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State tax mailing address 17. State tax mailing address   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. State tax mailing address  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. State tax mailing address If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. State tax mailing address For more information, see How Much Can Be Contributed? later. State tax mailing address Roth IRA contribution limit. State tax mailing address  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. State tax mailing address If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. State tax mailing address However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. State tax mailing address For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. State tax mailing address Modified AGI limit for traditional IRA contributions increased. State tax mailing address  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. State tax mailing address If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. State tax mailing address If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. State tax mailing address See How Much Can You Deduct , later. State tax mailing address Modified AGI limit for Roth IRA contributions increased. State tax mailing address  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. State tax mailing address Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. State tax mailing address You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. State tax mailing address Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. State tax mailing address You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. State tax mailing address Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. State tax mailing address You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. State tax mailing address See Can You Contribute to a Roth IRA , later. State tax mailing address Net Investment Income Tax. State tax mailing address   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). State tax mailing address However, these distributions are taken into account when determining the modified adjusted gross income threshold. State tax mailing address Distributions from a nonqualified retirement plan are included in net investment income. State tax mailing address See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. State tax mailing address Name change. State tax mailing address  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. State tax mailing address There are no changes to the rules regarding these IRAs. State tax mailing address See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. State tax mailing address Reminders 2014 limits. State tax mailing address   You can find information about the 2014 contribution and AGI limits in Publication 590. State tax mailing address Contributions to both traditional and Roth IRAs. State tax mailing address   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. State tax mailing address Statement of required minimum distribution. State tax mailing address  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. State tax mailing address The report or offer must include the date by which the amount must be distributed. State tax mailing address The report is due January 31 of the year in which the minimum distribution is required. State tax mailing address It can be provided with the year-end fair market value statement that you normally get each year. State tax mailing address No report is required for IRAs of owners who have died. State tax mailing address IRA interest. State tax mailing address  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. State tax mailing address Tax on your traditional IRA is generally deferred until you take a distribution. State tax mailing address Do not report this interest on your tax return as tax-exempt interest. State tax mailing address Form 8606. State tax mailing address   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. State tax mailing address The term “50 or older” is used several times in this chapter. State tax mailing address It refers to an IRA owner who is age 50 or older by the end of the tax year. State tax mailing address Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. State tax mailing address This chapter discusses the following topics. State tax mailing address The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). State tax mailing address The Roth IRA, which features nondeductible contributions and tax-free distributions. State tax mailing address Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. State tax mailing address For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. State tax mailing address For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. State tax mailing address Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. State tax mailing address ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. State tax mailing address Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. State tax mailing address Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. State tax mailing address What is compensation?   Generally, compensation is what you earn from working. State tax mailing address Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. State tax mailing address The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). State tax mailing address   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. State tax mailing address   Compensation also includes commissions and taxable alimony and separate maintenance payments. State tax mailing address Self-employment income. State tax mailing address   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. State tax mailing address   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. State tax mailing address Nontaxable combat pay. State tax mailing address   For IRA purposes, if you were a member of the U. State tax mailing address S. State tax mailing address Armed Forces, your compensation includes any nontaxable combat pay you receive. State tax mailing address What is not compensation?   Compensation does not include any of the following items. State tax mailing address Earnings and profits from property, such as rental income, interest income, and dividend income. State tax mailing address Pension or annuity income. State tax mailing address Deferred compensation received (compensation payments postponed from a past year). State tax mailing address Income from a partnership for which you do not provide services that are a material income-producing factor. State tax mailing address Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. State tax mailing address Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. State tax mailing address When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. State tax mailing address However, the time for making contributions for any year is limited. State tax mailing address See When Can Contributions Be Made , later. State tax mailing address You can open different kinds of IRAs with a variety of organizations. State tax mailing address You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. State tax mailing address You can also open an IRA through your stockbroker. State tax mailing address Any IRA must meet Internal Revenue Code requirements. State tax mailing address Kinds of traditional IRAs. State tax mailing address   Your traditional IRA can be an individual retirement account or annuity. State tax mailing address It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. State tax mailing address How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. State tax mailing address These limits and other rules are explained below. State tax mailing address Community property laws. State tax mailing address   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. State tax mailing address This is the rule even in states with community property laws. State tax mailing address Brokers' commissions. State tax mailing address   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. State tax mailing address Trustees' fees. State tax mailing address   Trustees' administrative fees are not subject to the contribution limit. State tax mailing address Qualified reservist repayments. State tax mailing address   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. State tax mailing address You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. State tax mailing address To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. State tax mailing address   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. State tax mailing address Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. State tax mailing address (See Roth IRAs, later. State tax mailing address ) General limit. State tax mailing address   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. State tax mailing address $5,500 ($6,500 if you are 50 or older). State tax mailing address Your taxable compensation (defined earlier) for the year. State tax mailing address This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. State tax mailing address (See Nondeductible Contributions , later. State tax mailing address ) Qualified reservist repayments do not affect this limit. State tax mailing address Example 1. State tax mailing address Betty, who is 34 years old and single, earned $24,000 in 2013. State tax mailing address Her IRA contributions for 2013 are limited to $5,500. State tax mailing address Example 2. State tax mailing address John, an unmarried college student working part time, earned $3,500 in 2013. State tax mailing address His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. State tax mailing address Kay Bailey Hutchison Spousal IRA limit. State tax mailing address   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. State tax mailing address $5,500 ($6,500 if you are 50 or older). State tax mailing address The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. State tax mailing address Your spouse's IRA contribution for the year to a traditional IRA. State tax mailing address Any contribution for the year to a Roth IRA on behalf of your spouse. State tax mailing address This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). State tax mailing address When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). State tax mailing address Contributions must be in the form of money (cash, check, or money order). State tax mailing address Property cannot be contributed. State tax mailing address Contributions must be made by due date. State tax mailing address   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. State tax mailing address Age 70½ rule. State tax mailing address   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. State tax mailing address   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. State tax mailing address If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. State tax mailing address Designating year for which contribution is made. State tax mailing address   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. State tax mailing address If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). State tax mailing address Filing before a contribution is made. State tax mailing address   You can file your return claiming a traditional IRA contribution before the contribution is actually made. State tax mailing address Generally, the contribution must be made by the due date of your return, not including extensions. State tax mailing address Contributions not required. State tax mailing address   You do not have to contribute to your traditional IRA for every tax year, even if you can. State tax mailing address How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). State tax mailing address However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. State tax mailing address See Limit If Covered by Employer Plan , later. State tax mailing address You may be able to claim a credit for contributions to your traditional IRA. State tax mailing address For more information, see chapter 37. State tax mailing address Trustees' fees. State tax mailing address   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. State tax mailing address However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). State tax mailing address See chapter 28. State tax mailing address Brokers' commissions. State tax mailing address   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. State tax mailing address Full deduction. State tax mailing address   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). State tax mailing address 100% of your compensation. State tax mailing address This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. State tax mailing address Kay Bailey Hutchison Spousal IRA. State tax mailing address   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. State tax mailing address $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). State tax mailing address The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. State tax mailing address The IRA deduction for the year of the spouse with the greater compensation. State tax mailing address Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. State tax mailing address Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. State tax mailing address This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. State tax mailing address Note. State tax mailing address If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. State tax mailing address After a divorce or legal separation, you can deduct only contributions to your own IRA. State tax mailing address Your deductions are subject to the rules for single individuals. State tax mailing address Covered by an employer retirement plan. State tax mailing address   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. State tax mailing address This is discussed later under Limit If Covered by Employer Plan . State tax mailing address Limits on the amount you can deduct do not affect the amount that can be contributed. State tax mailing address See Nondeductible Contributions , later. State tax mailing address Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. State tax mailing address The “Retirement plan” box should be checked if you were covered. State tax mailing address Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. State tax mailing address If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. State tax mailing address Federal judges. State tax mailing address   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. State tax mailing address For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. State tax mailing address These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. State tax mailing address Tax year. State tax mailing address   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. State tax mailing address For almost all people, the tax year is the calendar year. State tax mailing address Defined contribution plan. State tax mailing address   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. State tax mailing address   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. State tax mailing address Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. State tax mailing address Defined benefit plan. State tax mailing address   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. State tax mailing address This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. State tax mailing address   A defined benefit plan is any plan that is not a defined contribution plan. State tax mailing address Defined benefit plans include pension plans and annuity plans. State tax mailing address No vested interest. State tax mailing address   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. State tax mailing address Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. State tax mailing address Social security or railroad retirement. State tax mailing address   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. State tax mailing address Benefits from a previous employer's plan. State tax mailing address   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. State tax mailing address Reservists. State tax mailing address   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. State tax mailing address You are not covered by the plan if both of the following conditions are met. State tax mailing address The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. State tax mailing address You did not serve more than 90 days on active duty during the year (not counting duty for training). State tax mailing address Volunteer firefighters. State tax mailing address   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. State tax mailing address You are not covered by the plan if both of the following conditions are met. State tax mailing address The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. State tax mailing address Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. State tax mailing address Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. State tax mailing address Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. State tax mailing address These amounts vary depending on your filing status. State tax mailing address To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. State tax mailing address See Filing status and Modified adjusted gross income (AGI) , later. State tax mailing address Then use Table 17-1 or 17-2 to determine if the phaseout applies. State tax mailing address Social security recipients. State tax mailing address   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. State tax mailing address You received social security benefits. State tax mailing address You received taxable compensation. State tax mailing address Contributions were made to your traditional IRA. State tax mailing address You or your spouse was covered by an employer retirement plan. State tax mailing address Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. State tax mailing address Deduction phaseout. State tax mailing address   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. State tax mailing address Table 17-1. State tax mailing address Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. State tax mailing address IF your filing status is. State tax mailing address . State tax mailing address . State tax mailing address   AND your modified AGI is. State tax mailing address . State tax mailing address . State tax mailing address   THEN you can take. State tax mailing address . State tax mailing address . State tax mailing address single   or  head of household   $59,000 or less   a full deduction. State tax mailing address   more than $59,000 but less than $69,000   a partial deduction. State tax mailing address   $69,000 or more   no deduction. State tax mailing address married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. State tax mailing address   more than $95,000 but less than $115,000   a partial deduction. State tax mailing address   $115,000 or more   no deduction. State tax mailing address married filing separately2   less than $10,000   a partial deduction. State tax mailing address   $10,000 or more   no deduction. State tax mailing address 1Modified AGI (adjusted gross income). State tax mailing address See Modified adjusted gross income (AGI) . State tax mailing address 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). State tax mailing address If your spouse is covered. State tax mailing address   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. State tax mailing address Filing status. State tax mailing address   Your filing status depends primarily on your marital status. State tax mailing address For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. State tax mailing address If you need more information on filing status, see chapter 2. State tax mailing address Lived apart from spouse. State tax mailing address   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. State tax mailing address Table 17-2. State tax mailing address Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. State tax mailing address IF your filing status is. State tax mailing address . State tax mailing address . State tax mailing address   AND your modified AGI is. State tax mailing address . State tax mailing address . State tax mailing address   THEN you can take. State tax mailing address . State tax mailing address . State tax mailing address single, head of household, or qualifying widow(er)   any amount   a full deduction. State tax mailing address married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. State tax mailing address married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. State tax mailing address   more than $178,000 but less than $188,000   a partial deduction. State tax mailing address   $188,000 or more   no deduction. State tax mailing address married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. State tax mailing address   $10,000 or more   no deduction. State tax mailing address 1Modified AGI (adjusted gross income). State tax mailing address See Modified adjusted gross income (AGI) . State tax mailing address 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. State tax mailing address Modified adjusted gross income (AGI). State tax mailing address   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. State tax mailing address If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. State tax mailing address You may be able to use Worksheet 17-1 to figure your modified AGI. State tax mailing address    Do not assume that your modified AGI is the same as your compensation. State tax mailing address Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. State tax mailing address Form 1040. State tax mailing address   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. State tax mailing address IRA deduction. State tax mailing address Student loan interest deduction. State tax mailing address Tuition and fees deduction. State tax mailing address Domestic production activities deduction. State tax mailing address Foreign earned income exclusion. State tax mailing address Foreign housing exclusion or deduction. State tax mailing address Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. State tax mailing address S. State tax mailing address Savings Bonds Issued After 1989. State tax mailing address Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. State tax mailing address This is your modified AGI. State tax mailing address Form 1040A. State tax mailing address   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. State tax mailing address IRA deduction. State tax mailing address Student loan interest deduction. State tax mailing address Tuition and fees deduction. State tax mailing address Exclusion of qualified savings bond interest shown on Form 8815. State tax mailing address This is your modified AGI. State tax mailing address Both contributions for 2013 and distributions in 2013. State tax mailing address   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. State tax mailing address You received distributions in 2013 from one or more traditional IRAs. State tax mailing address You made contributions to a traditional IRA for 2013. State tax mailing address Some of those contributions may be nondeductible contributions. State tax mailing address If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. State tax mailing address To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. State tax mailing address   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. State tax mailing address    How to figure your reduced IRA deduction. State tax mailing address   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. State tax mailing address Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. State tax mailing address Worksheet 17-1. State tax mailing address Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. State tax mailing address 1. State tax mailing address Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. State tax mailing address   2. State tax mailing address Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. State tax mailing address   3. State tax mailing address Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. State tax mailing address   4. State tax mailing address Enter any domestic production activities deduction from Form 1040, line 35 4. State tax mailing address   5. State tax mailing address Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. State tax mailing address   6. State tax mailing address Enter any foreign housing deduction from Form 2555, line 50 6. State tax mailing address   7. State tax mailing address Enter any excludable savings bond interest from Form 8815, line 14 7. State tax mailing address   8. State tax mailing address Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. State tax mailing address   9. State tax mailing address Add lines 1 through 8. State tax mailing address This is your Modified AGI for traditional IRA purposes 9. State tax mailing address   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. State tax mailing address If you file Form 1040A, enter your IRA deduction on line 17. State tax mailing address You cannot deduct IRA contributions on Form 1040EZ. State tax mailing address Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. State tax mailing address The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. State tax mailing address Example. State tax mailing address Mike is 28 years old and single. State tax mailing address In 2013, he was covered by a retirement plan at work. State tax mailing address His salary was $57,312. State tax mailing address His modified AGI was $70,000. State tax mailing address Mike made a $5,500 IRA contribution for 2013. State tax mailing address Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. State tax mailing address He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. State tax mailing address Form 8606. State tax mailing address   To designate contributions as nondeductible, you must file Form 8606. State tax mailing address   You do not have to designate a contribution as nondeductible until you file your tax return. State tax mailing address When you file, you can even designate otherwise deductible contributions as nondeductible. State tax mailing address   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. State tax mailing address A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. State tax mailing address In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. State tax mailing address See Form 8606 under Distributions Fully or Partly Taxable, later. State tax mailing address Failure to report nondeductible contributions. State tax mailing address   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. State tax mailing address All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. State tax mailing address Penalty for overstatement. State tax mailing address   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. State tax mailing address Penalty for failure to file Form 8606. State tax mailing address   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. State tax mailing address    Tax on earnings on nondeductible contributions. State tax mailing address   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. State tax mailing address See When Can You Withdraw or Use IRA Assets , later. State tax mailing address Cost basis. State tax mailing address   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. State tax mailing address Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. State tax mailing address Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. State tax mailing address A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. State tax mailing address Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. State tax mailing address Inherited from spouse. State tax mailing address   If you inherit a traditional IRA from your spouse, you generally have the following three choices. State tax mailing address You can: Treat it as your own IRA by designating yourself as the account owner. State tax mailing address Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). State tax mailing address Treat yourself as the beneficiary rather than treating the IRA as your own. State tax mailing address Treating it as your own. State tax mailing address   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. State tax mailing address You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. State tax mailing address   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. State tax mailing address Inherited from someone other than spouse. State tax mailing address   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. State tax mailing address This means that you cannot make any contributions to the IRA. State tax mailing address It also means you cannot roll over any amounts into or out of the inherited IRA. State tax mailing address However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. State tax mailing address For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. State tax mailing address Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. State tax mailing address You can make the following kinds of transfers. State tax mailing address Transfers from one trustee to another. State tax mailing address Rollovers. State tax mailing address Transfers incident to a divorce. State tax mailing address Transfers to Roth IRAs. State tax mailing address   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. State tax mailing address You can also move assets from a qualified retirement plan to a Roth IRA. State tax mailing address See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. State tax mailing address Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. State tax mailing address Because there is no distribution to you, the transfer is tax free. State tax mailing address Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . State tax mailing address For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. State tax mailing address Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. State tax mailing address The contribution to the second retirement plan is called a “rollover contribution. State tax mailing address ” Note. State tax mailing address An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. State tax mailing address Kinds of rollovers to a traditional IRA. State tax mailing address   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). State tax mailing address Treatment of rollovers. State tax mailing address   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . State tax mailing address Kinds of rollovers from a traditional IRA. State tax mailing address   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. State tax mailing address These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). State tax mailing address The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). State tax mailing address Qualified plans may, but are not required to, accept such rollovers. State tax mailing address Time limit for making a rollover contribution. State tax mailing address   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. State tax mailing address The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. State tax mailing address For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. State tax mailing address Extension of rollover period. State tax mailing address   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. State tax mailing address For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. State tax mailing address More information. State tax mailing address   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. State tax mailing address Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. State tax mailing address Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. State tax mailing address Waiting period between rollovers. State tax mailing address   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. State tax mailing address You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. State tax mailing address   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. State tax mailing address Example. State tax mailing address You have two traditional IRAs, IRA-1 and IRA-2. State tax mailing address You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). State tax mailing address You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. State tax mailing address However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. State tax mailing address This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. State tax mailing address Exception. State tax mailing address   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. State tax mailing address Partial rollovers. State tax mailing address   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. State tax mailing address The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). State tax mailing address The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . State tax mailing address Required distributions. State tax mailing address   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. State tax mailing address Inherited IRAs. State tax mailing address   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. State tax mailing address See Treating it as your own , earlier. State tax mailing address Not inherited from spouse. State tax mailing address   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. State tax mailing address You must withdraw the IRA assets within a certain period. State tax mailing address For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. State tax mailing address Reporting rollovers from IRAs. State tax mailing address   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. State tax mailing address   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. State tax mailing address If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. State tax mailing address If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. State tax mailing address Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. State tax mailing address See your tax return instructions. State tax mailing address   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. State tax mailing address Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). State tax mailing address A qualified plan is one that meets the requirements of the Internal Revenue Code. State tax mailing address Eligible rollover distribution. State tax mailing address   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. State tax mailing address A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). State tax mailing address A hardship distribution. State tax mailing address Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. State tax mailing address Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. State tax mailing address A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. State tax mailing address Dividends on employer securities. State tax mailing address The cost of life insurance coverage. State tax mailing address Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. State tax mailing address To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. State tax mailing address See Form 8606 under Distributions Fully or Partly Taxable, later. State tax mailing address Rollover by nonspouse beneficiary. State tax mailing address   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. State tax mailing address The IRA is treated as an inherited IRA. State tax mailing address For more information about inherited IRAs, see Inherited IRAs , earlier. State tax mailing address Reporting rollovers from employer plans. State tax mailing address    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. State tax mailing address This amount should be shown in box 1 of Form 1099-R. State tax mailing address From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. State tax mailing address From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. State tax mailing address Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. State tax mailing address Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. State tax mailing address Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. State tax mailing address The transfer is tax free. State tax mailing address For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. State tax mailing address Converting From Any Traditional IRA to a Roth IRA Allowable conversions. State tax mailing address   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. State tax mailing address The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. State tax mailing address If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. State tax mailing address However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. State tax mailing address Required distributions. State tax mailing address   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). State tax mailing address Income. State tax mailing address   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. State tax mailing address These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. State tax mailing address   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. State tax mailing address   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. State tax mailing address   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. State tax mailing address See chapter 4. State tax mailing address Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. State tax mailing address This is called recharacterizing the contribution. State tax mailing address See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. State tax mailing address How to recharacterize a contribution. State tax mailing address   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. State tax mailing address If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. State tax mailing address If you recharacterize your contribution, you must do all three of the following. State tax mailing address Include in the transfer any net income allocable to the contribution. State tax mailing address If there was a loss, the net income you must transfer may be a negative amount. State tax mailing address Report the recharacterization on your tax return for the year during which the contribution was made. State tax mailing address Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. State tax mailing address No deduction allowed. State tax mailing address   You cannot deduct the contribution to the first IRA. State tax mailing address Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. State tax mailing address Required notifications. State tax mailing address   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. State tax mailing address You must make the notifications by the date of the transfer. State tax mailing address Only one notification is required if both IRAs are maintained by the same trustee. State tax mailing address The notification(s) must include all of the following information. State tax mailing address The type and amount of the contribution to the first IRA that is to be recharacterized. State tax mailing address The date on which the contribution was made to the first IRA and the year for which it was made. State tax mailing address A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. State tax mailing address The name of the trustee of the first IRA and the name of the trustee of the second IRA. State tax mailing address Any additional information needed to make the transfer. State tax mailing address Reporting a recharacterization. State tax mailing address   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. State tax mailing address You must treat the contribution as having been made to the second IRA. State tax mailing address When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. State tax mailing address Violation of the rules generally results in additional taxes in the year of violation. State tax mailing address See What Acts Result in Penalties or Additional Taxes , later. State tax mailing address Contributions returned before the due date of return. State tax mailing address   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. State tax mailing address If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. State tax mailing address You can do this if, for each contribution you withdraw, both of the following conditions apply. State tax mailing address You did not take a deduction for the contribution. State tax mailing address You withdraw any interest or other income earned on the contribution. State tax mailing address You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. State tax mailing address If there was a loss, the net income earned on the contribution may be a negative amount. State tax mailing address Note. State tax mailing address To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. State tax mailing address Earnings includible in income. State tax mailing address   You must include in income any earnings on the contributions you withdraw. State tax mailing address Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. State tax mailing address Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. State tax mailing address Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. State tax mailing address    Early distributions tax. State tax mailing address   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. State tax mailing address However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. State tax mailing address When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. State tax mailing address Eventually they must be distributed. State tax mailing address If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. State tax mailing address See Excess Accumulations (Insufficient Distributions) , later. State tax mailing address The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. State tax mailing address Required minimum distribution. State tax mailing address   The amount that must be distributed each year is referred to as the required minimum distribution. State tax mailing address Required distributions not eligible for rollover. State tax mailing address   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. State tax mailing address IRA owners. State tax mailing address   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. State tax mailing address April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. State tax mailing address Distributions by the required beginning date. State tax mailing address   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). State tax mailing address If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. State tax mailing address   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. State tax mailing address Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. State tax mailing address Distributions after the required beginning date. State tax mailing address   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. State tax mailing address    Beneficiaries. State tax mailing address   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. State tax mailing address More information. State tax mailing address   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. State tax mailing address Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. State tax mailing address Exceptions. State tax mailing address   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . State tax mailing address    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. State tax mailing address Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. State tax mailing address Qualified charitable distributions (QCD). State tax mailing address   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. State tax mailing address Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. State tax mailing address See Qualified Charitable Distributions in Publication 590 for more information. State tax mailing address Ordinary income. State tax mailing address   Distributions from traditional IRAs that you include in income are taxed as ordinary income. State tax mailing address No special treatment. State tax mailing address   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. State tax mailing address Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. State tax mailing address Fully taxable. State tax mailing address   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. State tax mailing address Because you have no basis in your IRA, any distributions are fully taxable when received. State tax mailing address See Reporting taxable distributions on your return , later. State tax mailing address Partly taxable. State tax mailing address    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. State tax mailing address These nondeductible contributions are not taxed when they are distributed to you. State tax mailing address They are a return of your investment in your IRA. State tax mailing address   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. State tax mailing address If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). State tax mailing address Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. State tax mailing address Form 8606. State tax mailing address   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. State tax mailing address Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. State tax mailing address Note. State tax mailing address If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. State tax mailing address Send it to the IRS at the time and place you would otherwise file an income tax return. State tax mailing address Distributions reported on Form 1099-R. State tax mailing address   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. State tax mailing address , or a similar statement. State tax mailing address IRA distributions are shown in boxes 1 and 2a of Form 1099-R. State tax mailing address A number or letter code in box 7 tells you what type of distribution you received from your IRA. State tax mailing address Withholding. State tax mailing address   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. State tax mailing address See chapter 4. State tax mailing address IRA distributions delivered outside the United States. State tax mailing address   In general, if you are a U. State tax mailing address S. State tax mailing address citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. State tax mailing address Reporting taxable distributions on your return. State tax mailing address    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). State tax mailing address If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. State tax mailing address You cannot report distributions on Form 1040EZ. State tax mailing address What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. State tax mailing address There are additions to the regular tax for using your IRA funds in prohibited transactions. State tax mailing address There are also additional taxes for the following activities. State tax mailing address Investing in collectibles. State tax mailing address Making excess contributions. State tax mailing address Taking early distributions. State tax mailing address Allowing excess amounts to accumulate (failing to take required distributions). State tax mailing address There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. State tax mailing address Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. State tax mailing address Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). State tax mailing address The following are examples of prohibited transactions with a traditional IRA. State tax mailing address Borrowing money from it. State tax mailing address Selling property to it. State tax mailing address Receiving unreasonable compensation for managing it. State tax mailing address Using it as security for a loan. State tax mailing address Buying property for personal use (present or future) with IRA funds. State tax mailing address Effect on an IRA account. State tax mailing address   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. State tax mailing address Effect on you or your beneficiary. State tax mailing address   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. State tax mailing address If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. State tax mailing address For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. State tax mailing address The distribution may be subject to additional taxes or penalties. State tax mailing address Taxes on prohibited transactions. State tax mailing address   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. State tax mailing address In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. State tax mailing address More information. State tax mailing address   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. State tax mailing address Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. State tax mailing address You may have to pay the 10% additional tax on early distributions, discussed later. State tax mailing address Collectibles. State tax mailing address   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. State tax mailing address Exception. State tax mailing address    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. State tax mailing address S. State tax mailing address gold coins, or one-ounce silver coins minted by the Treasury Department. State tax mailing address It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. State tax mailing address Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. State tax mailing address For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. State tax mailing address Tax on excess contributions. State tax mailing address   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. State tax mailing address You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. State tax mailing address The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. State tax mailing address Excess contributions withdrawn by due date of return. State tax mailing address   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. State tax mailing address You must complete your withdrawal by the date your tax return for that year is due, including extensions. State tax mailing address How to treat withdrawn contributions. State tax mailing address   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. State tax mailing address No deduction was allowed for the excess contribution. State tax mailing address You withdraw the interest or other income earned on the excess contribution. State tax mailing address You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. State tax mailing address If there was a loss, the net income you must withdraw may be a negative amount. State tax mailing address How to treat withdrawn interest or other income. State tax mailing address   You must include in your gross income the interest or other income that was earned on the excess contribution. State tax mailing address Report it on your return for the year in which the excess contribution was made. State tax mailing address Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus
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The State Tax Mailing Address

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