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Free State Return Turbotax

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Free State Return Turbotax

Free state return turbotax 1. Free state return turbotax   Canceled Debts Table of Contents General RulesForm 1099-C Discounts and loan modifications Sales or other dispositions (such as foreclosures and repossessions) Abandonments Stockholder debt This chapter discusses the tax treatment of canceled debts. Free state return turbotax General Rules Generally, if a debt for which you are personally liable is forgiven or discharged for less than the full amount owed, the debt is considered canceled in whatever amount it remained unpaid. Free state return turbotax There are exceptions to this rule, discussed under Exceptions , later. Free state return turbotax Generally, you must include the canceled debt in your income. Free state return turbotax However, you may be able to exclude the canceled debt. Free state return turbotax See Exclusions , later. Free state return turbotax Example. Free state return turbotax John owed $1,000 to Mary. Free state return turbotax Mary agreed to accept and John paid $400 in satisfaction of the entire debt. Free state return turbotax John has canceled debt of $600. Free state return turbotax Example. Free state return turbotax Margaret owed $1,000 to Henry. Free state return turbotax Henry and Margaret agreed that Margaret would provide Henry with services (instead of money) in full satisfaction of the debt. Free state return turbotax Margaret does not have canceled debt. Free state return turbotax Instead, she has income from services. Free state return turbotax A debt includes any indebtedness: For which you are liable, or Subject to which you hold property. Free state return turbotax Debt for which you are personally liable is recourse debt. Free state return turbotax All other debt is nonrecourse debt. Free state return turbotax If you are not personally liable for the debt, you do not have ordinary income from the cancellation of debt unless you retain the collateral and either: The lender offers a discount for the early payment of the debt, or The lender agrees to a loan modification that results in the reduction of the principal balance of the debt. Free state return turbotax See Discounts and loan modifications , later. Free state return turbotax However, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not just the FMV of the property. Free state return turbotax As a result, you may realize a gain or loss if the outstanding debt immediately before the disposition is more or less than your adjusted basis in the property. Free state return turbotax For more details on figuring your gain or loss, see chapter 2 of this publication or see Publication 544. Free state return turbotax There are several exceptions and exclusions that may result in part or all of a canceled debt being nontaxable. Free state return turbotax See Exceptions and Exclusions, later. Free state return turbotax You must report any taxable canceled debt as ordinary income on: Form 1040 or Form 1040NR, line 21, if the debt is a nonbusiness debt; Schedule C (Form 1040), line 6 (or Schedule C-EZ (Form 1040), line 1), if the debt is related to a nonfarm sole proprietorship; Schedule E (Form 1040), line 3, if the debt is related to nonfarm rental of real property; Form 4835, line 6, if the debt is related to a farm rental activity for which you use Form 4835 to report farm rental income based on crops or livestock produced by a tenant; or Schedule F (Form 1040), line 8, if the debt is farm debt and you are a farmer. Free state return turbotax Form 1099-C If you receive a Form 1099-C, that means an applicable entity has reported an identifiable event to the IRS regarding a debt you owe. Free state return turbotax The identifiable event may be an actual cancellation of the debt or it may be an event the applicable entity is required, solely for purposes of reporting to the IRS, to treat as a cancellation of debt. Free state return turbotax For information on the reasons an applicable entity files Form 1099-C, see Identifiable event codes, later. Free state return turbotax Unless you meet one of the exceptions or exclusions discussed later, this canceled debt is ordinary income and must be reported on the appropriate form discussed above. Free state return turbotax An applicable entity includes: A federal government agency, A financial institution, A credit union, and Any organization a significant trade or business of which is lending money. Free state return turbotax Identifiable event codes. Free state return turbotax    Box 6 of Form 1099-C should indicate the reason the creditor filed this form. Free state return turbotax The codes shown in box 6 are explained below. Free state return turbotax Also see the chart after the explanation for a quick reference guide for the codes used in Box 6. Free state return turbotax Note. Free state return turbotax Codes A through G and I identify specific occurrences resulting from an actual discharge of indebtedness. Free state return turbotax However, Code H, Expiration of nonpayment testing period, does not necessarily identify an actual discharge of indebtedness. Free state return turbotax Code A — Bankruptcy. Free state return turbotax Code A is used to identify cancellation of debt as a result of a title 11 bankruptcy case. Free state return turbotax See Bankruptcy , later. Free state return turbotax Code B — Other judicial debt relief. Free state return turbotax Code B is used to identify cancellation of debt as a result of a receivership, foreclosure, or similar federal or state court proceeding other than bankruptcy. Free state return turbotax Code C — Statute of limitations or expiration of deficiency period. Free state return turbotax Code C is used to identify cancellation of debt either when the statute of limitations for collecting the debt expires or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Free state return turbotax In the case of the expiration of a statute of limitations, an identifiable event occurs only if and when your affirmative defense of the statute of limitations is upheld in a final judgment or decision in a judicial proceeding, and the period for appealing the judgment or decision has expired. Free state return turbotax Code D — Foreclosure election. Free state return turbotax Code D is used to identify cancellation of debt when the creditor elects foreclosure remedies that statutorily end or bar the creditor's right to pursue collection of the debt. Free state return turbotax This event applies to a mortgage lender or holder who is barred from pursuing debt collection after a power of sale in the mortgage or deed of trust is exercised. Free state return turbotax Code E — Debt relief from probate or similar proceeding. Free state return turbotax Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding. Free state return turbotax Code F — By agreement. Free state return turbotax Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration. Free state return turbotax Code G — Decision or policy to discontinue collection. Free state return turbotax Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. Free state return turbotax For purposes of this identifiable event, a defined policy includes both a written policy and the creditor's established business practice. Free state return turbotax Code H — Expiration of nonpayment testing period. Free state return turbotax Code H is used to indicate that the creditor has not received a payment on the debt during a testing period ending on December 31, 2013. Free state return turbotax The testing period is a 36-month period increased by the number of months the creditor was prevented from engaging in collection activity by a stay in bankruptcy or similar bar under state or local law. Free state return turbotax This identifiable event applies only for a creditor that is a financial institution or credit union (and certain of their subsidiaries), the Federal Deposit Insurance Corporation (FDIC), Resolution Trust Corporation (RTC), National Credit Union Administration (NCUA), and other Federal executive agencies. Free state return turbotax Expiration of the nonpayment testing period does not necessarily result from an actual discharge of indebtedness. Free state return turbotax Code I — Other actual discharge before identifiable event. Free state return turbotax Code I is used to identify an actual cancellation of debt that occurs before any of the identifiable events described in codes A through H. Free state return turbotax Form 1099-C Reference Guide for Box 6 Identifiable Event Codes A Bankruptcy B Other judicial debt relief C Statute of limitations or expiration of deficiency period D Foreclosure election E Debt relief from probate or similar proceeding F By agreement G Decision or policy to discontinue collection H Expiration of nonpayment testing period I Other actual discharge before identifiable event Even if you did not receive a Form 1099-C, you must report canceled debt as gross income on your tax return unless one of the exceptions or exclusions described later applies. Free state return turbotax Amount of canceled debt. Free state return turbotax    The amount in box 2 of Form 1099-C may represent some or all of the debt that has been canceled or treated as canceled. Free state return turbotax The amount in box 2 will include principal and may include interest and other nonprincipal amounts (such as fees or penalties). Free state return turbotax Unless you meet one of the exceptions or exclusions discussed later, the amount of the debt that has been canceled is ordinary income and must be reported on the appropriate form as discussed earlier. Free state return turbotax Interest included in canceled debt. Free state return turbotax    If any interest is included in the amount of canceled debt in box 2, it will be shown in box 3. Free state return turbotax Whether the interest portion of the canceled debt must be included in your income depends on whether the interest would be deductible if you paid it. Free state return turbotax See Deductible Debt under Exceptions, later. Free state return turbotax Persons who each receive a Form 1099-C showing the full amount of debt. Free state return turbotax    If you and another person were jointly and severally liable for a canceled debt, each of you may get a Form 1099-C showing the entire amount of the canceled debt. Free state return turbotax However, you may not have to report that entire amount as income. Free state return turbotax The amount, if any, you must report depends on all the facts and circumstances, including: State law, The amount of debt proceeds each person received, How much of any interest deduction from the debt was claimed by each person, How much of the basis of any co-owned property bought with the debt proceeds was allocated to each co-owner, and Whether the canceled debt qualifies for any of the exceptions or exclusions described in this publication. Free state return turbotax See Example 3 under Insolvency, later. Free state return turbotax Discounts and loan modifications If a lender discounts (reduces) the principal balance of a loan because you pay it off early, or agrees to a loan modification (a “workout”) that includes a reduction in the principal balance of a loan, the amount of the discount or the amount of principal reduction is canceled debt. Free state return turbotax However, if the debt is nonrecourse and you did not retain the collateral, you do not have cancellation of the debt income. Free state return turbotax The amount of the canceled debt must be included in income unless one of the exceptions or exclusions described later applies. Free state return turbotax For more details, see Exceptions and Exclusions, later. Free state return turbotax Sales or other dispositions (such as foreclosures and repossessions) Recourse debt. Free state return turbotax   If you owned property that was subject to a recourse debt in excess of the FMV of the property, the lender's foreclosure or repossession of the property is treated as a sale or disposition of the property by you and may result in your realization of gain or loss. Free state return turbotax The gain or loss on the disposition of the property is measured by the difference between the FMV of the property at the time of the disposition and your adjusted basis (usually your cost) in the property. Free state return turbotax The character of the gain or loss (such as ordinary or capital) is determined by the character of the property. Free state return turbotax If the lender forgives all or part of the amount of the debt in excess of the FMV of the property, the cancellation of the excess debt may result in ordinary income. Free state return turbotax The ordinary income from the cancellation of debt (the excess of the canceled debt over the FMV of the property) must be included in your gross income reported on your tax return unless one of the exceptions or exclusions described later applies. Free state return turbotax For more details, see Exceptions and Exclusions, later. Free state return turbotax Nonrecourse debt. Free state return turbotax   If you owned property that was subject to a nonrecourse debt in excess of the FMV of the property, the lender's foreclosure on the property does not result in ordinary income from the cancellation of debt. Free state return turbotax The entire amount of the nonrecourse debt is treated as an amount realized on the disposition of the property. Free state return turbotax The gain or loss on the disposition of the property is measured by the difference between the total amount realized (the entire amount of the nonrecourse debt plus the amount of cash and the FMV of any property received) and your adjusted basis in the property. Free state return turbotax The character of the gain or loss is determined by the character of the property. Free state return turbotax More information. Free state return turbotax    See Publications 523, 544, and 551, and chapter 2 of this publication for more details. Free state return turbotax Abandonments Recourse debt. Free state return turbotax   If you abandon property that secures a debt for which you are personally liable (recourse debt) and the debt is canceled, you will realize ordinary income equal to the canceled debt. Free state return turbotax You must report this income on your tax return unless one of the exceptions or exclusions described later applies. Free state return turbotax For more details, see Exceptions and Exclusions, later. Free state return turbotax This income is separate from any amount realized from the abandonment of the property. Free state return turbotax For more details, see chapter 3. Free state return turbotax Nonrecourse debt. Free state return turbotax   If you abandon property that secures a debt for which you are not personally liable (nonrecourse debt), you may realize gain or loss but will not have cancellation of indebtedness income. Free state return turbotax Stockholder debt If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution. Free state return turbotax For more information, see Publication 542, Corporations. Free state return turbotax Prev  Up  Next   Home   More Online Publications
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The Free State Return Turbotax

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