Instructions For Form 8849 - Claim For Refund Excise Taxes - Department Of Treasury (Page 9 of 11) in pdf

Schedule 5 (Form 8849) (Rev. 1-2006)

Page

Instructions

Claim Requirement

Generally, the claim must be filed within 3 years from the

Section references are to the Internal Revenue Code.

time the return for the second tax was filed or 2 years from

the time the second tax was paid to the government,

What’s New

whichever is later.

● Line 5 is used for section 4081(e) claims for a diesel-water

fuel emulsion, effective after December 31, 2005.

Total Refund

● Line 6 is used for section 4081(e) claims for dyed diesel

Add all amounts in column (a) and enter the result in the

fuel, dyed kerosene, and other exempt removals, effective

total refund box at the top of the Schedule.

after September 30, 2005. See Line 6 below for the fuels

applicable on line 6.

Part I

● Claims relating to kerosene for use in aviation are completely

For each type of fuel, enter the total of all amounts from

revised, effective after September 30, 2005. Aviation-grade

column (f), Part II.

kerosene has been deleted from line 5. Lines 7 and 8 have been

Line 6. Section 4081(e) claims can be made on line 6 for the

added for kerosene for use in aviation. For section 4081(e) claims

tax on the following fuels: dyed diesel fuel, dyed kerosene,

related to aviation-grade kerosene before October 1, 2005, use

and other exempt removals (gasoline blendstocks, kerosene

the February 2005 revision of Schedule 5 (Form 8849).

used for a feedstock, and diesel fuel or kerosene used in

Alaska). The person that has reported a section 4081 tax on

Purpose of Schedule

Form 720 and paid that tax to the government, if a prior

A person who has paid and reported a section 4081 tax to

section 4081 tax on the fuel has also been paid and reported

the government on taxable fuel uses Schedule 5 to claim a

to the government, makes the claim.

refund of that tax if a prior section 4081 tax on that fuel has

Line 7. Section 4081(e) claims can be made for kerosene for

also been paid and reported to the government.

use in aviation by a person that has reported a section 4081

tax on Form 720 (IRS No. 69) and paid that tax to the

Section 4081(e) Claims

government if a prior section 4081 tax on the kerosene has

Section 4081(e) applies to the fuels listed in Part I.

also been paid and reported to the government.

If two taxes were paid on the fuel for which the claim is

Line 8. Section 4081(e) claims can be made for kerosene for

filed, then a claim for refund of the second tax may be made.

use in commercial aviation (other than foreign trade) by a

Example. Janet is a taxable fuel registrant that owns 10,000

person that has reported a section 4081 tax on Form 720

gallons of gasoline that is being transported on a vessel in

(IRS No. 77) and paid that tax to the government if a prior

the United States. On June 1, 2006, Janet sells the gasoline

section 4081 tax on the kerosene has also been paid and

to Hazel, a person that is not a taxable fuel registrant. Janet

reported to the government.

is liable for tax on this sale. Janet prepares a First Taxpayer’s

Report related to this sale and gives a copy of the report to

Part II

Hazel.

For each payment of a second tax, complete all the

On June 4, 2006, Hazel sells the same gallons of gasoline

information required.

to Caroline, a taxable fuel registrant. Hazel also gives

Caroline a copy of Janet’s First Taxpayer’s Report and a

Information to be Attached

Statement of Subsequent Seller. On June 9, 2006, the

gasoline is removed from a terminal at the rack. Caroline is

1. A copy of the First Taxpayer’s Report that relates to the

the position holder of the gasoline at the time of the removal

fuel covered by each claim and

and thus is liable for tax on the removal. Caroline pays this

2. If the fuel covered by the claim was bought from

tax to the government.

someone other than the first taxpayer, a copy of the

After Caroline has filed a return of this second tax, Caroline

Statement of Subsequent Seller that the claimant received

files Form 8849 and Schedule 5 for a refund for the second

with respect to that fuel.

tax and includes a copy of the First Taxpayer’s Report and

The First Taxpayer’s Report and Statement of Subsequent

Statement of Subsequent Seller. In Part I of Schedule 5,

Seller must contain all the information as shown in Model

Caroline enters “1,840.00” in column 1(a). In Part II, Caroline

Certificates A and B in Appendix B of Pub. 510.

enters “1” in column (c); “06092006” in column (d);

“10,000.00” in column (e); and “1,840.00” in column (f).

How To File

Claimant

Attach Schedule 5 to Form 8849. On the envelope write

“Section 4081(e) Claim” and mail to the IRS at the address

The person who reported on Form 720 and paid the second

under Where To File in the Form 8849 instructions.

tax to the government on the same fuel is the only person

eligible to make this claim.

Instructions For Form 8849 - Claim For Refund Excise Taxes - Department Of Treasury Page 9

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