Instructions For Form 4136 - Credit For Federal Tax Paid On Fuels

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 4136,

Credit for Federal Tax Paid

on Fuels

Section references are to the Internal Revenue Code unless

otherwise noted.

General Instructions

What’s New

Purpose of Form

Use Form 4136 to claim a credit for certain nontaxable

Extension of credits. The current credit rates for an

uses (or sales) of fuel during your income tax year. Also

alcohol fuel mixture, a biodiesel mixture, a renewable

use Form 4136 if you are claiming the alternative fuel

diesel mixture, an alternative fuel, and an alternative fuel

credit, a blender claiming a credit for a diesel-water fuel

mixture are extended to December 31, 2011.

emulsion, or a producer claiming a credit for an alcohol

fuel mixture, a biodiesel or renewable diesel mixture, or

Aviation credits. The current credit rates for using fuels

an alternative fuel mixture.

for aviation are extended to March 31, 2011.

Instead of waiting to claim an annual credit on Form

4136, you may be able to file:

Special one-time claim for certain fuels. You may be

•

Form 8849, Claim for Refund of Excise Taxes, to claim

able to make a one-time claim for sales or uses in

a periodic refund; or

calendar year 2010 of biodiesel mixtures, alternative

•

Form 720, Quarterly Federal Excise Tax Return, to

fuels, and alternative fuel mixtures, under Act sections

claim a credit against your fuel tax liability.

701(c) and 704(c) of the Tax Relief, Unemployment

You cannot claim any amounts on Form 4136 that

Insurance Reauthorization, and Job Creation Act of 2010.

you claimed on Form 8849 or Schedule C (Form

For information on how to make a special one-time claim,

720).

CAUTION

see the instructions for Schedule 3 (Form 8849), Claim

for Refund of Excise Taxes (Rev. December 2010), and

Partnerships. Partnerships (other than electing large

Notice 2011-10.

partnerships) cannot file this form. Instead, they must

include a statement on Schedule K-1 (Form 1065),

Black liquor excluded. Any fuel (including lignin, wood

Partner’s Share of Income, Deductions, Credits, etc.,

showing the allocation to each partner specifying the

residues, or spent pulping liquors like black liquor)

number of gallons of each fuel used during the tax year,

derived from the production of paper or pulp, is ineligible

the applicable credit per gallon, the nontaxable use or

for credits and payments related to the sale or use of

sale, and any additional information required to be

alternative fuel mixtures after December 31, 2009.

submitted.

For information on changes affecting Form 4136,

Additional Information

including fuel credits, monitor the news media. When

•

Pub. 510, Excise Taxes, has more information on

available, the IRS will also post relevant information on

nontaxable uses and the definitions of terms, such as

IRS.gov at

ultimate vendor and blocked pump. Pub. 510 also

contains information on fuel tax credits and refunds.

•

Reminders

Pub. 225, Farmer’s Tax Guide, also includes

information on credits and refunds for the federal excise

tax on fuels applicable to farmers.

Aviation fuel used outside the propulsion system of

•

Notice 2005-4. You can find Notice 2005-4 on page

an aircraft. Use line 2b to make a claim for aviation

289 of (IRB) 2005-2 at

gasoline used outside the propulsion system of an

aircraft. Depending on the tax rate of the kerosene, use

•

Notice 2005-24. You can find Notice 2005-24 on page

lines 4a, 4e, or 4f to make a claim for kerosene used

757 of (IRB) 2005-12 at

outside the propulsion system of an aircraft. For more

•

information, see Line 2. Nontaxable Use of Aviation

Notice 2005-62. You can find Notice 2005-62 on page

Gasoline and Line 4. Nontaxable Use of Undyed

443 of (IRB) 2005-35 at

Kerosene (Other Than Kerosene Used in Aviation).

Cat. No. 48249T

Instructions For Form 4136 - Credit For Federal Tax Paid On Fuels - 2010

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