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Filing An Ammended Return

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Filing An Ammended Return

Filing an ammended return 3. Filing an ammended return   Environmental Taxes Table of Contents Oil Spill Liability Tax ODCs Imported Taxable Products Floor Stocks Tax Environmental taxes are imposed on crude oil and petroleum products (oil spill liability), the sale or use of ozone-depleting chemicals (ODCs), and imported products containing or manufactured with ODCs. Filing an ammended return In addition, a floor stocks tax is imposed on ODCs held on January 1 by any person (other than the manufacturer or importer of the ODCs) for sale or for use in further manufacture. Filing an ammended return Figure the environmental tax on Form 6627. Filing an ammended return Enter the tax on the appropriate lines of Form 720 and attach Form 6627 to Form 720. Filing an ammended return For environmental tax purposes, United States includes the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, the continental shelf areas (applying the principles of section 638), and foreign trade zones. Filing an ammended return No one is exempt from the environmental taxes, including the federal government, state and local governments, Indian tribal governments, and nonprofit educational organizations. Filing an ammended return Oil Spill Liability Tax The oil spill liability tax is reported on Form 6627, Environmental Taxes, and Form 720, Quarterly Federal Excise Tax Return (IRS Nos. Filing an ammended return 18 and 21). Filing an ammended return The oil spill liability tax rate is $. Filing an ammended return 08 per barrel and generally applies to crude oil received at a U. Filing an ammended return S. Filing an ammended return refinery and to petroleum products entered into the United States for consumption, use, or warehousing. Filing an ammended return The tax also applies to certain uses and the exportation of domestic crude oil. Filing an ammended return Crude oil includes crude oil condensates and natural gasoline. Filing an ammended return Petroleum products include crude oil, refined and residual oil, and other liquid hydrocarbon refinery products. Filing an ammended return Crude oil. Filing an ammended return   Tax is imposed on crude oil when it is received at a United Sates refinery. Filing an ammended return The operator of the refinery is liable for the tax. Filing an ammended return   Tax is imposed on domestic crude oil used or exported before it is received at a United States refinery. Filing an ammended return However, the use of crude oil for extracting oil or natural gas on the premises where such crude oil was produced is not taxable. Filing an ammended return The user or exporter is liable for the tax. Filing an ammended return Imported petroleum products. Filing an ammended return   Tax is imposed on petroleum products when they enter the United States for consumption, use, or warehousing. Filing an ammended return The person entering the petroleum product into the country is liable for the tax, including the tax on imported crude oil, even if it is subsequently received at a U. Filing an ammended return S. Filing an ammended return refinery. Filing an ammended return   Tax is imposed only once on any imported petroleum product. Filing an ammended return Thus, the operator of a U. Filing an ammended return S. Filing an ammended return refinery that receives imported crude oil must establish that the petroleum tax has already been imposed on such crude oil in order not to be liable for the tax. Filing an ammended return ODCs For a list of the taxable ODCs and tax rates, see the Form 6627 instructions. Filing an ammended return Taxable event. Filing an ammended return   Tax is imposed on an ODC when it is first used or sold by its manufacturer or importer. Filing an ammended return The manufacturer or importer is liable for the tax. Filing an ammended return Use of ODCs. Filing an ammended return   You use an ODC if you put it into service in a trade or business or for the production of income. Filing an ammended return Also, an ODC is used if you use it in the making of an article, including incorporation into the article, chemical transformation, or release into the air. Filing an ammended return The loss, destruction, packaging, repackaging, or warehousing of ODCs is not a use of the ODC. Filing an ammended return   The creation of a mixture containing an ODC is treated as a taxable use of the ODC contained in the mixture. Filing an ammended return An ODC is contained in a mixture only if the chemical identity of the ODC is not changed. Filing an ammended return Generally, tax is imposed when the mixture is created and not on its sale or use. Filing an ammended return However, you can choose to have the tax imposed on its sale or use by checking the appropriate box on Form 6627. Filing an ammended return You can revoke this choice only with IRS consent. Filing an ammended return   The creation of a mixture for export or for use as a feedstock is not a taxable use of the ODCs contained in the mixture. Filing an ammended return Exceptions. Filing an ammended return   The following may be exempt from the tax on ODCs. Filing an ammended return Metered-dose inhalers. Filing an ammended return Recycled ODCs. Filing an ammended return Exported ODCs. Filing an ammended return ODCs used as feedstock. Filing an ammended return Metered-dose inhalers. Filing an ammended return   There is no tax on ODCs used or sold for use as propellants in metered-dose inhalers. Filing an ammended return For a sale to be nontaxable, you must obtain from the purchaser an exemption certificate that you rely on in good faith. Filing an ammended return The certificate must be in substantially the form as the sample certificate set forth in Regulations section 52. Filing an ammended return 4682-2(d)(5). Filing an ammended return The certificate may be included as part of the sales documentation. Filing an ammended return Keep the certificate with your records. Filing an ammended return Recycled ODCs. Filing an ammended return   There is no tax on any ODC diverted or recovered in the United States as part of a recycling process (and not as part of the original manufacturing or production process). Filing an ammended return There is no tax on recycled Halon-1301 or recycled Halon-2402 imported from a country that has signed the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol). Filing an ammended return   The Montreal Protocol is administered by the United Nations (U. Filing an ammended return N. Filing an ammended return ). Filing an ammended return To determine if a country has signed the Montreal Protocol, contact the U. Filing an ammended return N. Filing an ammended return The website is untreaty. Filing an ammended return un. Filing an ammended return org. Filing an ammended return Exported ODCs. Filing an ammended return   Generally, there is no tax on ODCs sold for export if certain requirements are met. Filing an ammended return For a sale to be nontaxable, you and the purchaser must be registered. Filing an ammended return See Form 637, Application for Registration (for Certain Excise Tax Activities). Filing an ammended return Also, you must obtain from the purchaser an exemption certificate that you rely on in good faith. Filing an ammended return Keep the certificate with your records. Filing an ammended return The certificate must be in substantially the form as the sample certificate set forth in Regulations section 52. Filing an ammended return 4682-5(d)(3). Filing an ammended return The tax benefit of this exemption is limited. Filing an ammended return For more information, see Regulations section 52. Filing an ammended return 4682-5. Filing an ammended return ODCs used as feedstock. Filing an ammended return   There is no tax on ODCs sold for use or used as a feedstock. Filing an ammended return An ODC is used as a feedstock only if the ODC is entirely consumed in the manufacture of another chemical. Filing an ammended return The transformation of an ODC into one or more new compounds qualifies as use as a feedstock, but use of an ODC in a mixture does not qualify. Filing an ammended return   For a sale to be nontaxable, you must obtain from the purchaser an exemption certificate that you rely on in good faith. Filing an ammended return The certificate must be in substantially the form as the sample certificate set forth in Regulations section 52. Filing an ammended return 4682-2(d)(2). Filing an ammended return Keep the certificate with your records. Filing an ammended return Credits or refunds. Filing an ammended return   A credit or refund (without interest) of tax paid on ODCs may be claimed if a taxed ODC is: Used as a propellant in a metered-dose inhaler (the person who used the ODC as a propellant may file a claim), Exported (the manufacturer may file a claim), or Used as a feedstock (the person who used the ODC may file a claim). Filing an ammended return For information on how to file for credits or refunds, see the Instructions for Form 720 or Schedule 6 (Form 8849). Filing an ammended return Conditions to allowance for ODCs exported. Filing an ammended return   To claim a credit or refund for ODCs that are exported, you must have repaid or agreed to repay the tax to the exporter, or obtained the exporter's written consent to allowance of the credit or refund. Filing an ammended return You must also have the evidence required by the EPA as proof that the ODCs were exported. Filing an ammended return Imported Taxable Products An imported product containing or manufactured with ODCs is subject to tax if it is entered into the United States for consumption, use, or warehousing and is listed in the Imported Products Table. Filing an ammended return The Imported Products Table is listed in Regulations section 52. Filing an ammended return 4682-3(f)(6). Filing an ammended return The tax is based on the weight of the ODCs used in the manufacture of the product. Filing an ammended return Use the following methods to figure the ODC weight. Filing an ammended return The actual (exact) weight of each ODC used as a material in manufacturing the product. Filing an ammended return If the actual weight cannot be determined, the ODC weight listed for the product in the Imported Products Table. Filing an ammended return However, if you cannot determine the actual weight and the table does not list an ODC weight for the product, the rate of tax is 1% of the entry value of the product. Filing an ammended return Taxable event. Filing an ammended return   Tax is imposed on an imported taxable product when the product is first sold or used by its importer. Filing an ammended return The importer is liable for the tax. Filing an ammended return Use of imported products. Filing an ammended return   You use an imported product if you put it into service in a trade or business or for the production of income or use it in the making of an article, including incorporation into the article. Filing an ammended return The loss, destruction, packaging, repackaging, warehousing, or repair of an imported product is not a use of that product. Filing an ammended return Entry as use. Filing an ammended return   The importer may choose to treat the entry of a product into the United States as the use of the product. Filing an ammended return Tax is imposed on the date of entry instead of when the product is sold or used. Filing an ammended return The choice applies to all imported taxable products that you own and have not used when you make the choice and all later entries. Filing an ammended return Make the choice by checking the box in Part II of Form 6627. Filing an ammended return The choice is effective as of the beginning of the calendar quarter to which the Form 6627 applies. Filing an ammended return You can revoke this choice only with IRS consent. Filing an ammended return Sale of article incorporating imported product. Filing an ammended return   The importer may treat the sale of an article manufactured or assembled in the United States as the first sale or use of an imported taxable product incorporated in that article if both the following apply. Filing an ammended return The importer has consistently treated the sale of similar items as the first sale or use of similar taxable imported products. Filing an ammended return The importer has not chosen to treat entry into the United States as use of the product. Filing an ammended return Imported products table. Filing an ammended return   The table lists all the products that are subject to the tax on imported taxable products and specifies the ODC weight (discussed later) of each product. Filing an ammended return   Each listing in the table identifies a product by name and includes only products that are described by that name. Filing an ammended return Most listings identify a product by both name and Harmonized Tariff Schedule (HTS) heading. Filing an ammended return In those cases, a product is included in that listing only if the product is described by that name and the rate of duty on the product is determined by reference to that HTS heading. Filing an ammended return A product is included in the listing even if it is manufactured with or contains a different ODC than the one specified in the table. Filing an ammended return   Part II of the table lists electronic items that are not included within any other list in the table. Filing an ammended return An imported product is included in this list only if the product meets one of the following tests. Filing an ammended return It is an electronic component whose operation involves the use of nonmechanical amplification or switching devices such as tubes, transistors, and integrated circuits. Filing an ammended return It contains components described in (1), which account for more than 15% of the cost of the product. Filing an ammended return   These components do not include passive electrical devices, such as resistors and capacitors. Filing an ammended return Items such as screws, nuts, bolts, plastic parts, and similar specially fabricated parts that may be used to construct an electronic item are not themselves included in the listing for electronic items. Filing an ammended return Rules for listing products. Filing an ammended return   Products are listed in the table according to the following rules. Filing an ammended return A product is listed in Part I of the table if it is a mixture containing ODCs. Filing an ammended return A product is listed in Part II of the table if the Commissioner has determined that the ODCs used as materials in the manufacture of the product under the predominant method are used for purposes of refrigeration or air conditioning, creating an aerosol or foam, or manufacturing electronic components. Filing an ammended return A product is listed in Part III of the table if the Commissioner has determined that the product meets both the following tests. Filing an ammended return It is not an imported taxable product. Filing an ammended return It would otherwise be included within a list in Part II of the table. Filing an ammended return   For example, floppy disk drive units are listed in Part III because they are not imported taxable products and would have been included in the Part II list for electronic items not specifically identified, but for their listing in Part III. Filing an ammended return ODC weight. Filing an ammended return   The Table ODC weight of a product is the weight, determined by the Commissioner, of the ODCs used as materials in the manufacture of the product under the predominant method of manufacturing. Filing an ammended return The ODC weight is listed in Part II in pounds per single unit of product unless otherwise specified. Filing an ammended return Modifying the table. Filing an ammended return   A manufacturer or importer of a product may request the IRS add a product and its ODC weight to the table. Filing an ammended return They also may request the IRS remove a product from the table, or change or specify the ODC weight of a product. Filing an ammended return To request a modification, see Regulations section 52. Filing an ammended return 4682-3(g) for the mailing address and information that must be included in the request. Filing an ammended return Floor Stocks Tax Tax is imposed on any ODC held (other than by the manufacturer or importer of the ODC) on January 1 for sale or use in further manufacturing. Filing an ammended return The person holding title (as determined under local law) to the ODC is liable for the tax, whether or not delivery has been made. Filing an ammended return These chemicals are taxable without regard to the type or size of storage container in which the ODCs are held. Filing an ammended return The tax may apply to an ODC whether it is in a 14-ounce can or a 30-pound tank. Filing an ammended return You are liable for the floor stocks tax if you hold any of the following on January 1. Filing an ammended return At least 400 pounds of ODCs other than halons or methyl chloroform, At least 50 pounds of halons, or At least 1,000 pounds of methyl chloroform. Filing an ammended return If you are liable for the tax, prepare an inventory on January 1 of the taxable ODCs held on that date for sale or for use in further manufacturing. Filing an ammended return You must pay this floor stocks tax by June 30 of each year. Filing an ammended return Report the tax on Form 6627 and Part II of Form 720 for the second calendar quarter. Filing an ammended return For the tax rates, see the Form 6627 instructions. Filing an ammended return ODCs not subject to floor stocks tax. Filing an ammended return   The floor stocks tax is not imposed on any of the following ODCs. Filing an ammended return ODCs mixed with other ingredients that contribute to achieving the purpose for which the mixture will be used, unless the mixture contains only ODCs and one or more stabilizers. Filing an ammended return ODCs contained in a manufactured article in which the ODCs will be used for their intended purpose without being released from the article. Filing an ammended return ODCs that have been reclaimed or recycled. Filing an ammended return ODCs sold in a qualifying sale for: Use as a feedstock, Export, or Use as a propellant in a metered-dose inhaler. Filing an ammended return Prev  Up  Next   Home   More Online Publications
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The Filing An Ammended Return

Filing an ammended return 14. Filing an ammended return   Excise Taxes Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Fuels Used in FarmingBuyer of fuel, including undyed diesel fuel or undyed kerosene. Filing an ammended return Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Filing an ammended return Custom application of fertilizer and pesticide. Filing an ammended return Fuel not used for farming. Filing an ammended return Dyed Diesel Fuel and Dyed Kerosene Fuels Used in Off-Highway Business Use Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines How To Claim a Credit or RefundCredit only. Filing an ammended return Claiming a Credit Claiming a Refund Including the Credit or Refund in Income Introduction You may be eligible to claim a credit on your income tax return for the federal excise tax on certain fuels. Filing an ammended return You may also be eligible to claim a quarterly refund of the fuel taxes during the year, instead of waiting to claim a credit on your income tax return. Filing an ammended return Whether you can claim a credit or refund depends on whether the fuel was taxed and the purpose (nontaxable use) for which you used the fuel. Filing an ammended return The nontaxable uses of fuel for which a farmer may claim a credit or refund are generally the following. Filing an ammended return Use on a farm for farming purposes. Filing an ammended return Off-highway business use. Filing an ammended return Uses other than as a fuel in a propulsion engine, such as home use. Filing an ammended return Table 14-1 presents an overview of credits and refunds that may be claimed for fuels used for the nontaxable uses listed above. Filing an ammended return See Publication 510, Excise Taxes, for more information. Filing an ammended return Topics - This chapter discusses: Fuels used in farming Dyed diesel fuel and dyed kerosene Fuels used in off-highway business use Fuels used for household purposes How to claim a credit or refund Including the credit or refund in income Useful Items - You may want to see: Publication 510 Excise Taxes Form (and Instructions) 720 Quarterly Federal Excise Tax Return 4136 Credit for Federal Tax Paid on Fuels 8849 Claim for Refund of Excise Taxes See chapter 16 for information about getting publications and forms. Filing an ammended return Fuels Used in Farming Owners, operators, and tenants of farms and certain other persons may be eligible to claim a credit or refund of excise taxes on fuel used in the trade or business of farming, when used on a farm in the United States for farming purposes. Filing an ammended return See Table 14-1 for a list of available fuel tax credits and refunds. Filing an ammended return Fuel is used on a farm for farming purposes only if used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Filing an ammended return Farm. Filing an ammended return   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms, orchards, plantations, ranches, nurseries, ranges, and feed yards for finishing cattle. Filing an ammended return It also includes structures such as greenhouses used primarily for raising agricultural or horticultural commodities. Filing an ammended return A fish farm is an area where fish are grown or raised and not merely caught or harvested. Filing an ammended return Table 14-1. Filing an ammended return Fuel Tax Credits and Refunds at a Glance Use this table to see if you can take a credit or refund for a nontaxable use of the fuel listed. Filing an ammended return Fuel Used On a Farm for Farming Purposes Off-Highway Business Use Household Use or Use Other Than as a Fuel1 Gasoline Credit only Credit or refund None Aviation gasoline Credit only None None Undyed diesel fuel and undyed kerosene Credit or refund Credit or refund2 Credit or refund2 Kerosene for use in aviation Credit or refund None None Dyed diesel fuel and dyed kerosene None None None Other Fuels (including alternative fuels)3 Credit or refund Credit or refund None 1For a use other than as fuel in a propulsion engine. Filing an ammended return 2Applies to undyed kerosene not sold from a blocked pump or, under certain circumstances, for blending with undyed diesel fuel to be used for heating purposes. Filing an ammended return See Reg. Filing an ammended return 48. Filing an ammended return 6427-10 (b)(1) for the definition of a blocked pump. Filing an ammended return 3Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. Filing an ammended return It includes the alternative fuels: liquefied petroleum gas (LPG),“P” Series fuels, compressed natural gas (CNG), liquefied hydrogen, any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, liquid fuel derived from biomass, liquid natural gas (LNG), liquefied gas derived from biomass, and compressed gas derived from biomass. Filing an ammended return Farming purposes. Filing an ammended return   As the owner, tenant, or operator and the ultimate purchaser of fuel that you purchased, you use the fuel on a farm for farming purposes if you use it in any of the following ways. Filing an ammended return To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Filing an ammended return To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Filing an ammended return To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Filing an ammended return To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Filing an ammended return For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Filing an ammended return The more-than-one-half test applies separately to each commodity. Filing an ammended return Commodity means a single raw product. Filing an ammended return For example, apples and peaches are two separate commodities. Filing an ammended return To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if these activities are incidental to your farming operations. Filing an ammended return Your tree operations are incidental only if they are minor in nature when compared to the total farming operations. Filing an ammended return   If any other person, such as a neighbor or custom operator (independent contractor), performs a service for you on your farm for any of the purposes included in list items (1) or (2), above, you are considered to be the ultimate purchaser who used the fuel on a farm for farming purposes. Filing an ammended return Therefore, you can still claim the credit or refund for the fuel so used. Filing an ammended return However, see Custom application of fertilizer and pesticide, later. Filing an ammended return If the other person performs any other services for you on your farm for purposes not included in list items (1) or (2) above, no one can claim the credit or refund for fuel used on your farm for those other services. Filing an ammended return Buyer of fuel, including undyed diesel fuel or undyed kerosene. Filing an ammended return   If doubt exists whether the owner, tenant, or operator of the farm bought the fuel, determine who actually bore the cost of the fuel. Filing an ammended return For example, if the owner of a farm and his or her tenant equally share the cost of gasoline used on the farm, each can claim a credit for the tax on half the fuel used. Filing an ammended return Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Filing an ammended return   Usually, the farmer is the only person who can make a claim for credit or refund for the tax on undyed diesel fuel, undyed kerosene, or other fuels (including alternative fuel) used for farming purposes. Filing an ammended return However, see Custom application of fertilizer and pesticide, next. Filing an ammended return Also see Dyed Diesel Fuel and Dyed Kerosene, later. Filing an ammended return Example. Filing an ammended return Farm owner Haleigh Blue hired custom operator Tyler Steele to cultivate the soil on her farm. Filing an ammended return Tyler used 200 gallons of undyed diesel fuel that he purchased to perform the work on Haleigh's farm. Filing an ammended return In addition, Haleigh hired contractor Lee Brown to pack and store her apple crop. Filing an ammended return Lee bought 25 gallons of undyed diesel fuel to use in packing the apples. Filing an ammended return Haleigh can claim the credit for the 200 gallons of undyed diesel fuel used by Tyler on her farm because it qualifies as fuel used on the farm for farming purposes. Filing an ammended return No one can claim a credit for the 25 gallons used by Lee because that fuel was not used for a farming purpose included in list items (1) or (2), above. Filing an ammended return In the above example, both Tyler Steele and Lee Brown could have purchased dyed (untaxed) diesel fuel for their tasks. Filing an ammended return Custom application of fertilizer and pesticide. Filing an ammended return   Fuel used on a farm for farming purposes includes fuel used in the application (including aerial application) of fertilizer, pesticides, or other substances. Filing an ammended return Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Filing an ammended return For applicators using highway vehicles, only the fuel used on the farm is exempt. Filing an ammended return Fuel used traveling on the highway to and from the farm is taxable. Filing an ammended return Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as used for a farming purpose. Filing an ammended return For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Filing an ammended return For kerosene used in aviation, the ultimate purchaser may make the claim or waive the right to make the claim to the registered ultimate vendor. Filing an ammended return A sample waiver is included as Model Waiver L in the appendix of Publication 510. Filing an ammended return A registered ultimate vendor is the person who sells undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to the user (ultimate purchaser) of the fuel for use on a farm for farming purposes. Filing an ammended return To claim a credit or refund of tax, the ultimate vendor must be registered with the Internal Revenue Service at the time the claim is made. Filing an ammended return However, registered ultimate vendors cannot make claims for undyed diesel fuel and undyed kerosene sold for use on a farm for farming purposes. Filing an ammended return Fuel not used for farming. Filing an ammended return   You do not use fuel on a farm for farming purposes when you use it in any of the following ways. Filing an ammended return Off the farm, such as on the highway or in noncommercial aviation, even if the fuel is used in transporting livestock, feed, crops, or equipment. Filing an ammended return For personal use, such as lawn mowing. Filing an ammended return In processing, packaging, freezing, or canning operations. Filing an ammended return In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Filing an ammended return All-terrain vehicles (ATVs). Filing an ammended return   Fuel used in ATVs on a farm for farming purposes, discussed earlier, is eligible for a credit or refund of excise taxes on the fuel. Filing an ammended return Fuel used in ATVs for nonfarming purposes is not eligible for a credit or refund of the taxes. Filing an ammended return If ATVs are used both for farming and nonfarming purposes, only that portion of the fuel used for farming purposes is eligible for the credit or refund. Filing an ammended return Dyed Diesel Fuel and Dyed Kerosene If you purchase dyed diesel fuel or dyed kerosene for a nontaxable use, you must use it only on a farm for farming purposes or for other nontaxable purposes. Filing an ammended return For example, you should not use dyed diesel fuel in a truck that is used both on the farm for farming purposes and on the highway, even though the highway use is in connection with farm business. Filing an ammended return Excise tax applies to the fuel used by the truck on the highways. Filing an ammended return In this situation, undyed (taxed) fuel should be purchased for the truck. Filing an ammended return You should keep fuel records of the use of the truck on the farm for farming purposes, and for other uses. Filing an ammended return You may be eligible for a credit or refund for the excise tax on fuel used on the farm for farming purposes. Filing an ammended return Penalty. Filing an ammended return   A penalty is imposed on any person who knowingly uses, sells, or alters dyed diesel fuel or dyed kerosene for any purpose other than a nontaxable use. Filing an ammended return The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Filing an ammended return After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Filing an ammended return For more information on this penalty, see Publication 510. Filing an ammended return Fuels Used in Off-Highway Business Use You may be eligible to claim a credit or refund for the excise tax on fuel used in an off-highway business use. Filing an ammended return Off-highway business use. Filing an ammended return   This is any use of fuel in a trade or business or in an income-producing activity. Filing an ammended return The use must not be in a highway vehicle registered or required to be registered for use on public highways. Filing an ammended return Off-highway business use generally does not include any use in a recreational motorboat. Filing an ammended return Examples. Filing an ammended return   Off-highway business use includes the use of fuels in a trade or business in any of the following ways. Filing an ammended return In stationary machines such as generators, compressors, power saws, and similar equipment; For cleaning ; and In forklift trucks, bulldozers, and earthmovers. Filing an ammended return   Off-highway nonbusiness (taxable) use of fuel includes: use in minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Filing an ammended return For more information, see Publication 510. Filing an ammended return Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines You may be eligible to claim a credit or refund for the excise tax on undyed diesel fuel or kerosene used for home heating, lighting, and cooking. Filing an ammended return This also applies to diesel fuel and kerosene used in a home generator to produce electricity for home use. Filing an ammended return Home use of a fuel does not include use in a propulsion engine and it is not considered an off-highway business use. Filing an ammended return How To Claim a Credit or Refund You may be able to claim a credit or refund of the excise tax on fuels you use for nontaxable uses. Filing an ammended return The basic rules for claiming credits and refunds are listed in Table 14-2 . Filing an ammended return Table 14-2. Filing an ammended return Claiming a Credit or Refund of Excise Taxes This table gives the basic rules for claiming a credit or refund of excise taxes on fuels used for a nontaxable use. Filing an ammended return   Credit Refund Which form to use Form 4136, Credit for Federal Tax Paid on Fuels Form 8849, Claim for Refund of Excise Taxes, and Schedule 1 (Form 8849), Nontaxable Use of Fuels Type of form Annual Quarterly When to file With your income tax return By the last day of the quarter following the last quarter included in the claim Amount of tax Any amount $750 or more1 1You may carry over an amount less than $750 to the next quarter. Filing an ammended return Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Filing an ammended return You do not have to use any special form, but the records should establish the following information. Filing an ammended return The total number of gallons bought and used during the period covered by your claim. Filing an ammended return The dates of the purchases. Filing an ammended return The names and addresses of suppliers and amounts bought from each during the period covered by your claim. Filing an ammended return The nontaxable use for which you used the fuel. Filing an ammended return The number of gallons used for each nontaxable use. Filing an ammended return It is important that your records separately show the number of gallons used for each nontaxable use that qualifies as a claim. Filing an ammended return For more information about recordkeeping, see Publication 583, Starting a Business and Keeping Records. Filing an ammended return Credit or refund. Filing an ammended return   A credit is an amount that reduces the tax on your income tax return when you file it at the end of the year. Filing an ammended return If you meet certain requirements, you may claim a refund during the year instead of waiting until you file your income tax return. Filing an ammended return Credit only. Filing an ammended return   You can claim the following taxes only as a credit on your income tax return. Filing an ammended return Tax on gasoline and aviation gasoline you used on a farm for farming purposes. Filing an ammended return Tax on fuels (including undyed diesel fuel or undyed kerosene) you used for nontaxable uses if the total for the tax year is less than $750. Filing an ammended return Tax on fuel you did not include in any claim for refund previously filed for any quarter of the tax year. Filing an ammended return Claiming a Credit You make a claim for a fuel tax credit on Form 4136 and attach it to your income tax return. Filing an ammended return Do not claim a credit for any excise tax for which you have filed a refund claim. Filing an ammended return How to claim a credit. Filing an ammended return   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, trust, or farmers' cooperative association. Filing an ammended return Individuals. Filing an ammended return   You claim the credit on the “Credit for federal tax on fuels” line of your Form 1040. Filing an ammended return If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Filing an ammended return Partnership. Filing an ammended return   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Filing an ammended return , showing each partner's share of the number of gallons of each fuel sold or used for a nontaxable use, the type of use, and the applicable credit per gallon. Filing an ammended return Each partner claims the credit on his or her income tax return for the partner's share of the fuel used by the partnership. Filing an ammended return An electing large partnership can claim the credit on the “Other payments” line of Form 1065-B, U. Filing an ammended return S. Filing an ammended return Return of Income for Electing Large Partnerships. Filing an ammended return Other entities. Filing an ammended return   Corporations, S corporations, farmers' cooperative associations, and trusts make the claim on the appropriate line of their income tax return. Filing an ammended return When to claim a credit. Filing an ammended return   You can claim a fuel tax credit on your income tax return for the year you used the fuel. Filing an ammended return You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Filing an ammended return A claim for credit or refund of an overpayment must generally be filed within the later of: Three years from the date the original return was filed, or Two years from the date the tax was paid. Filing an ammended return Claiming a Refund Generally, you may claim a refund of excise taxes on Form 8849. Filing an ammended return Complete and attach to Form 8849 the appropriate Form 8849 schedule(s). Filing an ammended return The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Filing an ammended return If you file Form 720, you can use its Schedule C for your refund claims for the quarter. Filing an ammended return See the Instructions for Form 720. Filing an ammended return Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Form 720 or Form 4136. Filing an ammended return You may file a claim for refund for any quarter of your tax year for which you can claim $750 or more. Filing an ammended return 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. Filing an ammended return 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. Filing an ammended return 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. Filing an ammended return Only one claim can be filed for a quarter. Filing an ammended return You cannot claim a refund for excise tax on gasoline and aviation gasoline used on a farm for farming purposes. Filing an ammended return You must claim a credit on your income tax return for the tax. Filing an ammended return How to file a quarterly claim. Filing an ammended return   File the claim for refund by filling out Schedule 1 (Form 8849) and attaching it to Form 8849. Filing an ammended return Send it to the address shown in the instructions. Filing an ammended return If you file Form 720, you can use its Schedule C for your refund claims. Filing an ammended return See the Instructions for Form 720. Filing an ammended return When to file a quarterly claim. Filing an ammended return   You must file a quarterly claim by the last day of the first quarter following the last quarter included in the claim. Filing an ammended return 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. Filing an ammended return    In most situations, the amount claimed as a credit or refund will be less than the amount deducted as fuel tax expense because the Leaking Underground Storage Tank (LUST) tax of $0. Filing an ammended return 001 per gallon is generally not subject to credit or refund. Filing an ammended return Including the Credit or Refund in Income Include any credit or refund of excise taxes on fuels in your gross income if you claimed the total cost of the fuel (including the excise taxes) as an expense deduction that reduced your income tax liability. Filing an ammended return Which year you include a credit or refund in gross income depends on whether you use the cash or an accrual method of accounting. Filing an ammended return Cash method. Filing an ammended return   If you use the cash method and file a claim for refund, include the refund amount in gross income for the tax year in which you receive the refund. Filing an ammended return If you claim a credit on your income tax return, include the credit amount in gross income for the tax year in which you file Form 4136. Filing an ammended return If you file an amended return and claim a credit, include the credit amount in gross income for the tax year in which you receive the credit. Filing an ammended return Example. Filing an ammended return Sharon Brown, a farmer who uses the cash method, filed her 2012 Form 1040 on March 3, 2013. Filing an ammended return On her Schedule F, she deducted the total cost of gasoline (including $110 of excise taxes) used on the farm for farming purposes. Filing an ammended return Then, on Form 4136, she claimed the $110 as a credit. Filing an ammended return Sharon reports the $110 as other income on line 8b of her 2013 Schedule F. Filing an ammended return Accrual method. Filing an ammended return   If you use an accrual method, include the amount of credit or refund in gross income for the tax year in which you used the fuels. Filing an ammended return It does not matter whether you filed for a quarterly refund or claimed the entire amount as a credit. Filing an ammended return Example. Filing an ammended return Patty Green, a farmer who uses the accrual method, files her 2012 Form 1040 on April 15, 2013. Filing an ammended return On Schedule F, she deducts the total cost of gasoline (including $155 of excise taxes) she used on the farm for farming purposes during 2012. Filing an ammended return On Form 4136, Patty claims the $155 as a credit. Filing an ammended return She reports the $155 as other income on line 8b of her 2012 Schedule F. Filing an ammended return Prev  Up  Next   Home   More Online Publications