a terminal rack are taxable. 10 40 ez form The position holder for that gasoline is liable for the tax. 10 40 ez form Two-party exchanges. 10 40 ez form   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. 10 40 ez form A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. 10 40 ez form The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. 10 40 ez form The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. 10 40 ez form The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. 10 40 ez form The transaction is subject to a written contract. 10 40 ez form Terminal operator's liability. 10 40 ez form   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. 10 40 ez form   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. 10 40 ez form The terminal operator is a registrant. 10 40 ez form The terminal operator has an unexpired notification certificate (discussed later) from the position holder. 10 40 ez form The terminal operator has no reason to believe any information on the certificate is false. 10 40 ez form Removal from refinery. 10 40 ez form   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. 10 40 ez form It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. 10 40 ez form It is made at the refinery rack. 10 40 ez form The refiner is liable for the tax. 10 40 ez form Exception. 10 40 ez form   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. 10 40 ez form The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. 10 40 ez form The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. 10 40 ez form The removal from the refinery is by railcar. 10 40 ez form The same person operates the refinery and the facility at which the gasoline is received. 10 40 ez form Entry into the United States. 10 40 ez form   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. 10 40 ez form It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. 10 40 ez form It is not made by bulk transfer. 10 40 ez form The enterer is liable for the tax. 10 40 ez form Importer of record's liability. 10 40 ez form   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. 10 40 ez form   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. 10 40 ez form The importer of record has an unexpired notification certificate (discussed later) from the enterer. 10 40 ez form The importer of record has no reason to believe any information in the certificate is false. 10 40 ez form Customs bond. 10 40 ez form   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. 10 40 ez form Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. 10 40 ez form   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. 10 40 ez form The position holder is liable for the tax. 10 40 ez form The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. 10 40 ez form However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. 10 40 ez form Bulk transfers not received at approved terminal or refinery. 10 40 ez form   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. 10 40 ez form No tax was previously imposed (as discussed earlier) on any of the following events. 10 40 ez form The removal from the refinery. 10 40 ez form The entry into the United States. 10 40 ez form The removal from a terminal by an unregistered position holder. 10 40 ez form Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). 10 40 ez form   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. 10 40 ez form However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. 10 40 ez form The owner is a registrant. 10 40 ez form The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. 10 40 ez form The owner has no reason to believe any information on the certificate is false. 10 40 ez form The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. 10 40 ez form The operator is jointly and severally liable if the owner does not meet these conditions. 10 40 ez form Sales to unregistered person. 10 40 ez form   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. 10 40 ez form   The seller is liable for the tax. 10 40 ez form However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. 10 40 ez form   The seller is a registrant. 10 40 ez form The seller has an unexpired notification certificate (discussed later) from the buyer. 10 40 ez form The seller has no reason to believe any information on the certificate is false. 10 40 ez form The buyer of the gasoline is liable for the tax if the seller meets these conditions. 10 40 ez form The buyer is jointly and severally liable if the seller does not meet these conditions. 10 40 ez form Exception. 10 40 ez form   The tax does not apply to a sale if all of the following apply. 10 40 ez form The buyer's principal place of business is not in the United States. 10 40 ez form The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. 10 40 ez form The seller is a registrant and the exporter of record. 10 40 ez form The fuel was exported. 10 40 ez form Removal or sale of blended gasoline. 10 40 ez form   The removal or sale of blended gasoline by the blender is taxable. 10 40 ez form See Blended taxable fuel under Definitions, earlier. 10 40 ez form   The blender is liable for the tax. 10 40 ez form The tax is figured on the number of gallons not previously subject to the tax on gasoline. 10 40 ez form   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. 10 40 ez form See Form 720 to report this tax. 10 40 ez form You also must be registered with the IRS as a blender. 10 40 ez form See Form 637. 10 40 ez form   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. 10 40 ez form Notification certificate. 10 40 ez form   The notification certificate is used to notify a person of the registration status of the registrant. 10 40 ez form A copy of the registrant's letter of registration cannot be used as a notification certificate. 10 40 ez form A model notification certificate is shown in the Appendix as Model Certificate C. 10 40 ez form A notification certificate must contain all information necessary to complete the model. 10 40 ez form   The certificate may be included as part of any business records normally used for a sale. 10 40 ez form A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. 10 40 ez form The registrant must provide a new certificate if any information on a certificate has changed. 10 40 ez form Additional persons liable. 10 40 ez form   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. 10 40 ez form Gasoline Blendstocks Gasoline blendstocks may be subject to $. 10 40 ez form 001 per gallon LUST tax as discussed below. 10 40 ez form Gasoline includes gasoline blendstocks. 10 40 ez form The previous discussions apply to these blendstocks. 10 40 ez form However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. 10 40 ez form 001 per gallon or are not subject to the excise tax. 10 40 ez form Blendstocks. 10 40 ez form   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. 10 40 ez form   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. 10 40 ez form Not used to produce finished gasoline. 10 40 ez form   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. 10 40 ez form Removals and entries not connected to sale. 10 40 ez form   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. 10 40 ez form Removals and entries connected to sale. 10 40 ez form   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. 10 40 ez form The person has an unexpired certificate (discussed later) from the buyer. 10 40 ez form The person has no reason to believe any information in the certificate is false. 10 40 ez form Sales after removal or entry. 10 40 ez form   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. 10 40 ez form The seller is liable for the tax. 10 40 ez form However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. 10 40 ez form The seller has an unexpired certificate (discussed next) from the buyer. 10 40 ez form The seller has no reason to believe any information in the certificate is false. 10 40 ez form Certificate of buyer. 10 40 ez form   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. 10 40 ez form The certificate may be included as part of any business records normally used for a sale. 10 40 ez form A model certificate is shown in the Appendix as Model Certificate D. 10 40 ez form The certificate must contain all information necessary to complete the model. 10 40 ez form   A certificate expires on the earliest of the following dates. 10 40 ez form The date 1 year after the effective date (not earlier than the date signed) of the certificate. 10 40 ez form The date a new certificate is provided to the seller. 10 40 ez form The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. 10 40 ez form The buyer must provide a new certificate if any information on a certificate has changed. 10 40 ez form   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. 10 40 ez form Received at approved terminal or refinery. 10 40 ez form   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. 10 40 ez form The person is a registrant. 10 40 ez form The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. 10 40 ez form The person has no reason to believe any information on the certificate is false. 10 40 ez form Bulk transfers to registered industrial user. 10 40 ez form   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. 10 40 ez form An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. 10 40 ez form Credits or Refunds. 10 40 ez form   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. 10 40 ez form For more information, see chapter 2. 10 40 ez form Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). 10 40 ez form However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. 10 40 ez form Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. 10 40 ez form A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. 10 40 ez form A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. 10 40 ez form However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. 10 40 ez form Diesel fuel does not include gasoline, kerosene, excluded liquid, No. 10 40 ez form 5 and No. 10 40 ez form 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. 10 40 ez form An excluded liquid is either of the following. 10 40 ez form A liquid that contains less than 4% normal paraffins. 10 40 ez form A liquid with all the following properties. 10 40 ez form Distillation range of 125 degrees Fahrenheit or less. 10 40 ez form Sulfur content of 10 ppm or less. 10 40 ez form Minimum color of +27 Saybolt. 10 40 ez form Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. 10 40 ez form Kerosene. 10 40 ez form   This means any of the following liquids. 10 40 ez form One of the two grades of kerosene (No. 10 40 ez form 1-K and No. 10 40 ez form 2-K) covered by ASTM specification D3699. 10 40 ez form Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). 10 40 ez form See Kerosene for Use in Aviation, later. 10 40 ez form   However, kerosene does not include excluded liquid, discussed earlier. 10 40 ez form   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. 10 40 ez form Diesel-powered highway vehicle. 10 40 ez form   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. 10 40 ez form Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. 10 40 ez form For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. 10 40 ez form 2) in chapter 2. 10 40 ez form Diesel-powered train. 10 40 ez form   This is any diesel-powered equipment or machinery that rides on rails. 10 40 ez form The term includes a locomotive, work train, switching engine, and track maintenance machine. 10 40 ez form Taxable Events The tax on diesel fuel and kerosene is $. 10 40 ez form 244 per gallon. 10 40 ez form It is imposed on the removal, entry, or sale of diesel fuel and kerosene. 10 40 ez form Each of these events is discussed later. 10 40 ez form Only the $. 10 40 ez form 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. 10 40 ez form If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. 10 40 ez form See Refunds of Second Tax in chapter 2. 10 40 ez form Use in certain intercity and local buses. 10 40 ez form   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. 10 40 ez form A claim for $. 10 40 ez form 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. 10 40 ez form An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. 10 40 ez form The bus must be engaged in one of the following activities. 10 40 ez form Scheduled transportation along regular routes regardless of the size of the bus. 10 40 ez form Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). 10 40 ez form A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. 10 40 ez form Removal from terminal. 10 40 ez form   All removals of diesel fuel and kerosene at a terminal rack are taxable. 10 40 ez form The position holder for that fuel is liable for the tax. 10 40 ez form Two-party exchanges. 10 40 ez form   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. 10 40 ez form A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. 10 40 ez form The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. 10 40 ez form The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. 10 40 ez form The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. 10 40 ez form The transaction is subject to a written contract. 10 40 ez form Terminal operator's liability. 10 40 ez form   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). 10 40 ez form   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. 10 40 ez form However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. 10 40 ez form The terminal operator is a registrant. 10 40 ez form The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. 10 40 ez form The terminal operator has no reason to believe any information on the certificate is false. 10 40 ez form Removal from refinery. 10 40 ez form   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. 10 40 ez form It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. 10 40 ez form It is made at the refinery rack. 10 40 ez form The refiner is liable for the tax. 10 40 ez form Exception. 10 40 ez form   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. 10 40 ez form The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. 10 40 ez form The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. 10 40 ez form The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. 10 40 ez form Entry into the United States. 10 40 ez form   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. 10 40 ez form It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. 10 40 ez form It is not made by bulk transfer. 10 40 ez form The enterer is liable for the tax. 10 40 ez form Importer of record's liability. 10 40 ez form   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. 10 40 ez form   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. 10 40 ez form The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. 10 40 ez form The importer of record has no reason to believe any information in the certificate is false. 10 40 ez form Customs bond. 10 40 ez form   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. 10 40 ez form Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. 10 40 ez form   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. 10 40 ez form The position holder is liable for the tax. 10 40 ez form The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. 10 40 ez form However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. 10 40 ez form Bulk transfers not received at approved terminal or refinery. 10 40 ez form   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. 10 40 ez form No tax was previously imposed (as discussed earlier) on any of the following events. 10 40 ez form The removal from the refinery. 10 40 ez form The entry into the United States. 10 40 ez form The removal from a terminal by an unregistered position holder. 10 40 ez form Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). 10 40 ez form   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. 10 40 ez form However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. 10 40 ez form The owner is a registrant. 10 40 ez form The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. 10 40 ez form The owner has no reason to believe any information on the certificate is false. 10 40 ez form The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. 10 40 ez form The operator is jointly and severally liable if the owner does not meet these conditions. 10 40 ez form Sales to unregistered person. 10 40 ez form   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. 10 40 ez form   The seller is liable for the tax. 10 40 ez form However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. 10 40 ez form The seller is a registrant. 10 40 ez form The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. 10 40 ez form The seller has no reason to believe any information on the certificate is false. 10 40 ez form The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. 10 40 ez form The buyer is jointly and severally liable if the seller does not meet these conditions. 10 40 ez form Exception. 10 40 ez form   The tax does not apply to a sale if all of the following apply. 10 40 ez form The buyer's principal place of business is not in the United States. 10 40 ez form The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. 10 40 ez form The seller is a registrant and the exporter of record. 10 40 ez form The fuel was exported. 10 40 ez form Removal or sale of blended diesel fuel or kerosene. 10 40 ez form   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. 10 40 ez form Blended taxable fuel produced using biodiesel is subject to the tax. 10 40 ez form See Blended taxable fuel under Definitions, earlier. 10 40 ez form   The blender is liable for the tax. 10 40 ez form The tax is figured on the number of gallons not previously subject to the tax. 10 40 ez form   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. 10 40 ez form Generally, the biodiesel mixture must be diesel fuel (defined earlier). 10 40 ez form See Form 720 to report this tax. 10 40 ez form You also must be registered by the IRS as a blender. 10 40 ez form See Form 637 for more information. 10 40 ez form   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. 10 40 ez form Additional persons liable. 10 40 ez form   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. 10 40 ez form Credits or Refunds. 10 40 ez form   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. 10 40 ez form For more information, see chapter 2. 10 40 ez form Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. 10 40 ez form 001 per gallon LUST tax as discussed below, unless the fuel is for export. 10 40 ez form The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. 10 40 ez form The person otherwise liable for tax (for example, the position holder) is a registrant. 10 40 ez form In the case of a removal from a terminal, the terminal is an approved terminal. 10 40 ez form The diesel fuel or kerosene satisfies the dyeing requirements (described next). 10 40 ez form Dyeing requirements. 10 40 ez form   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. 10 40 ez form It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. 10 40 ez form 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. 10 40 ez form Is indelibly dyed by mechanical injection. 10 40 ez form See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. 10 40 ez form Notice required. 10 40 ez form   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. 10 40 ez form   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. 10 40 ez form   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). 10 40 ez form That seller is subject to the penalty described next. 10 40 ez form Penalty. 10 40 ez form   A penalty is imposed on a person if any of the following situations apply. 10 40 ez form Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. 10 40 ez form Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. 10 40 ez form The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. 10 40 ez form The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. 10 40 ez form   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. 10 40 ez form After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. 10 40 ez form   This penalty is in addition to any tax imposed on the fuel. 10 40 ez form   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. 10 40 ez form   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. 10 40 ez form   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. 10 40 ez form However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. 10 40 ez form The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. 10 40 ez form Exception to penalty. 10 40 ez form   The penalty under item (3) will not apply in any of the following situations. 10 40 ez form Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. 10 40 ez form Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. 10 40 ez form The alteration or attempted alteration occurs in an exempt area of Alaska. 10 40 ez form See Removal for sale or use in Alaska, later. 10 40 ez form Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. 10 40 ez form Alaska and Feedstocks Tax of $. 10 40 ez form 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). 10 40 ez form Undyed kerosene used for feedstock purposes. 10 40 ez form Removal for sale or use in Alaska. 10 40 ez form   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. 10 40 ez form The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. 10 40 ez form The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. 10 40 ez form In the case of a removal from a terminal, the terminal is an approved terminal. 10 40 ez form The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. 10 40 ez form   If all three of the requirements above are not met, then tax is imposed at $. 10 40 ez form 244 per gallon. 10 40 ez form   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. 10 40 ez form Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. 10 40 ez form Later sales. 10 40 ez form   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. 10 40 ez form The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. 10 40 ez form However, the sale is not taxable (other than the LUST tax at $. 10 40 ez form 001 per gallon) if all the following requirements are met. 10 40 ez form The fuel is sold in Alaska for certain nontaxable uses. 10 40 ez form The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. 10 40 ez form The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. 10 40 ez form Feedstock purposes. 10 40 ez form   The $. 10 40 ez form 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. 10 40 ez form The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. 10 40 ez form In the case of a removal from a terminal, the terminal is an approved terminal. 10 40 ez form Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. 10 40 ez form   If all of the requirements above are not met, then tax is imposed at $. 10 40 ez form 244 per gallon. 10 40 ez form   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. 10 40 ez form For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. 10 40 ez form A feedstock user is a person that uses kerosene for a feedstock purpose. 10 40 ez form A registered feedstock user is a person that has been registered by the IRS as a feedstock user. 10 40 ez form See Registration Requirements, earlier. 10 40 ez form Later sales. 10 40 ez form   The excise tax ($. 10 40 ez form 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. 10 40 ez form The tax is imposed at the time of the later sale and that seller is liable for the tax. 10 40 ez form Certificate. 10 40 ez form   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. 10 40 ez form The certificate may be included as part of any business records normally used for a sale. 10 40 ez form A model certificate is shown in the Appendix as Model Certificate G. 10 40 ez form Your certificate must contain all information necessary to complete the model. 10 40 ez form   A certificate expires on the earliest of the following dates. 10 40 ez form The date 1 year after the effective date (not earlier than the date signed) of the certificate. 10 40 ez form The date the seller is provided a new certificate or notice that the current certificate is invalid. 10 40 ez form The date the seller is notified the buyer's registration has been revoked or suspended. 10 40 ez form   The buyer must provide a new certificate if any information on a certificate has changed. 10 40 ez form Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. 10 40 ez form Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. 10 40 ez form Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. 10 40 ez form Any liquid other than gasoline, diesel fuel, or kerosene. 10 40 ez form Generally, this back-up tax is imposed at a rate of $. 10 40 ez form 244 per gallon. 10 40 ez form Liability for tax. 10 40 ez form   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. 10 40 ez form In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. 10 40 ez form Exemptions from the back-up tax. 10 40 ez form   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. 10 40 ez form   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. 10 40 ez form Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. 10 40 ez form A reduced tax rate of $. 10 40 ez form 198 per gallon is imposed on a diesel-water fuel emulsion. 10 40 ez form To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. 10 40 ez form If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. 10 40 ez form 244 per gallon. 10 40 ez form Credits or refunds. 10 40 ez form   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. 10 40 ez form Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. 10 40 ez form 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). 10 40 ez form For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. 10 40 ez form 219. 10 40 ez form The rate of $. 10 40 ez form 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. 10 40 ez form The airport terminal does not need to be a secured airport terminal for this rate to apply. 10 40 ez form However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. 10 40 ez form For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. 10 40 ez form 044 per gallon. 10 40 ez form For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. 10 40 ez form 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. 10 40 ez form See Terminal located within a secured area of an airport, later. 10 40 ez form In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. 10 40 ez form For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. 10 40 ez form 001. 10 40 ez form There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. 10 40 ez form The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. 10 40 ez form See Terminal located within a secured area of an airport, later. 10 40 ez form In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. 10 40 ez form The position holder is liable for the $. 10 40 ez form 001 per gallon tax. 10 40 ez form For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. 10 40 ez form 141 per gallon applies. 10 40 ez form Certain refueler trucks, tankers, and tank wagons treated as terminals. 10 40 ez form   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. 10 40 ez form Such terminal is located within an area of an airport. 10 40 ez form Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. 10 40 ez form Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. 10 40 ez form The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. 10 40 ez form Information reporting will be required by terminal operators regarding this provision. 10 40 ez form Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. 10 40 ez form Terminal located within a secured area of an airport. 10 40 ez form   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. 10 40 ez form This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. 10 40 ez form Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. 10 40 ez form 044 per gallon. 10 40 ez form However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). 10 40 ez form For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. 10 40 ez form For the aircraft operator to be liable for the tax $. 10 40 ez form 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. 10 40 ez form Commercial aviation. 10 40 ez form   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. 10 40 ez form However, commercial aviation does not include any of the following uses. 10 40 ez form Any use exclusively for the purpose of skydiving. 10 40 ez form Certain air transportation by seaplane. 10 40 ez form See Seaplanes under Transportation of Persons by Air in chapter 4. 10 40 ez form Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. 10 40 ez form For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. 10 40 ez form Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. 10 40 ez form For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. 10 40 ez form Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. 10 40 ez form See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. 10 40 ez form Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. 10 40 ez form 141 per gallon. 10 40 ez form The fractional ownership program manager is liable for the tax. 10 40 ez form The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. 10 40 ez form If the surtax is imposed, the following air transportation taxes do not apply. 10 40 ez form Transportation of persons by air. 10 40 ez form Transportation of property by air. 10 40 ez form Use of international air travel facilities. 10 40 ez form These taxes are described under Air Transportation Taxes, later. 10 40 ez form A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. 10 40 ez form Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. 10 40 ez form Fractional program aircraft. 10 40 ez form   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. 10 40 ez form S. 10 40 ez form   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. 10 40 ez form In such situations, the flight is not commercial aviation. 10 40 ez form Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. 10 40 ez form Fractional owner. 10 40 ez form   Any person owning any interest (including the entire interest) in a fractional program aircraft. 10 40 ez form Dry lease aircraft exchange. 10 40 ez form   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. 10 40 ez form Special rule relating to deadhead service. 10 40 ez form   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. 10 40 ez form More information. 10 40 ez form   See section 4043 for more information on the surtax. 10 40 ez form Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. 10 40 ez form Certificate. 10 40 ez form   The certificate may be included as part of any business records normally used for a sale. 10 40 ez form See Model Certificate K in the Appendix. 10 40 ez form   A certificate expires on the earliest of the following dates. 10 40 ez form The date 1 year after the effective date (not earlier than the date signed) of the certificate. 10 40 ez form The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. 10 40 ez form The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. 10 40 ez form   The buyer must provide a new certificate if any information on a certificate has changed. 10 40 ez form   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. 10 40 ez form Exempt use. 10 40 ez form   The rate on kerosene for use in aviation is $. 10 40 ez form 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. 10 40 ez form An exempt use includes kerosene for the exclusive use of a state or local government. 10 40 ez form There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. 10 40 ez form Flash title transaction. 10 40 ez form   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. 10 40 ez form In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. 10 40 ez form In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. 10 40 ez form Reseller statement. 10 40 ez form   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. 10 40 ez form Credits or Refunds. 10 40 ez form   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). 10 40 ez form A claim may be made by a registered ultimate vendor for certain sales. 10 40 ez form For more information, see chapter 2. 10 40 ez form Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. 10 40 ez form Other Fuels include alternative fuels. 10 40 ez form Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. 10 40 ez form Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. 10 40 ez form Qualified methanol and ethanol fuels. 10 40 ez form   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. 10 40 ez form The tax rates are listed in the Instructions for Form 720. 10 40 ez form Partially exempt methanol and ethanol fuels. 10 40 ez form   A reduced tax rate applies to these fuels. 10 40 ez form Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. 10 40 ez form The tax rates are listed in the Instructions for Form 720. 10 40 ez form Motor vehicles. 10 40 ez form   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. 10 40 ez form They are propelled by a motor. 10 40 ez form They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t
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The 10 40 Ez Form

10 40 ez form Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. 10 40 ez form SIMPLE plans. 10 40 ez form Qualified plans. 10 40 ez form Ordering forms and publications. 10 40 ez form Tax questions. 10 40 ez form Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. 10 40 ez form irs. 10 40 ez form gov/pub560. 10 40 ez form What's New Compensation limit increased for 2013 and 2014. 10 40 ez form  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. 10 40 ez form This limit increases to $260,000 for 2014. 10 40 ez form Elective deferral limit for 2013 and 2014. 10 40 ez form  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. 10 40 ez form These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. 10 40 ez form Defined contribution limit increased for 2013 and 2014. 10 40 ez form  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. 10 40 ez form This limit increases to $52,000 for 2014. 10 40 ez form SIMPLE plan salary reduction contribution limit for 2013 and 2014. 10 40 ez form  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. 10 40 ez form Catch-up contribution limit remains unchanged for 2013 and 2014. 10 40 ez form  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. 10 40 ez form The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. 10 40 ez form The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. 10 40 ez form The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. 10 40 ez form The catch-up contribution limit. 10 40 ez form The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. 10 40 ez form See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. 10 40 ez form All section references are to the Internal Revenue Code, unless otherwise stated. 10 40 ez form Reminders In-plan Roth rollovers. 10 40 ez form  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. 10 40 ez form An in-plan Roth rollover is not treated as a distribution for most purposes. 10 40 ez form Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. 10 40 ez form For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. 10 40 ez form R. 10 40 ez form B. 10 40 ez form 872, available at  www. 10 40 ez form irs. 10 40 ez form gov/irb/2010-51_IRB/ar11. 10 40 ez form html. 10 40 ez form In-plan Roth rollovers expanded. 10 40 ez form  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. 10 40 ez form Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. 10 40 ez form For more information, see Notice 2013-74, 2013-52 I. 10 40 ez form R. 10 40 ez form B. 10 40 ez form 819, available at www. 10 40 ez form irs. 10 40 ez form gov/irb/2013-52_IRB/ar11. 10 40 ez form html. 10 40 ez form Credit for startup costs. 10 40 ez form  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. 10 40 ez form The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. 10 40 ez form You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. 10 40 ez form You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. 10 40 ez form At least one participant must be a non-highly compensated employee. 10 40 ez form The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. 10 40 ez form You. 10 40 ez form A member of a controlled group that includes you. 10 40 ez form A predecessor of (1) or (2). 10 40 ez form The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. 10 40 ez form However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. 10 40 ez form You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. 10 40 ez form To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. 10 40 ez form Retirement savings contributions credit. 10 40 ez form  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. 10 40 ez form The maximum contribution eligible for the credit is $2,000. 10 40 ez form To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. 10 40 ez form For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). 10 40 ez form Photographs of missing children. 10 40 ez form  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 10 40 ez form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 10 40 ez form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 10 40 ez form Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. 10 40 ez form In this publication, “you” refers to the employer. 10 40 ez form See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. 10 40 ez form This publication covers the following types of retirement plans. 10 40 ez form SEP (simplified employee pension) plans. 10 40 ez form SIMPLE (savings incentive match plan for employees) plans. 10 40 ez form Qualified plans (also called H. 10 40 ez form R. 10 40 ez form 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. 10 40 ez form SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. 10 40 ez form You can deduct contributions you make to the plan for your employees. 10 40 ez form If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. 10 40 ez form You can also deduct trustees' fees if contributions to the plan do not cover them. 10 40 ez form Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. 10 40 ez form Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. 10 40 ez form These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. 10 40 ez form What this publication covers. 10 40 ez form   This publication contains the information you need to understand the following topics. 10 40 ez form What type of plan to set up. 10 40 ez form How to set up a plan. 10 40 ez form How much you can contribute to a plan. 10 40 ez form How much of your contribution is deductible. 10 40 ez form How to treat certain distributions. 10 40 ez form How to report information about the plan to the IRS and your employees. 10 40 ez form Basic features of SEP, SIMPLE, and qualified plans. 10 40 ez form The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. 10 40 ez form SEP plans. 10 40 ez form   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. 10 40 ez form Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. 10 40 ez form SIMPLE plans. 10 40 ez form   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. 10 40 ez form Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. 10 40 ez form In addition, you will contribute matching or nonelective contributions. 10 40 ez form The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. 10 40 ez form Qualified plans. 10 40 ez form   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. 10 40 ez form However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. 10 40 ez form Table 1. 10 40 ez form Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). 10 40 ez form Smaller of $51,000 or 25%1 of participant's compensation. 10 40 ez form 2 25%1 of all participants' compensation. 10 40 ez form 2 Any time up to the due date of employer's return (including extensions). 10 40 ez form SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. 10 40 ez form 4  Matching or nonelective contributions: Due date of employer's return (including extensions). 10 40 ez form Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. 10 40 ez form   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. 10 40 ez form 2 Same as maximum contribution. 10 40 ez form Any time between 1/1 and 10/1 of the calendar year. 10 40 ez form   For a new employer coming into existence after 10/1, as soon as administratively feasible. 10 40 ez form Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). 10 40 ez form 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). 10 40 ez form  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. 10 40 ez form   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. 10 40 ez form 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. 10 40 ez form 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. 10 40 ez form   By the end of the tax year. 10 40 ez form Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. 10 40 ez form See Minimum Funding Requirement in chapter 4. 10 40 ez form Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. 10 40 ez form Based on actuarial assumptions and computations. 10 40 ez form By the end of the tax year. 10 40 ez form 1Net earnings from self-employment must take the contribution into account. 10 40 ez form See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . 10 40 ez form  2Compensation is generally limited to $255,000 in 2013. 10 40 ez form  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. 10 40 ez form  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. 10 40 ez form What this publication does not cover. 10 40 ez form   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. 10 40 ez form You may also need professional help and guidance. 10 40 ez form   Also, this publication does not cover all the rules that may be of interest to employees. 10 40 ez form For example, it does not cover the following topics. 10 40 ez form The comprehensive IRA rules an employee needs to know. 10 40 ez form These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). 10 40 ez form The comprehensive rules that apply to distributions from retirement plans. 10 40 ez form These rules are covered in Publication 575, Pension and Annuity Income. 10 40 ez form The comprehensive rules that apply to section 403(b) plans. 10 40 ez form These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). 10 40 ez form Comments and suggestions. 10 40 ez form   We welcome your comments about this publication and your suggestions for future editions. 10 40 ez form   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 10 40 ez form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 10 40 ez form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 10 40 ez form   You can send your comments from www. 10 40 ez form irs. 10 40 ez form gov/formspubs. 10 40 ez form Click on “More Information” and then on “Give us feedback. 10 40 ez form ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 10 40 ez form Ordering forms and publications. 10 40 ez form   Visit www. 10 40 ez form irs. 10 40 ez form gov/formspubs to download forms  and publications, call 1-800-TAX-FORM  (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 10 40 ez form Internal Revenue Service 1201 N. 10 40 ez form Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 10 40 ez form   If you have a tax question, check the information available on IRS. 10 40 ez form gov or call 1-800-829-1040. 10 40 ez form We cannot answer tax questions sent to either of the above addresses. 10 40 ez form Note. 10 40 ez form Forms filed electronically with the Department of Labor are not available on the IRS website. 10 40 ez form Instead, see www. 10 40 ez form efast. 10 40 ez form dol. 10 40 ez form gov. 10 40 ez form Prev  Up  Next   Home   More Online Publications