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Free Tax Forms

Free tax forms Index Symbols 28% rate gain, Collectibles (28% rate) gain. Free tax forms , Figuring 28% rate gain (line 11). Free tax forms A Adjustments to income, defined, Adjustment to income. Free tax forms Age 65 or older dependents, Both Earned and Unearned Income Aliens Individual taxpayer identification number (ITIN), Reminders Standard deduction, Standard Deduction of Zero Alternative minimum tax (AMT), Other Filing Requirements, Alternative minimum tax. Free tax forms , Alternative Minimum Tax Assistance (see Tax help) B Blind dependents, filing requirements, Both Earned and Unearned Income C Capital gain distributions, Capital gain distributions. Free tax forms Capital losses, Capital loss. Free tax forms Child's earnings, Child's earnings. Free tax forms Child's expenses, Child's expenses. Free tax forms Child's return Responsibility for, Should a Return Be Filed Even If Not Required?, Child's expenses. Free tax forms Child's unearned income Tax on, Renewing an exemption from withholding. Free tax forms Church, wages from, Other Filing Requirements Credits, reduced, Reduced deductions or credits. Free tax forms D Deductible investment interest, Deductible investment interest. Free tax forms Deductions, Deductions you cannot take. Free tax forms Deductions, reduced, Reduced deductions or credits. Free tax forms Dependents Exemption for, Standard Deduction of Zero Own exemption, Standard Deduction of Zero Social security numbers (SSNs) of, Reminders Divorced parents, reporting child's unearned income, Parents are divorced. Free tax forms E Earned income, Earned Income Only, Both Earned and Unearned Income Education credit, recaptured, Other Filing Requirements Election to include child's income on parent's return, Parent's Election To Report Child's Interest and Dividends, How to make the election. Free tax forms , Estimated tax, penalty, Penalty for underpayment of estimated tax. Free tax forms Exemption Own exemption — dependent, Dependent's Own Exemption Exemption from withholding, Claiming exemption from withholding. Free tax forms Extension of time to file, Extension of time to file. Free tax forms F Figures (see Tables and figures) Figuring child's income, Penalty for underpayment of estimated tax. Free tax forms Filing requirements, Part 1. Free tax forms Rules for All Dependents, Should a Return Be Filed Even If Not Required? Form 1040 Schedule A, Directly connected. Free tax forms Schedule J, Using Schedule J (Form 1040), for line 9 tax. Free tax forms , Using Schedule J for line 15 tax. Free tax forms Form 1040A Filled in example, Form 1099-DIV, Collectibles (28% rate) gain. Free tax forms Form 2555, Child files Form 2555 or 2555-EZ. Free tax forms , Parent files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms Form 2555-EZ, Child files Form 2555 or 2555-EZ. Free tax forms , Parent files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms , Child files Form 2555 or 2555-EZ. Free tax forms Form 2848, Designated as representative. Free tax forms , How to request. Free tax forms Form 6251, Alternative minimum tax. Free tax forms , Limit on exemption amount (AMT). Free tax forms Form 8615, Providing Parental Information (Form 8615, Lines A–C), Line 18 (Tax) Filled in example, Form 8814, How to make the election. Free tax forms , Figuring Child's Income, Figuring Additional Tax Form W-4, Claiming exemption from withholding. Free tax forms Free tax services, Free help with your tax return. Free tax forms G Gift, income from property received as, Income from property received as a gift. Free tax forms H Help (see Tax help) I Individual taxpayer identification numbers (ITINs), Reminders Investment interest, Deductible investment interest. Free tax forms IRS notice sent to child, IRS notice. Free tax forms Itemized deductions Directly connected, Directly connected. Free tax forms J Joint return of parents, Which Parent's Return To Use L Life insurance, Other Filing Requirements Limit on exemption amount (AMT) Alternative Minimum Tax — Limit on exemption amount, Limit on exemption amount (AMT). Free tax forms M Married parents filing separately, Parents are married. Free tax forms Medicare tax, Other Filing Requirements Missing children, photographs of, Reminders N Net capital gain, Net capital gain. Free tax forms Net unearned income, Line 5 (Net Unearned Income) P Parents Election (see Election to include child's income on parent's return) Which parent's return to use, Which Parent's Return To Use Penalty, estimated tax, Penalty for underpayment of estimated tax. Free tax forms Publications (see Tax help) Q Qualified dividends, Qualified dividends. Free tax forms , Qualified dividends. Free tax forms R Recapture taxes, Other Filing Requirements Remarried custodial parent, reporting child's unearned income, Custodial parent remarried. Free tax forms Remarried widowed parent, reporting child's unearned income, Widowed parent remarried. Free tax forms Returns Filing even if not required, Should a Return Be Filed Even If Not Required? Parent's election to include child's income (see Election to include child's income on parent's return) Responsibility for child's return, Responsibility for Child's Return, Child's expenses. Free tax forms Signing child's return, Signing the child's return. Free tax forms Who must file, Filing Requirements, Should a Return Be Filed Even If Not Required? S Schedule D Tax Worksheet, Using the Schedule D Tax Worksheet for line 9 tax. Free tax forms , Figuring 28% rate gain (line 11). Free tax forms , Using the Schedule D Tax Worksheet for line 15 tax. Free tax forms Section 1202 gain, Section 1202 gain. Free tax forms Self-employed, filing requirements, Other Filing Requirements Separated parents, reporting child's unearned income, Parents not living together. Free tax forms Signing child's return, Signing the child's return. Free tax forms Social security numbers (SSNs) of dependents, Reminders Social security tax, Other Filing Requirements Standard deduction, Standard Deduction, Standard Deduction of Zero Worksheet for dependents (Worksheet 1), Worksheet 1. Free tax forms Zero, Standard Deduction of Zero T Tables and figures Determining whether Form 8615 is required (Figure 2), Election to include child's income on parent's return (Figure 1), Filing requirements for dependents (Table 1), Table 1. Free tax forms 2013 Filing Requirements for Dependents Tax help, How to request. Free tax forms , How To Get Tax Help Tax on child's unearned income, Renewing an exemption from withholding. Free tax forms Age requirement, Certain January 1 birthdays. Free tax forms Figured on Form 8615, Tax for Certain Children Who Have Unearned Income Third party designee, Third party designee. Free tax forms Tips not reported to employer, Other Filing Requirements Trust income, Trust income. Free tax forms TTY/TDD information, How To Get Tax Help U Unearned income, Unearned Income Only, Both Earned and Unearned Income Defined, Unearned income defined. Free tax forms Election to include child's income on parent's return (see Election to include child's income on parent's return) Tax on, Part 2. Free tax forms Tax on Unearned Income of Certain Children Unrecaptured section 1250 gain, Unrecaptured section 1250 gain. Free tax forms , Figuring unrecaptured section 1250 gain (line 11). Free tax forms W Withholding, Withholding From Wages Worksheets Dependent's filing requirement, Both Earned and Unearned Income Form 8615 alternate worksheet, Line 1 (Unearned Income) Qualified dividends and capital gain tax, Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Schedule D Tax, Figuring 28% rate gain (line 11). Free tax forms Standard deduction worksheet for dependents (Worksheet 1), Worksheet 1. Free tax forms Unrecaptured section 1250 gain, Figuring unrecaptured section 1250 gain (line 11). Free tax forms Prev  Up     Home   More Online Publications
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Exempt Organizations (EO) administers tax law governing charities, foundations and many other entities that are not required to pay federal income tax.

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Stephen A. Martin - Acting Director, Rulings & Agreements

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Page Last Reviewed or Updated: 27-Mar-2014

The Free Tax Forms

Free tax forms 1. Free tax forms   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. Free tax forms 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. Free tax forms Reseller statement. Free tax forms Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. Free tax forms Deep-draft ocean-going vessels. Free tax forms Passenger vessels. Free tax forms Ocean-going barges. Free tax forms State or local governments. Free tax forms 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. Free tax forms Gasoline, including aviation gasoline and gasoline blendstocks. Free tax forms Diesel fuel, including dyed diesel fuel. Free tax forms Diesel-water fuel emulsion. Free tax forms Kerosene, including dyed kerosene and kerosene used in aviation. Free tax forms Other Fuels (including alternative fuels). Free tax forms Compressed natural gas (CNG). Free tax forms Fuels used in commercial transportation on inland waterways. Free tax forms Any liquid used in a fractional ownership program aircraft as fuel. Free tax forms The following terms are used throughout the discussion of fuel taxes. Free tax forms Other terms are defined in the discussion of the specific fuels to which they pertain. Free tax forms Agri-biodiesel. Free tax forms   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. Free tax forms Approved terminal or refinery. Free tax forms   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. Free tax forms Biodiesel. Free tax forms   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. Free tax forms Blended taxable fuel. Free tax forms   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. Free tax forms 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. Free tax forms Blender. Free tax forms   This is the person that produces blended taxable fuel. Free tax forms Bulk transfer. Free tax forms   This is the transfer of taxable fuel by pipeline or vessel. Free tax forms Bulk transfer/terminal system. Free tax forms   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Free tax forms 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. Free tax forms Cellulosic biofuel. Free tax forms   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. Free tax forms Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). Free tax forms 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. Free tax forms Also see Second generation biofuel below. Free tax forms Diesel-water fuel emulsion. Free tax forms   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. Free tax forms 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. Free tax forms Dry lease aircraft exchange. Free tax forms   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Free tax forms Enterer. Free tax forms   This is the importer of record (under customs law) for the taxable fuel. Free tax forms 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. Free tax forms If there is no importer of record, the owner at the time of entry into the United States is the enterer. Free tax forms Entry. Free tax forms   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. Free tax forms This does not apply to fuel brought into Puerto Rico (which is part of the U. Free tax forms S. Free tax forms customs territory), but does apply to fuel brought into the United States from Puerto Rico. Free tax forms Fractional ownership aircraft program and fractional program aircraft. Free tax forms   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Free tax forms Measurement of taxable fuel. Free tax forms   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. Free tax forms Other fuels. Free tax forms   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. Free tax forms Pipeline operator. Free tax forms   This is the person that operates a pipeline within the bulk transfer/terminal system. Free tax forms Position holder. Free tax forms   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. Free tax forms 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. Free tax forms A terminal operator that owns taxable fuel in its terminal is a position holder. Free tax forms Rack. Free tax forms   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. Free tax forms Refiner. Free tax forms   This is any person that owns, operates, or otherwise controls a refinery. Free tax forms Refinery. Free tax forms   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. Free tax forms However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. Free tax forms For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. Free tax forms Registrant. Free tax forms   This is a taxable fuel registrant (see Registration Requirements, later). Free tax forms Removal. Free tax forms   This is any physical transfer of taxable fuel. Free tax forms It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. Free tax forms However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. Free tax forms Renewable diesel. Free tax forms   See Renewable Diesel Credits in chapter 2. Free tax forms Sale. Free tax forms   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. Free tax forms 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. Free tax forms Second generation biofuel. Free tax forms   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. Free tax forms S. Free tax forms C. Free tax forms 7545). Free tax forms It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. Free tax forms It is not alcohol of less than 150 proof (disregard any added denaturants). Free tax forms See Form 6478 for more information. Free tax forms State. Free tax forms   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. Free tax forms An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. Free tax forms Taxable fuel. Free tax forms   This means gasoline, diesel fuel, and kerosene. Free tax forms Terminal. Free tax forms   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. Free tax forms 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. Free tax forms 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. Free tax forms Terminal operator. Free tax forms   This is any person that owns, operates, or otherwise controls a terminal. Free tax forms Throughputter. Free tax forms   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). Free tax forms Vessel operator. Free tax forms   This is the person that operates a vessel within the bulk transfer/terminal system. Free tax forms However, vessel does not include a deep draft ocean-going vessel. Free tax forms Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. Free tax forms A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. Free tax forms For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. Free tax forms The returns are due the last day of the month following the month in which the transaction occurs. Free tax forms Generally, these returns can be filed on paper or electronically. Free tax forms For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. Free tax forms Publication 3536 is only available on the IRS website. Free tax forms Form 720-TO. Free tax forms   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. Free tax forms Each terminal operator must file a separate form for each approved terminal. Free tax forms Form 720-CS. Free tax forms   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. Free tax forms Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. Free tax forms See Form 637 for other persons who must register and for more information about registration. Free tax forms Persons that are required to be registered. Free tax forms   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. Free tax forms Persons that may register. Free tax forms   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. Free tax forms Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. Free tax forms However, they must be registered to file claims for certain sales and uses of fuel. Free tax forms See Form 637 for more information. Free tax forms Taxable fuel registrant. Free tax forms   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. Free tax forms The term registrant as used in the discussions of these fuels means a taxable fuel registrant. Free tax forms Additional information. Free tax forms   See the Form 637 instructions for the information you must submit when you apply for registration. Free tax forms Failure to register. Free tax forms   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. Free tax forms Gasoline and Aviation Gasoline Gasoline. Free tax forms   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. Free tax forms 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. Free tax forms Gasoline also includes gasoline blendstocks, discussed later. Free tax forms Aviation gasoline. Free tax forms   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. Free tax forms Taxable Events The tax on gasoline is $. Free tax forms 184 per gallon. Free tax forms The tax on aviation gasoline is $. Free tax forms 194 per gallon. Free tax forms When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. Free tax forms 141 per gallon. Free tax forms See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. Free tax forms Tax is imposed on the removal, entry, or sale of gasoline. Free tax forms Each of these events is discussed later. Free tax forms Also, see the special rules that apply to gasoline blendstocks, later. Free tax forms If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. Free tax forms See Refunds of Second Tax in chapter 2. Free tax forms Removal from terminal. Free tax forms   All removals of gasoline at a terminal rack are taxable. Free tax forms The position holder for that gasoline is liable for the tax. Free tax forms Two-party exchanges. Free tax forms   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. Free tax forms 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. Free tax forms 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. Free tax forms The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. Free tax forms 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. Free tax forms The transaction is subject to a written contract. Free tax forms Terminal operator's liability. Free tax forms   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. Free tax forms   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. Free tax forms The terminal operator is a registrant. Free tax forms The terminal operator has an unexpired notification certificate (discussed later) from the position holder. Free tax forms The terminal operator has no reason to believe any information on the certificate is false. Free tax forms Removal from refinery. Free tax forms   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. Free tax forms 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. Free tax forms It is made at the refinery rack. Free tax forms The refiner is liable for the tax. Free tax forms Exception. Free tax forms   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. Free tax forms The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Free tax forms The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Free tax forms The removal from the refinery is by railcar. Free tax forms The same person operates the refinery and the facility at which the gasoline is received. Free tax forms Entry into the United States. Free tax forms   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. Free tax forms It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Free tax forms It is not made by bulk transfer. Free tax forms The enterer is liable for the tax. Free tax forms Importer of record's liability. Free tax forms   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. Free tax forms   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Free tax forms The importer of record has an unexpired notification certificate (discussed later) from the enterer. Free tax forms The importer of record has no reason to believe any information in the certificate is false. Free tax forms Customs bond. Free tax forms   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. Free tax forms Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Free tax forms   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. Free tax forms The position holder is liable for the tax. Free tax forms The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Free tax forms However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Free tax forms Bulk transfers not received at approved terminal or refinery. Free tax forms   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. Free tax forms No tax was previously imposed (as discussed earlier) on any of the following events. Free tax forms The removal from the refinery. Free tax forms The entry into the United States. Free tax forms The removal from a terminal by an unregistered position holder. Free tax forms Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). Free tax forms   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. Free tax forms However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Free tax forms The owner is a registrant. Free tax forms The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. Free tax forms The owner has no reason to believe any information on the certificate is false. Free tax forms The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. Free tax forms The operator is jointly and severally liable if the owner does not meet these conditions. Free tax forms Sales to unregistered person. Free tax forms   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. Free tax forms   The seller is liable for the tax. Free tax forms However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Free tax forms   The seller is a registrant. Free tax forms The seller has an unexpired notification certificate (discussed later) from the buyer. Free tax forms The seller has no reason to believe any information on the certificate is false. Free tax forms The buyer of the gasoline is liable for the tax if the seller meets these conditions. Free tax forms The buyer is jointly and severally liable if the seller does not meet these conditions. Free tax forms Exception. Free tax forms   The tax does not apply to a sale if all of the following apply. Free tax forms The buyer's principal place of business is not in the United States. Free tax forms The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Free tax forms The seller is a registrant and the exporter of record. Free tax forms The fuel was exported. Free tax forms Removal or sale of blended gasoline. Free tax forms   The removal or sale of blended gasoline by the blender is taxable. Free tax forms See Blended taxable fuel under Definitions, earlier. Free tax forms   The blender is liable for the tax. Free tax forms The tax is figured on the number of gallons not previously subject to the tax on gasoline. Free tax forms   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. Free tax forms See Form 720 to report this tax. Free tax forms You also must be registered with the IRS as a blender. Free tax forms See Form 637. Free tax forms   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. Free tax forms Notification certificate. Free tax forms   The notification certificate is used to notify a person of the registration status of the registrant. Free tax forms A copy of the registrant's letter of registration cannot be used as a notification certificate. Free tax forms A model notification certificate is shown in the Appendix as Model Certificate C. Free tax forms A notification certificate must contain all information necessary to complete the model. Free tax forms   The certificate may be included as part of any business records normally used for a sale. Free tax forms 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. Free tax forms The registrant must provide a new certificate if any information on a certificate has changed. Free tax forms Additional persons liable. Free tax forms   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. Free tax forms Gasoline Blendstocks Gasoline blendstocks may be subject to $. Free tax forms 001 per gallon LUST tax as discussed below. Free tax forms Gasoline includes gasoline blendstocks. Free tax forms The previous discussions apply to these blendstocks. Free tax forms However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. Free tax forms 001 per gallon or are not subject to the excise tax. Free tax forms Blendstocks. Free tax forms   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. Free tax forms   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. Free tax forms Not used to produce finished gasoline. Free tax forms   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. Free tax forms Removals and entries not connected to sale. Free tax forms   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. Free tax forms Removals and entries connected to sale. Free tax forms   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. Free tax forms The person has an unexpired certificate (discussed later) from the buyer. Free tax forms The person has no reason to believe any information in the certificate is false. Free tax forms Sales after removal or entry. Free tax forms   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. Free tax forms The seller is liable for the tax. Free tax forms However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. Free tax forms The seller has an unexpired certificate (discussed next) from the buyer. Free tax forms The seller has no reason to believe any information in the certificate is false. Free tax forms Certificate of buyer. Free tax forms   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. Free tax forms The certificate may be included as part of any business records normally used for a sale. Free tax forms A model certificate is shown in the Appendix as Model Certificate D. Free tax forms The certificate must contain all information necessary to complete the model. Free tax forms   A certificate expires on the earliest of the following dates. Free tax forms The date 1 year after the effective date (not earlier than the date signed) of the certificate. Free tax forms The date a new certificate is provided to the seller. Free tax forms The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. Free tax forms The buyer must provide a new certificate if any information on a certificate has changed. Free tax forms   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. Free tax forms Received at approved terminal or refinery. Free tax forms   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. Free tax forms The person is a registrant. Free tax forms The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. Free tax forms The person has no reason to believe any information on the certificate is false. Free tax forms Bulk transfers to registered industrial user. Free tax forms   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. Free tax forms 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. Free tax forms Credits or Refunds. Free tax forms   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. Free tax forms For more information, see chapter 2. Free tax forms Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). Free tax forms 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. Free tax forms 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. Free tax forms 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. Free tax forms A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. Free tax forms 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. Free tax forms Diesel fuel does not include gasoline, kerosene, excluded liquid, No. Free tax forms 5 and No. Free tax forms 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. Free tax forms An excluded liquid is either of the following. Free tax forms A liquid that contains less than 4% normal paraffins. Free tax forms A liquid with all the following properties. Free tax forms Distillation range of 125 degrees Fahrenheit or less. Free tax forms Sulfur content of 10 ppm or less. Free tax forms Minimum color of +27 Saybolt. Free tax forms Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. Free tax forms Kerosene. Free tax forms   This means any of the following liquids. Free tax forms One of the two grades of kerosene (No. Free tax forms 1-K and No. Free tax forms 2-K) covered by ASTM specification D3699. Free tax forms 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). Free tax forms See Kerosene for Use in Aviation, later. Free tax forms   However, kerosene does not include excluded liquid, discussed earlier. Free tax forms   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. Free tax forms Diesel-powered highway vehicle. Free tax forms   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. Free tax forms Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. Free tax forms For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. Free tax forms 2) in chapter 2. Free tax forms Diesel-powered train. Free tax forms   This is any diesel-powered equipment or machinery that rides on rails. Free tax forms The term includes a locomotive, work train, switching engine, and track maintenance machine. Free tax forms Taxable Events The tax on diesel fuel and kerosene is $. Free tax forms 244 per gallon. Free tax forms It is imposed on the removal, entry, or sale of diesel fuel and kerosene. Free tax forms Each of these events is discussed later. Free tax forms Only the $. Free tax forms 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. Free tax forms 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. Free tax forms See Refunds of Second Tax in chapter 2. Free tax forms Use in certain intercity and local buses. Free tax forms   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. Free tax forms A claim for $. Free tax forms 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. Free tax forms An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Free tax forms The bus must be engaged in one of the following activities. Free tax forms Scheduled transportation along regular routes regardless of the size of the bus. Free tax forms Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). Free tax forms 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. Free tax forms Removal from terminal. Free tax forms   All removals of diesel fuel and kerosene at a terminal rack are taxable. Free tax forms The position holder for that fuel is liable for the tax. Free tax forms Two-party exchanges. Free tax forms   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. Free tax forms 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. Free tax forms 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. Free tax forms The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. Free tax forms 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. Free tax forms The transaction is subject to a written contract. Free tax forms Terminal operator's liability. Free tax forms   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). Free tax forms   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. Free tax forms 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. Free tax forms The terminal operator is a registrant. Free tax forms The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. Free tax forms The terminal operator has no reason to believe any information on the certificate is false. Free tax forms Removal from refinery. Free tax forms   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. Free tax forms 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. Free tax forms It is made at the refinery rack. Free tax forms The refiner is liable for the tax. Free tax forms Exception. Free tax forms   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. Free tax forms The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Free tax forms The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Free tax forms 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. Free tax forms Entry into the United States. Free tax forms   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. Free tax forms It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Free tax forms It is not made by bulk transfer. Free tax forms The enterer is liable for the tax. Free tax forms Importer of record's liability. Free tax forms   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. Free tax forms   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Free tax forms The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. Free tax forms The importer of record has no reason to believe any information in the certificate is false. Free tax forms Customs bond. Free tax forms   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. Free tax forms Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Free tax forms   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. Free tax forms The position holder is liable for the tax. Free tax forms The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Free tax forms However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Free tax forms Bulk transfers not received at approved terminal or refinery. Free tax forms   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. Free tax forms No tax was previously imposed (as discussed earlier) on any of the following events. Free tax forms The removal from the refinery. Free tax forms The entry into the United States. Free tax forms The removal from a terminal by an unregistered position holder. Free tax forms 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). Free tax forms   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. Free tax forms However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Free tax forms The owner is a registrant. Free tax forms 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. Free tax forms The owner has no reason to believe any information on the certificate is false. Free tax forms The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. Free tax forms The operator is jointly and severally liable if the owner does not meet these conditions. Free tax forms Sales to unregistered person. Free tax forms   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. Free tax forms   The seller is liable for the tax. Free tax forms However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Free tax forms The seller is a registrant. Free tax forms The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. Free tax forms The seller has no reason to believe any information on the certificate is false. Free tax forms The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. Free tax forms The buyer is jointly and severally liable if the seller does not meet these conditions. Free tax forms Exception. Free tax forms   The tax does not apply to a sale if all of the following apply. Free tax forms The buyer's principal place of business is not in the United States. Free tax forms The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Free tax forms The seller is a registrant and the exporter of record. Free tax forms The fuel was exported. Free tax forms Removal or sale of blended diesel fuel or kerosene. Free tax forms   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. Free tax forms Blended taxable fuel produced using biodiesel is subject to the tax. Free tax forms See Blended taxable fuel under Definitions, earlier. Free tax forms   The blender is liable for the tax. Free tax forms The tax is figured on the number of gallons not previously subject to the tax. Free tax forms   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. Free tax forms Generally, the biodiesel mixture must be diesel fuel (defined earlier). Free tax forms See Form 720 to report this tax. Free tax forms You also must be registered by the IRS as a blender. Free tax forms See Form 637 for more information. Free tax forms   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. Free tax forms Additional persons liable. Free tax forms   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. Free tax forms Credits or Refunds. Free tax forms   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. Free tax forms For more information, see chapter 2. Free tax forms Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. Free tax forms 001 per gallon LUST tax as discussed below, unless the fuel is for export. Free tax forms 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. Free tax forms The person otherwise liable for tax (for example, the position holder) is a registrant. Free tax forms In the case of a removal from a terminal, the terminal is an approved terminal. Free tax forms The diesel fuel or kerosene satisfies the dyeing requirements (described next). Free tax forms Dyeing requirements. Free tax forms   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. Free tax forms It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. Free tax forms 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. Free tax forms Is indelibly dyed by mechanical injection. Free tax forms See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. Free tax forms Notice required. Free tax forms   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. Free tax forms   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. Free tax forms   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). Free tax forms That seller is subject to the penalty described next. Free tax forms Penalty. Free tax forms   A penalty is imposed on a person if any of the following situations apply. Free tax forms 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. Free tax forms 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. Free tax forms The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. Free tax forms 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. Free tax forms   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Free tax forms After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Free tax forms   This penalty is in addition to any tax imposed on the fuel. Free tax forms   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. Free tax forms   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. Free tax forms   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. Free tax forms However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. Free tax forms 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. Free tax forms Exception to penalty. Free tax forms   The penalty under item (3) will not apply in any of the following situations. Free tax forms Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. Free tax forms 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. Free tax forms The alteration or attempted alteration occurs in an exempt area of Alaska. Free tax forms See Removal for sale or use in Alaska, later. Free tax forms 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. Free tax forms Alaska and Feedstocks Tax of $. Free tax forms 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). Free tax forms Undyed kerosene used for feedstock purposes. Free tax forms Removal for sale or use in Alaska. Free tax forms   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. Free tax forms The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. Free tax forms 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. Free tax forms In the case of a removal from a terminal, the terminal is an approved terminal. Free tax forms 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. Free tax forms   If all three of the requirements above are not met, then tax is imposed at $. Free tax forms 244 per gallon. Free tax forms   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. Free tax forms Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. Free tax forms Later sales. Free tax forms   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. Free tax forms The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. Free tax forms However, the sale is not taxable (other than the LUST tax at $. Free tax forms 001 per gallon) if all the following requirements are met. Free tax forms The fuel is sold in Alaska for certain nontaxable uses. Free tax forms The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. Free tax forms The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. Free tax forms Feedstock purposes. Free tax forms   The $. Free tax forms 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. Free tax forms The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. Free tax forms In the case of a removal from a terminal, the terminal is an approved terminal. Free tax forms 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. Free tax forms   If all of the requirements above are not met, then tax is imposed at $. Free tax forms 244 per gallon. Free tax forms   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. Free tax forms For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. Free tax forms A feedstock user is a person that uses kerosene for a feedstock purpose. Free tax forms A registered feedstock user is a person that has been registered by the IRS as a feedstock user. Free tax forms See Registration Requirements, earlier. Free tax forms Later sales. Free tax forms   The excise tax ($. Free tax forms 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. Free tax forms The tax is imposed at the time of the later sale and that seller is liable for the tax. Free tax forms Certificate. Free tax forms   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. Free tax forms The certificate may be included as part of any business records normally used for a sale. Free tax forms A model certificate is shown in the Appendix as Model Certificate G. Free tax forms Your certificate must contain all information necessary to complete the model. Free tax forms   A certificate expires on the earliest of the following dates. Free tax forms The date 1 year after the effective date (not earlier than the date signed) of the certificate. Free tax forms The date the seller is provided a new certificate or notice that the current certificate is invalid. Free tax forms The date the seller is notified the buyer's registration has been revoked or suspended. Free tax forms   The buyer must provide a new certificate if any information on a certificate has changed. Free tax forms 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. Free tax forms Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. Free tax forms Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. Free tax forms Any liquid other than gasoline, diesel fuel, or kerosene. Free tax forms Generally, this back-up tax is imposed at a rate of $. Free tax forms 244 per gallon. Free tax forms Liability for tax. Free tax forms   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. Free tax forms 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. Free tax forms Exemptions from the back-up tax. Free tax forms   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. Free tax forms   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. Free tax forms 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. Free tax forms A reduced tax rate of $. Free tax forms 198 per gallon is imposed on a diesel-water fuel emulsion. Free tax forms 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. Free tax forms 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 $. Free tax forms 244 per gallon. Free tax forms Credits or refunds. Free tax forms   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. Free tax forms Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. Free tax forms 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). Free tax forms For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. Free tax forms 219. Free tax forms The rate of $. Free tax forms 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. Free tax forms The airport terminal does not need to be a secured airport terminal for this rate to apply. Free tax forms 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. Free tax forms For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. Free tax forms 044 per gallon. Free tax forms For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. Free tax forms 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. Free tax forms See Terminal located within a secured area of an airport, later. Free tax forms In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Free tax forms 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 $. Free tax forms 001. Free tax forms There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Free tax forms 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. Free tax forms See Terminal located within a secured area of an airport, later. Free tax forms In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Free tax forms The position holder is liable for the $. Free tax forms 001 per gallon tax. Free tax forms For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. Free tax forms 141 per gallon applies. Free tax forms Certain refueler trucks, tankers, and tank wagons treated as terminals. Free tax forms   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. Free tax forms Such terminal is located within an area of an airport. Free tax forms 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. Free tax forms 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. Free tax forms 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. Free tax forms Information reporting will be required by terminal operators regarding this provision. Free tax forms 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. Free tax forms Terminal located within a secured area of an airport. Free tax forms   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. Free tax forms 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. Free tax forms 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 $. Free tax forms 044 per gallon. Free tax forms 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). Free tax forms For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. Free tax forms For the aircraft operator to be liable for the tax $. Free tax forms 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. Free tax forms Commercial aviation. Free tax forms   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. Free tax forms However, commercial aviation does not include any of the following uses. Free tax forms Any use exclusively for the purpose of skydiving. Free tax forms Certain air transportation by seaplane. Free tax forms See Seaplanes under Transportation of Persons by Air in chapter 4. Free tax forms Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. Free tax forms For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. Free tax forms 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. Free tax forms For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. Free tax forms Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. Free tax forms See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. Free tax forms 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 $. Free tax forms 141 per gallon. Free tax forms The fractional ownership program manager is liable for the tax. Free tax forms The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. Free tax forms If the surtax is imposed, the following air transportation taxes do not apply. Free tax forms Transportation of persons by air. Free tax forms Transportation of property by air. Free tax forms Use of international air travel facilities. Free tax forms These taxes are described under Air Transportation Taxes, later. Free tax forms 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. Free tax forms 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. Free tax forms Fractional program aircraft. Free tax forms   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. Free tax forms S. Free tax forms   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. Free tax forms In such situations, the flight is not commercial aviation. Free tax forms Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. Free tax forms Fractional owner. Free tax forms   Any person owning any interest (including the entire interest) in a fractional program aircraft. Free tax forms Dry lease aircraft exchange. Free tax forms   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. Free tax forms Special rule relating to deadhead service. Free tax forms   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. Free tax forms More information. Free tax forms   See section 4043 for more information on the surtax. Free tax forms 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. Free tax forms Certificate. Free tax forms   The certificate may be included as part of any business records normally used for a sale. Free tax forms See Model Certificate K in the Appendix. Free tax forms   A certificate expires on the earliest of the following dates. Free tax forms The date 1 year after the effective date (not earlier than the date signed) of the certificate. Free tax forms The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. Free tax forms The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. Free tax forms   The buyer must provide a new certificate if any information on a certificate has changed. Free tax forms   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. Free tax forms Exempt use. Free tax forms   The rate on kerosene for use in aviation is $. Free tax forms 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. Free tax forms An exempt use includes kerosene for the exclusive use of a state or local government. Free tax forms There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Free tax forms Flash title transaction. Free tax forms   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. Free tax forms 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. Free tax forms 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. Free tax forms Reseller statement. Free tax forms   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. Free tax forms Credits or Refunds. Free tax forms   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). Free tax forms A claim may be made by a registered ultimate vendor for certain sales. Free tax forms For more information, see chapter 2. Free tax forms Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. Free tax forms Other Fuels include alternative fuels. Free tax forms 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. Free tax forms Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. Free tax forms Qualified methanol and ethanol fuels. Free tax forms   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. Free tax forms The tax rates are listed in the Instructions for Form 720. Free tax forms Partially exempt methanol and ethanol fuels. Free tax forms   A reduced tax rate applies to these fuels. Free tax forms Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. Free tax forms The tax rates are listed in the Instructions for Form 720. Free tax forms Motor vehicles. Free tax forms   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. Free tax forms They are propelled by a motor. Free tax forms They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t