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Schedule 5 (Form 8849) (Rev. 1-2006) Page 2
Instructions Claim Requirement
Section references are to the Internal Revenue Code. Generally, the claim must be filed within 3 years from the
time the return for the second tax was filed or 2 years from
What’s New the time the second tax was paid to the government,
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
revised, effective after September 30, 2005. Aviation-grade For each type of fuel, enter the total of all amounts from
column (f), Part II.
kerosene has been deleted from line 5. Lines 7 and 8 have been
added for kerosene for use in aviation. For section 4081(e) claims Line 6. Section 4081(e) claims can be made on line 6 for the
related to aviation-grade kerosene before October 1, 2005, use tax on the following fuels: dyed diesel fuel, dyed kerosene,
the February 2005 revision of Schedule 5 (Form 8849). and other exempt removals (gasoline blendstocks, kerosene
used for a feedstock, and diesel fuel or kerosene used in
Purpose of Schedule Alaska). The person that has reported a section 4081 tax on
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.
also been paid and reported to the government. Section 4081(e) claims can be made for kerosene for
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.
On June 4, 2006, Hazel sells the same gallons of gasoline For each payment of a second tax, complete all the
to Caroline, a taxable fuel registrant. Hazel also gives information required.
Caroline a copy of Janet’s First Taxpayer’s Report and a
Statement of Subsequent Seller. On June 9, 2006, the Information to be Attached
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.
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