Notice 2005-4, Fuel Tax Guidance, as modified

OMB No. 1545-1915
Model Certificate

see § 4 of this notice. Noncommercial
aviation means any use of an aircraft not
described in § 4083(b). An ultimate vendor is a person that sells kerosene to an
ultimate purchaser for use in noncommercial aviation or foreign trade.
(2) Conditions to allowance of credit
or payment. A claim for an income tax
credit or payment with respect to kerosene
is allowable under § 6427(l)(5)(B) if—
(i) Tax was imposed on the kerosene
under § 4081;
(ii) The claimant sold the kerosene to
the ultimate purchaser for use in noncommercial aviation or foreign trade;
(iii) The claimant is a registered ultimate vendor;
(iv) The ultimate purchaser has provided a Certificate of Ultimate Purchaser
of Kerosene for Use in Foreign Trade or

Use (Other than by State or Local Government) in Noncommercial Aviation to the
ultimate vendor as provided in paragraph
(f)(4) of this section; and
(v) The claimant has filed a timely
claim for a credit or payment and the
claim contains all the information required
in paragraph (f)(3) of this section.
(3) Form of claim; content of claim.
Rules similar to the rules in § 4(h)(4)
and (5) of Notice 2005–4 are applicable
to claims for credit or payment under
§ 6427(l)(5)(B), except that the claimant
is not required to satisfy § 4(h)(5)(iv) of
Notice 2005–4 (relating to possession of a
waiver by the ultimate purchaser).
(4) Certificate—(i) In general. The certificate to be provided to the ultimate vendor for purposes of § 6427(l)(5)(B) consists of a statement that is signed under

penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate in paragraph (f)(4)(ii) of this section
and contains all of the information necessary to complete such model certificate. A
new certificate must be given if any information in the current certificate changes.
The claimant must have the certificate at
the time the credit or payment is claimed
under § 6427(l)(5)(B). The certificate may
be included as part of any business records
normally used to document a sale. The certificate expires on the earlier of the following dates:
(A) The date one year after the effective
date of the certificate.
(B) The date a new certificate is provided.
(ii) Model certificate.

CERTIFICATE OF ULTIMATE PURCHASER OF KEROSENE FOR USE IN FOREIGN
TRADE OR USE (OTHER THAN BY STATE OR LOCAL GOVERNMENT) IN
NONCOMMERCIAL AVIATION
(To support vendor’s claim for a credit or payment under § 6427(l)(5)(B) of the Internal Revenue Code.)

Name, address, and employer identification number of ultimate vendor
The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:
The kerosene to which this certificate relates is purchased (check one):
for use on a farm for farming purposes;
for use in foreign trade (reciprocal benefits required for foreign registered airlines);
for use in certain
helicopter and fixed-wing air ambulance uses;
for the exclusive use of a nonprofit educational organization;
for use in an aircraft owned by an aircraft museum;
for use in military aircraft; or
for a nonexempt use
in noncommercial aviation.
This certificate applies to the following (complete as applicable):
This is a single purchase certificate:
1.

Invoice or delivery ticket number

2.

Number of gallons

This is a certificate covering all purchases under a specified account or order number:
1. Effective date
2. Expiration date

(period not to exceed 1 year after the effective date)

3. Buyer account number
Buyer will provide a new certificate to the vendor if any information in this certificate changes.
If Buyer uses the kerosene to which this certificate relates for a use other than the nontaxable use stated above, Buyer
will be liable for tax.
Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of
this certificate to a fine or imprisonment, or both, together with the costs of prosecution.

November 14, 2005

955

2005–46 I.R.B.

Printed or typed name of person signing
Title of person signing
Name of Buyer
Employer identification number
Address of Buyer
Signature and date signed
(iii) Transition rules. A Waiver for Use
by Ultimate Purchasers of Aviation-Grade
Kerosene Used in Nontaxable Uses executed before October 1, 2005, as described
in § 4(h)(6) of Notice 2005–4, will be
treated as a certificate described in this section, and a new certificate will not have to
be given until such waiver expires. In addition, for kerosene sold for a nonexempt
use in noncommercial aviation, the business records used to document sales occurring before November 1, 2005, will be
treated as a certificate described in this section (unless the records clearly establish
that the kerosene will be used on the highway).
(5) Registration. Claims under this
paragraph (f) may be made only by a registered ultimate vendor. Registration rules
similar to those in § 4(h)(7) of Notice
2005–4 are applicable to ultimate vendors
of kerosene used in foreign trade or used
(other than by a state or local government)
in noncommercial aviation. A person that
is registered under § 4101 under Activity
Letter “UA” (Ultimate vendor that sells
aviation-grade kerosene for a nontaxable
use or any use in commercial aviation) is
treated as registered for purposes of claims
filed with respect to kerosene used in foreign trade or used (other than by a state
or local government) in noncommercial
aviation. In addition, for claims relating to
sales before January 1, 2006, for a nonexempt use in noncommercial aviation, an
ultimate vendor that has obtained a valid
TIN will be treated as registered.
(g) Claims for kerosene used by states
and local governments. For rules relating
to claims by registered ultimate vendors
of kerosene used in aviation by state and

2005–46 I.R.B.

local governments, see § 4 of this notice
and § 48.6427–9.
(h) Effective date. Except as otherwise
noted, this section is effective October 1,
2005, and applies to kerosene on which tax
is imposed after September 30, 2005. A
person making a claim for credit or payment under paragraph (e) or (f) of this section may use any reasonable method and
assumptions to establish that tax was imposed after September 30, 2005, on the
kerosene to which the claim relates.
Section 4. TAXABLE FUEL; CLAIMS
BY CREDIT CARD ISSUERS
(a) Overview.
This section describes the changes made by § 11163
of SAFETEA under which a person extending credit on a credit card (credit card
issuer) may claim a credit, refund, or payment with respect to taxable fuel sold to a
state or local government for its exclusive
use or to a nonprofit educational organization for its exclusive use (exempt users).
Section 7 of Notice 2005–4 is modified
in accordance with these changes, as explained in this section.
(b) Identity of the claimant—(1) Gasoline—(i) Section 6416(b)(2) generally
provides that the tax paid on gasoline is
deemed to be an overpayment if the gasoline was sold to an exempt user. Section
6402(a) generally allows credits or refunds
of overpayments to the person that made
the overpayment (that is, the person that
paid the tax to the government).
(ii) If gasoline is purchased with a
credit card issued to an exempt user,
§ 6416(a)(4)(B) provides that the credit
card issuer is treated as the person that paid
the tax if prescribed conditions are met.

956

Among other conditions, the credit card
issuer must be registered by the Service.
(iii) If gasoline is purchased by an exempt user without the use of a credit card,
§ 6416(a)(4)(A) provides that the ultimate
vendor of the gasoline is treated as the person (and the only person) that paid the tax,
but only if the vendor is registered by the
Service.
(iv) Guidance for claims made by ultimate vendors under § 6416(a)(4) and
(b)(2) is set forth in § 7 of Notice 2005–4.
The guidance set forth in § 7(a)(1)(ii) of
Notice 2005–4 and § 2 of Notice 2005–24
(relating to oil company credit cards) does
not apply to sales after December 31,
2005.
(v) If the conditions of § 6416(a)(4) are
not met, a claim under § 6416 may not be
made by the person that actually paid the
tax to the government. Instead, the exempt
user may make a claim under § 6421(c).
For any particular transaction, a claim may
not be made under § 6421(c) if the tax is
credited or refunded under § 6416 to the
credit card issuer or the ultimate vendor.
(2) Diesel fuel and kerosene—(i) If
taxed diesel fuel or kerosene is purchased with a credit card issued to a state,
§ 6427(l)(6)(D) provides that the credit
card issuer may, under prescribed conditions, claim a credit or payment related
to the tax. Among other conditions, the
credit card issuer must be registered by the
Service.
(ii) If diesel fuel or kerosene is purchased by a state without the use of a credit
card, § 6427(l)(6)(C) provides that the ultimate vendor of the diesel fuel or kerosene
may claim a credit or payment related to
the tax, but only if the vendor is registered
by the Service and other prescribed con-

November 14, 2005