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How To File A 2011 Tax Return Late

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How To File A 2011 Tax Return Late

How to file a 2011 tax return late Publication 17 - Introductory Material Table of Contents What's New Reminders IntroductionIcons. How to file a 2011 tax return late Ordering forms and publications. How to file a 2011 tax return late Tax questions. How to file a 2011 tax return late All material in this publication may be reprinted freely. How to file a 2011 tax return late A citation to Your Federal Income Tax (2013) would be appropriate. How to file a 2011 tax return late The explanations and examples in this publication reflect the interpretation by the Internal Revenue Service (IRS) of: Tax laws enacted by Congress, Treasury regulations, and Court decisions. How to file a 2011 tax return late However, the information given does not cover every situation and is not intended to replace the law or change its meaning. How to file a 2011 tax return late This publication covers some subjects on which a court may have made a decision more favorable to taxpayers than the interpretation by the IRS. How to file a 2011 tax return late Until these differing interpretations are resolved by higher court decisions or in some other way, this publication will continue to present the interpretations by the IRS. How to file a 2011 tax return late All taxpayers have important rights when working with the IRS. How to file a 2011 tax return late These rights are described in Your Rights as a Taxpayer in the back of this publication. How to file a 2011 tax return late What's New This section summarizes important tax changes that took effect in 2013. How to file a 2011 tax return late Most of these changes are discussed in more detail throughout this publication. How to file a 2011 tax return late Future developments. How to file a 2011 tax return late  For the latest information about the tax law topics covered in this publication, including information about any tax legislation, go to www. How to file a 2011 tax return late irs. How to file a 2011 tax return late gov/pub17. How to file a 2011 tax return late Additional Medicare Tax. How to file a 2011 tax return late  Beginning in 2013, a 0. How to file a 2011 tax return late 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. How to file a 2011 tax return late See Form 8959 and its instructions. How to file a 2011 tax return late Net Investment Income Tax. How to file a 2011 tax return late  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). How to file a 2011 tax return late The NIIT is 3. How to file a 2011 tax return late 8% of the smaller of (a) your net investment income or (b) the excess of your modified adjusted gross income over: $125,000 if married filing separately, $250,000 if married filing jointly or qualifying widow(er), or $200,000 if any other filing status. How to file a 2011 tax return late See Form 8960 and its instructions. How to file a 2011 tax return late Change in tax rates. How to file a 2011 tax return late  The highest tax rate is 39. How to file a 2011 tax return late 6%. How to file a 2011 tax return late For more information, see the 2013 Tax Computation Worksheet or the 2013 Tax Rate Schedules near the end of this publication. How to file a 2011 tax return late Tax rate on net capital gain and qualified dividends. How to file a 2011 tax return late  The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers. How to file a 2011 tax return late See chapter 16. How to file a 2011 tax return late Medical and dental expenses. How to file a 2011 tax return late  You can deduct only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (7. How to file a 2011 tax return late 5% if either you or your spouse is age 65 or older). How to file a 2011 tax return late See chapter 21. How to file a 2011 tax return late Personal exemption amount increased for certain taxpayers. How to file a 2011 tax return late  Your personal exemption is increased to $3,900. How to file a 2011 tax return late But the amount is reduced if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if any other filing status. How to file a 2011 tax return late See chapter 3. How to file a 2011 tax return late Limit on itemized deductions. How to file a 2011 tax return late  You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if any other filing status. How to file a 2011 tax return late See chapter 29. How to file a 2011 tax return late Same-sex marriages. How to file a 2011 tax return late  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. How to file a 2011 tax return late See chapter 2. How to file a 2011 tax return late If you meet certain requirements, you may be able to file amended returns to change your filing status for some earlier years. How to file a 2011 tax return late For details on filing amended returns, see chapter 1. How to file a 2011 tax return late Health flexible spending arrangements (FSAs). How to file a 2011 tax return late  You cannot have more than $2,500 in salary reduction contributions made to a health FSA for plan years beginning after 2012. How to file a 2011 tax return late See chapter 5. How to file a 2011 tax return late Expiring credits. How to file a 2011 tax return late  The plug-in electric vehicle credit and the refundable part of the credit for prior year minimum tax have expired. How to file a 2011 tax return late You cannot claim either one on your 2013 return. How to file a 2011 tax return late See chapter 37. How to file a 2011 tax return late Ponzi-type investment schemes. How to file a 2011 tax return late  There are new rules for how to claim a theft loss deduction on Form 4684 due to a Ponzi-type investment scheme. How to file a 2011 tax return late See chapter 25. How to file a 2011 tax return late Home office deduction simplified method. How to file a 2011 tax return late  If you can take a home office deduction, you may be able to use a simplified method to figure it. How to file a 2011 tax return late See Publication 587. How to file a 2011 tax return late Standard mileage rates. How to file a 2011 tax return late  The 2013 rate for business use of your car is increased to 56½ cents a mile. How to file a 2011 tax return late See chapter 26. How to file a 2011 tax return late The 2013 rate for use of your car to get medical care is increased to 24 cents a mile. How to file a 2011 tax return late See chapter 21. How to file a 2011 tax return late The 2013 rate for use of your car to move is increased to 24 cents a mile. How to file a 2011 tax return late See Publication 521, Moving Expenses. How to file a 2011 tax return late Reminders Listed below are important reminders and other items that may help you file your 2013 tax return. How to file a 2011 tax return late Many of these items are explained in more detail later in this publication. How to file a 2011 tax return late Enter your social security number (SSN). How to file a 2011 tax return late  Enter your SSN in the space provided on your tax form. How to file a 2011 tax return late If you filed a joint return for 2012 and are filing a joint return for 2013 with the same spouse, enter your names and SSNs in the same order as on your 2012 return. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Secure your tax records from identity theft. How to file a 2011 tax return late  Identity theft occurs when someone uses your personal information, such as your name, SSN, or other identifying information, without your permission, to commit fraud or other crimes. How to file a 2011 tax return late An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. How to file a 2011 tax return late For more information about identity theft and how to reduce your risk from it, see chapter 1. How to file a 2011 tax return late Taxpayer identification numbers. How to file a 2011 tax return late  You must provide the taxpayer identification number for each person for whom you claim certain tax benefits. How to file a 2011 tax return late This applies even if the person was born in 2013. How to file a 2011 tax return late Generally, this number is the person's social security number (SSN). How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Foreign source income. How to file a 2011 tax return late  If you are a U. How to file a 2011 tax return late S. How to file a 2011 tax return late citizen with income from sources outside the United States (foreign income), you must report all such income on your tax return unless it is exempt by U. How to file a 2011 tax return late S. How to file a 2011 tax return late law. How to file a 2011 tax return late This is true whether you live inside or outside the United States and whether or not you receive a Form W-2 or Form 1099 from the foreign payer. How to file a 2011 tax return late This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents and royalties). How to file a 2011 tax return late If you live outside the United States, you may be able to exclude part or all of your foreign source earned income. How to file a 2011 tax return late For details, see Publication 54, Tax Guide for U. How to file a 2011 tax return late S. How to file a 2011 tax return late Citizens and Resident Aliens Abroad. How to file a 2011 tax return late Foreign financial assets. How to file a 2011 tax return late  If you had foreign financial assets in 2013, you may have to file Form 8938 with your return. How to file a 2011 tax return late Check www. How to file a 2011 tax return late IRS. How to file a 2011 tax return late gov/form8938 for details. How to file a 2011 tax return late Automatic 6-month extension to file tax return. How to file a 2011 tax return late  You can use Form 4868, Application for Automatic Extension of Time To File U. How to file a 2011 tax return late S. How to file a 2011 tax return late Individual Income Tax Return, to obtain an automatic 6-month extension of time to file your tax return. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Include your phone number on your return. How to file a 2011 tax return late  To promptly resolve any questions we have in processing your tax return, we would like to be able to call you. How to file a 2011 tax return late Please enter your daytime telephone number on your tax form next to your signature and occupation. How to file a 2011 tax return late If you are filing a joint return, you can enter either your or your spouse's daytime phone number. How to file a 2011 tax return late Payment of taxes. How to file a 2011 tax return late   You can pay your taxes online, by phone, or by check or money order. How to file a 2011 tax return late You can make a direct transfer from your bank account or use a credit or debit card. How to file a 2011 tax return late If you e-file, you can schedule an electronic payment. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Faster ways to file your return. How to file a 2011 tax return late  The IRS offers fast, accurate ways to file your tax return information without filing a paper tax return. How to file a 2011 tax return late You can use IRS e-file (electronic filing). How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Free electronic filing. How to file a 2011 tax return late  You may be able to file your 2013 taxes online for free. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Change of address. How to file a 2011 tax return late  If you change your address, you should notify the IRS. How to file a 2011 tax return late See Change of Address in chapter 1. How to file a 2011 tax return late Refund on a late filed return. How to file a 2011 tax return late  If you were due a refund but you did not file a return, you generally must file your return within 3 years from the date the return was due (including extensions) to get that refund. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Frivolous tax returns. How to file a 2011 tax return late  The IRS has published a list of positions that are identified as frivolous. How to file a 2011 tax return late The penalty for filing a frivolous tax return is $5,000. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Filing erroneous claim for refund or credit. How to file a 2011 tax return late  You may have to pay a penalty if you file an erroneous claim for refund or credit. How to file a 2011 tax return late See chapter 1. How to file a 2011 tax return late Privacy Act and paperwork reduction information. How to file a 2011 tax return late   The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you what our legal right is to ask for the information, why we are asking for it, how it will be used, what could happen if we do not receive it, and whether your response is voluntary, required to obtain a benefit, or mandatory under the law. How to file a 2011 tax return late A complete statement on this subject can be found in your tax form instructions. How to file a 2011 tax return late Customer service for taxpayers. How to file a 2011 tax return late  You can set up a personal appointment at the most convenient Taxpayer Assistance Center, on the most convenient business day. How to file a 2011 tax return late See How To Get Tax Help in the back of this publication. How to file a 2011 tax return late Preparer e-file mandate. How to file a 2011 tax return late  Most paid preparers must e-file returns they prepare and file. How to file a 2011 tax return late Your preparer may make you aware of this requirement and the options available to you. How to file a 2011 tax return late Treasury Inspector General for Tax Administration. How to file a 2011 tax return late   If you want to confidentially report misconduct, waste, fraud, or abuse by an IRS employee, you can call 1-800-366-4484 (call 1-800-877-8339 if you are deaf, hard of hearing, or have a speech disability, and are using TTY/TDD equipment). How to file a 2011 tax return late You can remain anonymous. How to file a 2011 tax return late Photographs of missing children. How to file a 2011 tax return late  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to file a 2011 tax return late Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to file a 2011 tax return late 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. How to file a 2011 tax return late Introduction This publication covers the general rules for filing a federal income tax return. How to file a 2011 tax return late It supplements the information contained in your tax form instructions. How to file a 2011 tax return late It explains the tax law to make sure you pay only the tax you owe and no more. How to file a 2011 tax return late How this publication is arranged. How to file a 2011 tax return late   This publication closely follows Form 1040, U. How to file a 2011 tax return late S. How to file a 2011 tax return late Individual Income Tax Return. How to file a 2011 tax return late It is divided into six parts which cover different sections of Form 1040. How to file a 2011 tax return late Each part is further divided into chapters which generally discuss one line of the form. How to file a 2011 tax return late Do not worry if you file Form 1040A or Form 1040EZ. How to file a 2011 tax return late Anything included on a line of either of these forms is also included on Form 1040. How to file a 2011 tax return late   The table of contents inside the front cover and the index in the back of the publication are useful tools to help you find the information you need. How to file a 2011 tax return late What is in this publication. How to file a 2011 tax return late   The publication begins with the rules for filing a tax return. How to file a 2011 tax return late It explains: Who must file a return, Which tax form to use, When the return is due, How to e-file your return, and Other general information. How to file a 2011 tax return late It will help you identify which filing status you qualify for, whether you can claim any dependents, and whether the income you receive is taxable. How to file a 2011 tax return late The publication goes on to explain the standard deduction, the kinds of expenses you may be able to deduct, and the various kinds of credits you may be able to take to reduce your tax. How to file a 2011 tax return late   Throughout the publication are examples showing how the tax law applies in typical situations. How to file a 2011 tax return late Also throughout the publication are flowcharts and tables that present tax information in an easy-to-understand manner. How to file a 2011 tax return late   Many of the subjects discussed in this publication are discussed in greater detail in other IRS publications. How to file a 2011 tax return late References to those other publications are provided for your information. How to file a 2011 tax return late Icons. How to file a 2011 tax return late   Small graphic symbols, or icons, are used to draw your attention to special information. How to file a 2011 tax return late See Table 1 later for an explanation of each icon used in this publication. How to file a 2011 tax return late What is not covered in this publication. How to file a 2011 tax return late   Some material that you may find helpful is not included in this publication but can be found in your tax form instruction booklet. How to file a 2011 tax return late This includes lists of: Where to report certain items shown on information documents, and Recorded tax information topics (TeleTax). How to file a 2011 tax return late   If you operate your own business or have other self-employment income, such as from babysitting or selling crafts, see the following publications for more information. How to file a 2011 tax return late Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ). How to file a 2011 tax return late Publication 535, Business Expenses. How to file a 2011 tax return late Publication 587, Business Use of Your Home (Including Use by Daycare Providers). How to file a 2011 tax return late Help from the IRS. How to file a 2011 tax return late   There are many ways you can get help from the IRS. How to file a 2011 tax return late These are explained under How To Get Tax Help in the back of this publication. How to file a 2011 tax return late Comments and suggestions. How to file a 2011 tax return late   We welcome your comments about this publication and your suggestions for future editions. How to file a 2011 tax return late   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How to file a 2011 tax return late NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to file a 2011 tax return late Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to file a 2011 tax return late   You can send your comments from www. How to file a 2011 tax return late irs. How to file a 2011 tax return late gov/formspubs/. How to file a 2011 tax return late Click on “More Information” and then on “Comment on Tax Forms and Publications”. How to file a 2011 tax return late   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. How to file a 2011 tax return late Ordering forms and publications. How to file a 2011 tax return late   Visit www. How to file a 2011 tax return late irs. How to file a 2011 tax return late 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. How to file a 2011 tax return late Internal Revenue Service 1201 N. How to file a 2011 tax return late Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to file a 2011 tax return late   If you have a tax question, check the information available on IRS. How to file a 2011 tax return late gov or call 1-800-829-1040. How to file a 2011 tax return late We cannot answer tax questions sent to either of the above addresses. How to file a 2011 tax return late IRS mission. How to file a 2011 tax return late   Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. How to file a 2011 tax return late Table 1. How to file a 2011 tax return late Legend of Icons Icon Explanation Items that may cause you particular problems, or an alert about pending legislation that may be enacted after this publication goes to print. How to file a 2011 tax return late An Internet site or an email address. How to file a 2011 tax return late An address you may need. How to file a 2011 tax return late Items you should keep in your personal records. How to file a 2011 tax return late Items you may need to figure or a worksheet you may need to complete and keep for your records. How to file a 2011 tax return late An important phone number. How to file a 2011 tax return late Helpful information you may need. 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Offshore Voluntary Disclosure Initiative: Passive Foreign Income Company Investment Computations

September 2010

A significant number of Offshore Voluntary Disclosure Practice (VDP) cases involve Passive Foreign Investment Company (PFIC) investments.  A lack of historical information on the cost basis and holding period of many PFIC investments makes it difficult for taxpayers to prepare statutory PFIC computations and for the Service to verify them.  As a result, resolution of many VDP cases is being unduly delayed.  Therefore, for purposes of this initiative, the Service is offering taxpayers an alternative to the statutory PFIC computation that will resolve PFIC issues on a basis that is consistent with the Mark to Market (MTM) methodology authorized in Internal Revenue Code section 1296 but will not require complete reconstruction of historical data.

The terms of this alternative resolution are as follows:

  • If elected, the alternative resolution will apply to all PFIC investments in cases that have been accepted into the VDP and that qualify for the special civil penalty framework announced by the IRS on March 23, 2009.  The initial MTM computation of gain or loss under this methodology will be for the first year of the VDP application but could be made after 2003 depending on when the first PFIC investment was made.  Generally, under the terms of the March 23, 2009 framework, the first year of the VDP application will be for the calendar year ending December 31, 2003.   This will require a determination of the basis for every PFIC investment, which should be agreed between the taxpayer and the Service based on the best available evidence. 


  • A tax rate of 20% will be applied to the MTM gain(s), MTM net gain(s) and gains from all PFIC dispositions during the VDP period, in lieu of the rate contained in section 1291(a)(1)(B) for the amount allocable to the current year and section 1291(c)(2) for the deferred tax amount(s) allocable to any other taxable year.

  • A rate of 7% of the tax computed for PFIC investments marked to market in the first year of the VDP application will be added to the tax for that year, in lieu of the interest charge mechanism described in sections 1291(c) and 1296(j).

  • MTM losses will be limited to unreversed inclusions (generally, previously reported MTM gains less allowed MTM losses) on an investment-by-investment basis in the same manner as section 1296. During the VDP period, these MTM losses will be treated as  ordinary losses (IRC 1296[c][1][B]) and the tax benefit is limited to the tax rate applicable to the MTM gains derived during the VDP period (20%).  This limitation is accomplished by multiplying the MTM loss by 20% and applying the result as a credit against the tax liability for the year.
     
  • Regular and Alternative Minimum Tax are both to be computed without the PFIC dispositions or MTM gains and losses.  The tax from the PFIC transactions (20% plus the 7% for 2003, if applicable) is added to (or subtracted from) the applicable total tax (either regular or AMT, whichever is higher).  The tax and interest (i.e., the 7% for the first year of the VDP) computed under the VDP alternative MTM can be added to the applicable total tax (either regular or AMT, whichever is higher) and placed on the amended return in the margin, with a supporting schedule.

  • Underpayment interest and penalties on the deficiency are computed in accordance with the Internal Revenue Code and the terms of the VDP.

  • For any PFIC investment retained beyond 12/31/2008, the taxpayer must continue using the MTM method, but will apply the normal statutory rules of section 1296 as well as the provisions of sections 1291-1298, as applicable.

Taxpayers should direct questions regarding PFICs and how the alternative resolution will affect their cases to the examiners assigned to their cases.  Before electing the alternative PFIC resolution, taxpayers with PFIC investments should consult their tax advisors to ensure that the issue is material in their cases and that the alternative is in fact preferable to the statutory computation in their situation.  If the taxpayer does not elect to use the alternative PFIC computation, then the PFIC provisions of section 1291-1298 apply. 

Page Last Reviewed or Updated: 09-Jan-2014

The How To File A 2011 Tax Return Late

How to file a 2011 tax return late 1. How to file a 2011 tax return late   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. How to file a 2011 tax return late 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. How to file a 2011 tax return late Reseller statement. How to file a 2011 tax return late Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. How to file a 2011 tax return late Deep-draft ocean-going vessels. How to file a 2011 tax return late Passenger vessels. How to file a 2011 tax return late Ocean-going barges. How to file a 2011 tax return late State or local governments. How to file a 2011 tax return late 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. How to file a 2011 tax return late Gasoline, including aviation gasoline and gasoline blendstocks. How to file a 2011 tax return late Diesel fuel, including dyed diesel fuel. How to file a 2011 tax return late Diesel-water fuel emulsion. How to file a 2011 tax return late Kerosene, including dyed kerosene and kerosene used in aviation. How to file a 2011 tax return late Other Fuels (including alternative fuels). How to file a 2011 tax return late Compressed natural gas (CNG). How to file a 2011 tax return late Fuels used in commercial transportation on inland waterways. How to file a 2011 tax return late Any liquid used in a fractional ownership program aircraft as fuel. How to file a 2011 tax return late The following terms are used throughout the discussion of fuel taxes. How to file a 2011 tax return late Other terms are defined in the discussion of the specific fuels to which they pertain. How to file a 2011 tax return late Agri-biodiesel. How to file a 2011 tax return late   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. How to file a 2011 tax return late Approved terminal or refinery. How to file a 2011 tax return late   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. How to file a 2011 tax return late Biodiesel. How to file a 2011 tax return late   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. How to file a 2011 tax return late Blended taxable fuel. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Blender. How to file a 2011 tax return late   This is the person that produces blended taxable fuel. How to file a 2011 tax return late Bulk transfer. How to file a 2011 tax return late   This is the transfer of taxable fuel by pipeline or vessel. How to file a 2011 tax return late Bulk transfer/terminal system. How to file a 2011 tax return late   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. How to file a 2011 tax return late 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. How to file a 2011 tax return late Cellulosic biofuel. How to file a 2011 tax return late   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. How to file a 2011 tax return late Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). How to file a 2011 tax return late 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. How to file a 2011 tax return late Also see Second generation biofuel below. How to file a 2011 tax return late Diesel-water fuel emulsion. How to file a 2011 tax return late   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. How to file a 2011 tax return late 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. How to file a 2011 tax return late Dry lease aircraft exchange. How to file a 2011 tax return late   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. How to file a 2011 tax return late Enterer. How to file a 2011 tax return late   This is the importer of record (under customs law) for the taxable fuel. How to file a 2011 tax return late 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. How to file a 2011 tax return late If there is no importer of record, the owner at the time of entry into the United States is the enterer. How to file a 2011 tax return late Entry. How to file a 2011 tax return late   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. How to file a 2011 tax return late This does not apply to fuel brought into Puerto Rico (which is part of the U. How to file a 2011 tax return late S. How to file a 2011 tax return late customs territory), but does apply to fuel brought into the United States from Puerto Rico. How to file a 2011 tax return late Fractional ownership aircraft program and fractional program aircraft. How to file a 2011 tax return late   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. How to file a 2011 tax return late Measurement of taxable fuel. How to file a 2011 tax return late   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. How to file a 2011 tax return late Other fuels. How to file a 2011 tax return late   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. How to file a 2011 tax return late Pipeline operator. How to file a 2011 tax return late   This is the person that operates a pipeline within the bulk transfer/terminal system. How to file a 2011 tax return late Position holder. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late A terminal operator that owns taxable fuel in its terminal is a position holder. How to file a 2011 tax return late Rack. How to file a 2011 tax return late   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. How to file a 2011 tax return late Refiner. How to file a 2011 tax return late   This is any person that owns, operates, or otherwise controls a refinery. How to file a 2011 tax return late Refinery. How to file a 2011 tax return late   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. How to file a 2011 tax return late However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. How to file a 2011 tax return late For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. How to file a 2011 tax return late Registrant. How to file a 2011 tax return late   This is a taxable fuel registrant (see Registration Requirements, later). How to file a 2011 tax return late Removal. How to file a 2011 tax return late   This is any physical transfer of taxable fuel. How to file a 2011 tax return late It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. How to file a 2011 tax return late However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. How to file a 2011 tax return late Renewable diesel. How to file a 2011 tax return late   See Renewable Diesel Credits in chapter 2. How to file a 2011 tax return late Sale. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Second generation biofuel. How to file a 2011 tax return late   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. How to file a 2011 tax return late S. How to file a 2011 tax return late C. How to file a 2011 tax return late 7545). How to file a 2011 tax return late It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. How to file a 2011 tax return late It is not alcohol of less than 150 proof (disregard any added denaturants). How to file a 2011 tax return late See Form 6478 for more information. How to file a 2011 tax return late State. How to file a 2011 tax return late   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. How to file a 2011 tax return late An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. How to file a 2011 tax return late Taxable fuel. How to file a 2011 tax return late   This means gasoline, diesel fuel, and kerosene. How to file a 2011 tax return late Terminal. How to file a 2011 tax return late   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Terminal operator. How to file a 2011 tax return late   This is any person that owns, operates, or otherwise controls a terminal. How to file a 2011 tax return late Throughputter. How to file a 2011 tax return late   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). How to file a 2011 tax return late Vessel operator. How to file a 2011 tax return late   This is the person that operates a vessel within the bulk transfer/terminal system. How to file a 2011 tax return late However, vessel does not include a deep draft ocean-going vessel. How to file a 2011 tax return late Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. How to file a 2011 tax return late A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. How to file a 2011 tax return late For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. How to file a 2011 tax return late The returns are due the last day of the month following the month in which the transaction occurs. How to file a 2011 tax return late Generally, these returns can be filed on paper or electronically. How to file a 2011 tax return late For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. How to file a 2011 tax return late Publication 3536 is only available on the IRS website. How to file a 2011 tax return late Form 720-TO. How to file a 2011 tax return late   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. How to file a 2011 tax return late Each terminal operator must file a separate form for each approved terminal. How to file a 2011 tax return late Form 720-CS. How to file a 2011 tax return late   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. How to file a 2011 tax return late Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. How to file a 2011 tax return late See Form 637 for other persons who must register and for more information about registration. How to file a 2011 tax return late Persons that are required to be registered. How to file a 2011 tax return late   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. How to file a 2011 tax return late Persons that may register. How to file a 2011 tax return late   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. How to file a 2011 tax return late Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. How to file a 2011 tax return late However, they must be registered to file claims for certain sales and uses of fuel. How to file a 2011 tax return late See Form 637 for more information. How to file a 2011 tax return late Taxable fuel registrant. How to file a 2011 tax return late   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. How to file a 2011 tax return late The term registrant as used in the discussions of these fuels means a taxable fuel registrant. How to file a 2011 tax return late Additional information. How to file a 2011 tax return late   See the Form 637 instructions for the information you must submit when you apply for registration. How to file a 2011 tax return late Failure to register. How to file a 2011 tax return late   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. How to file a 2011 tax return late Gasoline and Aviation Gasoline Gasoline. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Gasoline also includes gasoline blendstocks, discussed later. How to file a 2011 tax return late Aviation gasoline. How to file a 2011 tax return late   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. How to file a 2011 tax return late Taxable Events The tax on gasoline is $. How to file a 2011 tax return late 184 per gallon. How to file a 2011 tax return late The tax on aviation gasoline is $. How to file a 2011 tax return late 194 per gallon. How to file a 2011 tax return late When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. How to file a 2011 tax return late 141 per gallon. How to file a 2011 tax return late See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. How to file a 2011 tax return late Tax is imposed on the removal, entry, or sale of gasoline. How to file a 2011 tax return late Each of these events is discussed later. How to file a 2011 tax return late Also, see the special rules that apply to gasoline blendstocks, later. How to file a 2011 tax return late If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. How to file a 2011 tax return late See Refunds of Second Tax in chapter 2. How to file a 2011 tax return late Removal from terminal. How to file a 2011 tax return late   All removals of gasoline at a terminal rack are taxable. How to file a 2011 tax return late The position holder for that gasoline is liable for the tax. How to file a 2011 tax return late Two-party exchanges. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. How to file a 2011 tax return late 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. How to file a 2011 tax return late The transaction is subject to a written contract. How to file a 2011 tax return late Terminal operator's liability. How to file a 2011 tax return late   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. How to file a 2011 tax return late   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. How to file a 2011 tax return late The terminal operator is a registrant. How to file a 2011 tax return late The terminal operator has an unexpired notification certificate (discussed later) from the position holder. How to file a 2011 tax return late The terminal operator has no reason to believe any information on the certificate is false. How to file a 2011 tax return late Removal from refinery. How to file a 2011 tax return late   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. How to file a 2011 tax return late 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. How to file a 2011 tax return late It is made at the refinery rack. How to file a 2011 tax return late The refiner is liable for the tax. How to file a 2011 tax return late Exception. How to file a 2011 tax return late   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. How to file a 2011 tax return late The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. How to file a 2011 tax return late The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. How to file a 2011 tax return late The removal from the refinery is by railcar. How to file a 2011 tax return late The same person operates the refinery and the facility at which the gasoline is received. How to file a 2011 tax return late Entry into the United States. How to file a 2011 tax return late   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. How to file a 2011 tax return late It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. How to file a 2011 tax return late It is not made by bulk transfer. How to file a 2011 tax return late The enterer is liable for the tax. How to file a 2011 tax return late Importer of record's liability. How to file a 2011 tax return late   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. How to file a 2011 tax return late   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. How to file a 2011 tax return late The importer of record has an unexpired notification certificate (discussed later) from the enterer. How to file a 2011 tax return late The importer of record has no reason to believe any information in the certificate is false. How to file a 2011 tax return late Customs bond. How to file a 2011 tax return late   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. How to file a 2011 tax return late Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. How to file a 2011 tax return late   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. How to file a 2011 tax return late The position holder is liable for the tax. How to file a 2011 tax return late The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. How to file a 2011 tax return late However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. How to file a 2011 tax return late Bulk transfers not received at approved terminal or refinery. How to file a 2011 tax return late   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. How to file a 2011 tax return late No tax was previously imposed (as discussed earlier) on any of the following events. How to file a 2011 tax return late The removal from the refinery. How to file a 2011 tax return late The entry into the United States. How to file a 2011 tax return late The removal from a terminal by an unregistered position holder. How to file a 2011 tax return late Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). How to file a 2011 tax return late   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. How to file a 2011 tax return late However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. How to file a 2011 tax return late The owner is a registrant. How to file a 2011 tax return late The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. How to file a 2011 tax return late The owner has no reason to believe any information on the certificate is false. How to file a 2011 tax return late The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. How to file a 2011 tax return late The operator is jointly and severally liable if the owner does not meet these conditions. How to file a 2011 tax return late Sales to unregistered person. How to file a 2011 tax return late   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. How to file a 2011 tax return late   The seller is liable for the tax. How to file a 2011 tax return late However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. How to file a 2011 tax return late   The seller is a registrant. How to file a 2011 tax return late The seller has an unexpired notification certificate (discussed later) from the buyer. How to file a 2011 tax return late The seller has no reason to believe any information on the certificate is false. How to file a 2011 tax return late The buyer of the gasoline is liable for the tax if the seller meets these conditions. How to file a 2011 tax return late The buyer is jointly and severally liable if the seller does not meet these conditions. How to file a 2011 tax return late Exception. How to file a 2011 tax return late   The tax does not apply to a sale if all of the following apply. How to file a 2011 tax return late The buyer's principal place of business is not in the United States. How to file a 2011 tax return late The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. How to file a 2011 tax return late The seller is a registrant and the exporter of record. How to file a 2011 tax return late The fuel was exported. How to file a 2011 tax return late Removal or sale of blended gasoline. How to file a 2011 tax return late   The removal or sale of blended gasoline by the blender is taxable. How to file a 2011 tax return late See Blended taxable fuel under Definitions, earlier. How to file a 2011 tax return late   The blender is liable for the tax. How to file a 2011 tax return late The tax is figured on the number of gallons not previously subject to the tax on gasoline. How to file a 2011 tax return late   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. How to file a 2011 tax return late See Form 720 to report this tax. How to file a 2011 tax return late You also must be registered with the IRS as a blender. How to file a 2011 tax return late See Form 637. How to file a 2011 tax return late   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. How to file a 2011 tax return late Notification certificate. How to file a 2011 tax return late   The notification certificate is used to notify a person of the registration status of the registrant. How to file a 2011 tax return late A copy of the registrant's letter of registration cannot be used as a notification certificate. How to file a 2011 tax return late A model notification certificate is shown in the Appendix as Model Certificate C. How to file a 2011 tax return late A notification certificate must contain all information necessary to complete the model. How to file a 2011 tax return late   The certificate may be included as part of any business records normally used for a sale. How to file a 2011 tax return late 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. How to file a 2011 tax return late The registrant must provide a new certificate if any information on a certificate has changed. How to file a 2011 tax return late Additional persons liable. How to file a 2011 tax return late   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. How to file a 2011 tax return late Gasoline Blendstocks Gasoline blendstocks may be subject to $. How to file a 2011 tax return late 001 per gallon LUST tax as discussed below. How to file a 2011 tax return late Gasoline includes gasoline blendstocks. How to file a 2011 tax return late The previous discussions apply to these blendstocks. How to file a 2011 tax return late However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. How to file a 2011 tax return late 001 per gallon or are not subject to the excise tax. How to file a 2011 tax return late Blendstocks. How to file a 2011 tax return late   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. How to file a 2011 tax return late   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. How to file a 2011 tax return late Not used to produce finished gasoline. How to file a 2011 tax return late   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. How to file a 2011 tax return late Removals and entries not connected to sale. How to file a 2011 tax return late   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. How to file a 2011 tax return late Removals and entries connected to sale. How to file a 2011 tax return late   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. How to file a 2011 tax return late The person has an unexpired certificate (discussed later) from the buyer. How to file a 2011 tax return late The person has no reason to believe any information in the certificate is false. How to file a 2011 tax return late Sales after removal or entry. How to file a 2011 tax return late   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. How to file a 2011 tax return late The seller is liable for the tax. How to file a 2011 tax return late However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. How to file a 2011 tax return late The seller has an unexpired certificate (discussed next) from the buyer. How to file a 2011 tax return late The seller has no reason to believe any information in the certificate is false. How to file a 2011 tax return late Certificate of buyer. How to file a 2011 tax return late   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. How to file a 2011 tax return late The certificate may be included as part of any business records normally used for a sale. How to file a 2011 tax return late A model certificate is shown in the Appendix as Model Certificate D. How to file a 2011 tax return late The certificate must contain all information necessary to complete the model. How to file a 2011 tax return late   A certificate expires on the earliest of the following dates. How to file a 2011 tax return late The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to file a 2011 tax return late The date a new certificate is provided to the seller. How to file a 2011 tax return late The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. How to file a 2011 tax return late The buyer must provide a new certificate if any information on a certificate has changed. How to file a 2011 tax return late   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. How to file a 2011 tax return late Received at approved terminal or refinery. How to file a 2011 tax return late   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. How to file a 2011 tax return late The person is a registrant. How to file a 2011 tax return late The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. How to file a 2011 tax return late The person has no reason to believe any information on the certificate is false. How to file a 2011 tax return late Bulk transfers to registered industrial user. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Credits or Refunds. How to file a 2011 tax return late   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. How to file a 2011 tax return late For more information, see chapter 2. How to file a 2011 tax return late Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. How to file a 2011 tax return late 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. How to file a 2011 tax return late Diesel fuel does not include gasoline, kerosene, excluded liquid, No. How to file a 2011 tax return late 5 and No. How to file a 2011 tax return late 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. How to file a 2011 tax return late An excluded liquid is either of the following. How to file a 2011 tax return late A liquid that contains less than 4% normal paraffins. How to file a 2011 tax return late A liquid with all the following properties. How to file a 2011 tax return late Distillation range of 125 degrees Fahrenheit or less. How to file a 2011 tax return late Sulfur content of 10 ppm or less. How to file a 2011 tax return late Minimum color of +27 Saybolt. How to file a 2011 tax return late Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. How to file a 2011 tax return late Kerosene. How to file a 2011 tax return late   This means any of the following liquids. How to file a 2011 tax return late One of the two grades of kerosene (No. How to file a 2011 tax return late 1-K and No. How to file a 2011 tax return late 2-K) covered by ASTM specification D3699. How to file a 2011 tax return late 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). How to file a 2011 tax return late See Kerosene for Use in Aviation, later. How to file a 2011 tax return late   However, kerosene does not include excluded liquid, discussed earlier. How to file a 2011 tax return late   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. How to file a 2011 tax return late Diesel-powered highway vehicle. How to file a 2011 tax return late   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. How to file a 2011 tax return late Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. How to file a 2011 tax return late For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. How to file a 2011 tax return late 2) in chapter 2. How to file a 2011 tax return late Diesel-powered train. How to file a 2011 tax return late   This is any diesel-powered equipment or machinery that rides on rails. How to file a 2011 tax return late The term includes a locomotive, work train, switching engine, and track maintenance machine. How to file a 2011 tax return late Taxable Events The tax on diesel fuel and kerosene is $. How to file a 2011 tax return late 244 per gallon. How to file a 2011 tax return late It is imposed on the removal, entry, or sale of diesel fuel and kerosene. How to file a 2011 tax return late Each of these events is discussed later. How to file a 2011 tax return late Only the $. How to file a 2011 tax return late 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. How to file a 2011 tax return late 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. How to file a 2011 tax return late See Refunds of Second Tax in chapter 2. How to file a 2011 tax return late Use in certain intercity and local buses. How to file a 2011 tax return late   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. How to file a 2011 tax return late A claim for $. How to file a 2011 tax return late 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. How to file a 2011 tax return late An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. How to file a 2011 tax return late The bus must be engaged in one of the following activities. How to file a 2011 tax return late Scheduled transportation along regular routes regardless of the size of the bus. How to file a 2011 tax return late Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). How to file a 2011 tax return late 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. How to file a 2011 tax return late Removal from terminal. How to file a 2011 tax return late   All removals of diesel fuel and kerosene at a terminal rack are taxable. How to file a 2011 tax return late The position holder for that fuel is liable for the tax. How to file a 2011 tax return late Two-party exchanges. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. How to file a 2011 tax return late 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. How to file a 2011 tax return late The transaction is subject to a written contract. How to file a 2011 tax return late Terminal operator's liability. How to file a 2011 tax return late   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). How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late The terminal operator is a registrant. How to file a 2011 tax return late The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. How to file a 2011 tax return late The terminal operator has no reason to believe any information on the certificate is false. How to file a 2011 tax return late Removal from refinery. How to file a 2011 tax return late   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. How to file a 2011 tax return late 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. How to file a 2011 tax return late It is made at the refinery rack. How to file a 2011 tax return late The refiner is liable for the tax. How to file a 2011 tax return late Exception. How to file a 2011 tax return late   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. How to file a 2011 tax return late The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. How to file a 2011 tax return late The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. How to file a 2011 tax return late 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. How to file a 2011 tax return late Entry into the United States. How to file a 2011 tax return late   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. How to file a 2011 tax return late It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. How to file a 2011 tax return late It is not made by bulk transfer. How to file a 2011 tax return late The enterer is liable for the tax. How to file a 2011 tax return late Importer of record's liability. How to file a 2011 tax return late   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. How to file a 2011 tax return late   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. How to file a 2011 tax return late The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. How to file a 2011 tax return late The importer of record has no reason to believe any information in the certificate is false. How to file a 2011 tax return late Customs bond. How to file a 2011 tax return late   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. How to file a 2011 tax return late Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. How to file a 2011 tax return late   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. How to file a 2011 tax return late The position holder is liable for the tax. How to file a 2011 tax return late The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. How to file a 2011 tax return late However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. How to file a 2011 tax return late Bulk transfers not received at approved terminal or refinery. How to file a 2011 tax return late   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. How to file a 2011 tax return late No tax was previously imposed (as discussed earlier) on any of the following events. How to file a 2011 tax return late The removal from the refinery. How to file a 2011 tax return late The entry into the United States. How to file a 2011 tax return late The removal from a terminal by an unregistered position holder. How to file a 2011 tax return late 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). How to file a 2011 tax return late   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. How to file a 2011 tax return late However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. How to file a 2011 tax return late The owner is a registrant. How to file a 2011 tax return late 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. How to file a 2011 tax return late The owner has no reason to believe any information on the certificate is false. How to file a 2011 tax return late The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. How to file a 2011 tax return late The operator is jointly and severally liable if the owner does not meet these conditions. How to file a 2011 tax return late Sales to unregistered person. How to file a 2011 tax return late   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. How to file a 2011 tax return late   The seller is liable for the tax. How to file a 2011 tax return late However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. How to file a 2011 tax return late The seller is a registrant. How to file a 2011 tax return late The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. How to file a 2011 tax return late The seller has no reason to believe any information on the certificate is false. How to file a 2011 tax return late The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. How to file a 2011 tax return late The buyer is jointly and severally liable if the seller does not meet these conditions. How to file a 2011 tax return late Exception. How to file a 2011 tax return late   The tax does not apply to a sale if all of the following apply. How to file a 2011 tax return late The buyer's principal place of business is not in the United States. How to file a 2011 tax return late The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. How to file a 2011 tax return late The seller is a registrant and the exporter of record. How to file a 2011 tax return late The fuel was exported. How to file a 2011 tax return late Removal or sale of blended diesel fuel or kerosene. How to file a 2011 tax return late   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. How to file a 2011 tax return late Blended taxable fuel produced using biodiesel is subject to the tax. How to file a 2011 tax return late See Blended taxable fuel under Definitions, earlier. How to file a 2011 tax return late   The blender is liable for the tax. How to file a 2011 tax return late The tax is figured on the number of gallons not previously subject to the tax. How to file a 2011 tax return late   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. How to file a 2011 tax return late Generally, the biodiesel mixture must be diesel fuel (defined earlier). How to file a 2011 tax return late See Form 720 to report this tax. How to file a 2011 tax return late You also must be registered by the IRS as a blender. How to file a 2011 tax return late See Form 637 for more information. How to file a 2011 tax return late   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. How to file a 2011 tax return late Additional persons liable. How to file a 2011 tax return late   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. How to file a 2011 tax return late Credits or Refunds. How to file a 2011 tax return late   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. How to file a 2011 tax return late For more information, see chapter 2. How to file a 2011 tax return late Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. How to file a 2011 tax return late 001 per gallon LUST tax as discussed below, unless the fuel is for export. How to file a 2011 tax return late 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. How to file a 2011 tax return late The person otherwise liable for tax (for example, the position holder) is a registrant. How to file a 2011 tax return late In the case of a removal from a terminal, the terminal is an approved terminal. How to file a 2011 tax return late The diesel fuel or kerosene satisfies the dyeing requirements (described next). How to file a 2011 tax return late Dyeing requirements. How to file a 2011 tax return late   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. How to file a 2011 tax return late It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. How to file a 2011 tax return late 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. How to file a 2011 tax return late Is indelibly dyed by mechanical injection. How to file a 2011 tax return late See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. How to file a 2011 tax return late Notice required. How to file a 2011 tax return late   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. How to file a 2011 tax return late   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. How to file a 2011 tax return late   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). How to file a 2011 tax return late That seller is subject to the penalty described next. How to file a 2011 tax return late Penalty. How to file a 2011 tax return late   A penalty is imposed on a person if any of the following situations apply. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. How to file a 2011 tax return late 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. How to file a 2011 tax return late   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. How to file a 2011 tax return late After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. How to file a 2011 tax return late   This penalty is in addition to any tax imposed on the fuel. How to file a 2011 tax return late   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. How to file a 2011 tax return late   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. How to file a 2011 tax return late   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. How to file a 2011 tax return late However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. How to file a 2011 tax return late 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. How to file a 2011 tax return late Exception to penalty. How to file a 2011 tax return late   The penalty under item (3) will not apply in any of the following situations. How to file a 2011 tax return late Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. How to file a 2011 tax return late 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. How to file a 2011 tax return late The alteration or attempted alteration occurs in an exempt area of Alaska. How to file a 2011 tax return late See Removal for sale or use in Alaska, later. How to file a 2011 tax return late 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. How to file a 2011 tax return late Alaska and Feedstocks Tax of $. How to file a 2011 tax return late 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). How to file a 2011 tax return late Undyed kerosene used for feedstock purposes. How to file a 2011 tax return late Removal for sale or use in Alaska. How to file a 2011 tax return late   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. How to file a 2011 tax return late The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. How to file a 2011 tax return late 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. How to file a 2011 tax return late In the case of a removal from a terminal, the terminal is an approved terminal. How to file a 2011 tax return late 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. How to file a 2011 tax return late   If all three of the requirements above are not met, then tax is imposed at $. How to file a 2011 tax return late 244 per gallon. How to file a 2011 tax return late   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. How to file a 2011 tax return late Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. How to file a 2011 tax return late Later sales. How to file a 2011 tax return late   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. How to file a 2011 tax return late The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. How to file a 2011 tax return late However, the sale is not taxable (other than the LUST tax at $. How to file a 2011 tax return late 001 per gallon) if all the following requirements are met. How to file a 2011 tax return late The fuel is sold in Alaska for certain nontaxable uses. How to file a 2011 tax return late The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. How to file a 2011 tax return late The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. How to file a 2011 tax return late Feedstock purposes. How to file a 2011 tax return late   The $. How to file a 2011 tax return late 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. How to file a 2011 tax return late The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. How to file a 2011 tax return late In the case of a removal from a terminal, the terminal is an approved terminal. How to file a 2011 tax return late 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. How to file a 2011 tax return late   If all of the requirements above are not met, then tax is imposed at $. How to file a 2011 tax return late 244 per gallon. How to file a 2011 tax return late   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. How to file a 2011 tax return late For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. How to file a 2011 tax return late A feedstock user is a person that uses kerosene for a feedstock purpose. How to file a 2011 tax return late A registered feedstock user is a person that has been registered by the IRS as a feedstock user. How to file a 2011 tax return late See Registration Requirements, earlier. How to file a 2011 tax return late Later sales. How to file a 2011 tax return late   The excise tax ($. How to file a 2011 tax return late 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. How to file a 2011 tax return late The tax is imposed at the time of the later sale and that seller is liable for the tax. How to file a 2011 tax return late Certificate. How to file a 2011 tax return late   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. How to file a 2011 tax return late The certificate may be included as part of any business records normally used for a sale. How to file a 2011 tax return late A model certificate is shown in the Appendix as Model Certificate G. How to file a 2011 tax return late Your certificate must contain all information necessary to complete the model. How to file a 2011 tax return late   A certificate expires on the earliest of the following dates. How to file a 2011 tax return late The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to file a 2011 tax return late The date the seller is provided a new certificate or notice that the current certificate is invalid. How to file a 2011 tax return late The date the seller is notified the buyer's registration has been revoked or suspended. How to file a 2011 tax return late   The buyer must provide a new certificate if any information on a certificate has changed. How to file a 2011 tax return late 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. How to file a 2011 tax return late Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. How to file a 2011 tax return late Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. How to file a 2011 tax return late Any liquid other than gasoline, diesel fuel, or kerosene. How to file a 2011 tax return late Generally, this back-up tax is imposed at a rate of $. How to file a 2011 tax return late 244 per gallon. How to file a 2011 tax return late Liability for tax. How to file a 2011 tax return late   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. How to file a 2011 tax return late 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. How to file a 2011 tax return late Exemptions from the back-up tax. How to file a 2011 tax return late   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. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late A reduced tax rate of $. How to file a 2011 tax return late 198 per gallon is imposed on a diesel-water fuel emulsion. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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 $. How to file a 2011 tax return late 244 per gallon. How to file a 2011 tax return late Credits or refunds. How to file a 2011 tax return late   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. How to file a 2011 tax return late Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. How to file a 2011 tax return late 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). How to file a 2011 tax return late For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. How to file a 2011 tax return late 219. How to file a 2011 tax return late The rate of $. How to file a 2011 tax return late 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. How to file a 2011 tax return late The airport terminal does not need to be a secured airport terminal for this rate to apply. How to file a 2011 tax return late 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. How to file a 2011 tax return late For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. How to file a 2011 tax return late 044 per gallon. How to file a 2011 tax return late For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. How to file a 2011 tax return late 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. How to file a 2011 tax return late See Terminal located within a secured area of an airport, later. How to file a 2011 tax return late In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. How to file a 2011 tax return late 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 $. How to file a 2011 tax return late 001. How to file a 2011 tax return late There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. How to file a 2011 tax return late 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. How to file a 2011 tax return late See Terminal located within a secured area of an airport, later. How to file a 2011 tax return late In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. How to file a 2011 tax return late The position holder is liable for the $. How to file a 2011 tax return late 001 per gallon tax. How to file a 2011 tax return late For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. How to file a 2011 tax return late 141 per gallon applies. How to file a 2011 tax return late Certain refueler trucks, tankers, and tank wagons treated as terminals. How to file a 2011 tax return late   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. How to file a 2011 tax return late Such terminal is located within an area of an airport. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Information reporting will be required by terminal operators regarding this provision. How to file a 2011 tax return late 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. How to file a 2011 tax return late Terminal located within a secured area of an airport. How to file a 2011 tax return late   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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 $. How to file a 2011 tax return late 044 per gallon. How to file a 2011 tax return late 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). How to file a 2011 tax return late For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. How to file a 2011 tax return late For the aircraft operator to be liable for the tax $. How to file a 2011 tax return late 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. How to file a 2011 tax return late Commercial aviation. How to file a 2011 tax return late   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. How to file a 2011 tax return late However, commercial aviation does not include any of the following uses. How to file a 2011 tax return late Any use exclusively for the purpose of skydiving. How to file a 2011 tax return late Certain air transportation by seaplane. How to file a 2011 tax return late See Seaplanes under Transportation of Persons by Air in chapter 4. How to file a 2011 tax return late Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. How to file a 2011 tax return late For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. How to file a 2011 tax return late 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. How to file a 2011 tax return late For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. How to file a 2011 tax return late Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. How to file a 2011 tax return late See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. How to file a 2011 tax return late 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 $. How to file a 2011 tax return late 141 per gallon. How to file a 2011 tax return late The fractional ownership program manager is liable for the tax. How to file a 2011 tax return late The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. How to file a 2011 tax return late If the surtax is imposed, the following air transportation taxes do not apply. How to file a 2011 tax return late Transportation of persons by air. How to file a 2011 tax return late Transportation of property by air. How to file a 2011 tax return late Use of international air travel facilities. How to file a 2011 tax return late These taxes are described under Air Transportation Taxes, later. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Fractional program aircraft. How to file a 2011 tax return late   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. How to file a 2011 tax return late S. How to file a 2011 tax return late   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. How to file a 2011 tax return late In such situations, the flight is not commercial aviation. How to file a 2011 tax return late Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. How to file a 2011 tax return late Fractional owner. How to file a 2011 tax return late   Any person owning any interest (including the entire interest) in a fractional program aircraft. How to file a 2011 tax return late Dry lease aircraft exchange. How to file a 2011 tax return late   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. How to file a 2011 tax return late Special rule relating to deadhead service. How to file a 2011 tax return late   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. How to file a 2011 tax return late More information. How to file a 2011 tax return late   See section 4043 for more information on the surtax. How to file a 2011 tax return late 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. How to file a 2011 tax return late Certificate. How to file a 2011 tax return late   The certificate may be included as part of any business records normally used for a sale. How to file a 2011 tax return late See Model Certificate K in the Appendix. How to file a 2011 tax return late   A certificate expires on the earliest of the following dates. How to file a 2011 tax return late The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to file a 2011 tax return late The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. How to file a 2011 tax return late The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. How to file a 2011 tax return late   The buyer must provide a new certificate if any information on a certificate has changed. How to file a 2011 tax return late   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. How to file a 2011 tax return late Exempt use. How to file a 2011 tax return late   The rate on kerosene for use in aviation is $. How to file a 2011 tax return late 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. How to file a 2011 tax return late An exempt use includes kerosene for the exclusive use of a state or local government. How to file a 2011 tax return late There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. How to file a 2011 tax return late Flash title transaction. How to file a 2011 tax return late   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. How to file a 2011 tax return late 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. How to file a 2011 tax return late 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. How to file a 2011 tax return late Reseller statement. How to file a 2011 tax return late   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. How to file a 2011 tax return late Credits or Refunds. How to file a 2011 tax return late   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). How to file a 2011 tax return late A claim may be made by a registered ultimate vendor for certain sales. How to file a 2011 tax return late For more information, see chapter 2. How to file a 2011 tax return late Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. How to file a 2011 tax return late Other Fuels include alternative fuels. How to file a 2011 tax return late 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. How to file a 2011 tax return late Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. How to file a 2011 tax return late Qualified methanol and ethanol fuels. How to file a 2011 tax return late   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. How to file a 2011 tax return late The tax rates are listed in the Instructions for Form 720. How to file a 2011 tax return late Partially exempt methanol and ethanol fuels. How to file a 2011 tax return late   A reduced tax rate applies to these fuels. How to file a 2011 tax return late Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. How to file a 2011 tax return late The tax rates are listed in the Instructions for Form 720. How to file a 2011 tax return late Motor vehicles. How to file a 2011 tax return late   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. How to file a 2011 tax return late They are propelled by a motor. How to file a 2011 tax return late They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t