Form Schedule 1 (Form 8 Schedule 1 (Form 8 Nontaxable Use of Fuels

Schedule 1 (Form 8849), Nontaxable Use of Fuels (Rev. 7-2007)
Purpose: This is the first circulated draft of Schedule 1 (Form 8849) for your review and
comments. See below for a discussion of the major changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The February 2007 Schedule 1 (Form 8849) is available at:
http://www.irs.gov/pub/irs-pdf/f8849s1.pdf.
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/draft_products.html.
Comments: Please email, fax, call, or mail any comments by July 27, 2007, to me and
email the form’s reviewer, Ron Gamble, at [email protected].

Michael Ecker
Tax Law Specialist
SE:W:CAR:MP:T:B:P
NCFB C7-265
Phone: 202-283-0196
Fax: 202-283-7008
Email: [email protected]

Major Changes
Form
• Line 4. We added lines 4e and 4f to capture claims for kerosene purchased at
$.044 and $.219 (aviation rates). The ultimate purchaser can make a claim on
these lines for kerosene used outside the propulsion system of an aircraft. This is a
general nontaxable use under IRC 6427(l)(1). This change is being made under
guidance from Chief Counsel, PSI:7.
Line 4e: Nontaxable use taxed at $.044; Rate: $.043; CRN: 377
Line 4f: Nontaxable use taxed at $.219; Rate: $.218; CRN 369
•

We deleted line 6 because it was only applicable to liquefied petroleum gas
purchased before October 1, 2006. All subsequent lines are renumbered.

Instructions
• Under Line 2, Allowable uses, we added types of use 2 and 8 for line 2b.
• Under Line 4, Allowable uses, we added types of use 2 and 8 for lines 4e and 4f.
• We deleted line 6 because it was only applicable to liquefied petroleum gas
purchased before October 1, 2006. All subsequent lines are renumbered.

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
SCHEDULE 1, FORM 8849, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 884mm (34") 3 279mm (11"), FOLD TO: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD

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

Schedule 1
(Form 8849)

Action

Date

Signature

O.K. to print
Revised proofs
requested

Nontaxable Use of Fuels
©

(Rev. July 2007)
Department of the Treasury
Internal Revenue Service
Name as shown on Form 8849

f
o

Attach to Form 8849.
©

See instructions.
EIN or SSN

OMB No. 1545-1420

Total refund (see instructions)

$

s
a

Caution. Claimant has the name and address of the person who sold the fuel to the claimant and the dates of purchase. For
claims on lines 1a and 2b (type of use 13 and 14), 3e, 4c, and 5, claimant has not waived the right to make the claim. For claims
on lines 1a and 2b (types of use 13 and 14), claimant certifies that a certificate has not been provided to the credit card issuer.

t
f
ra

Period of claim: Enter month, day, and year
in MMDDYYYY format.

1

Nontaxable Use of Gasoline
a Gasoline (see Caution above line 1)
b Exported

2

From

(a) Type (b) Rate
of use

D

Nontaxable Use of Aviation Gasoline

$

.15
.193
.194

(d) Amount of refund

(c) Gallons

0
/2

Multiply col. (b) by col. (c)

$

3
/0

7
0

Nontaxable Use of Undyed Diesel Fuel

7
0

©

To

$ .183
.184

a Use in commercial aviation
(other than foreign trade)
b Other nontaxable use (see Caution above line 1)
c Exported

3

©

$

(e)
CRN

362
411
354
324
412

Claimant certifies that the diesel fuel did not contain visible evidence of dye.
Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation
©
and check here
(a) Type (b) Rate
of use

a
b
c
d

4

Nontaxable use
Use on a farm for farming purposes
Use in trains (before January 1, 2007)
Use in trains (after December 31, 2006)

$ .243
.243
.22
.243

e Use in certain intercity and local buses
(see Caution above line 1)
f Exported

.17
.244

(c) Gallons

(d) Amount of refund
Multiply col. (b) by col. (c)

%$

(e)
CRN

360
353
353
350
413

Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation)
Claimant certifies that the kerosene did not contain visible evidence of dye.
Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach a detailed explanation
©
and check here
Caution. Claims cannot be made on line 4 for kerosene sales from a blocked pump. Only registered ultimate vendors may
make those claims using Schedule 2.

Remove
shading
from lines
4e and 4f.

(a) Type (b) Rate
of use

a Nontaxable use taxed at $.244
b Use on a farm for farming purposes
c Use in certain intercity and local buses
(see Caution above line 1)
d Exported
e Nontaxable use taxed at $.044
f Nontaxable use taxed at $.219

5

(c) Gallons

(d) Amount of refund
Multiply col. (b) by col. (c)

%$

$ .243
.243

(e)
CRN

346
347
414
377
369

.17
.244
.043
.218

Kerosene Used in Aviation (see Caution above line 1)
(a) Type (b) Rate
of use

(c) Gallons

(d) Amount of refund
Multiply col. (b) by col. (c)

(e)
CRN

$

417

a Kerosene used in commercial aviation
(other than foreign trade) taxed at $.244

.200

b Kerosene used in commercial aviation
(other than foreign trade) taxed at $.219

.175

355

c Nontaxable use (other than use by state or
local government) taxed at $.244

.243

346

d Nontaxable use (other than by state or local
government) taxed at $.219

.218

369

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

Cat. No. 27449T

Schedule 1 (Form 8849) (Rev. 7-2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULE 1, FORM 8849, PAGE 2 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 884mm (34") 3 279mm (11"), FOLD TO: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 1 (Form 8849) (Rev. 7-2007)

67

Page

2

Nontaxable Use of Alternative Fuel (after September 30, 2006)

f
o
s
a
7
t
0
f
0
a
2
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7
0

Caution. There is a reduced credit rate for use in certain intercity and local buses (type of use 5). See page 4 for the credit rate.
(a) Type
of use (b) Rate

a
b
c
d
e

Liquefied petroleum gas (LPG)
“P Series” fuels
Compressed natural gas (CNG) (GGE=126.67 cu. ft.)
Liquefied hydrogen
Any liquid fuel derived from coal (including peat)
through the Fischer-Tropsch process
f Liquid hydrocarbons derived from biomass
g Liquefied natural gas (LNG)
78

(e)
(c) Gallons or gasoline
(d) Amount of refund
gallon equivalents (GGE) Multiply col. (b) by col. (c) CRN

$ .183
.183
.183
.183

$

.243
.243
.243

419
420
421
422
423
424
425

Nontaxable Use of a Diesel-Water Fuel Emulsion

Caution. There is a reduced credit rate for use in certain intercity and local buses (type of use 5). See page 4 for the credit rate.
(a) Type
of use (b) Rate

a Nontaxable use
b Exported
8
9

Exported Dyed Fuel

$ .197
.198

(a) Type
of use (b) Rate

a Exported dyed diesel fuel
b Exported dyed kerosene

(c) Gallons

$ .001
.001

(e)
(d) Amount of refund
Multiply col. (b) by col. (c) CRN

$

(c) Gallons

309
306

(e)
(d) Amount of refund
Multiply col. (b) by col. (c) CRN

$

415
416

Schedule 1 (Form 8849) (Rev. 7-2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Schedule 1, Form 8849, PAGE 3 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: Black
FLAT SIZE: 884 mm (34") x 279 mm (11") FOLD TO: 216 mm (81⁄ 2 ") x 279 mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 1 (Form 8849) (Rev. 7-2007)

Instructions
What’s New

Page

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Use line 2b to make a claim for aviation gasoline used
outside the propulsion system of an aircraft. Depending on
the tax rate of the kerosene, use line 4a, 4e, or 4f to make a
claim for kerosene used outside the propulsion system of an
aircraft.

Purpose of Schedule

An ultimate purchaser of certain fuels uses Schedule 1 to
make a claim for refund. The fuels for which a claim can be
made are listed on the form. The fuel must have been used
in a nontaxable use. See Type of Use below and the
instructions for lines 1 through 8
9 for more information.

Claim Requirements
The following requirements must be met.

3

1. The amount claimed on Schedule 1 must be at least
$750. This amount may be met by:
a. Making a claim for fuel used during any quarter of a
claimant’s income tax year or

b. Aggregating amounts from any quarters of the claimant’s
income tax year for which no other claim has been made.
2. The claim must be filed during the first quarter following
the last quarter included in the claim. For example, a claim
for the quarters consisting of July through September and
October through December must be filed between January 1
and March 31.
3. Only one claim may be filed for a quarter.
Note. If requirements 1–3 above are not met, see Annual
Claims in the Form 8849 instructions.

Total Refund
Add all amounts in column (d) and enter the result in the
total refund box at the top of the schedule.

Type of Use
The fuel must have been used for one or more of the types
of use listed in the instructions for lines 1 through 78. The
nontaxable uses are listed in the Type of Use Table in the
Form 8849 instructions.
Exported taxable fuel. The claim rates for exported taxable
fuel are listed on lines 1b, 2c, 3f, 4d, 9a, and 9b. Taxpayers
making a claim for exported taxable fuel must include with
their records proof of exportation. Proof of exportation
includes:
● A copy of the export bill of lading issued by the delivering
carrier,
● A certificate by the agent or representative of the export
carrier showing actual exportation of the fuel,
● A certificate of lading signed by a customs officer of the
foreign country to which the fuel is exported, or
● A statement of the foreign consignee showing receipt of
the fuel.

How To File
Attach Schedule 1 to Form 8849. Mail to the IRS at the
address under Where To File in the Form 8849 instructions.

Line 1. Nontaxable Use of Gasoline
Allowable uses. For line 1a, the gasoline must have been
used during the period of claim for type of use 2, 4, 5, 7, 11,
12, 13, 14, or 15. Type of use 2 does not include any personal
use or use in a motorboat. See Type of use 13 and 14 in the
Form 8849 instructions.

For line 1b, the gasoline must have been exported during
the period of claim (Type of use 3). See Exported taxable fuel
earlier.

Line 2. Nontaxable Use of Aviation Gasoline
Allowable uses. For line 2b, the aviation gasoline must have
been used during the period of claim for type of use 2, 8, 9,
10, 11, 13, 14, 15, or 16. Type of use 2 and 8 are for use
outside the propulsion system of an aircraft. For example,
type of use 2 and 8 include use in an aircraft’s auxiliary
power unit. See Type of use 13 and 14 in the Form 8849
instructions.

For line 2c, the aviation gasoline must have been exported
during the period of claim (Type of use 3). See Exported
taxable fuel earlier.

Line 3. Nontaxable Use of Undyed Diesel Fuel
Allowable uses. For line 3a, the diesel fuel must have been
used during the period of claim for type of use 2, 5, 6, 7, 8, 11,
12, 13, 14, or 15. Type of use 8 includes use as heating oil and
use in a boat. Type of use 2 does not include any personal use
or use in a motorboat. See Type of use 13 and 14 in the Form
8849 instructions.
For line 3f, the diesel fuel must have been exported during
the period of claim (Type of use 3). See Exported taxable fuel
earlier.

Line 4. Nontaxable Use of Undyed Kerosene (Other
Than Kerosene Used in Aviation)
Allowable uses. For line 4a, the kerosene must have been
used during the period of claim for type of use 2, 6, 7, 8, 11,
12, 13, 14, 15, or 16. Type of use 8 includes use as heating oil
and use in a boat. Type of use 2 does not include any
personal use or use in a motorboat. See Type of use 13 and
14 in the Form 8849 instructions.
For line 4d, the kerosene must have been exported during
the period of claim (Type of use 3). See Exported taxable fuel
earlier.
For lines 4e and 4f, the kerosene must have been used
during the period of claim for type of use 2 or 8. Type of use 2
and 8 are for use outside the propulsion system of an aircraft.
For example, type of use 2 and 8 include use in an aircraft’s
auxiliary power unit.

Line 5. Kerosene Used in Aviation
Claimant. Claimant certifies that the right to make the claim
has not been waived. For lines 5a and 5b, the ultimate
purchaser of kerosene used in commercial aviation (other
than foreign trade) is eligible to make this claim.
For lines 5c and 5d, the ultimate purchaser of kerosene
used in noncommercial aviation (except for nonexempt
noncommercial aviation and exclusive use by a state,
political subdivision of a state, or the District of Columbia) is
eligible to make this claim. For sales after December 19,
2006, the ultimate purchaser certifies that the right to make
this claim has not been waived. For sales before December
20, 2006, the ultimate purchaser is not eligible to make this
claim if the ultimate vendor did not include the tax in the
price of the kerosene and has not collected the tax from the
ultimate purchaser, has repaid the tax to the ultimate
purchaser, or has the written consent of the ultimate
purchaser waiving the right to make this claim.
Allowable uses. For lines 5a and 5b, if the claimant buys
kerosene partly for use in commercial aviation and partly for
use in noncommercial aviation, see the rules in Notice
2005-80, section 3(e)(3).
For lines 5c and 5d, the kerosene must have been used
during the period of claim for type of use 1, 9, 10, 11, 13, 15,
or 16.

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Schedule 1, Form 8849, PAGE 4 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: Black
FLAT SIZE: 884 mm (34") x 279 mm (11") FOLD TO: 216 mm (81⁄ 2 ") x 279 mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule 1 (Form 8849) (Rev. 7-2007)

Page

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Line 6.
7. Nontaxable Use of Alternative Fuel

Allowable uses. The taxed alternative fuel must have been
used during the period of claim for type of use 1, 2, 4, 5, 6,
7, 11, 13, 14, or 15.

Type of use 5. Write “Bus” in the space to the left of column
(a). Enter the correct credit rate in column (b). The credit
rates for type of use 5 are listed below.
Line number

Credit rate

6a

$.109

6b

.110

6c
6d
6e
6f
6g

4

Line 7. Nontaxable Use of a Diesel-Water Fuel
Emulsion
Allowable uses. For line 7a, the diesel-water fuel emulsion
must have been used during the period of claim for type of
use 1, 2, 5, 6, 7, 8, 11, 12, 13, 14, or 15. For line 7b, the
diesel-water fuel emulsion must have been exported during
the period of claim (Type of use 3). See Exported taxable fuel
on page 3.
Type of use 5. Write “Bus” in the space to the left of column
(a). Enter the correct credit rate in column (b). The credit rate
for type of use 5 is $.124 per gallon.

Line 8. Exported Dyed Fuel

.109*

A claim may be made for dyed diesel fuel or dyed kerosene
exported in a trade or business during the period of claim.
See Exported taxable fuel on page 3.

.110
.17
.17

.169

*This is the credit rate per gasoline gallon equivalent (126.67 cubic feet of CNG).

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