Fillable Form 8896 - Low Sulfur Diesel Fuel Production Credit (Page 2 of 2) in pdf

Form 8896 (Rev. 10-2015)

Page

Line 3

The cooperative is deemed to have made the election by

completing line 9. However, the election is not effective unless:

On line 3, enter 25% of the qualified costs (defined earlier) for

• It is made on a timely filed return (including extensions), and

the facility that produced the fuel reported on line 1 if your

average daily domestic refinery runs were not more than

• The cooperative designates the apportionment in a written

155,000 barrels for the 1-year period ending on December 31,

notice or on Form 1099-PATR mailed to its patrons during the

2002. If your average daily domestic refinery runs were more

payment period described in section 1382(d).

than 155,000 barrels, the 25% is reduced (but not below zero)

If you timely file your return without making an election, you

by multiplying it by 1 minus your excess over 155,000 barrels

can still make the election by filing an amended return within 6

divided by 50,000 barrels.

months of the due date of the return (excluding extensions).

Example. Your average daily domestic refinery runs were

Write “Filed pursuant to section 301.9100-2” on the amended

165,000 barrels for the 1-year period ending on December 31,

return.

2002. First divide 10,000 (your excess over 155,000 barrels) by

Once made, the election cannot be revoked.

50,000 to get .2. Next subtract .2 from 1 to get .8. Then multiply

25% by .8 to get 20%. On line 3, enter 20% of the qualified

Paperwork Reduction Act Notice. We ask for the information

costs for the facility that produced the fuel reported on line 1.

on this form to carry out the Internal Revenue laws of the United

Line 4

States. You are required to give us the information. We need it

to ensure that you are complying with these laws and to allow

Enter the total low sulfur diesel fuel production credits allowed

us to figure and collect the right amount of tax.

for all prior tax years (as determined for line 6).

You are not required to provide the information requested on

Line 7

a form that is subject to the Paperwork Reduction Act unless

Enter total low sulfur diesel fuel production credits from:

the form displays a valid OMB control number. Books or

records relating to a form or its instructions must be retained as

• Schedule K-1 (Form 1065), Partner's Share of Income,

long as their contents may become material in the

Deductions, Credits, etc., box 15 (code P);

administration of any Internal Revenue law. Generally, tax

• Schedule K-1 (Form 1120S), Shareholder's Share of Income,

returns and return information are confidential, as required by

Deductions, Credits, etc., box 13 (code P); and

section 6103.

• Form 1099-PATR, Taxable Distributions Received From

The time needed to complete and file this form will vary

Cooperatives, box 10, or other notice of credit allocation.

depending on individual circumstances. The estimated burden

for individual taxpayers filing this form is approved under OMB

Partnerships, S corporations, and cooperatives must always

control number 1545-0074 and is included in the estimates

report the above credits on line 7. All other filers figuring a

shown in the instructions for their individual income tax return.

separate credit on earlier lines must also report the above

The estimated burden for all other taxpayers who file this form is

credits on line 7. All others not using earlier lines to figure a

shown below.

separate credit can report the above credits directly on Form

3800, Part III, line 1m.

Recordkeeping

. 2 hr., 52 min.

Line 9

Learning about the law or the form .

. 30 min.

Cooperative election to allocate credit to patrons. A

Preparing and sending the form to the IRS .

. 34 min.

cooperative described in section 1381(a) can elect to allocate

If you have comments concerning the accuracy of these time

any part of the low sulfur diesel fuel production credit to patrons

estimates or suggestions for making this form simpler, we would

of the cooperative. The credit is allocated among the patrons

be happy to hear from you. See the instructions for the tax

eligible to share in patronage dividends on the basis of the

return with which this form is filed.

quantity or value of business done with or for the patrons for the

tax year.

If the cooperative is subject to the passive activity rules,

include on line 7 any Form 8896 credits from passive activities

disallowed for prior years and carried forward to this year.

Complete Form 8810, Corporate Passive Activity Loss and

Credit Limitations, to determine the allowed credits that can be

allocated to patrons. For details, see the Instructions for Form

8810.

Form 8896 - Low Sulfur Diesel Fuel Production Credit Page 2

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