Form 8849 Schedule 5 8849 Schedule 5 Section 4081(e) Claims

Schedule 5 (Form 8849), Section 4081(e) Claims
(Rev. January 2006)
Circulation:

This is the first circulation of Schedule 5 (Form 8849),
Section 4081(e) Claims. Major changes are described on page 2.

TPCC Meeting: None scheduled.
Prior Version: The February 2005 Schedule 5 (Form 8849) may be viewed by clicking on the
following link:
http://publish.no.irs.gov/FORMS/PUBLIC/PDF/27453B05.PDF.
Other Products: Circulations of draft tax forms and instructions are posted at
http://taxforms.web.irs.gov/draft_products.html .
Comments:

Please call, fax, or email any comments by January 26, 2006.
The short comment period is necessary so the form can go to print in
January 2006.

Robert Coar
Tax Law Specialist, SE:W:CAR:MP:T:T:SB
Room 6033, Main IRS
Telephone: 202-622-3795
Fax: 202-622-5004
Email: [email protected]
January 19, 2006

Major Changes,
Schedule 5 (Form 8849), Rev. January 2006
Lines 5-8 incorporate new or revised fuels taxable under section 4081. If a
second tax is paid on fuels taxable under section 4081, section 4081(e) provides
for a refund of the second tax.
Note. Dyed diesel fuel used in trains, inland waterways fuel use, and kerosene
for use in aviation (LUST tax on nontaxable uses) are taxed under sections 4041
or 4042. These fuels are not eligible for a refund under Code section 4081(e) if a
second tax was paid.
1. Revised Line 5 is used for section 4081(e) claims for diesel-water fuel
emulsions, effective after December 31, 2005. Section 1343 of the Energy Policy
Act of 2005, adding new Code section 4081(a)(2)(D).
2. New Line 6 is used for section 4081(e) claims for the LUST tax on the
following fuels: dyed diesel fuel, dyed kerosene, and other exempt removals
(gasoline blendstocks, kerosene used for a feedstock, and diesel fuel or
kerosene used in Alaska), effective after September 30, 2005. Section 1362 of
the Energy Policy Act of 2005, amending Code section 4082(a).
3. New Lines 7 and 8 are used for Section 4081(e) claims for kerosene for use
in aviation if certain conditions are met, effective after September 30, 2005.
Aviation-grade kerosene has been deleted from line 5. Section 11161 of
SAFETAE, amending Code section 4081(a).

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
SCHEDULE 5 (FORM 8849), PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: NONE

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 5
(Form 8849)

Action

Date

O.K. to print
Revised proofs
requested

Section 4081(e) Claims

(Rev. January 2006)

©

Department of the Treasury
Internal Revenue Service
Name as shown on Form 8849

Signature

OMB No. 1545-1420

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Attach to Form 8849. Do not file with any other schedule.
EIN

Total refund (see instructions)

$

Claimant’s registration number.

Part I

©

Claim for Refund of Second Tax

Type of fuel

(a)
Amount of refund

$
Gasoline
Aviation gasoline
Diesel fuel
Kerosene
Diesel-water fuel emulsion
LUST tax, dyed diesel, dyed kerosene, and other exempt removals
Kerosene for use in aviation
Kerosene for use in commercial aviation (other than foreign trade)
Part II
Supporting Information Required. See instructions. If more space is needed, attach separate sheets.
1
2
3
4
5
6
7
8

(b)
CRN

362
324
360
346
391
362
369
355

Claimant certifies that the amount of the second tax has not been included in the price of the fuel, and has not been
collected from the purchaser. Claimant has attached a copy of the First Taxpayer’s Report, and if applicable, a copy
of the Statement of Subsequent Seller.
(c) Type of fuel
(Enter line number
from Part I.)

(d)
Date second tax liability incurred
Use MMDDYYYY format.

(e)
Gallons of fuel claimed

(f)
Amount of second tax paid

$

For Privacy Act and Paperwork Reduction Act Notice, see Form 8849 instructions.

Cat. No. 27453B

Schedule 5 (Form 8849) (Rev. 1-2006)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULE 5 (FORM 8849), PAGE 2 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: Black
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 5 (Form 8849) (Rev. 1-2006)

Page

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Total Refund

Instructions

Section references are to the Internal Revenue Code.

What’s New

add ", effective after September 30, 2005."

● Line 5 is used for section 4081(e) claims for diesel-water
fuel emulsions, effective after December 31, 2005.
● Line 6 is used for section 4081(e) claims for the LUST tax.
See Line 6 below for the fuels applicable on line 6.
● Claims relating to kerosene for use in aviation are
completely revised, effective after September 30, 2005.
Aviation-grade kerosene has been deleted from line 5.
Lines 7 and 8 have been added for kerosene for use in
aviation. For section 4081(e) claims related to aviation-grade
kerosene before October 1, 2005, use the February 2005
revision of Schedule 5 (Form 8849).

Purpose of Schedule

add "See lines 7 and 8 below."

A person who paid the second tax to the government uses
Schedule 5 to make a claim for refund.

Section 4081(e) Claims

add "under section 4081"

Section 4081(e) applies to the fuels listed in Part I.
If two taxes were paid on the fuel for which the claim is
filed, then a claim for refund of the second tax may be made.
Example. Janet is a taxable fuel registrant that owns 10,000
gallons of gasoline that is being transported on a vessel in
the United States. On June 1, 2006, Janet sells the gasoline
to Hazel, a person that is not a taxable fuel registrant. Janet
is liable for tax on this sale. Janet prepares a First Taxpayer’s
Report related to this sale and gives a copy of the report to
Hazel.
On June 4, 2006, Hazel sells the same gallons of gasoline
to Caroline, a taxable fuel registrant. Hazel also gives
Caroline a copy of Janet’s First Taxpayer’s Report and a
Statement of Subsequent Seller. On June 9, 2006, the
gasoline is removed from a terminal at the rack. Caroline is
the position holder of the gasoline at the time of the removal
and thus is liable for tax on the removal. Caroline pays this
tax to the government.
After Caroline has filed a return of this second tax, Caroline
files Form 8849 and Schedule 5 for a refund for the second
tax and includes a copy of the First Taxpayer’s Report and
Statement of Subsequent Seller. In Part I of Schedule 5,
Caroline enters “1840.00” in column 1(a). In Part II, Caroline
enters “1” in column (c); “06092005” in column (d);
“10000.00” in column (e); and “1840.00” in column (f).

Claimant

2

change to 6

The person who paid the second tax to the government is
the only person eligible to make this claim.

Claim Requirement
Generally, the claim must be filed within 3 years from the
time the return for the second tax was filed or 2 years from
the time the second tax was paid to the government,
whichever is later.

Add all amounts in column (a) and enter the result in the
total refund box at the top of the Schedule.

Part I

add "such as"

For each type of fuel, enter the total of all amounts from
column (f), Part II.
Line 6. Section 4081(e) claims can be made on line 6 for the
LUST tax on the following fuels: dyed diesel fuel, dyed
kerosene, and other exempt removals (gasoline blendstocks,
kerosene used for a feedstock, and diesel fuel or kerosene
used in Alaska). Effective after September 30, 2005.
Lines 7 and 8. Section 4081(e) claims can be made for
kerosene for use in aviation if certain conditions are met.
Example. UA buys kerosene at a terminal rack. Tax is
imposed on the removal of the kerosene at the terminal rack
(removal A). The kerosene will be trucked to an airport and
then stored in a terminal at the airport. The airport terminal is
part of the bulk transfer/terminal system. Tax is imposed on
the removal of the kerosene from the airport terminal for use
in aviation (removal B).
The second taxpayer is generally the position holder of the
kerosene at the airport terminal. However, if the kerosene is
for use in commercial aviation, the aircraft operator may be
the second taxpayer. The second taxpayer can file a section
4081(e) claim for the tax imposed on the removal of the
kerosene from the airport terminal (removal B).
Claims for the tax imposed on the kerosene in removal A
and subsequently used in aviation are made using
Schedule 1 or Schedule 2 of Form 8849, as applicable. The
section 4081(e) claim cannot be combined with any other
claim.
add "The following is an example of when line 7 and 8
Part II
may be used for a section 4081(e) claim. X buys.."
For each payment of a second tax, complete all the
information required.

Information to be Attached
1. A copy of the First Taxpayer’s Report that relates to the
fuel covered by each claim and
2. If the fuel covered by the claim was bought from
someone other than the first taxpayer, a copy of the
Statement of Subsequent Seller that the claimant received
with respect to that fuel.
The First Taxpayer’s Report and Statement of Subsequent
Seller must contain all the information as shown in Model
Certificates A and B in Appendix B of Pub. 510.

How To File
Attach Schedule 5 to Form 8849. On the envelope write
“Section 4081(e) Claim” and mail to the IRS at the address
under Where To File in the Form 8849 instructions.