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2012 Tax Return Amendment

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2012 Tax Return Amendment

2012 tax return amendment Index A Accelerated Cost Recovery System (ACRS), MACRS Depreciation (see also Modified Accelerated Cost Recovery System (MACRS)) Effective date, Depreciation Methods Accounting methods Accrual method, Accrual method. 2012 tax return amendment Cash method, Cash method. 2012 tax return amendment Change of method, Changing your accounting method. 2012 tax return amendment Constructive receipt of income, Cash method. 2012 tax return amendment , More information. 2012 tax return amendment Accrual method taxpayers, Accrual method. 2012 tax return amendment ACRS (Accelerated Cost Recovery System) Effective date, Depreciation Methods Active participation, Active participation. 2012 tax return amendment Activities not for profit, Duplex. 2012 tax return amendment Additions to property, Additions or improvements to property. 2012 tax return amendment (see also Improvements) Basis, Increases to basis. 2012 tax return amendment , Additions or improvements. 2012 tax return amendment MACRS recovery period, Additions or improvements to property. 2012 tax return amendment Adjusted basis MACRS depreciation, Adjusted Basis Adjusted gross income (AGI) Modified (see Modified adjusted gross income (MAGI)) Advance rent, Advance rent. 2012 tax return amendment Security deposits, Security deposits. 2012 tax return amendment Advertising, Types of Expenses Allocation of expenses Change of property to rental use, Payments added to capital account. 2012 tax return amendment How to divide expenses, Dividing Expenses Part of property rented, Renting Part of Property, How to divide expenses. 2012 tax return amendment Personal use of rental property, Personal use of rental property. 2012 tax return amendment , Personal Use of Dwelling Unit (Including Vacation Home) Alternative Depreciation System (ADS) Election of, Electing ADS MACRS, MACRS Depreciation, Table 2-2d. 2012 tax return amendment Alternative minimum tax (AMT) Accelerated depreciation methods, Alternative minimum tax (AMT). 2012 tax return amendment Amended returns, Filing an amended return. 2012 tax return amendment Apartments Basement apartments, Examples. 2012 tax return amendment Dwelling units, Dwelling unit. 2012 tax return amendment Appraisal fees, Settlement fees and other costs. 2012 tax return amendment Assessments for maintenance, Assessments for local improvements. 2012 tax return amendment Assessments, local (see Local assessments) Assistance (see Tax help) Assumption of mortgage, Assumption of a mortgage. 2012 tax return amendment Attorneys' fees, Settlement fees and other costs. 2012 tax return amendment , Increases to basis. 2012 tax return amendment Automobiles MACRS recovery periods, Property Classes Under GDS B Basis Adjusted basis, Adjusted Basis Assessments for local improvements, Assessments for local improvements. 2012 tax return amendment Basis other than cost, Basis Other Than Cost Cost basis, Cost Basis Decreases to, Decreases to basis. 2012 tax return amendment Deductions Capitalization of costs vs. 2012 tax return amendment , Deducting vs. 2012 tax return amendment capitalizing costs. 2012 tax return amendment Not greater than basis, Cost or Other Basis Fully Recovered Fair market value, Fair market value. 2012 tax return amendment Increases to, Increases to basis. 2012 tax return amendment MACRS depreciable basis, Basis of Depreciable Property Property changed to rental use, Basis of Property Changed to Rental Use C Capital expenditures Deductions vs. 2012 tax return amendment effect on basis, Deducting vs. 2012 tax return amendment capitalizing costs. 2012 tax return amendment Local benefit taxes, Local benefit taxes. 2012 tax return amendment Mortgages, payments to obtain, Expenses paid to obtain a mortgage. 2012 tax return amendment Cars MACRS recovery periods, Property Classes Under GDS Cash method taxpayers, Cash method. 2012 tax return amendment Casualty losses, Exception for Rental Real Estate With Active Participation Change of accounting method, Changing your accounting method. 2012 tax return amendment Charitable contributions Use of property, Donation of use of the property. 2012 tax return amendment Cleaning and maintenance, Types of Expenses Closing costs, Settlement fees and other costs. 2012 tax return amendment Commissions, Types of Expenses Computers MACRS recovery periods, Property Classes Under GDS Condominiums, Condominiums, Dwelling unit. 2012 tax return amendment Constructive receipt of income, Cash method. 2012 tax return amendment , More information. 2012 tax return amendment Cooperative housing, Cooperative apartments. 2012 tax return amendment , Cooperatives, Dwelling unit. 2012 tax return amendment Cost basis, Cost Basis Credit reports, Settlement fees and other costs. 2012 tax return amendment Credits Residential energy credits, Decreases to basis. 2012 tax return amendment D Days of personal use, What is a day of personal use? Days used for repairs and maintenance, Days used for repairs and maintenance. 2012 tax return amendment Deductions Capitalizing costs vs. 2012 tax return amendment effect on basis, Deducting vs. 2012 tax return amendment capitalizing costs. 2012 tax return amendment Depreciation (see Depreciation) Limitations on, Form 4562. 2012 tax return amendment Passive activity losses (see Passive activity) Depreciation, Depreciation of Rental Property, Changing your accounting method. 2012 tax return amendment Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS)) Basis (see Basis) Change of accounting method, Changing your accounting method. 2012 tax return amendment Change of property to rental use, Property Changed to Rental Use Claiming correct amount of, Claiming the Correct Amount of Depreciation Declining balance method, Depreciation Methods Duration of property expected to last more than one year, What Rental Property Can Be Depreciated? Eligible property, What Rental Property Can Be Depreciated? First-year expensing, Section 179 deduction. 2012 tax return amendment MACRS (see Modified Accelerated Cost Recovery System (MACRS)) Methods, Depreciation Methods, Figuring Your Depreciation Deduction Ownership of property, What Rental Property Can Be Depreciated?, Property you own. 2012 tax return amendment Rental expense, Depreciation. 2012 tax return amendment Rented property, Rented property. 2012 tax return amendment Section 179 deduction, Section 179 deduction. 2012 tax return amendment Special depreciation allowances, Claiming the Special Depreciation Allowance Straight line method, Depreciation Methods Useful life, What Rental Property Can Be Depreciated?, Property having a determinable useful life. 2012 tax return amendment Vacant rental property, Vacant rental property. 2012 tax return amendment Discount, bonds and notes issued at (see Original issue discount (OID)) Dividing of expenses (see Allocation of expenses) Dwelling units Definition, Dwelling unit. 2012 tax return amendment Fair rental price, Fair rental price. 2012 tax return amendment Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), What is a day of personal use? E Easements, Decreases to basis. 2012 tax return amendment Equipment rental expense, Rental of equipment. 2012 tax return amendment F Fair market value (FMV), Fair market value. 2012 tax return amendment Fair rental price, Dividing Expenses, Fair rental price. 2012 tax return amendment Fees Loan origination fees, Points, Settlement fees and other costs. 2012 tax return amendment Points (see Points) Settlement fees and other costs, Settlement fees and other costs. 2012 tax return amendment Tax return preparation fees, Legal and other professional fees. 2012 tax return amendment First-year expensing, Section 179 deduction. 2012 tax return amendment Form 1040 Not rented for profit income, Where to report. 2012 tax return amendment Part of property rented, Renting Part of Property Rental income and expenses, Reporting Rental Income, Expenses, and Losses Schedule E, Schedule E (Form 1040) Form 1098 Mortgage interest, Form 1098, Mortgage Interest Statement. 2012 tax return amendment Form 4684 Casualties and thefts, How to report. 2012 tax return amendment Form 4797 Sales of business property, How to report. 2012 tax return amendment Form 8582 Passive activity losses, Form 8582. 2012 tax return amendment , Form 8582 not required. 2012 tax return amendment Free tax services, Free help with your tax return. 2012 tax return amendment G Gains and losses At-risk rules, At-Risk Rules Casualty and theft losses, Exception for Rental Real Estate With Active Participation Limits on rental losses, Form 4562. 2012 tax return amendment Passive activity losses, Passive Activity Limits Rental real estate activities, Exception for Rental Real Estate With Active Participation Sale of rental property, Sale or exchange of rental property. 2012 tax return amendment , How to report. 2012 tax return amendment General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS)) H Help (see Tax help) Home Main home, Main home. 2012 tax return amendment Use as rental property (see Use of home) I Improvements, Table 1-1. 2012 tax return amendment Examples of Improvements (see also Repairs) Assessments for local improvements, Assessments for local improvements. 2012 tax return amendment Basis, Increases to basis. 2012 tax return amendment , Additions or improvements. 2012 tax return amendment Depreciation of rented property, Rented property. 2012 tax return amendment MACRS recovery period, Additions or improvements to property. 2012 tax return amendment Insurance, Types of Expenses Casualty or theft loss payments, Decreases to basis. 2012 tax return amendment Change of property to rental use, Property Changed to Rental Use Fire insurance premiums, cost basis, Settlement fees and other costs. 2012 tax return amendment Part of property rented, Renting Part of Property Premiums paid in advance, Insurance premiums paid in advance. 2012 tax return amendment Title insurance, cost basis, Settlement fees and other costs. 2012 tax return amendment Interest payments, Interest expense. 2012 tax return amendment (see also Mortgages) Loan origination fees, Points Rental expenses, Types of Expenses L Land Cost basis, Separating cost of land and buildings. 2012 tax return amendment Depreciation, Land. 2012 tax return amendment Leases Cancellation payments, Canceling a lease. 2012 tax return amendment Equipment leasing, Rental of equipment. 2012 tax return amendment Limits Passive activity losses and credits, Passive Activity Limits Rental losses, Limits on Rental Losses Loans Assumption fees, Settlement fees and other costs. 2012 tax return amendment Charges connected with getting or refinancing, cost basis, Settlement fees and other costs. 2012 tax return amendment Low or no interest, Loans with low or no interest. 2012 tax return amendment Origination fees, Points Local assessments, Assessments for local improvements. 2012 tax return amendment Losses (see Gains and losses) M Missing children, photographs of, Reminders Modified Accelerated Cost Recovery System (MACRS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Additions or improvements to property, Additions or improvements to property. 2012 tax return amendment Adjusted basis, Adjusted Basis Alternative Depreciation System (ADS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Basis other than cost, Basis Other Than Cost Conventions, Conventions Cost basis, Cost Basis Depreciable basis, Basis of Depreciable Property Effective date, Depreciation Methods Excluded property, Excluded Property General Depreciation System (GDS), MACRS Depreciation, Property Classes Under GDS, Figuring Your Depreciation Deduction Nonresidential rental property, Property Classes Under GDS Property used in rental activities (Table 2-1), Table 2-1. 2012 tax return amendment MACRS Recovery Periods for Property Used in Rental Activities Recovery periods, Table 2-1. 2012 tax return amendment MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property. 2012 tax return amendment Residential rental property, Property Classes Under GDS, Residential rental property. 2012 tax return amendment Special depreciation allowances, Claiming the Special Depreciation Allowance Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). 2012 tax return amendment Mortgages, Expenses paid to obtain a mortgage. 2012 tax return amendment Assumption of, cost basis, Assumption of a mortgage. 2012 tax return amendment Change of property to rental use, Property Changed to Rental Use End of, OID, Loan or mortgage ends. 2012 tax return amendment Interest, Interest expense. 2012 tax return amendment , Property Changed to Rental Use, Renting Part of Property Mortgage insurance premiums, Settlement fees and other costs. 2012 tax return amendment Part of property rented, Renting Part of Property N Nonresidential real property, Property Classes Under GDS Not-for-profit activities, Duplex. 2012 tax return amendment O Original issue discount (OID), Points, Loan or mortgage ends. 2012 tax return amendment P Part interest Expenses, Part interest. 2012 tax return amendment Income, Part interest. 2012 tax return amendment Passive activity Maximum special allowance, Maximum special allowance. 2012 tax return amendment Personal property Rental income from, Property or services. 2012 tax return amendment Personal use of rental property, Payments added to capital account. 2012 tax return amendment , Personal Use of Dwelling Unit (Including Vacation Home) (see also Property changed to rental use) Placed-in-service date, Placed in Service Points, Types of Expenses, Points, Settlement fees and other costs. 2012 tax return amendment Pre-rental expenses, Pre-rental expenses. 2012 tax return amendment Principal residence (see Home) Profit, property not rented for, Duplex. 2012 tax return amendment Property changed to rental use, Payments added to capital account. 2012 tax return amendment Basis, Basis of Property Changed to Rental Use Publications (see Tax help) R Real estate professionals, Real estate professionals. 2012 tax return amendment Real estate taxes, Real estate taxes. 2012 tax return amendment Real property trades or businesses, Real property trades or businesses. 2012 tax return amendment Recordkeeping requirements Travel and transportation expenses, Local transportation expenses. 2012 tax return amendment , Travel expenses. 2012 tax return amendment Recovery periods, Property Classes Under GDS Rent, Settlement fees and other costs. 2012 tax return amendment Advance rent, Advance rent. 2012 tax return amendment Fair price, Fair rental price. 2012 tax return amendment Rental expenses, Rental Expenses Advertising, Types of Expenses Allocation between rental and personal uses, Dividing Expenses Change of property to rental use, Property Changed to Rental Use Cleaning and maintenance, Types of Expenses Commissions, Types of Expenses Depreciation, Depreciation. 2012 tax return amendment Dwelling unit used as home, Dwelling Unit Used as a Home Equipment rental, Rental of equipment. 2012 tax return amendment Home, property also used as, Rental of property also used as your home. 2012 tax return amendment Improvements, Table 1-1. 2012 tax return amendment Examples of Improvements Insurance, Types of Expenses, Insurance premiums paid in advance. 2012 tax return amendment Interest payments, Types of Expenses, Interest expense. 2012 tax return amendment Local transportation expenses, Types of Expenses, Local transportation expenses. 2012 tax return amendment Part of property rented, Renting Part of Property Points, Types of Expenses, Points Pre-rental expenses, Pre-rental expenses. 2012 tax return amendment Rental payments, Types of Expenses Repairs, Types of Expenses, Repairs and Improvements Sale of property, Vacant while listed for sale. 2012 tax return amendment Tax return preparation fees, Legal and other professional fees. 2012 tax return amendment Taxes, Types of Expenses Tenant, paid by, Expenses paid by tenant. 2012 tax return amendment Travel expenses, Types of Expenses Utilities, Types of Expenses Vacant rental property, Vacant rental property. 2012 tax return amendment Rental income Advance rent, Advance rent. 2012 tax return amendment Cancellation of lease payments, Canceling a lease. 2012 tax return amendment Dwelling unit used as home, Dwelling Unit Used as a Home Lease with option to buy, Lease with option to buy. 2012 tax return amendment Not rented for profit, Not Rented for Profit Part interest, Part interest. 2012 tax return amendment Property received from tenant, Property or services. 2012 tax return amendment Reporting, Accrual method. 2012 tax return amendment , Which Forms To Use Security deposit, Security deposits. 2012 tax return amendment Services received from tenant, Property or services. 2012 tax return amendment Uncollected rent, Uncollected rent. 2012 tax return amendment Used as home, Rental of property also used as your home. 2012 tax return amendment Rental losses, Exception for Rental Real Estate With Active Participation (see also Gains and losses) (see also Passive activity) Repairs, Types of Expenses, Repairs and Improvements (see also Improvements) Assessments for maintenance, Assessments for local improvements. 2012 tax return amendment Personal use of rental property exception for days used for repairs and maintenance, Days used for repairs and maintenance. 2012 tax return amendment S Sale of property Expenses, Vacant while listed for sale. 2012 tax return amendment Gain or loss, Sale or exchange of rental property. 2012 tax return amendment , How to report. 2012 tax return amendment Main home, Sale of main home used as rental property. 2012 tax return amendment Section 179 deductions, Section 179 deduction. 2012 tax return amendment Security deposits, Security deposits. 2012 tax return amendment Settlement fees, Settlement fees and other costs. 2012 tax return amendment Shared equity financing agreements, Shared equity financing agreement. 2012 tax return amendment Special depreciation allowances, Claiming the Special Depreciation Allowance Spouse Material participation, Participating spouse. 2012 tax return amendment Standard mileage rates, Local transportation expenses. 2012 tax return amendment Surveys, Settlement fees and other costs. 2012 tax return amendment T Tables and figures Improvements, examples of (Table 1-1), Table 1-1. 2012 tax return amendment Examples of Improvements MACRS optional tables (Table 2-2d), Table 2-2d. 2012 tax return amendment MACRS optional tables (Tables 2-2a, 2-2b, and 2-2c), Tables 2-2a, 2-2b, and 2-2c. 2012 tax return amendment MACRS recovery periods for property used in rental activities (Table 2-1), Table 2-1. 2012 tax return amendment MACRS Recovery Periods for Property Used in Rental Activities Tax credits Residential energy credits, effect on basis, Decreases to basis. 2012 tax return amendment Tax help, How To Get Tax Help Tax return preparation fees, Legal and other professional fees. 2012 tax return amendment Taxes Deduction of, Types of Expenses Local benefit taxes, Local benefit taxes. 2012 tax return amendment Real estate taxes, Real estate taxes. 2012 tax return amendment Transfer taxes, Settlement fees and other costs. 2012 tax return amendment Theft losses, Theft. 2012 tax return amendment Title insurance, Settlement fees and other costs. 2012 tax return amendment Transfer taxes, Settlement fees and other costs. 2012 tax return amendment Travel and transportation expenses Local transportation expenses, Types of Expenses, Local transportation expenses. 2012 tax return amendment Recordkeeping, Travel expenses. 2012 tax return amendment Rental expenses, Types of Expenses Standard mileage rate, Local transportation expenses. 2012 tax return amendment U Uncollected rent Income, Uncollected rent. 2012 tax return amendment Use of home Before or after renting, Days used as a main home before or after renting. 2012 tax return amendment Change to rental use, Property Changed to Rental Use Days of personal use, What is a day of personal use? Fair rental price, Fair rental price. 2012 tax return amendment Passive activity rules exception, Exception for Personal Use of Dwelling Unit Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home) Utilities, Types of Expenses, Increases to basis. 2012 tax return amendment V Vacant rental property, Vacant rental property. 2012 tax return amendment Vacation homes Dwelling unit, Dwelling unit. 2012 tax return amendment Fair rental price, Fair rental price. 2012 tax return amendment Personal use of, Personal Use of Dwelling Unit (Including Vacation Home) Valuation Fair market value, Fair market value. 2012 tax return amendment Prev  Up     Home   More Online Publications
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Take the First Step to Solve Your Complaint

You can solve most consumer problems by talking to a salesperson or customer service representative. Do this as soon as possible because some retailers have time limits on returns and refunds. If this doesn't work, ask for a supervisor or manager. With each person, calmly and accurately explain the problem and what action you would like taken.

When this fails, try going higher up, to the national headquarters of the seller or the manufacturer of the item. Many companies have a special customer relations or consumer affairs division whose primary function is solving consumer problems. Many companies provide a toll-free number or address for this office on the product label, warranty or other papers given to you at the time of purchase. If this is not the case:

  • Visit the company's website. Look for a "Contact Us" link.
  • Dial the directory of toll-free numbers at 1-800-555-1212 to see if the company has a toll-free number listed.
  • Ask your local librarian to assist you. Most public libraries have reference books with contact information.

As you do your search, keep in mind the name of the manufacturer or parent company is often different from the brand name. The Thomas Register of American Manufacturers, a book available at many public libraries, lists the manufacturers of thousands of products.

A written letter is a good strategy because you will have a record of your communication with the company. Our sample letter can help you prepare a written complaint.

  • Be brief and to the point. Note all important facts about your purchase, including what you bought, serial or model numbers, the name and location of the seller, and when you made the purchase.
  • State exactly what you want done about the problem and how long you are willing to wait for a response. Be reasonable.
  • Don't write an angry, sarcastic or threatening letter. The person reading your letter probably was not responsible for your problem, but may be very helpful in resolving it.
  • Include copies of all documents regarding your problem. Keep the originals.
  • Provide your name, address and phone numbers. If an account is involved, be sure to include the account number.

Keep a record of your efforts to contact the seller; include the name of the person with whom you spoke and what was done, if anything.

File a Complaint Using Social Media

Social media offers an alternative to filing a formal consumer complaint. The customer relations staff at many major corporations monitor posts and complaints about their company’s service. Someone may respond to your problem quickly, to avoid negative perceptions of their performance by other potential customers. While there is no guarantee that you’ll get your problem resolved, it can be a worthwhile effort.

The 2012 Tax Return Amendment

2012 tax return amendment 1. 2012 tax return amendment   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. 2012 tax return amendment Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. 2012 tax return amendment Reseller statement. 2012 tax return amendment Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. 2012 tax return amendment Deep-draft ocean-going vessels. 2012 tax return amendment Passenger vessels. 2012 tax return amendment Ocean-going barges. 2012 tax return amendment State or local governments. 2012 tax return amendment Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. 2012 tax return amendment Gasoline, including aviation gasoline and gasoline blendstocks. 2012 tax return amendment Diesel fuel, including dyed diesel fuel. 2012 tax return amendment Diesel-water fuel emulsion. 2012 tax return amendment Kerosene, including dyed kerosene and kerosene used in aviation. 2012 tax return amendment Other Fuels (including alternative fuels). 2012 tax return amendment Compressed natural gas (CNG). 2012 tax return amendment Fuels used in commercial transportation on inland waterways. 2012 tax return amendment Any liquid used in a fractional ownership program aircraft as fuel. 2012 tax return amendment The following terms are used throughout the discussion of fuel taxes. 2012 tax return amendment Other terms are defined in the discussion of the specific fuels to which they pertain. 2012 tax return amendment Agri-biodiesel. 2012 tax return amendment   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. 2012 tax return amendment Approved terminal or refinery. 2012 tax return amendment   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. 2012 tax return amendment Biodiesel. 2012 tax return amendment   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. 2012 tax return amendment Blended taxable fuel. 2012 tax return amendment   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. 2012 tax return amendment This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. 2012 tax return amendment Blender. 2012 tax return amendment   This is the person that produces blended taxable fuel. 2012 tax return amendment Bulk transfer. 2012 tax return amendment   This is the transfer of taxable fuel by pipeline or vessel. 2012 tax return amendment Bulk transfer/terminal system. 2012 tax return amendment   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. 2012 tax return amendment Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. 2012 tax return amendment Cellulosic biofuel. 2012 tax return amendment   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. 2012 tax return amendment Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). 2012 tax return amendment For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. 2012 tax return amendment Also see Second generation biofuel below. 2012 tax return amendment Diesel-water fuel emulsion. 2012 tax return amendment   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. 2012 tax return amendment The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. 2012 tax return amendment Dry lease aircraft exchange. 2012 tax return amendment   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. 2012 tax return amendment Enterer. 2012 tax return amendment   This is the importer of record (under customs law) for the taxable fuel. 2012 tax return amendment However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. 2012 tax return amendment If there is no importer of record, the owner at the time of entry into the United States is the enterer. 2012 tax return amendment Entry. 2012 tax return amendment   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. 2012 tax return amendment This does not apply to fuel brought into Puerto Rico (which is part of the U. 2012 tax return amendment S. 2012 tax return amendment customs territory), but does apply to fuel brought into the United States from Puerto Rico. 2012 tax return amendment Fractional ownership aircraft program and fractional program aircraft. 2012 tax return amendment   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. 2012 tax return amendment Measurement of taxable fuel. 2012 tax return amendment   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. 2012 tax return amendment Other fuels. 2012 tax return amendment   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. 2012 tax return amendment Pipeline operator. 2012 tax return amendment   This is the person that operates a pipeline within the bulk transfer/terminal system. 2012 tax return amendment Position holder. 2012 tax return amendment   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. 2012 tax return amendment You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. 2012 tax return amendment A terminal operator that owns taxable fuel in its terminal is a position holder. 2012 tax return amendment Rack. 2012 tax return amendment   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. 2012 tax return amendment Refiner. 2012 tax return amendment   This is any person that owns, operates, or otherwise controls a refinery. 2012 tax return amendment Refinery. 2012 tax return amendment   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. 2012 tax return amendment However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. 2012 tax return amendment For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. 2012 tax return amendment Registrant. 2012 tax return amendment   This is a taxable fuel registrant (see Registration Requirements, later). 2012 tax return amendment Removal. 2012 tax return amendment   This is any physical transfer of taxable fuel. 2012 tax return amendment It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. 2012 tax return amendment However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. 2012 tax return amendment Renewable diesel. 2012 tax return amendment   See Renewable Diesel Credits in chapter 2. 2012 tax return amendment Sale. 2012 tax return amendment   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. 2012 tax return amendment For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. 2012 tax return amendment Second generation biofuel. 2012 tax return amendment   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. 2012 tax return amendment S. 2012 tax return amendment C. 2012 tax return amendment 7545). 2012 tax return amendment It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. 2012 tax return amendment It is not alcohol of less than 150 proof (disregard any added denaturants). 2012 tax return amendment See Form 6478 for more information. 2012 tax return amendment State. 2012 tax return amendment   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. 2012 tax return amendment An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. 2012 tax return amendment Taxable fuel. 2012 tax return amendment   This means gasoline, diesel fuel, and kerosene. 2012 tax return amendment Terminal. 2012 tax return amendment   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. 2012 tax return amendment It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. 2012 tax return amendment A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. 2012 tax return amendment Terminal operator. 2012 tax return amendment   This is any person that owns, operates, or otherwise controls a terminal. 2012 tax return amendment Throughputter. 2012 tax return amendment   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). 2012 tax return amendment Vessel operator. 2012 tax return amendment   This is the person that operates a vessel within the bulk transfer/terminal system. 2012 tax return amendment However, vessel does not include a deep draft ocean-going vessel. 2012 tax return amendment Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. 2012 tax return amendment A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. 2012 tax return amendment For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. 2012 tax return amendment The returns are due the last day of the month following the month in which the transaction occurs. 2012 tax return amendment Generally, these returns can be filed on paper or electronically. 2012 tax return amendment For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. 2012 tax return amendment Publication 3536 is only available on the IRS website. 2012 tax return amendment Form 720-TO. 2012 tax return amendment   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. 2012 tax return amendment Each terminal operator must file a separate form for each approved terminal. 2012 tax return amendment Form 720-CS. 2012 tax return amendment   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. 2012 tax return amendment Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. 2012 tax return amendment See Form 637 for other persons who must register and for more information about registration. 2012 tax return amendment Persons that are required to be registered. 2012 tax return amendment   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. 2012 tax return amendment Persons that may register. 2012 tax return amendment   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. 2012 tax return amendment Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. 2012 tax return amendment However, they must be registered to file claims for certain sales and uses of fuel. 2012 tax return amendment See Form 637 for more information. 2012 tax return amendment Taxable fuel registrant. 2012 tax return amendment   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. 2012 tax return amendment The term registrant as used in the discussions of these fuels means a taxable fuel registrant. 2012 tax return amendment Additional information. 2012 tax return amendment   See the Form 637 instructions for the information you must submit when you apply for registration. 2012 tax return amendment Failure to register. 2012 tax return amendment   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. 2012 tax return amendment Gasoline and Aviation Gasoline Gasoline. 2012 tax return amendment   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. 2012 tax return amendment Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. 2012 tax return amendment Gasoline also includes gasoline blendstocks, discussed later. 2012 tax return amendment Aviation gasoline. 2012 tax return amendment   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. 2012 tax return amendment Taxable Events The tax on gasoline is $. 2012 tax return amendment 184 per gallon. 2012 tax return amendment The tax on aviation gasoline is $. 2012 tax return amendment 194 per gallon. 2012 tax return amendment When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. 2012 tax return amendment 141 per gallon. 2012 tax return amendment See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. 2012 tax return amendment Tax is imposed on the removal, entry, or sale of gasoline. 2012 tax return amendment Each of these events is discussed later. 2012 tax return amendment Also, see the special rules that apply to gasoline blendstocks, later. 2012 tax return amendment If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. 2012 tax return amendment See Refunds of Second Tax in chapter 2. 2012 tax return amendment Removal from terminal. 2012 tax return amendment   All removals of gasoline at a terminal rack are taxable. 2012 tax return amendment The position holder for that gasoline is liable for the tax. 2012 tax return amendment Two-party exchanges. 2012 tax return amendment   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. 2012 tax return amendment A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. 2012 tax return amendment The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. 2012 tax return amendment The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. 2012 tax return amendment The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. 2012 tax return amendment The transaction is subject to a written contract. 2012 tax return amendment Terminal operator's liability. 2012 tax return amendment   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. 2012 tax return amendment   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. 2012 tax return amendment The terminal operator is a registrant. 2012 tax return amendment The terminal operator has an unexpired notification certificate (discussed later) from the position holder. 2012 tax return amendment The terminal operator has no reason to believe any information on the certificate is false. 2012 tax return amendment Removal from refinery. 2012 tax return amendment   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. 2012 tax return amendment It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. 2012 tax return amendment It is made at the refinery rack. 2012 tax return amendment The refiner is liable for the tax. 2012 tax return amendment Exception. 2012 tax return amendment   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. 2012 tax return amendment The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. 2012 tax return amendment The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. 2012 tax return amendment The removal from the refinery is by railcar. 2012 tax return amendment The same person operates the refinery and the facility at which the gasoline is received. 2012 tax return amendment Entry into the United States. 2012 tax return amendment   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. 2012 tax return amendment It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. 2012 tax return amendment It is not made by bulk transfer. 2012 tax return amendment The enterer is liable for the tax. 2012 tax return amendment Importer of record's liability. 2012 tax return amendment   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. 2012 tax return amendment   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. 2012 tax return amendment The importer of record has an unexpired notification certificate (discussed later) from the enterer. 2012 tax return amendment The importer of record has no reason to believe any information in the certificate is false. 2012 tax return amendment Customs bond. 2012 tax return amendment   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. 2012 tax return amendment Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. 2012 tax return amendment   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. 2012 tax return amendment The position holder is liable for the tax. 2012 tax return amendment The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. 2012 tax return amendment However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. 2012 tax return amendment Bulk transfers not received at approved terminal or refinery. 2012 tax return amendment   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. 2012 tax return amendment No tax was previously imposed (as discussed earlier) on any of the following events. 2012 tax return amendment The removal from the refinery. 2012 tax return amendment The entry into the United States. 2012 tax return amendment The removal from a terminal by an unregistered position holder. 2012 tax return amendment Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). 2012 tax return amendment   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. 2012 tax return amendment However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. 2012 tax return amendment The owner is a registrant. 2012 tax return amendment The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. 2012 tax return amendment The owner has no reason to believe any information on the certificate is false. 2012 tax return amendment The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. 2012 tax return amendment The operator is jointly and severally liable if the owner does not meet these conditions. 2012 tax return amendment Sales to unregistered person. 2012 tax return amendment   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. 2012 tax return amendment   The seller is liable for the tax. 2012 tax return amendment However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. 2012 tax return amendment   The seller is a registrant. 2012 tax return amendment The seller has an unexpired notification certificate (discussed later) from the buyer. 2012 tax return amendment The seller has no reason to believe any information on the certificate is false. 2012 tax return amendment The buyer of the gasoline is liable for the tax if the seller meets these conditions. 2012 tax return amendment The buyer is jointly and severally liable if the seller does not meet these conditions. 2012 tax return amendment Exception. 2012 tax return amendment   The tax does not apply to a sale if all of the following apply. 2012 tax return amendment The buyer's principal place of business is not in the United States. 2012 tax return amendment The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. 2012 tax return amendment The seller is a registrant and the exporter of record. 2012 tax return amendment The fuel was exported. 2012 tax return amendment Removal or sale of blended gasoline. 2012 tax return amendment   The removal or sale of blended gasoline by the blender is taxable. 2012 tax return amendment See Blended taxable fuel under Definitions, earlier. 2012 tax return amendment   The blender is liable for the tax. 2012 tax return amendment The tax is figured on the number of gallons not previously subject to the tax on gasoline. 2012 tax return amendment   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. 2012 tax return amendment See Form 720 to report this tax. 2012 tax return amendment You also must be registered with the IRS as a blender. 2012 tax return amendment See Form 637. 2012 tax return amendment   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. 2012 tax return amendment Notification certificate. 2012 tax return amendment   The notification certificate is used to notify a person of the registration status of the registrant. 2012 tax return amendment A copy of the registrant's letter of registration cannot be used as a notification certificate. 2012 tax return amendment A model notification certificate is shown in the Appendix as Model Certificate C. 2012 tax return amendment A notification certificate must contain all information necessary to complete the model. 2012 tax return amendment   The certificate may be included as part of any business records normally used for a sale. 2012 tax return amendment A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. 2012 tax return amendment The registrant must provide a new certificate if any information on a certificate has changed. 2012 tax return amendment Additional persons liable. 2012 tax return amendment   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. 2012 tax return amendment Gasoline Blendstocks Gasoline blendstocks may be subject to $. 2012 tax return amendment 001 per gallon LUST tax as discussed below. 2012 tax return amendment Gasoline includes gasoline blendstocks. 2012 tax return amendment The previous discussions apply to these blendstocks. 2012 tax return amendment However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. 2012 tax return amendment 001 per gallon or are not subject to the excise tax. 2012 tax return amendment Blendstocks. 2012 tax return amendment   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. 2012 tax return amendment   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. 2012 tax return amendment Not used to produce finished gasoline. 2012 tax return amendment   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. 2012 tax return amendment Removals and entries not connected to sale. 2012 tax return amendment   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. 2012 tax return amendment Removals and entries connected to sale. 2012 tax return amendment   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. 2012 tax return amendment The person has an unexpired certificate (discussed later) from the buyer. 2012 tax return amendment The person has no reason to believe any information in the certificate is false. 2012 tax return amendment Sales after removal or entry. 2012 tax return amendment   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. 2012 tax return amendment The seller is liable for the tax. 2012 tax return amendment However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. 2012 tax return amendment The seller has an unexpired certificate (discussed next) from the buyer. 2012 tax return amendment The seller has no reason to believe any information in the certificate is false. 2012 tax return amendment Certificate of buyer. 2012 tax return amendment   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. 2012 tax return amendment The certificate may be included as part of any business records normally used for a sale. 2012 tax return amendment A model certificate is shown in the Appendix as Model Certificate D. 2012 tax return amendment The certificate must contain all information necessary to complete the model. 2012 tax return amendment   A certificate expires on the earliest of the following dates. 2012 tax return amendment The date 1 year after the effective date (not earlier than the date signed) of the certificate. 2012 tax return amendment The date a new certificate is provided to the seller. 2012 tax return amendment The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. 2012 tax return amendment The buyer must provide a new certificate if any information on a certificate has changed. 2012 tax return amendment   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. 2012 tax return amendment Received at approved terminal or refinery. 2012 tax return amendment   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. 2012 tax return amendment The person is a registrant. 2012 tax return amendment The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. 2012 tax return amendment The person has no reason to believe any information on the certificate is false. 2012 tax return amendment Bulk transfers to registered industrial user. 2012 tax return amendment   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. 2012 tax return amendment An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. 2012 tax return amendment Credits or Refunds. 2012 tax return amendment   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. 2012 tax return amendment For more information, see chapter 2. 2012 tax return amendment Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). 2012 tax return amendment However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. 2012 tax return amendment Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. 2012 tax return amendment A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. 2012 tax return amendment A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. 2012 tax return amendment However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. 2012 tax return amendment Diesel fuel does not include gasoline, kerosene, excluded liquid, No. 2012 tax return amendment 5 and No. 2012 tax return amendment 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. 2012 tax return amendment An excluded liquid is either of the following. 2012 tax return amendment A liquid that contains less than 4% normal paraffins. 2012 tax return amendment A liquid with all the following properties. 2012 tax return amendment Distillation range of 125 degrees Fahrenheit or less. 2012 tax return amendment Sulfur content of 10 ppm or less. 2012 tax return amendment Minimum color of +27 Saybolt. 2012 tax return amendment Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. 2012 tax return amendment Kerosene. 2012 tax return amendment   This means any of the following liquids. 2012 tax return amendment One of the two grades of kerosene (No. 2012 tax return amendment 1-K and No. 2012 tax return amendment 2-K) covered by ASTM specification D3699. 2012 tax return amendment Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). 2012 tax return amendment See Kerosene for Use in Aviation, later. 2012 tax return amendment   However, kerosene does not include excluded liquid, discussed earlier. 2012 tax return amendment   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. 2012 tax return amendment Diesel-powered highway vehicle. 2012 tax return amendment   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. 2012 tax return amendment Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. 2012 tax return amendment For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. 2012 tax return amendment 2) in chapter 2. 2012 tax return amendment Diesel-powered train. 2012 tax return amendment   This is any diesel-powered equipment or machinery that rides on rails. 2012 tax return amendment The term includes a locomotive, work train, switching engine, and track maintenance machine. 2012 tax return amendment Taxable Events The tax on diesel fuel and kerosene is $. 2012 tax return amendment 244 per gallon. 2012 tax return amendment It is imposed on the removal, entry, or sale of diesel fuel and kerosene. 2012 tax return amendment Each of these events is discussed later. 2012 tax return amendment Only the $. 2012 tax return amendment 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. 2012 tax return amendment If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. 2012 tax return amendment See Refunds of Second Tax in chapter 2. 2012 tax return amendment Use in certain intercity and local buses. 2012 tax return amendment   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. 2012 tax return amendment A claim for $. 2012 tax return amendment 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. 2012 tax return amendment An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. 2012 tax return amendment The bus must be engaged in one of the following activities. 2012 tax return amendment Scheduled transportation along regular routes regardless of the size of the bus. 2012 tax return amendment Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). 2012 tax return amendment A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. 2012 tax return amendment Removal from terminal. 2012 tax return amendment   All removals of diesel fuel and kerosene at a terminal rack are taxable. 2012 tax return amendment The position holder for that fuel is liable for the tax. 2012 tax return amendment Two-party exchanges. 2012 tax return amendment   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. 2012 tax return amendment A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. 2012 tax return amendment The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. 2012 tax return amendment The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. 2012 tax return amendment The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. 2012 tax return amendment The transaction is subject to a written contract. 2012 tax return amendment Terminal operator's liability. 2012 tax return amendment   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). 2012 tax return amendment   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. 2012 tax return amendment However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. 2012 tax return amendment The terminal operator is a registrant. 2012 tax return amendment The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. 2012 tax return amendment The terminal operator has no reason to believe any information on the certificate is false. 2012 tax return amendment Removal from refinery. 2012 tax return amendment   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. 2012 tax return amendment It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. 2012 tax return amendment It is made at the refinery rack. 2012 tax return amendment The refiner is liable for the tax. 2012 tax return amendment Exception. 2012 tax return amendment   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. 2012 tax return amendment The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. 2012 tax return amendment The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. 2012 tax return amendment The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. 2012 tax return amendment Entry into the United States. 2012 tax return amendment   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. 2012 tax return amendment It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. 2012 tax return amendment It is not made by bulk transfer. 2012 tax return amendment The enterer is liable for the tax. 2012 tax return amendment Importer of record's liability. 2012 tax return amendment   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. 2012 tax return amendment   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. 2012 tax return amendment The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. 2012 tax return amendment The importer of record has no reason to believe any information in the certificate is false. 2012 tax return amendment Customs bond. 2012 tax return amendment   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. 2012 tax return amendment Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. 2012 tax return amendment   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. 2012 tax return amendment The position holder is liable for the tax. 2012 tax return amendment The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. 2012 tax return amendment However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. 2012 tax return amendment Bulk transfers not received at approved terminal or refinery. 2012 tax return amendment   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. 2012 tax return amendment No tax was previously imposed (as discussed earlier) on any of the following events. 2012 tax return amendment The removal from the refinery. 2012 tax return amendment The entry into the United States. 2012 tax return amendment The removal from a terminal by an unregistered position holder. 2012 tax return amendment Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). 2012 tax return amendment   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. 2012 tax return amendment However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. 2012 tax return amendment The owner is a registrant. 2012 tax return amendment The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. 2012 tax return amendment The owner has no reason to believe any information on the certificate is false. 2012 tax return amendment The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. 2012 tax return amendment The operator is jointly and severally liable if the owner does not meet these conditions. 2012 tax return amendment Sales to unregistered person. 2012 tax return amendment   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. 2012 tax return amendment   The seller is liable for the tax. 2012 tax return amendment However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. 2012 tax return amendment The seller is a registrant. 2012 tax return amendment The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. 2012 tax return amendment The seller has no reason to believe any information on the certificate is false. 2012 tax return amendment The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. 2012 tax return amendment The buyer is jointly and severally liable if the seller does not meet these conditions. 2012 tax return amendment Exception. 2012 tax return amendment   The tax does not apply to a sale if all of the following apply. 2012 tax return amendment The buyer's principal place of business is not in the United States. 2012 tax return amendment The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. 2012 tax return amendment The seller is a registrant and the exporter of record. 2012 tax return amendment The fuel was exported. 2012 tax return amendment Removal or sale of blended diesel fuel or kerosene. 2012 tax return amendment   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. 2012 tax return amendment Blended taxable fuel produced using biodiesel is subject to the tax. 2012 tax return amendment See Blended taxable fuel under Definitions, earlier. 2012 tax return amendment   The blender is liable for the tax. 2012 tax return amendment The tax is figured on the number of gallons not previously subject to the tax. 2012 tax return amendment   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. 2012 tax return amendment Generally, the biodiesel mixture must be diesel fuel (defined earlier). 2012 tax return amendment See Form 720 to report this tax. 2012 tax return amendment You also must be registered by the IRS as a blender. 2012 tax return amendment See Form 637 for more information. 2012 tax return amendment   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. 2012 tax return amendment Additional persons liable. 2012 tax return amendment   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. 2012 tax return amendment Credits or Refunds. 2012 tax return amendment   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. 2012 tax return amendment For more information, see chapter 2. 2012 tax return amendment Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. 2012 tax return amendment 001 per gallon LUST tax as discussed below, unless the fuel is for export. 2012 tax return amendment The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. 2012 tax return amendment The person otherwise liable for tax (for example, the position holder) is a registrant. 2012 tax return amendment In the case of a removal from a terminal, the terminal is an approved terminal. 2012 tax return amendment The diesel fuel or kerosene satisfies the dyeing requirements (described next). 2012 tax return amendment Dyeing requirements. 2012 tax return amendment   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. 2012 tax return amendment It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. 2012 tax return amendment 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. 2012 tax return amendment Is indelibly dyed by mechanical injection. 2012 tax return amendment See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. 2012 tax return amendment Notice required. 2012 tax return amendment   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. 2012 tax return amendment   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. 2012 tax return amendment   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). 2012 tax return amendment That seller is subject to the penalty described next. 2012 tax return amendment Penalty. 2012 tax return amendment   A penalty is imposed on a person if any of the following situations apply. 2012 tax return amendment Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. 2012 tax return amendment Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. 2012 tax return amendment The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. 2012 tax return amendment The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. 2012 tax return amendment   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. 2012 tax return amendment After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. 2012 tax return amendment   This penalty is in addition to any tax imposed on the fuel. 2012 tax return amendment   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. 2012 tax return amendment   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. 2012 tax return amendment   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. 2012 tax return amendment However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. 2012 tax return amendment The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. 2012 tax return amendment Exception to penalty. 2012 tax return amendment   The penalty under item (3) will not apply in any of the following situations. 2012 tax return amendment Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. 2012 tax return amendment Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. 2012 tax return amendment The alteration or attempted alteration occurs in an exempt area of Alaska. 2012 tax return amendment See Removal for sale or use in Alaska, later. 2012 tax return amendment Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. 2012 tax return amendment Alaska and Feedstocks Tax of $. 2012 tax return amendment 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). 2012 tax return amendment Undyed kerosene used for feedstock purposes. 2012 tax return amendment Removal for sale or use in Alaska. 2012 tax return amendment   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. 2012 tax return amendment The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. 2012 tax return amendment The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. 2012 tax return amendment In the case of a removal from a terminal, the terminal is an approved terminal. 2012 tax return amendment The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. 2012 tax return amendment   If all three of the requirements above are not met, then tax is imposed at $. 2012 tax return amendment 244 per gallon. 2012 tax return amendment   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. 2012 tax return amendment Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. 2012 tax return amendment Later sales. 2012 tax return amendment   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. 2012 tax return amendment The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. 2012 tax return amendment However, the sale is not taxable (other than the LUST tax at $. 2012 tax return amendment 001 per gallon) if all the following requirements are met. 2012 tax return amendment The fuel is sold in Alaska for certain nontaxable uses. 2012 tax return amendment The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. 2012 tax return amendment The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. 2012 tax return amendment Feedstock purposes. 2012 tax return amendment   The $. 2012 tax return amendment 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. 2012 tax return amendment The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. 2012 tax return amendment In the case of a removal from a terminal, the terminal is an approved terminal. 2012 tax return amendment Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. 2012 tax return amendment   If all of the requirements above are not met, then tax is imposed at $. 2012 tax return amendment 244 per gallon. 2012 tax return amendment   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. 2012 tax return amendment For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. 2012 tax return amendment A feedstock user is a person that uses kerosene for a feedstock purpose. 2012 tax return amendment A registered feedstock user is a person that has been registered by the IRS as a feedstock user. 2012 tax return amendment See Registration Requirements, earlier. 2012 tax return amendment Later sales. 2012 tax return amendment   The excise tax ($. 2012 tax return amendment 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. 2012 tax return amendment The tax is imposed at the time of the later sale and that seller is liable for the tax. 2012 tax return amendment Certificate. 2012 tax return amendment   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. 2012 tax return amendment The certificate may be included as part of any business records normally used for a sale. 2012 tax return amendment A model certificate is shown in the Appendix as Model Certificate G. 2012 tax return amendment Your certificate must contain all information necessary to complete the model. 2012 tax return amendment   A certificate expires on the earliest of the following dates. 2012 tax return amendment The date 1 year after the effective date (not earlier than the date signed) of the certificate. 2012 tax return amendment The date the seller is provided a new certificate or notice that the current certificate is invalid. 2012 tax return amendment The date the seller is notified the buyer's registration has been revoked or suspended. 2012 tax return amendment   The buyer must provide a new certificate if any information on a certificate has changed. 2012 tax return amendment Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. 2012 tax return amendment Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. 2012 tax return amendment Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. 2012 tax return amendment Any liquid other than gasoline, diesel fuel, or kerosene. 2012 tax return amendment Generally, this back-up tax is imposed at a rate of $. 2012 tax return amendment 244 per gallon. 2012 tax return amendment Liability for tax. 2012 tax return amendment   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. 2012 tax return amendment In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. 2012 tax return amendment Exemptions from the back-up tax. 2012 tax return amendment   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. 2012 tax return amendment   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. 2012 tax return amendment Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. 2012 tax return amendment A reduced tax rate of $. 2012 tax return amendment 198 per gallon is imposed on a diesel-water fuel emulsion. 2012 tax return amendment To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. 2012 tax return amendment If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. 2012 tax return amendment 244 per gallon. 2012 tax return amendment Credits or refunds. 2012 tax return amendment   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. 2012 tax return amendment Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. 2012 tax return amendment 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). 2012 tax return amendment For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. 2012 tax return amendment 219. 2012 tax return amendment The rate of $. 2012 tax return amendment 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. 2012 tax return amendment The airport terminal does not need to be a secured airport terminal for this rate to apply. 2012 tax return amendment However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. 2012 tax return amendment For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. 2012 tax return amendment 044 per gallon. 2012 tax return amendment For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. 2012 tax return amendment 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. 2012 tax return amendment See Terminal located within a secured area of an airport, later. 2012 tax return amendment In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. 2012 tax return amendment For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. 2012 tax return amendment 001. 2012 tax return amendment There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. 2012 tax return amendment The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. 2012 tax return amendment See Terminal located within a secured area of an airport, later. 2012 tax return amendment In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. 2012 tax return amendment The position holder is liable for the $. 2012 tax return amendment 001 per gallon tax. 2012 tax return amendment For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. 2012 tax return amendment 141 per gallon applies. 2012 tax return amendment Certain refueler trucks, tankers, and tank wagons treated as terminals. 2012 tax return amendment   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. 2012 tax return amendment Such terminal is located within an area of an airport. 2012 tax return amendment Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. 2012 tax return amendment Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. 2012 tax return amendment The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. 2012 tax return amendment Information reporting will be required by terminal operators regarding this provision. 2012 tax return amendment Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. 2012 tax return amendment Terminal located within a secured area of an airport. 2012 tax return amendment   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. 2012 tax return amendment This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. 2012 tax return amendment Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. 2012 tax return amendment 044 per gallon. 2012 tax return amendment However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). 2012 tax return amendment For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. 2012 tax return amendment For the aircraft operator to be liable for the tax $. 2012 tax return amendment 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. 2012 tax return amendment Commercial aviation. 2012 tax return amendment   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. 2012 tax return amendment However, commercial aviation does not include any of the following uses. 2012 tax return amendment Any use exclusively for the purpose of skydiving. 2012 tax return amendment Certain air transportation by seaplane. 2012 tax return amendment See Seaplanes under Transportation of Persons by Air in chapter 4. 2012 tax return amendment Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. 2012 tax return amendment For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. 2012 tax return amendment Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. 2012 tax return amendment For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. 2012 tax return amendment Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. 2012 tax return amendment See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. 2012 tax return amendment Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. 2012 tax return amendment 141 per gallon. 2012 tax return amendment The fractional ownership program manager is liable for the tax. 2012 tax return amendment The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. 2012 tax return amendment If the surtax is imposed, the following air transportation taxes do not apply. 2012 tax return amendment Transportation of persons by air. 2012 tax return amendment Transportation of property by air. 2012 tax return amendment Use of international air travel facilities. 2012 tax return amendment These taxes are described under Air Transportation Taxes, later. 2012 tax return amendment A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. 2012 tax return amendment Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. 2012 tax return amendment Fractional program aircraft. 2012 tax return amendment   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. 2012 tax return amendment S. 2012 tax return amendment   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. 2012 tax return amendment In such situations, the flight is not commercial aviation. 2012 tax return amendment Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. 2012 tax return amendment Fractional owner. 2012 tax return amendment   Any person owning any interest (including the entire interest) in a fractional program aircraft. 2012 tax return amendment Dry lease aircraft exchange. 2012 tax return amendment   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. 2012 tax return amendment Special rule relating to deadhead service. 2012 tax return amendment   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. 2012 tax return amendment More information. 2012 tax return amendment   See section 4043 for more information on the surtax. 2012 tax return amendment Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. 2012 tax return amendment Certificate. 2012 tax return amendment   The certificate may be included as part of any business records normally used for a sale. 2012 tax return amendment See Model Certificate K in the Appendix. 2012 tax return amendment   A certificate expires on the earliest of the following dates. 2012 tax return amendment The date 1 year after the effective date (not earlier than the date signed) of the certificate. 2012 tax return amendment The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. 2012 tax return amendment The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. 2012 tax return amendment   The buyer must provide a new certificate if any information on a certificate has changed. 2012 tax return amendment   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. 2012 tax return amendment Exempt use. 2012 tax return amendment   The rate on kerosene for use in aviation is $. 2012 tax return amendment 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. 2012 tax return amendment An exempt use includes kerosene for the exclusive use of a state or local government. 2012 tax return amendment There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. 2012 tax return amendment Flash title transaction. 2012 tax return amendment   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. 2012 tax return amendment In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. 2012 tax return amendment In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. 2012 tax return amendment Reseller statement. 2012 tax return amendment   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. 2012 tax return amendment Credits or Refunds. 2012 tax return amendment   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). 2012 tax return amendment A claim may be made by a registered ultimate vendor for certain sales. 2012 tax return amendment For more information, see chapter 2. 2012 tax return amendment Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. 2012 tax return amendment Other Fuels include alternative fuels. 2012 tax return amendment Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. 2012 tax return amendment Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. 2012 tax return amendment Qualified methanol and ethanol fuels. 2012 tax return amendment   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. 2012 tax return amendment The tax rates are listed in the Instructions for Form 720. 2012 tax return amendment Partially exempt methanol and ethanol fuels. 2012 tax return amendment   A reduced tax rate applies to these fuels. 2012 tax return amendment Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. 2012 tax return amendment The tax rates are listed in the Instructions for Form 720. 2012 tax return amendment Motor vehicles. 2012 tax return amendment   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. 2012 tax return amendment They are propelled by a motor. 2012 tax return amendment They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t