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Free State Tax Filing Turbotax

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The Free State Tax Filing Turbotax

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