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Military Onesource Free Turbo Tax

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Military Onesource Free Turbo Tax

Military onesource free turbo tax 6. Military onesource free turbo tax   How To Figure Cost of Goods Sold Table of Contents Introduction Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42Line 35 Inventory at Beginning of Year Line 36 Purchases Less Cost of Items Withdrawn for Personal Use Line 37 Cost of Labor Line 38 Materials and Supplies Line 39 Other Costs Line 40 Add Lines 35 through 39 Line 41 Inventory at End of Year Line 42 Cost of Goods Sold Introduction If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts on Schedule C. Military onesource free turbo tax However, to determine these costs, you must value your inventory at the beginning and end of each tax year. Military onesource free turbo tax This chapter applies to you if you are a manufacturer, wholesaler, or retailer or if you are engaged in any business that makes, buys, or sells goods to produce income. Military onesource free turbo tax This chapter does not apply to a personal service business, such as the business of a doctor, lawyer, carpenter, or painter. Military onesource free turbo tax However, if you work in a personal service business and also sell or charge for the materials and supplies normally used in your business, this chapter applies to you. Military onesource free turbo tax If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales. Military onesource free turbo tax For more information, see chapter 2. Military onesource free turbo tax Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42 Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. Military onesource free turbo tax These lines are reproduced below and are explained in the discussion that follows. Military onesource free turbo tax 35 Inventory at beginning of year. Military onesource free turbo tax If different from last year's closing inventory, attach explanation   36 Purchases less cost of items withdrawn for personal use   37 Cost of labor. Military onesource free turbo tax Do not include any amounts paid to yourself   38 Materials and supplies   39 Other costs   40 Add lines 35 through 39   41 Inventory at end of year   42 Cost of goods sold. Military onesource free turbo tax Subtract line 41 from line 40. Military onesource free turbo tax  Enter the result here and on line 4   Line 35 Inventory at Beginning of Year If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers. Military onesource free turbo tax If you are a manufacturer or producer, it includes the total cost of raw materials, work in process, finished goods, and materials and supplies used in manufacturing the goods (see Inventories in chapter 2). Military onesource free turbo tax Opening inventory usually will be identical to the closing inventory of the year before. Military onesource free turbo tax You must explain any difference in a schedule attached to your return. Military onesource free turbo tax Donation of inventory. Military onesource free turbo tax   If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. Military onesource free turbo tax The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Military onesource free turbo tax You must remove the amount of your contribution deduction from your opening inventory. Military onesource free turbo tax It is not part of the cost of goods sold. Military onesource free turbo tax   If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Military onesource free turbo tax Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Military onesource free turbo tax For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Military onesource free turbo tax   A special rule may apply to certain donations of food inventory. Military onesource free turbo tax See Publication 526, Charitable Contributions. Military onesource free turbo tax Example 1. Military onesource free turbo tax You are a calendar year taxpayer who uses an accrual method of accounting. Military onesource free turbo tax In 2013, you contributed property from inventory to a church. Military onesource free turbo tax It had a fair market value of $600. Military onesource free turbo tax The closing inventory at the end of 2012 properly included $400 of costs due to the acquisition of the property, and in 2012, you properly deducted $50 of administrative and other expenses attributable to the property as business expenses. Military onesource free turbo tax The charitable contribution allowed for 2013 is $400 ($600 − $200). Military onesource free turbo tax The $200 is the amount that would be ordinary income if you had sold the contributed inventory at fair market value on the date of the gift. Military onesource free turbo tax The cost of goods sold you use in determining gross income for 2013 must not include the $400. Military onesource free turbo tax You remove that amount from opening inventory for 2013. Military onesource free turbo tax Example 2. Military onesource free turbo tax If, in Example 1, you acquired the contributed property in 2013 at a cost of $400, you would include the $400 cost of the property in figuring the cost of goods sold for 2013 and deduct the $50 of administrative and other expenses attributable to the property for that year. Military onesource free turbo tax You would not be allowed any charitable contribution deduction for the contributed property. Military onesource free turbo tax Line 36 Purchases Less Cost of Items Withdrawn for Personal Use If you are a merchant, use the cost of all merchandise you bought for sale. Military onesource free turbo tax If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into a finished product. Military onesource free turbo tax Trade discounts. Military onesource free turbo tax   The differences between the stated prices of articles and the actual prices you pay for them are called trade discounts. Military onesource free turbo tax You must use the prices you pay (not the stated prices) in figuring your cost of purchases. Military onesource free turbo tax Do not show the discount amount separately as an item in gross income. Military onesource free turbo tax   An automobile dealer must record the cost of a car in inventory reduced by any manufacturer's rebate that represents a trade discount. Military onesource free turbo tax Cash discounts. Military onesource free turbo tax   Cash discounts are amounts your suppliers let you deduct from your purchase invoices for prompt payments. Military onesource free turbo tax There are two methods of accounting for cash discounts. Military onesource free turbo tax You can either credit them to a separate discount account or deduct them from total purchases for the year. Military onesource free turbo tax Whichever method you use, you must be consistent. Military onesource free turbo tax If you want to change your method of figuring inventory cost, you must file Form 3115, Application for Change in Accounting Method. Military onesource free turbo tax For more information, see Change in Accounting Method in chapter 2. Military onesource free turbo tax   If you credit cash discounts to a separate account, you must include this credit balance in your business income at the end of the tax year. Military onesource free turbo tax If you use this method, do not reduce your cost of goods sold by the cash discounts. Military onesource free turbo tax Purchase returns and allowances. Military onesource free turbo tax   You must deduct all returns and allowances from your total purchases during the year. Military onesource free turbo tax Merchandise withdrawn from sale. Military onesource free turbo tax   If you withdraw merchandise for your personal or family use, you must exclude this cost from the total amount of merchandise you bought for sale. Military onesource free turbo tax Do this by crediting the purchases or sales account with the cost of merchandise you withdraw for personal use. Military onesource free turbo tax You must also charge the amount to your drawing account. Military onesource free turbo tax   A drawing account is a separate account you should keep to record the business income you withdraw to pay for personal and family expenses. Military onesource free turbo tax As stated above, you also use it to record withdrawals of merchandise for personal or family use. Military onesource free turbo tax This account is also known as a “withdrawals account” or “personal account. Military onesource free turbo tax ” Line 37 Cost of Labor Labor costs are usually an element of cost of goods sold only in a manufacturing or mining business. Military onesource free turbo tax Small merchandisers (wholesalers, retailers, etc. Military onesource free turbo tax ) usually do not have labor costs that can properly be charged to cost of goods sold. Military onesource free turbo tax In a manufacturing business, labor costs properly allocable to the cost of goods sold include both the direct and indirect labor used in fabricating the raw material into a finished, saleable product. Military onesource free turbo tax Direct labor. Military onesource free turbo tax   Direct labor costs are the wages you pay to those employees who spend all their time working directly on the product being manufactured. Military onesource free turbo tax They also include a part of the wages you pay to employees who work directly on the product part time if you can determine that part of their wages. Military onesource free turbo tax Indirect labor. Military onesource free turbo tax   Indirect labor costs are the wages you pay to employees who perform a general factory function that does not have any immediate or direct connection with making the saleable product, but that is a necessary part of the manufacturing process. Military onesource free turbo tax Other labor. Military onesource free turbo tax   Other labor costs not properly chargeable to the cost of goods sold can be deducted as selling or administrative expenses. Military onesource free turbo tax Generally, the only kinds of labor costs properly chargeable to your cost of goods sold are the direct or indirect labor costs and certain other costs treated as overhead expenses properly charged to the manufacturing process, as discussed later under Line 39 Other Costs. Military onesource free turbo tax Line 38 Materials and Supplies Materials and supplies, such as hardware and chemicals, used in manufacturing goods are charged to cost of goods sold. Military onesource free turbo tax Those that are not used in the manufacturing process are treated as deferred charges. Military onesource free turbo tax You deduct them as a business expense when you use them. Military onesource free turbo tax Business expenses are discussed in chapter 8. Military onesource free turbo tax Line 39 Other Costs Examples of other costs incurred in a manufacturing or mining process that you charge to your cost of goods sold are as follows. Military onesource free turbo tax Containers. Military onesource free turbo tax   Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. Military onesource free turbo tax If they are not an integral part of the manufactured product, their costs are shipping or selling expenses. Military onesource free turbo tax Freight-in. Military onesource free turbo tax   Freight-in, express-in, and cartage-in on raw materials, supplies you use in production, and merchandise you purchase for sale are all part of cost of goods sold. Military onesource free turbo tax Overhead expenses. Military onesource free turbo tax   Overhead expenses include expenses such as rent, heat, light, power, insurance, depreciation, taxes, maintenance, labor, and supervision. Military onesource free turbo tax The overhead expenses you have as direct and necessary expenses of the manufacturing operation are included in your cost of goods sold. Military onesource free turbo tax Line 40 Add Lines 35 through 39 The total of lines 35 through 39 equals the cost of the goods available for sale during the year. Military onesource free turbo tax Line 41 Inventory at End of Year Subtract the value of your closing inventory (including, as appropriate, the allocable parts of the cost of raw materials and supplies, direct labor, and overhead expenses) from line 40. Military onesource free turbo tax Inventory at the end of the year is also known as closing or ending inventory. Military onesource free turbo tax Your ending inventory will usually become the beginning inventory of your next tax year. Military onesource free turbo tax Line 42 Cost of Goods Sold When you subtract your closing inventory (inventory at the end of the year) from the cost of goods available for sale, the remainder is your cost of goods sold during the tax year. Military onesource free turbo tax Prev  Up  Next   Home   More Online Publications
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The Military Onesource Free Turbo Tax

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