How To Claim a Credit or Refund You may be able to claim a credit or refund of the excise tax onfuels you use for nontaxable uses. You can claim only a credit forgasoline used for farming purposes. You can claim either a credit or arefund for aviation fuel used for farming purposes. No credit or refund is allowed to anyone for any fuel, such as dyeddiesel fuel or dyed kerosene, bought tax free. Undyed diesel fuel and undyed kerosene.You cannot claim a credit or refund for undyed diesel fuel orundyed kerosene used on a farm for farming purposes. Only theregistered ultimate vendor that sells the fuel to you can make thisclaim. However, you can claim a credit or refund for undyed dieselfuel or undyed kerosene used for other nontaxable uses, such asoff-highway business use. If undyed diesel fuel or undyed kerosene isused on a farm for farming purposes, you cannot consider it as beingused for any other nontaxable use. Taxpayer identification number.To file a claim for credit or refund, you MUST have a taxpayeridentification number. See Taxpayer Identification Numberin chapter 2. Files: Keep at your principal place of business all records needed toenable the IRS to verify the amount you claimed. You do not have touse any special form, but the records should establish all thefollowing information. The total number of gallons bought and used during theperiod covered by your claim. The dates of the purchases. The names and addresses of suppliers and amounts bought fromeach during the period covered by your claim. The nontaxable use for which you used the fuel. The number of gallons used for each nontaxable use. It is important that your records show separately the number ofgallons used for each nontaxable use that qualifies as a claim. Formore information about recordkeeping, see Publication 583,Starting a Business and Keeping Records. Credit or refund.A credit is an amount that reduces the tax on your income taxreturn when you file it at the end of the year. If you meet certainrequirements, you can claim a refund during the year instead ofwaiting until you file your tax return. Credit only.The following taxes can only be claimed as a credit. Tax on gasoline you used on a farm for farmingpurposes. Tax on fuels used for nontaxable uses if the total for thetax year is less than $750. Tax on fuel that was not included in any claim for refundpreviously filed for the tax year. The basic rules for claiming credits and refunds (discussed later)are listed in Table 18-4. Claiming a Credit You make a claim for a fuel tax credit on Form 4136 and attach it to your income taxreturn. Do not claim a credit for any excise tax for which you havefiled a refund claim. Table 18-4 How to claim a credit.How you claim a credit depends on whether you are an individual,partnership, corporation, S corporation, trust, or farmers'cooperative association. Individuals.You claim the credit on line 63 of your 1999 Form 1040. Check boxb. If you would not otherwise have to file an income tax return, youmust do so to get a fuel tax credit. See the instructions for Form1040. Partnership.A partnership cannot claim the credit on Form 1065, U.S.Partnership Return of Income. The partnership must attach astatement to Form 1065 showing the number of gallons of each fuelallocated to each partner and the rate that applies. Each partnerclaims the credit on his or her income tax return for the partner'sshare of the fuel used by the partnership. An electing large partnership can claim the credit on line 27 ofForm 1065-B, U.S. Return of Income for Electing LargePartnerships. Corporation.To claim the credit, a corporation uses either line 32g of Form1120, U.S. Corporation Income Tax Return, or line 28g ofForm 1120-A, U.S. Corporation Short-Form Income TaxReturn. S corporation.To claim the credit, an S corporation uses line 23c of Form 1120S,U.S. Income Tax Return for an S Corporation. ERROR MSGFarmers' cooperative association.If a cooperative must file Form 990-C, Farmers'Cooperative Association Income Tax Return, it uses line 32g toclaim the credit. Trust.A trust required to file Form 1041, U.S. Income Tax Return forEstates and Trusts, uses line 24g to claim the credit. When to claim a credit.You can claim a fuel tax credit on your income tax return for theyear you used the fuels or you may be able to amend your income taxreturn for that year. Generally, you must file an amended return bythe later of 3 years after the date you filed your original return orwithin 2 years after you paid the tax. A return filed early isconsidered filed on the due date. Caution: Once you have filed a Form 4136, you cannot file an amended returnto show an increase in the number of gallons reported on a line. Seethe following discussion for when you can file a claim on an amendedreturn. Fuel tax claim on amended return.You can file an amended return to claim a fuel tax credit only inthe following situations. You did not claim any credit for fuel taxes on Form 4136 forthe tax year. Your credit is for gasohol blending, discussed inPublication 378. hôtels LisbonneYour credit is for a claim group, explained next, for whichyou did not previously file a claim on Form 4136 for the taxyear. Claims on Form 4136 (other than for gasohol blending, line 8) areseparated into seven claim groups based on the type of fueland the use of that fuel. Once you file Form 4136 with a claim for agroup, you cannot file an amended return with another claim for thatgroup. However, you can file an amended return with a claim foranother group. The following table shows which claims are in each group. Thenumbers in the second column refer to the line numbers on Form 4136.The numbers in the third column are from the Type of Use Tablein the Form 4136 instructions. Group Line No. Type of Use I 1b, 1d-f, 2b 1 II 1a, 1d-f, 2a 2 III 1c-f 5, 7 IV 1c-f, 2b 3, 4, 9 V 3c, 7 5, 7 VI 3a-b, 4, 5, 6 See line instructions VII 2b 10 For each tax year, you can make only one claim for each group. Example.You file your income tax return and claim a fuel tax credit. YourForm 4136 shows an amount on line 1b for use of gasoline on a farm forfarming purposes. This is a Group I claim. You cannot amend yourreturn to claim a credit for an amount on line 2b for use of aviationgasoline on a farm for farming purposes (Type of Use 1), since that isalso a Group I claim. However, if you used aviation fuel on a farm forfarming purposes, you can amend your return to claim the credit forthat fuel tax because that would be a Group VI claim reported on line4b (Type of Use 1). Claiming a Refund You make a claim for refund on Form 8849. Techirghiol innDo not claim a credit against yourincome tax for any excise tax for which you filed a timely claim forrefund. You can file a claim for refund for any quarter of your tax yearfor which you can claim $750 or more. This amount is the excise taxpaid on all fuels used for any nontaxable use during that quarter orany prior quarter (for which no other claim has been filed) during thetax year. Caution: You cannot claim a refund for excise tax on gasoline used on a farmfor farming purposes. You must claim a credit on your income taxreturn for the excise tax on gasoline used on a farm for farmingpurposes. If you cannot claim at least $750 at the end of a quarter, youcarry the amount over to the next quarter of your tax year todetermine if you can claim at least $750 for that quarter. If youcannot claim at least $750 at the end of the fourth quarter of yourtax year, you must claim a credit on your income tax return. How to file a quarterly claim.File the claim by filling out Schedule 1 (Form 8849) and attachingit to Form 8849. Send it to the address shown in the instructions. Ifyou file Form 720, you can use the Schedule C portion of Form 720 foryour refund claims. (See the Form 720 instructions.) discount hotels in FaaborgWhen to file a quarterly claim.You must file a quarterly claim by the last day of the firstquarter following the last quarter included in the claim. If you donot file a timely refund claim for the fourth quarter of your taxyear, you will have to claim a credit for that amount on your incometax return, as discussed earlier.